Don’t Lose Your Shirt When Applying For A Loan Modification
March 24, 2009 by Karl Graus
Filed under Credit Report
Because of the recent foreclosure boom, loan modification is a hot subject nowadays. A loan modification comes down to asking the lender to alter the terms of your mortgage for good. The change of terms oftentimes comes down to lowering interest rates. Also, extending the time of the loan is frequently done to keep the damage for the bank to a minimum.
Because of the larger demand for mortgage loan modification, a lot of scams are surfacing right now. People will try to get an upfront payment from you, assuring you that they can help you out. If you’re not careful, you may lose your shirt with one of these scams.
Most of the times, when you apply for loan modification, you want fast results. Some companies will guarantee you certain results with their service. Because the loan modification is not in charge of the decision, they can’t guarantee anything about the results.
Don’t believe the hype of getting your mortgage loan modification approved within a week or two weeks. It usually takes lenders 30 days minimum to consider a loan modification application. The fraudulent loan modification companies will promise anything, because they know they will never have to make good on their promises. They don’t care about anything but the upfront payments.
Don’t be lackadaisical in finding out facts about the company you want to deal with when doing mortgage loan modification. Don’t be pressured into signing with some money hungry company when it doesn’t feel right. You will never see your money again when you give it to one of these scammers, so you’ll have to be careful.
