By now everyone has heard those stupid commercials about applying some junk head on to your forehead to relieve some pain. Well here is how to spot mortgage or loan modification scam from a mile away, simple: if they ask for money up front.
Loan modifications scams are on the rise in the Twin Cities and across the country for that matter. Some companies might be able to help but some are the same brokers (or just as dumb) that were selling sub-prime loans and deliver empty promises. Homeowners when approached are struggling and may jump at the first opportunity that is out there. Other options exist.
One quick search on Google about loan modification and it brings up a slew of sponsored ads on the right sidebar, browse carefully. There was over 10+ pages of sponsored results when I did the search and none of them look good! Some use words like “federal” and “certified”.
You see the ad blitz on television these days. If you have seen them on CNBC, it almost looks like the loan modification company ad blends into the way CNBC runs the scrolling ticker’s. Making the viewer almost think that it is sponsored by CNBC, which is not the case.
Here’s some common phrases you might hear or see:
“We Buy Foreclosures”
“Lower Your Monthly Payment”
“Stop Foreclosure”
“Can’t Refinance, I can Help”
Be leary when asked to make an upfront fee for services is almost a true sign that it is a turn and burn operation. Try talking with a non-profit website for counseling on getting back on track or try and do it yourself.
The Housing and Urban Development website has some questions to ask when dealing with loan modification workouts
