How to Avoid Loan Modification Scams
18 April, 2011 Posted under: Sellers Information
The push for loan modifications to help Americans through our current recession and distressed housing market has made it very easy for con artists to scam homeowners out of thousands of dollars.
A recent investigation by the NFHA and three sister organizations found the loan modification industry as being “rife with corrupt practices.”
Among the findings:
55% required an upfront fee to start work.
43% guaranteed or promised they could secure a loan modification before reviewing documents.
24% advised or encouraged homeowners to stop making their mortgage payments or to stop contacting their lenders.
12% discouraged homeowners from seeking free help from government-approved housing counseling agencies.
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