| How Can You Prevent Loan Modification Fraud |
It seems that many of the same brokers responsible for the mortgage meltdown are the same ones who are now offering loan modification programs to struggling homeowners trying to hold on to their homes. There are new companies popping up everywhere that claim they will help you modify your loan and help you gain control of your finances. Before you become a victim yet again, it's best to do your homework and check up on the company offering you salvation.
First and foremost, check out the company's credentials. You can easily check online and see how long the company has been in business. A call to your local Better Business Bureau can also help you make a determination as to their validity. The majority of these companies charge an upfront fee. Many of them have a set fee and will ask you for a portion of the money upon taking your case, another payment when a modification is approved, and a final payment when the modification papers have been executed. Most lenders will also require you to pay for an appraisal so they can determine how much your house has depreciated. As laws vary from state to state, it's best to consult with an attorney in your area. There are attorneys who take cases on a pro bono basis (no charge). You can also check with your Secretary of State as to what laws are in effect when it comes to modification fees. In the State of Florida, any company providing modification services must have an attorney on hand who meets with the customer to discuss their particular situation. All monies paid are paid directly to the attorney's trust account. An attorney will help you better understand the legal ramifications of modification and what if any negative effects it can cause.
Remember, that even though you pay for their services, most companies will not guarantee that your bank will modify. You must provide them with all requested documentation. The lender will want to review your current pay stubs, payment history, current budget, and possibly income tax returns. Based on their prior experience with your particular lender, they might assure you that it can be done, however, it is the lender who has the final say in the matter. In most cases, any fees paid upfront are non-refundable so be sure you understand the process before you pay. Call several companies and ask what their fees are. If you make an appointment, ask them if an attorney will be present. If not, ask if you can take one. This will usually help you weed out scammers and those that don't have your best interests at heart.
For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: http://MortgageModificationLoan.net/
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