In today’s rough housing market there are numerous companies operating to take advantage of unsuspecting homeowners. While most are looking for ways to lower monthly payments and avoid foreclosure, many are falling victim to the empty promises of non-reputable companies. The old saying still holds that if it seems too good to be true, it usually is.
When looking for a legitimate mortgage modification or foreclosure alternative there are a few things to look out for. First, being approached by a company unsolicited is a warning sign, especially if this company is your actual mortgage lender. Companies that approach struggling homeowners without their knowledge or request are often operating with an ulterior motive.
Second, companies that “guarantee” they can secure a loan modification from your lender should be reported to the Federal Trade Commission. No company can guarantee your lender will approve any changes to your mortgage loan, or ensure you get accepted into one of the federal foreclosure programs.
Last, companies that charge fees for their services upfront or before you receive a signed approval letter from the lender accepting your modification should be considered fraudulent. In fact, it is against federal regulations to charge consumers for mortgage relief services before the services have actually been rendered.
Finding mortgage relief should be negotiated directly with your lender. They hold all of the power of approval when it comes to making changes with your loan. If you find that dealing with the lender is difficult or impossible, consider a consultation with a foreclosure attorney. They can represent you in negotiations and operate legally, bound by an ethical code of conduct.