Debt Scam

Debt Scam

Debt Scam
Modification Loan Fraud Scam

The debt scams being perpetrated on desperate homeowners have produced a new breed of predatory debt service providers. Their ranks include unscrupulous loan providers, brokers, former real estate agents and even some lawyers.

Don't put your mortgage in their hands before reading our scam report. The truth is, you can get a mortgage modification on your own if you are educated, patient, produce correct documentation, meet the loan requirements, and are a good negotiator. If you're lacking in one of those areas and considering getting assistance, just know the signs of predatory debt scams.

Scam Report - Red Flag Signs
1.) Make sure they have a physical business address and a phone number.
2.) Never pay up front fees.
3.) They give you a great guarantee - everyone must qualify and meet certain requirements.
4.) There is not one way to go about this, every lender is different
5.) They offer you a refund of your advanced fee if they can't get you a modification.
6.) They promise you an unrealistically large savings.
7.) They're not a member of the Better Business Bureau.
8.) They're not certified by the Department of Housing and Urban Development
8.) Never make a house payment directly to them.
9.) Never sign a  Transfer of Title.
10.) They claim they know short cuts - there aren't any.
11.) If they tell you to stop making your house payment.
12.) If they tell you not to talk to the lender.
13.) If they try to frighten you into signing up.
14.) If you have received a Notice of Default.15.) They offer to pay off your mortgage debt and you can rent until you're ready to buy back.
16.) Don't sign anything that gives them the Title without an attorney checking it over; stop the scam artist.

Many states make it illegal for them to take an advanced fee. But they still may ask for the fee up front since enforcement on this is not good and under $500.00 is only a misdemeanor. Know that they will likely take that deposit and never do any negotiating.

Some provide this service for free or even take a small payment only if they can get you the loan modification. Not everyone qualifies. The bottom line is that you must have a proposal of payments that you are capable of making. Multiple loans take more effort because you are dealing with more than one lender.

Contact your lender to see if they have a loan modification program in place and recognize that all lenders are swamped and some are more difficult to work with. The program Hope for Homeowners failed in its efforts to modify mortgages to today's value, but the FDIC is looking into new steps that could help this program.

Contact Information

Photo of Victoria's Luxury Home Team Real Estate
Victoria's Luxury Home Team
The Danberry Co. Realtors
3555 Briarfield
Maumee OH 43537
Cell : 419-460-5587