Friday, June 04, 2010

Tips on How to Avoid a Loan Scam

Fraud is on the rise and loan scams are not always easy to spot. The following list contains some warning signs of loan modification scam artists:

  • You are asked for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.

  • The company only accepts payment by cashier's check or wire transfer

  • A company guarantees they can stop a foreclosure or get your loan modified.

  • You are advised to stop paying your mortgage company and pay them instead.

  • They instruct you not to contact your lender, lawyer, or credit or housing counselor.

  • A company pressures you to sign over the deed to your home or sign any paperwork that you have not had a chance to read or do not fully understand.

  • They tell you to sign documents with blank lines and spaces.

  • They offer to complete paperwork for you.

  • They encourage you to sign over your title in order to "lease" your home now and buy it back over time.

  • A company claims to offer "government-approved" or "official government" loan modifications.

  • Someone you do not know asks you to release personal financial information online or over the phone.

  • They offer to give you a "second opinion" on a denial of your loan modification application, for an upfront fee.

If you think that you have been scammed, report it! call 1-888-995-HOPE

1 comment:

Unknown said...

Loan scam can be handled by Chicago Loan Modification firms. Providing services for your problem that will handle the situation on modifying your loan.