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Loan modification scams
What are they? Scams that claim they can save your home. With nearly one-quarter of homeowners underwater on their mortgages, the possibilities of foreclosure loom extremely large. No wonder the scammers are out. According to the FTC the scam artists search public records, the newspapers and the Internet for homeowners in distress or place ads like “Stop Foreclosure Now” or “We Can Save Your Home.” Then they come after your money – again they may tell you they can negotiate a deal to modify your loan with your lender if you pay a fee first, or to make mortgage payments to them while they negotiate your mortgage.
They may try a bait-and-switch, asking you to sign documents that you think are for a new loan that will make your mortgage current, but will actually surrender the title of your house in exchange for a rescue loan. Or you may be asked to surrender the title and told you can rent the house now and buy it back in the future – but of course that never happens. If you’re having trouble paying your mortgage, either talk to your lender directly or contact a not for profit credit counselor through the HOPE NOW alliance at hopenow.com or 1-888-995-HOPE. And for more information on loan scams you can go to
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