If you are one of many Americans struggling to make ends meet and keep your house out of foreclosure, you may have considered a mortgage loan modification. Although these can be great tools to reduce your monthly payment while getting caught up on your debts, not all modifications are the same.
Something Is Wrong
When it comes to mortgage loan modifications, not all agreements are equal and neither are the companies offering to help you with a modification. Recently, there has been an increase in a new type of mortgage modification scam; where fraudulent companies are sending notifications to homeowners under threat of foreclosure.
These notices may inform you (a) that your lender has selected you for loan modification or (b) that their company offers modification services on behalf of your lender. While either of these scenarios is possible, you should always contact your lender to verify this information. Never give anyone your personal or financial information over the phone and always ask for them to provide proof of affiliation with a lender. If the company is legitimately affiliated with your lender and your lender verifies their relationship to be honest, you may proceed with a modification; but, be sure to obtain all the documentation of the mortgage modification for your records.
When It Is Right
Typically, you should negotiate a loan modification with your lender directly, as they have all of the power in approving a legitimate modification. They are often willing to negotiate to find you a deal that fits your budget while you continue your payments. A financial or bankruptcy attorney can also help review your mortgage troubles and assist you in protecting your home from foreclosure.