Don't Pay Upfront Fees For Loan Modifications
Today with the sluggish economy and the downturn in the housing market many companies are now offering loan modifications
. There are a lot of companies that are legitimate. However, there are also a lot of scams going on to try to take your money without delivering anything. Many companies want to receive a fee upfront before doing anything to help you get a mortgage modification.Upfront fees are usually nonrefundable even if you are not satisfied with the results. It has gotten so out of hand that the Federal Trade Commission is considering a total ban on such fees. There are scammers who are preying on people who are in danger of losing their homes. These people are asking for $1,000 to $3,000 in upfront fees from people who can't even afford to make their loan payments.
State of Connecticut passed a law that bans upfront fees. It now also requires anyone dealing with loan modification services to be bonded and licensed. The Attorney General's office is handling more than 100 complaints involving debt negotiators. The scams involve people calling themselves "debt negotiators" who claim to help consumers with loan modifications. They charge a hefty upfront fee and are usually never heard from again.
If a company asks for an such fee, a big red flag should go up in your mind. These fraudulent companies are popping up everywhere. The problem is so bad that upfront fees are banned in 20 states. California recently passed a bill banning upfront fees for loan modifications, which covers anyone asking for the fee, including lawyers. There had been a huge number of complaints to the state Department of Real Estate from consumers who had paid up to $4,000 dollars in upfront fees and got nothing in return.
If you contact a company about a loan modification and they ask for upfront fees, don't go any further. They do not have your best interest in mind and only want to take your money. No matter how good the deal sounds you should not take the bait. In fact, you can easily do the entire loan modification process by yourself, and save tremendous time and money. You should check out our DIY KIT: Rental Property Loan Modification. It gives you step by step instructions through the whole process. It even includes bank specific information to make the whole process easy and simple to understand and do.
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