ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Avoid Loan Modification Scams While Facing Foreclosure

Updated on June 28, 2013
Source

Don't Fall Prey To Loan Scams

After the real estate crisis of 2008, the number of home foreclosures began hitting records never seen before. Foreclosure rates have eased just a little bit lately, but for a variety of reasons there are signs this may be the calm before the storm. Record numbers of foreclosures are being finalized each month all across the country and the economy and housing market has a long way to go before settling down.

Sadly, no one wins when a home is foreclosed upon. A family is devastated by losing their home, but most people fail to realize that the lender is not helped by the process either. Lenders lose a lot of money every time they have to foreclose on a home. In addition, foreclosures push real estate values in an area down, thus resulting in even more foreclosures! In addition, cities and towns all across the country are facing declining property tax revenues and increased crime.

Loan modifications could prevent much of this devastation. Unfortunately, this type of problem always brings out the criminals among us who hope to make a profit out of someone else’s dire predicament. Here are some tips to help avoid getting ripped off by loan modification scams.

Tip Number 1: Don’t ever pay anyone in advance to help you apply for a loan modification.

Most of the scam loan modification companies hire the same loan officers who made a living pushing subprime mortgages in the first place. They only cared about their own paychecks in the first place and they haven’t become more caring now. In addition, they are usually just high pressure salesmen who never really understood the financing process in the first place and don’t know how to help you now. Luckily, many states have passed legislation banning these upfront fees and requiring the companies to get mortgage licenses. However, the crooks you should avoid often pay no attention to these rules anyway and they will be contacting you when they realize you might be desperate.

Tip Number 2: Contact a HUD-approved housing counselor first.

HUD approved housing counselors are trained to understand the current loan modification guidelines they will provide you – for free - and help with applying for a loan modification. They can guide you in determining if you are eligible for any of the government sponsored assistance programs such as the Making Home Affordable program.

You can find a list of HUD-approved counselors online at http://www.hud.gov/offices/hsg/sfh/hcc/fc/ or by calling 800-569-4287. You can also check with your local HUD office. The biggest benefit of these counselors is that they often have inside contacts in the lenders servicing departments to help speed the process along.

Tip Number 3: Contact your lender or mortgage loan servicer directly.

In the early days of the real estate crisis when few people had done a loan modification in decades, the customer service workers on the lenders’ staffs definitely had no clue what they were talking about when it came to modifying your loan. Now lenders have special departments set up to handle loan modifications and employees there are well trained in the guidelines. You might have to make a couple of extra calls to reach the right people, but don’t give up the first time you might hear a no.

Loan modification can be a tough and grinding process. If you are having trouble making your mortgage payments, don’t wait to start the process. The longer you give yourself to succeed, the more likely you are to be successful. Use the tips above to avoid criminals and save your home.

More Information

For more information about avoiding foreclosure and the best path to take to save your home, please visit Avoiding Foreclosure When Your Home is Financially Under Water and How To Qualify For The Home Affordable Modification Program (HAMP).

News Story On Loan Modification

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)