How do I spot a Loan Modification Scam? Real Estate for Santa Clarita Update
We recently came across a Santa Clarita family that had been a victim of a loan modification scam. They have been paying a company for months to “stop the foreclosure process” but all the company was doing was delaying the process while collecting a monthly fee….and the worst part, they were placing liens against the house without the homeowners consent. This was an elaborate scam by this company that appeared to be a legitimate business to squeeze money out of them and their home. We have a report from the California Dept. of Real Estate we will paste on this page below that covers these types of scams, but the most important things to know is this; DO NOT PAY ANY MONEY UPFRONT FOR A LOAN MOD!!!!
Governor Arnold Schwarzenegger signed Senate Bill 94 (Calderon) which prohibits any person, including real estate licensees and lawyers, from demanding, charging, or collecting an advance fee from a consumer for loan modification or mortgage loan forbearance services. IF YOU ARE APPROACHED BY ANY PERSON REQUIRING UP FRONT FEES FOR THESE SERVICES DO NOT PAY THEM.
There are several types of modification scams. Each scam benefits the company in different ways. The best way to avoid Loan Modification scams is to do your research and understand the full process of a loan modification and understand what your goal is. Many local Realtors can also help advise you with a company that comes recommend in modifications without any hidden fee’s or scams. Ask a recommend Realtor for guidance and direction through out the process to assure you are being handled correctly.
For a private overview of your financial situations please contact us.