Loan Modification – How to Avoid a Loan Modification Scam

You are in serious trouble when you're facing foreclosure but there are remedies available to save you from it. One of them is loan modification. The lender may give you a second chance by lowering the interest rate or extending the payment terms. This makes your monthly payment more affordable and easy to manage. A loan modification can work wonders in your life and it may save your house from impending foreclosure. But be cautious because there are people who are not as helpful as you think they are. They may turn your problem into a disaster by offering you a solution that would not help you but put you into more trouble. I'm talking about a loan modification scam and it has already broken the heart of many people who have foreclosure problem.

We need to accept the fact that this world is not a perfect place to live in. There are scoundrels out there who want nothing but to gain no matter what it costs. People then should be vigilant enough to know how to avoid being a victim of this insensitive act. Here are some tips that may help identify scoundrels in this business.

Avoid people who make too many promises
People who are in the foreclosure stage want fast and effective remedy to their urgent problem. This is an opportunity for crooks to entice people to enter in a fraudulent transaction. When people come knocking at your doors claiming 100% assurance of loan modification that will lower your principal by a large amount and slice down interest by a certain percentage, you have to be alarmed. Incredible claims are offered only by people who want to get something from.

Avoid people who ask you for money before they do something
Scammers usually want nothing but your money. They do not want to help you in anyway. The first thing they would ask you to do is pay up an amount of money for them to start their loan modification process. In the end they would tell you that there's nothing they could do about your loan but they do not offer refund.

Avoid people who offer fast result
Loan modification is a process and lenders usually take reasonable time analyzing your application before they come up with a decision. If some people come to you and offer solution within a week or less, stay away from them because their out to get your money.

Know the people you are dealing with
There should be some ways to get information about the people you are transacting with. It would do you so much good if you will find out the intentions of the people you are dealing with. Make sure they have a good repayment and are known for their accomplishments in loan modification. The last thing that you would want to do is to deal with people who would only put you into more trouble than what you already have. People with bad intentions are easy to recognize but it may require your tact and a little bit of investigation skills.

Source by J. Summers

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