Kansas Attorney General’s Office is warning consumers about loan mod scams
The Kansas Attorney General’s Office is warning consumers about scammers who offer to modify mortgage loans for a fee.
“In this time of economic uncertainty, Kansans facing foreclosure are being targeted,” attorney general Steve Six said in a news release late last week.
People who are behind on their mortgages or facing foreclosure are getting phone calls and at-home visits from people offering to modify their loan.
Up-front fees range from $500 to $1,000, the attorney general’s office says, followed by a larger fee based on the size of the loan, typically from $2,500 to $10,000.
Investigators say the companies don’t negotiate on the homeowner’s behalf but merely have the homeowner compile documents that the mortgage company requires for modification, then send the documents to the lender.
If a company claiming to be a modification specialist or a foreclosure rescue operation contacts you, follow these suggestions:
