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Is Loan Modification Too Good To Be True?

On Behalf of | Mar 15, 2017 | Foreclosure Defense, Foreclosure Prevention

There is no shortage of businesses offering help to people who want to modify their mortgage. When payments go past due and the threat of foreclosure rears its head, these offers can seem really good. Unfortunately, many are simply too good to be true.

One Man Responsible For More Than 1000 Cases Of Loan Modification Fraud

According to an article from Housingwire, one man was recently sentenced to 15 years in prison for committing mortgage modification fraud against more than 1000 distressed homeowners. This man operated several companies with names like Express Modifications and Express Home Solutions.

He ordered his employees to lie to distressed homeowners. Employees would call and say that the distressed homeowner was preapproved for a loan modification. Employees would also represent themselves as attorneys when they were not. They promised to contact homeowners’ banks and negotiate loan modifications. In reality, they did little work, and it ended up costing homeowners more than $3.5 million.

Be aware that this is not a one-time thing. This is just the latest in a long string of frauds committed against unsuspecting homeowners who simply want to stop foreclosure and get back on solid financial ground.

Mortgage Modification May Still Be An Option, If Done Correctly

You do not have to completely write off the possibility of modifying a loan. Depending on your situation, it may be a valid option. You just need to proceed with caution.

Check the background of any business offering you loan modification services. Verify that you are working with an actual attorney. Check with the state bar association to verify that the person is licensed to practice law. Look for reviews or testimonials.

You should also look at the services the lawyer offers. Is it just loan modification, or are there other options that may be able keep you in your home? There are a variety of foreclosure prevention and defense options, and a skilled attorney can help you determine the one that makes the most sense based on your situation.