Beware of Loan Modification Ripoffs!
September 1, 2009 | Loan Modification
Unfortunately there are people out there that will take advantage of you when you are down. These lowlifes will prey on you when you are desperate and in need of help. They’ll use your own good nature against you. These so called “Loan Modification” companies will gladly charge you $1,250 to $3,000 or more to supposedly negotiate a loan modification and never even make one phone call to your lender.
Sure they make claims about their experience and successes. They’re very personable and will act like your friend just to win you over. At $1,250 to $3,000 it is easy to see why they would, after all this is the only work they are going to do to get your money.
If you’re looking for someone to help you with a loan modification, then seek out companies that will only charge you when they are successful or companies that will hold your fees in escrow with a reputable title or escrow company. Google any loan modification company you are considering working with and find out what is being said about them.
If you are currently working with or are planning on working with a loan modification company, then contact your lender every couple of weeks to insure that the loan modification company has contacted them and are actively pursuing your loan modification.
While your situation may seem desperate, please don’t act desperately by making costly decisions that will cost you not only the money they steal from you but more importantly the valuable time you need to resolve your foreclosure.
Your lender is motivated to work with you to solve your foreclosure as it is also in their best interest. You should consider contacting your lender and negotiating your own loan modification. While you may not be comfortable with this idea at first, but who better to represent and protect your interests than you? Please see our post “How to Arrange a Loan Modification with Your Lender”.
