When you are searching for loan modification options, make sure that you don’t fall prey to scam artists who see struggling homeowners as nothing more than cash cows.  You owe it to yourself to research anyone who promises that they can help you with your mortgage modification, so here are some  tips to remember and red flags that you should watch out for when talking to individuals and companies:

1. Watch out for anyone who wants you to surrender the title to your home as part of the modification agreement. This trick is otherwise known as a “bailout scam” which means that you could end up “renting” your house from the company until your mortgage has been “fixed” and then have to repurchase it from them.
2. Read everything carefully–very carefully. Many homeowners have been tricked into signing away ownership of their house simply because they felt overwhelmed by the tremendous amount of paper work that they had to read and skipped over a few very crucial sections.  This is just one of the reasons why it is best to hire a loan modification attorney to guide you through the legalities of the process.
3. Don’t ever agree to pay fees up front. Legitimate mortgage agents won’t ask you for them.

Once again, the only real way to protect yourself and your home is to consult with a loan modification attorney before you sign or agree to anything.  When it comes to your financial future, you can’t afford to take chances.

This entry was posted on Monday, March 2nd, 2009 at 2:35 pm and is filed under Loan Modification. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.