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Loan modification scams can make finances worse

On Behalf of | Jan 27, 2015 | Firm News, Loan Modification vs. Bankruptcy

For many struggling homeowners, the ability to seek and be approved for a loan modification has been a saving grace of sorts. However, complications when it comes to being approved for a loan modification or falling prey to a loan modification scam can all make a difficult financial situation all the more difficult to weather. Having the most up-to-date information about options, including bankruptcy relief in some circumstances, and being well aware of loan modification scam signs can help Florida homeowners ensure they are getting the right help at the right time.

There are certain red flags of which any homeowner thinking about obtaining a loan modification should be aware. Be careful if the company or financial institution requests a large fee to pursue the relief services. Another major red flag for any homeowner is if the company asks the homeowner to sign over the title or deed to property.

Certain scams may involve asking a homeowner to halt payments to the mortgage company. Be especially suspicious if the company involved asks for more money to be paid so that the company can continue the process of obtaining the loan modification. Pressure to sign any contracts before a service has even been performed is also a red flag that should alert homeowners to a potential scam.

By avoiding scams and securing genuine assistance with a loan modification, a homeowner may be able to keep his or her home despite economic hardship. However, if even after the pursuit of a legitimate loan modification, a Florida refinance application is declined or the homeowner realizes the help may not be enough, other sensible options exist. Bankruptcy may be one option to help the homeowner get back on stable financial footing and, under some circumstances, can even result in the homeowner keeping the home.

Source: realtime.blog.palmbeachpost.com, “Top 5 tip offs your loan modification company is a scam“, Kim Miller, Jan. 15, 2015

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