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Florida homeowners fall prey to loan modification scams

On Behalf of | Sep 19, 2013 | Firm News, Loan Modification vs. Bankruptcy

The process of getting approved for a loan medication can be a lengthy but also a very beneficial experience when it is done right. There are many programs out there designed to help Florida homeowners handle the loan modification process. However, a recent news investigation discovered that some out of state entities may be scamming Florida homeowners rather than helping them.

One Florida homeowner paid $4000 upfront for advertised loan modification help. The check was cashed and there was no help given. The company that promised to help lower his payments did not even exists in Florida, but was based out of California.

A news investigation uncovered the truth about the company, including previous violations in California. One tip given when it comes to seeking help or information about loan modifications is to know that it is illegal in Florida to charge loan modification fees upfront. If a company ask for money before providing help with the loan modification process or makes promises they simply have no way to verify that they can keep, that should be a red flag.

Often, homeowners who are struggling with their mortgage may feel any kind of help offered is better than falling further behind. However, there are strict rules about the process and how Florida entities that assist in the loan modification process can conduct business. Knowing the facts and who to trust before any service is paid for can help homeowners feel more secure in the choices they make pertaining to their mortgage and the options they have for dealing with payments.

Source: wftv.com, Action 9 helps homeowner deal with loan modification firm, No author, Sept. 16, 2013

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