Posts from — March 2009

Before signing any papers for a loan modification, speak to an attorney or a state regulatory agency. You will want to speak with someone who is familiar with the governing process of these companies. Also, make sure the loan modification company has filed a contract with your state and that they hold a valid state license. In addition, make sure they are willing to go through the United States Postal service for pickup and delivery of funds and documents. If not, it could be that they are just trying to skirt issues of mail fraud.

Get educated on loan modifications. Know what your loan options are. Have several different real estate agents give you a comparative market analysis (CMA) to see what your home would sell for. Seek the advice of an attorney if you want to pursue keeping your home.

Here are some of the common things many “scam” companies will say when you call and ask them if they can help you save your home.

1. “By signing the title of your home over to us, we can salvage your credit. That way when the foreclosure is issued, it’s our name that will be recorded.”

Busted - In truth, a home foreclosure is always recorded against the borrower. It doesn’t matter whose name is on title. The person who borrowed the funds is responsible. If you fall for this, you now owe money on something you no longer own.

2. “We will help you out of this situation by giving you some money AND paying your delinquent payments. Just sign the title to your house over.” [Read more →]

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