Beware of Companies Offering Loan Modification Programs

Many Utahns falling behind on their house payments are being scammed by companies claiming to provide assistance in helping negotiate a loan modification with the mortgage companies. The number of complaints received Utah Division of Real Estate about companies charging thousands of dollars upfront for services in negotiating more affordable payments has increased drastically.  The Salt Lake Tribune reports that numerous companies have come out of the woodwork offering help to people struggling to make their payments in this economy, but after the money has been paid for their services, the company disappears and the homeowners are left facing foreclosure.

In some instances, the homeowners went so far as to sign over their homes to the companies being promised a solution to their financial troubles, but in the end, they are finding they still may be liable for the debt without actually owning the home.

Understand that their are companies out their really helping people negotiate a modification to their mortgage, but generally, if the lender is not willing to try and negotiate a loan-mod with the home owner, they will not try with a company either.  If you are considering a modification or are thinking about hiring such a company, feel free to contact me and I can offer a little extra help in deciding the best course of action for you and your family.

This entry was posted on Tuesday, May 25th, 2010 at 10:41 am and is filed under Foreclosure & Short Sales, Home Ownership. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.