Mortgage fraud on the Rise
Something we already know is that loan modification scams are on the rise. What is intresting about htis is - so is the number of new loan modification companies - meaning that the general public still doesn’t realize that chances are the company they are talking to is a scam.
The company was called American Mortgage Modification and it claimed after an upfront fee of a few thousand dollars, it could lower monthly payments by negotiating a loan modification.
Its sad but we do see this daily.
They’re in all cities, in all the Tidewater area,” Tierney told WAVY.com
They’re scammers, Tierney says. And they are costing local homeowners millions in potential loan loss.
Former President of the Tidewater Mortgage Brokers Association, Steve Rockafeller, told us some simple number crunching can prevent scammers from making a move. “There’s a debt to income requirement that’s required for a loan modification to occur, sometimes they go up to 100 percent,” said Rockafeller.
So, if you know your debt-to-income ratio is more than 100% and a loan modification company is still anxious to get you signed, very likely something is wrong.
Read the article here
