When a homeowner is desperate for financial relief, any kind of offer to help may seem appealing. The process of getting a loan modification can be a lifesaver for a homeowner looking to avoid home foreclosure. However, Florida homeowners should beware of promises that seem too good to be true when seeking a loan modification as a means of avoiding home foreclosure.
Recently, a man was indicted on charges that he essentially bilked homeowners out of roughly $250,000. The man allegedly defrauded over 90 homeowners with his loan modification scam. An investigation has led to more than 21 counts of fraud against the 43-year-old.
In some incidents, the man had customers pay nearly $2,000 up front with the belief that, if he was not able to obtain a loan modification for the homeowner, he or she would be refunded 80 percent of that fee. Authorities contend he had no intention of returning any of that money. Authorities also stated that, in some cases, the man never even touched base with lenders to try and secure a loan modification for the homeowner.
During financial struggles, it can be difficult to know which sources to trust, especially when it involves complicated paperwork and loans. A Florida homeowner who wishes to obtain a loan modification to lower his or her mortgage payments may benefit greatly from understanding the process and his or her chances of being approved for that modification. While being scammed in such a way may be rare, it has happened more than many homeowners may realize. However, with proper knowledge and guidance, it doesn’t have to cost a homeowner his or her home. In some cases, filing for bankruptcy is an option worth checking out.
Source: wkyc.com, “North Royalton man indicted for defrauding homeowners”, Oct. 23, 2014