financialcounselor

Beware Loan Modification Scams

In Uncategorized on June 14, 2012 at 11:32 pm

LEGITIMATE SOUNDING COMPANIES AND ACTUAL LAW FIRMS ARE SCAMMING PEOPLE DESPERATE TO QUALIFY FOR A LOAN MODIFICATION

 

In case you’ve been living on Jupiter for the past four years, a lot of people in America have been losing their homes to foreclosure. And the government has trotted out a bunch of programs to help people save their home. If you’ve read much of this blog of mine, you know that a lot of the stories I write about are the nightmares that people go through trying to qualify for these government programs.
Well, a whole cottage industry of scams has sprung up because of this foreclosure mess. A whole array of degenerate con artists is out there preying on people desperate to get accepted into the government’s housing assistance programs. And I talk to people all the time who’ve handed over their hard-earned money to these creeps who make people believe that they can make that happen.
So, if you have applied for a mortgage-assistance program through your mortgage company, or if  you’re thinking about doing so, please, for the love of God, remember this one thing: Nobody can influence the mortgage company’s decision about whether or not to help you, no matter how much you pay them.
Now let me give a run down on how these scams work. A lot of them are operated by lawyers and law firms. Big surprise there, right? Others are operated by “loan modification companies,” or “loan modification experts.” Here’s their basic hook: They tell people that because they are lawyers, or because they are experts, they can negotiate with the mortgage company. Sometimes they’ll promise to get a house payment lowered, or sometimes they’ll just say, “Hey, you know you can’t afford your mortgage, so what have you got to lose by hiring us?”
I’ll tell you what the homeowner loses every time–the hundreds or the thousands of dollars these bums charge.
See, here’s why these lawyers and experts can’t help. The mortgage company works for the entity that owns the mortgage. That entity is called the mortgage investor. The mortgage debt is owed to the investor, and it’s the investor who tells the mortgage company the criteria for putting homeowners into these housing programs. The mortgage company doesn’t just pick people’s names out of a hat like they’re raffling off Christmas turkeys. I mean, we’re talking about hundreds of thousands of dollars at stake here.
But because the application process to get help can be such a nightmare, many homeowners feel powerless and desperate. And it’s that desperation the con artists prey on. A lot of these vultures will run very legitimate-looking advertisements. Still others solicit to homeowners directly. However you might run across them, just remember, if all it takes to save your house is a few hundred or a few thousand bucks, then why are the foreclosure rates the highest they’ve been since the Great Depression?

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