Beware Loan Modification Scams

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We support reforms to the financial marketplace that protect consumers from unscrupulous banks and lenders.

By Consumers Union on Friday, August 7th, 2009

Caveat Emptor did a great post on the rise of foreclosure scams.

“The unresponsiveness of mortgage servicers to the millions of homeowners facing foreclosure is a national scandal. One consequence of this hasn’t received as much attention as it deserves. As growing numbers of desperate homeowners are unable to get the help they need from their loan servicers, more and more are succumbing to the aggressive sales pitches of for-profit loan modification scammers that promise expert help in exchange for hefty upfront fees.

Almost always, these companies fail to deliver any assistance, and the homeowners end up even closer to losing their homes.”

Here is some advice from CU’s Norma Garcia

To learn how to apply for a Home Affordable refinance use the online self-assessment tools provided at either www.makinghomeaffordable.gov or http://www.financialstability.gov/makinghomeaffordable/modification_eligibility.html to determine your eligibility. These are the official government websites established to give consumers more information about the programs. If you are eligible, you will be instructed to contact your lender or loan servicer. Or you may contact your lender or loan servicer immediately to determine your eligibility and get the process started if you are.

To learn more go to www.DefendYourDollars.org

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