How to Avoid Home Loan Modification Scams

With more Americans finding themselves in danger of losing their homes to foreclosure, loan modification companies are becoming more popular, as are scammers on the hunt for desperate homeowners.
One out of every nine homeowners in the U.S. is behind on their mortgage payments by more than three months. Families struggling to keep their home can be easily lured by scammers immediately guaranteeing modifications without requesting the necessary information to secure such a change.
Take the time to get to know who your lender is and who actually owns your particular loan. Most mortgages are owned by a single bank or are otherwise turned into a mortgage-backed security and are now owned by a number of different people.
Scammers will sometimes act suspiciously and make odd requests when you are sending them or your bank important, personal information. One red flag is being asked to pay for a percentage of the fees upfront. It is definitely uncommon and even illegal in some states to charge anything upfront for these services.
A homeowner wanting a loan modification can choose to work with their lender themselves or to seek professional help with an attorney or non-profit counseling service. Most experts don’t recommend attempting to secure your own modification unless you have some experience withforeclosure and finances.
Scrutinize documents so that you are absolutely sure of what you are signing before you sign it. Be wary of any strange or forged-looking papers. Be sure to protect yourself and your investment. It is important to know exactly what you are being promised, and what could happen if you are unable to meet your new obligations.