An issue that continues to permeate the loan modification industry is fraud. A Los Angeles-based program called NeighborWorks has just been launched nationwide to further bolster efforts to help people avoid fraudulent companies.
Here are a few tips that should help you pick out a dishonest company.
- Never Agree to Pay Advance Fees. This site has long believed this to be a critical factor and does not associate with companies charging advance fees. With the passage of SB 94, more businesses in California will begin to follow this lead.
- Your lender is the only place you should ever send a mortgage payment. A common tactic by some fraudulent people is to request you make out your monthly mortgage payment directly to them. No reputable will ever ask you to do this.
- Watch out for “guarantees” and “promises.” The cold, hard truth about guarantees and promises is that there aren’t any. If anyone provides you specifics about the results they can obtain for you, that’s a sure sign you are dealing with a dishonest person. Lender negotiations are time consuming and complicated. There isn’t a template anyone can apply to figure out exactly what your lender will grant. A good company can give you an idea of what to expect, but never a guarantee.
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