Wednesday, January 14, 2009
Beware of Loan Mod Scams!
Dear Sue,
I have a great job and a wonderful family. My husband and I both worked to pay the mortgage on our beautiful home.
He passed away three years ago. Since then I have been taking money from our savings to make the payments.
I worked through an on-line loan modification company and was turned down. It was suggested that I sign a deed in lieu of foreclosure. I couldn’t believe that my only recourse was to give up my home. I simply signed my home over to the lender. We not only had a lot of years in our home, we also put a lot of money into it.
Within weeks the lender turned around and sold our house for half of the loan balance. I am furious!
I could have easily kept our home if I had been given the opportunity to have it for half of what I owed.
I checked with my attorney to see if I had any legal recourse. It seems as if I don’t.
How do I go about finding out if the loan-modification company is legitimate?
Furious Fran
Dear Fran,
First it’s important that you understand that lenders are ill prepared for the onslaught of loan modification requests. They are inexperienced and under staffed and are being forced to learn as they go.
Loan modification companies that negotiate short sales, various modifications to the loans, short sale refinances, stream- lined refinance loans and every other type of rescue plan, are popping up everywhere.
Beware! Many of these companies are unlicensed scam artists! Check the company out through the Department of Real Estate. Be particularly cautious if the company is asking for fees in advance.
A legitimate loan modification company is required to be licensed. If they collect advance fees they must have approval from DRE. Go online to dre.ca.gov and search for the list of all approved loan modification companies.
No matter whom you are working with, always consult your attorney before signing anything! It’s a matter of good Home $$s and Sense!
I have a great job and a wonderful family. My husband and I both worked to pay the mortgage on our beautiful home.
He passed away three years ago. Since then I have been taking money from our savings to make the payments.
I worked through an on-line loan modification company and was turned down. It was suggested that I sign a deed in lieu of foreclosure. I couldn’t believe that my only recourse was to give up my home. I simply signed my home over to the lender. We not only had a lot of years in our home, we also put a lot of money into it.
Within weeks the lender turned around and sold our house for half of the loan balance. I am furious!
I could have easily kept our home if I had been given the opportunity to have it for half of what I owed.
I checked with my attorney to see if I had any legal recourse. It seems as if I don’t.
How do I go about finding out if the loan-modification company is legitimate?
Furious Fran
Dear Fran,
First it’s important that you understand that lenders are ill prepared for the onslaught of loan modification requests. They are inexperienced and under staffed and are being forced to learn as they go.
Loan modification companies that negotiate short sales, various modifications to the loans, short sale refinances, stream- lined refinance loans and every other type of rescue plan, are popping up everywhere.
Beware! Many of these companies are unlicensed scam artists! Check the company out through the Department of Real Estate. Be particularly cautious if the company is asking for fees in advance.
A legitimate loan modification company is required to be licensed. If they collect advance fees they must have approval from DRE. Go online to dre.ca.gov and search for the list of all approved loan modification companies.
No matter whom you are working with, always consult your attorney before signing anything! It’s a matter of good Home $$s and Sense!
# posted by Sue Thompson @ 12:52 PM 
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Thanks for the reminders! There are many loan modification websites and we should be careful enough to check if they are legal or not..
Beware of illegal loan modification companies! If you ask, which ones are illegal? The answer is NEARLY ALL OF THEM ARE OPERATING ILLEGALLY. I had friends that were royally screwed by a loan mod company. In the process I helped them find out more about their rights and found this website that says all the laws for these companies. Many may not even be aware of the laws they are breaking, but anyone who paid them, it turns out, is entitled to all their money back. It is advisable to inform your local better business bureau and other watchdog groups, but unfortunately they are limited in what they can do to help you get back the money you've already parted with. Fortunately my friends used thehot line on that site to contact an attorney and they got all $4000 back from this scam company. If you've been a victim of loan modification fraud, I HIGHLY recommend that do not lose any more time and find out more about your rights. This was the website, super helpful! http://loanfraudrecovery.org/
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