Avoid Getting Scammed When Considering Loan Modification.

When considering loan modification, watch out for the many scammers in the loan modification market. Because of the foreclosure boom, vultures are attracted to this industry, so not everyone that says they can help you out, will help you out.

So… how can you tell if your loan modification is legit? You have to know if you are being scammed. In this article, we will look at a few tips to detect a scam.

First alarm bell: when a loan modification person asks you to pay him an upfront sum of a couple thousand dollars, don’t walk away. Run away. The fees of a loan modification get rolled up in the loan amount and are paid out of the proceeds of the improved mortgage terms. In other words, the loan modification process is paid by the bank. Remember that the goal of a loan modification is to improve your financial position, not make it worse.

When you start on the path of loan modification, it’s always a good idea to approach your current lender. When you do this in time, before debt is piling up, your current lender is glad to help you out. Your current lender knows your history and knows about your situation , so they may be best suited to help you.

Be sure to go up the chain of command when you call your lender. Many times, you’ll encounter a helpful customer service person, but unfortunately, they can’t help you. You’ll have to insist on speaking to someone that can negotiate for you in these situations.

If you feel you’re out of options, consider filing Chapter 13 bankruptcy. This last resort measure forces a lender to look at mortgage loan modification. It allows you to come up with a payment plan for the past payments As said, this is a last resort measure, so be sure to look at other options first.