Over the past few months, positive news on the economy is flashing in the headlines. There has been a drop in employment levels by up to 2.1. The total number of jobs added has gone up by 288, 000 in a single month, say unspecified sources. Many orange county people still seek financial help. The local home owners in particular need support and assistance. Many of them are exposed to these illegal loan modification schemes.
NeighborWorks America had released a report on this loan scam issue. It hints that loan fraud schemes are unfortunately on rise these days. There are many homeowners who have no idea of the functioning of loan modification schemes. As a result, these people are ready to pay exorbitant upfront fees charged by the creditors. These loan seekers have no idea of the laws related to credit and loans. The law prohibits the companies from taking any unreasonable upfront fee for the purpose of mortgage relief.
Mortgage Assistance Relief Services of Federal Trade Commission follows a particular law in these cases. It restricts the companies from taking exorbitant upfront fees. It is possible only when the homeowner has approved a written offer of the particular lender or service provider. In these cases, it is mandatory to provide the homeowners with the complete documentation. It should mention about changes to this loan which may occur after this particular offer is being accepted.
Many companies come with a series of claims and you need to be cautious while dealing with them.
Whenever a loan modification firm tells you to pay upfront fees and they’ll save your several dollars, you are probably scammed. Beware of such things and look for guidance beore taking any key decisions. Organization NeighborWorks America has compiled reports that more than $93.6 million was trapped by loan modification schemes. An average home owner has lost up to $3287 after being tricked by law violating companies. Thus, one should be careful with the financial dealings with the loan provider companies. It is important to crosscheck every possible detail, facts and information before taking a decision. You can also take the advice of an attorney if you feel in any case.
Be careful of the above mentioned circumstances:
- When you are told to pay an upfront fee for the purpose making adjustments to your mortgage.
- When asked to not make mortgage repayments and to begin paying this loan modification firm directly.
- When you are guaranteed of your loan scheme to be modified or the foreclosure to be halted.
The home owners should keep in mind that it’s possible avoid such loan fraud schemes. In some cases, they may get free help without spending a single penny. However, those who are already been trapped in such cases can take legal consultation of an attorney. He or she can understand your situation and legal rights to find out the best possible solution. For any questions on loan modification, contact any experienced and qualified lawyer from the real estate of your county or state.
Image credit: bacho12345