5 Tips To Avoid Loan Modification Scams
The folks over at Public Counsel Law Center are always providing valuable information to consumers. Public Counsel Law Center is the nation's leading Pro Bono Law Firm and they do a great job in bankruptcy practice with their reaffirmation clinics and the new help desks at the clerk intake counter. Here are their
5 tips to avoid loan modification scams:
1. Don't Pay Up Front Fees;
2. Don't Transfer Title or Sell Your House to a "foreclosure rescuer;"
3. Don't Pay your Mortgage Payments to Anyone Other Than Your Lender or Loan Servicer;"
4. Never Sign Any Documents Under Pressure or Without an Opportunity to Review Them.
5. Don't Ignore Letters From Your Lender or Loan Servicer. Responding is the Best Bet For Saving Your House.
If someone demands an up-front fee, Public Counsel adivses that you can report them to the Attorney General's Office at 1-800-952-5225; or file a complaint online. Remember that the best way to get a workout is to work directly with your lender.
Remember that the foreclosure process will continue on your home during your attempts to workout a modification agreement with your lender. You may also want to consult with a bankruptcy lawyer to create an exit strategy if your modification offer falls through and you still want to keep your home. The filing of a bankruptcy case will legally stop the foreclosure process and will give you the breathing room you need to continue to work with your lender and have an advocate on your side.
