4 Tips to Avoid a Mortgage Relief Scam

A mortgage relief plan is designed to make a loan more affordable to the borrower by reducing the monthly mortgage payments or even shaving off a portion of the loan principal. Essentially, this will modify the terms in the original loan agreement. However, it must be emphasized that you should take extra care when applying for this type of relief, as there are many scams that claim to help loan borrowers. Here are some tips on how you can avoid mortgage modification scams.

1. Avoid Modification Plans Sent via Spam Email

Sure enough, you have encountered countless unsolicited emails from people or companies that you had not even heard of. Mortgage modification frauds are among the biggest users of spam email, as they market their scams to loan borrowers who are desperate about paying off their loans. With that in mind, you should never sign up for mortgage assistance offered via unsought emails. To ensure that you find legitimate loan modification packages to consider, simply inquire with banks and other reputable financial institutions that offer such products.

If an unsolicited mortgage modification offer has passed your spam filters and the sender claims to represent a popular bank or lending company, it does not automatically mean that the offer is legitimate. Check the body of the letter. Online scammers are known for poor grammar and misspelled words. Also, frauds always resort to scare tactics to make it appear that you have an urgent need of their assistance.

2. Avoid Over-assertive Mortgage Relief Representatives

Seeking modifications in your mortgage agreement is not quite the same as buying some household items. You definitely need some time to think things through when applying for relief. Overeager sales people who say that you have to sign papers immediately if you want your loan modification to be approved may not have your best interest in mind. Some representatives would even tell you that you need to give them the deed to your home if you want to get results in your application. Beware of this kind of loan assistance representative, as there is a big chance that he or she is running a scam.

3. Keep in Touch with Your Mortgage Lender

If you think that you can avoid paying for your mortgage by simply hiding from your lender, you are mistaken. If you hide from your lender, you will surely default on your loan and go through foreclosure proceedings. Your problems will become more complicated, and before you know it, you will be desperate about finding a mortgage modification. Desperate mortgage borrowers are the ones who are most likely to fall for mortgage scams.

To keep away from the tempting offers made by fraudulent loan assistance representatives, make sure to have direct communication lines with your lender all the time. Not only will your lender appreciate it, but they will also be more inclined to negotiate with you in case you fall behind your mortgage payments.

4. Know How Mortgage Relief Works in Your Area

Mortgage laws differ from state to state. Keeping yourself informed about such laws and how to apply for mortgage relief in your state is your best protection against fraudulent loan modification companies. Your state laws may allow more room for you to wriggle out of foreclosure proceedings and save your home.

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