How Not To Get Scammed When Considering Loan Modification.
There are currently a lot of scammers in the loan modification market. Because of the foreclosure boom, scammers are attracted to this industry, so be aware that not everyone that says they can help you out, will be able to help you out.
So... how can you tell if your loan modification is legit? You have to know if you are being scammed. In this article, we will look at a few tips to detect a scam.
When a loan modification person asks you to pay him an upfront sum of a couple thousand dollars. If someone tries to charge you this kind of money upfront, run away. The fees for a loan modification are rolled up in the loan amount and paid out of the improved terms of your mortgage. In other words, your loan modification costs are paid by the bank. The entire goal of a loan modification is to improve your financial position, not worsen it.
When you're starting the road of loan modification, it's a good idea to approach your current lender. Many times your current lender is glad to help you out, because you came to them in time. Your current lender also knows about your situation and history, so they may well be best suited to help you out.
Always go up the chain of command when calling your lender. When you call, you will most likely encounter a helpful customer service person. Unfortunately, these people can't help you. You'll have to insist that you get to speak to someone who can negotiate for you in these situations.
If you feel you're out of possibilities, you can always file bankruptcy, also knows as Chapter 13 bankruptcy. This forces your lender to consider loan modification when you ask for it. They may not be happy about it, but it does allow for you to come up with a payment plan. Filing chapter 13 will also ensure you won't get scammed, because all procedures will go through court. It is however a last resort measure.
So... how can you tell if your loan modification is legit? You have to know if you are being scammed. In this article, we will look at a few tips to detect a scam.
When a loan modification person asks you to pay him an upfront sum of a couple thousand dollars. If someone tries to charge you this kind of money upfront, run away. The fees for a loan modification are rolled up in the loan amount and paid out of the improved terms of your mortgage. In other words, your loan modification costs are paid by the bank. The entire goal of a loan modification is to improve your financial position, not worsen it.
When you're starting the road of loan modification, it's a good idea to approach your current lender. Many times your current lender is glad to help you out, because you came to them in time. Your current lender also knows about your situation and history, so they may well be best suited to help you out.
Always go up the chain of command when calling your lender. When you call, you will most likely encounter a helpful customer service person. Unfortunately, these people can't help you. You'll have to insist that you get to speak to someone who can negotiate for you in these situations.
If you feel you're out of possibilities, you can always file bankruptcy, also knows as Chapter 13 bankruptcy. This forces your lender to consider loan modification when you ask for it. They may not be happy about it, but it does allow for you to come up with a payment plan. Filing chapter 13 will also ensure you won't get scammed, because all procedures will go through court. It is however a last resort measure.
About the Author:
James writes about finance and mortgages. He also writes about laagste hypotheekrente and hypotheken aflossingsvrij in Dutch.
posted by Debt Consolidation Loan at
1:05 PM
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