There is an obvious need for third party representation to help homeowners who are facing foreclosure proceedings from banks that fail to work out a swift and unbiased loan modification solution.
However, it can be easy to fall victim to predatory loan modification opportunists unless you know what to be aware of.
Researching for a negotiation team that you can trust is important, but be aware of the marketing tactics that are putting home owners in worse shape than they are already in.
Loan Modification Red Flags to pay attention to:
1. Spam lead generation blogs and web sites -
These are web sites littered in Google sponsor links or banner advertisements mixed in with a few stolen articles that they scrape from other places online.
Look for a company address, phone number, and “About” page that clearly indicates who the site owner is.
Be sure to preview any disclaimers prior to filling out a Loan Modification Application to make sure they don’t mention anything about “Referring” your information to an affiliate for completion, which would suggest that they are probably just going to sell your information over and over again.
2. Promises to “Shave off” hundreds of dollars from monthly payments -
Since each loan modification scenario is unique, it is impossible to make any promises before your complete file has been reviewed by an experienced loan modification negotiator.
3. Signing over Deed -
Do not sign over anything to a company who wants to modify your loan or pretend to be your new bank.
This scam has been going on long before the modification craze where an investor promises to pay off your lender and let you make payments to them until you can qualify to refinance the home back in your name.
What generally happens in this type of scenario is that the homeowner loses ownership rights to the house, yet is still left on the hook for the loan. The investors then collect the recent homeowner’s monthly rent until the property ends up in foreclosure.
4. No contract prior to collecting fees -
It is required by law to provide a homeowner a written contract that clearly defines the terms of service, payment, and rescission period prior to collecting any advanced fees for a loan modification.
US Home Loan Advocates is a No Up-Front Fee Loan Modification Firm, which means we only charge for services once they have been completed. Basically, get the terms of you business relationship in writing before you give anyone money.
5. Virtual Company -
There are many web sites promoting affiliate business opportunities for people who want to market loan modification programs in exchange for referral fees. Make sure you verify that the loan modification company has an actual place of business with an office. A simple online storefront does not suggest that the company is invested in a long-term business model.
Related Articles
- What Is A Loan Modification?
- Do I Qualify For The Obama Making Home Affordable Modification?
- How Much Will My Payment Decrease With A Loan Modification?
- Will A Loan Modification Affect My Credit?
- Getting Approved For A Loan Modification – It’s All In The Packaging
- Required Documents For A Loan Modification
- Writing A Loan Modification Hardship Letter
With No Up-Front Fees, our clients only pay for Results.
Call us today if you have questions about packaging and
submitting a Loan Modification request.
877-496-5393
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