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"The median monthly payment reduction for borrowers enrolled in
the (HAMP) program is $522" - DSnews.com
Loan Modification Scam's, What to Look Out For
As the loan modification industry is essentially in its infancy there are fraudsters out there trying to take advantage of struggling homeowners in their greatest time of need. The two most prevalent types of fraud are discussed below. The goal of these fraudsters is to steal money from the struggling homeowners.
The first type of fraud is where a fraudster will deliberately confuse the homeowner into thinking they are a representative of the homeowners lender. They will offer to help the homeowner complete their loan modification for a fee. They will start collecting payments and eventually disappear. These fraudsters may even go as far as sending the homeowners fraudulent documents to make it look as though the modification is taking place.
The second type of fraud, the most prevalent type, is a scheme that involves presenting a deceptive package of closing documents prepared by a fictional mortgage company. The fraudsters tell the homeowner that in order to qualify for a loan modification they need to tell the bank that they are going to be leasing the property even though they will not actually be renting the property out. They then tell the homeowner that they need to make the mortgage payments to someone else that they bring by who is going to pretend to be renting the home (a straw man). They tell the homeowner that the person who they wright the checks to will turn around and make the payments to the lender, this doesn't ever happen, the straw man pockets the money and both parties are never heard from again.
Please note that it is easier than you think to fall victim to a mortgage fraud. In order to avoid these types of frauds it is important to use a reputable company when paying for help with a loan modification. The companies that you will be matched up with via our website are law firms who are regulated by their state bar. They are required to act in accordance with their state laws. If you or someone you know needs help with a loan modification please fill out a form on this website or call 866-437-9061 to speak with a loan modification attorney today.