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We practice CONSUMER BANKRUPTCY
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We practice CONSUMER BANKRUPTCY law exclusively. 

One of the top Bankruptcy Filers

in the Orlando Area

One of the top Bankruptcy Filers

in the Orlando Area

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  4.  » Be wary of companies that promise you a loan modification

Too many Florida homeowners understand the uncertainty of whether they will be able to keep their homes because they are unable to make the payments. It is that uncertainty and fear upon which mortgage debt relief companies prey. Every homeowner should be wary of any company that promises that it can provide him or her with a loan modification for a fee.

The promises that these companies make are enticing, but more often than not, they are unable to deliver on them. A homeowner might be told that the company provides a money back guarantee and that every one of their customers has received a modification to his or her mortgage loan. The old saying that if something sounds too good to be true, it probably is definitely applies to these companies.

The company says that it will negotiate on behalf of the homeowner with the lender. They often tell their clients not to contact their lender because they are handling all contact. In some cases, the company will even have the homeowner deposit their loan payments with it during the supposed negotiations. By the time the homeowner realizes that the company is no longer returning their calls and their money is gone, the lender might be preparing to file — or has already filed — a foreclosure action.

If someone needs to negotiate with his or her lender, it would probably be in one’s best interest to contact a licensed Florida attorney. He or she will be able to determine whether or not a loan modification is possible. If it is not, other alternatives such as bankruptcy can be discussed.

Source: consumer.ftc.gov, “Mortgage Relief Scams“, Accessed on Aug. 4, 2016