loan modification scammers step in when loan servicers refuse to provide relief
the National Consumer Law Center has just released a report “loan modification scammers step in when loan servicers refuse to provide relief”. The report, available here via pdf states what we have been pointing out for a very long time. Loan Modification scams are here and very real. Please , if you are going to be doing a loan modification, DO IT YOURSELF!
As the number of foreclosures continues to grow, a new “industry” has emerged seeking to profit from desperate homeowners who are trying to save their homes. For-profit loan modification services claim to help homeowners obtain changes in the terms of their mortgage loans that will make the loan more affordable and, thereby, help the homeowner save their home from foreclosure. Unlike older foreclosure rescue scams that seek to bilk homeowners of their equity, loan modification scams are more interested in homeowners’ spare cash. They make extravagant and unverifiable claims regarding their ability to help but too often the homeowner gets nothing after paying thousands in fees they can ill afford to spare.
While waiting for loan modifiers to deliver the promised relief, homeowners not only lose their money but may also fall deeper into default and lose valuable time that could have been spent negotiating directly with their mortgage servicer or by going to free a HUD-certified housing counseling agency with true expertise in avoiding foreclosure. For-profit loan modification companies are flourishing because mortgage loan servicers cannot or will not meet borrower need for assistance with their mortgages.
