Loan modifications have always been a sensitive issue. It needs to be dealt with cautiously and treading on the wrong path may lead to huge financial losses. There are certain red flags which need to be addressed when dealing with a loan modifications company. A company which asks you to pay up front is a sure no go! As simple and clear as this tip may sound, it is very important: never every pay the cost upfront for any loan modification you wish for.
Let us look at a few tips in case you are looking out for a loan modification.
Who can loan modify?
Firstly, you yourself can handle your loan modification process. Otherwise, if you intend to seek professional help, then you can do so by hiring a loan modification company for the same. In this category you can have a loan modification consultant who generally are non-licensed and can work for certain organizations. Or you can directly work with the real estate guys which are the most common route for loan modification processes.
How to know you are in for a loan modification scam?
Certain tests do stand the test of time. Simple precautionary steps on your part can handle pretty much all your loan modification worries. Apart from the simple fact stated in the first paragraph, there are also certain other steps which can protect you from scams.
None of the professional help you are seeking should ask you to pay him/her directly in their bank account. It sure is a no go during your loan modification process.
Any professional company which uses government jargons to lure you into paying up front for your loan modification process to make it simple. Never fall for such tactics. They can even go a step ahead to ensure you that you are eligible for a certain government scheme which is often a fake.
Some rescue loans which sound too good to be true. These kind of schemes require you to sign on a document entitling your house to a third party in exchange for a lower loan amount. Stay away from them.
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