Loan Modification Fraud

by admin on March 10, 2009

With the explosion in loan modifications over the last year, there are a lot of new people getting into the business. With the US economy not faring well, there are not a lot of growth businesses and loan modifications are a bright spot right now. With all of this new money, there are some unsavory businesses starting to do loan modifications.

You need to protect yourself if you are entering into an agreement with a company to help you modify your loan with your lender. If you are required to put a down payment with a business, make sure that you have a signed contract. There are many examples of people that have put up a couple thousand dollars and had a business or individual disappear and not return their money. If you have a signed contract that stipulates the services that will be performed that will help protect you in the event something goes wrong.

It’s important to ask for references on any company you are considering hiring. Hopefully you can get a few positive references as that will go along way to proving a company knows what they’re doing.

If you really think a company has perpetrated fraud then you should contact the attorney general in your state. You can also file a complain with the Better Business Bureau and they will log that.

You may also have fraud committed by your lender during the course of your loan modification. If you think your lender did something unethical or illegal, you need to get professional counsel. There are lawyers that will review your case and can let you know if you have any recourse against your lender. You can also contact NACA at NACA.com as they offer housing assistance to certain people who qualify. Protect yourself and understand what you’re getting into as there are a number of ways you can get in trouble as you try and modify your home loan.

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