The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

Is This Loan Modification Offer Legitimate or a Scam?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Scams
Reading Time: 3 mins read
loan modification scam
8
SHARES
125
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

A reader of AskTheMoneyCoach.com is dealing with a potential foreclosure situation. Of course, they’re trying to avoid foreclosure.

This individual is interested in getting a loan modification and has gotten an offer for help.

The dilemma this person is facing, however, is, whether or not this company offering loan modification services is indeed reputable and legitimate.

So let’s examine some ways that you can check out a loan modification company.

For starters, you should check them out thoroughly, before you sign any paperwork or enter into any kind of written agreement.

You should only go with a HUD-certified credit counseling agency. If you look online at HUD’s website, you’ll see a list of companies that are HUD-certified.

These agencies are skilled in mortgage transactions.

They’ll be able to tell you, frankly, whether or not you qualify for a loan modification, whether it’s through HARP or HAMP or any other federal government program, or something specific that might be offered from your lender.

But do try to stick with agencies that are HUD certified. That’s your first line of defense.

I would then take it one step further and check out the company or the entity’s Better Business Bureau rating.

If you looked them up on the Better Business Bureau website and you find that they’ve got a slew of customer complaints, or that they’ve had a bad track record (and a bad rating from the BBB), then I would run, not walk, in the opposite direction.

Don’t get involved. It’s just not worth it.

The other thing that you should do, though, is to read the fine print very, very carefully.

Unfortunately, a lot of consumers don’t do this.

Right now you are thinking about saving your home. It’s likely the single biggest investment you’ll ever make. So you don’t want to cut corners here. You don’t want to take any shortcuts.

Check out the fine print and see what they are saying—specifically, what they are stating they’re going to do.

Are they going to negotiate on your behalf? Are they going to put together a loan package to your lender? Are they going to propose a repayment schedule?

What exactly are they going to do?

What services will they provide?

You should also ask: what fees will they charge, if any, for their efforts and for their services?

There will likely be fees attached unless it’s a completely non‑profit agency that is either government-run or federally operated, and they don’t charge anything.

When you do look at fees, you want to make sure that you are not paying any upfront fees whatsoever. It’s actually illegal for companies to charge you upfront fees before any services are rendered.

You need to make sure that if you are going to be paying a monthly fee, or a one-time lump sum, that’s it’s a fee that you can afford, a fee that you feel is fair, and that it’s a fee that’s been fully and adequately disclosed to you.

Those are the ways that you go about checking out a loan modification company. You should do some other practical common sense things as well.

I would do a Google search of the company’s name, perhaps tied in with the word “complaints,” “consumer complaints,” “scams”—just something that would raise a red flag, and see if there is anything specific tied to that company or that organization’s name.

Even that little online search via the Internet can sometimes pop up things that you might not have otherwise unearthed.

Best of luck to you if you are trying to avoid foreclosure.

Unfortunately, more than a million people in the U.S. are currently losing their homes to foreclosure. I hope you’re not one of them.

Tags: Foreclosureloan modification
Previous Post

Student Loan Deferment and Forbearance Explained

Next Post

Student Loan Repayment Plan Options

Related Posts

SEC Charges Eleven Individuals in $300 Million Crypto Pyramid Scheme Forsage

by Lynnette Khalfani-Cox, The Money Coach

Source - SEC.gov FOR IMMEDIATE RELEASEWashington D.C., Aug. 1, 2022 — The Securities and Exchange Commission today charged 11 individuals for their roles in creating and promoting Forsage, a fraudulent crypto pyramid and Ponzi scheme that raised more than $300 million from millions of retail investors worldwide, including in the United...

Coronavirus Scams

COVID-19 and Coronavirus Scams to Avoid – Video

by Lynnette Khalfani-Cox, The Money Coach

In this video Lynnette warns viewers about numerous coronavirus scams to avoid that are popping up during the COVID-19 pandemic. Transcription Lynnette Khalfani Cox: Listen, guys. I want to warn you about three major scams going on right now where cyber thieves and crooks want to take your money. I...

Identity Theft Victim What to Do Ask The Money Coach

Victim of Identity Theft? Here’s What to Do

by Guest Blogger

In 2017, 16.7 million people were victims of identity theft, suffering a record $16.8 billion in losses. Today, many of our standard transactions like banking, bill paying, and even shopping are online. The growth of online activity has increased convenience for consumers, but the continuous exchange of personal information online has likely...

senior financial scams

Laws that Protect the Elderly Against Senior Financial Scams

by Guest Blogger

While everyone can be a victim of financial scams, one group is being targeted at astronomical rates. According to Bloomberg, approximately five million elderly Americans are victims of financial fraud each year. It is estimated that these individuals suffer annual losses of almost $37 billion. While this news in itself...

Hand writing sign Irs Scam. Word Written on targeted taxpayers by pretending to be Internal Revenue Service

Beware of Fake IRS Collection Scam

by Lynnette Khalfani-Cox, The Money Coach

Have you ever received a phone call from the IRS – or from someone claiming to be from the IRS – about an alleged tax debt?If so, you need to know that any such phone call is almost certainly a scam also known as the IRS Collection Scam!The IRS will...

Equifax Data Breach

How to Protect Your Credit After The Equifax Data Breach

by Lynnette Khalfani-Cox, The Money Coach

Scores of Americans are worried about the latest huge cyber hack in the U.S., an Equifax data breach that could impact up to 143 million consumers nationwide. Equifax, one of the country’s biggest credit bureaus, says cyber criminals hacked into its systems and gained unlawful access to people’s Social Security...

Equifax Hack

The Equifax Hack: What Equifax Got Right and Wrong Amid Data Breach

by Lynnette Khalfani-Cox, The Money Coach

Equifax, one the nation’s largest credit reporting agencies, suffered a massive data breach that affected up to 143 million Americans – nearly half the population in the United States. Here’s a look at both sides, in the hopes that Equifax and other organizations will learn some do’s and don’ts when...

Load More

Popular Posts

  • Car repair

    What to Do If You Can’t Afford a Car Repair Bill

    1378 shares
    Share 551 Tweet 345
  • What to Do if Your Spouse Stole Money From You

    1166 shares
    Share 466 Tweet 292
  • What to Do If You Can’t Afford to Leave Your Spouse

    1104 shares
    Share 442 Tweet 276
  • Here’s Why I Pay My Kids For Good Grades (And Maybe You Should Too)

    1011 shares
    Share 404 Tweet 253
  • What Do All Those Strange Codes In My Credit Report Mean?

    815 shares
    Share 326 Tweet 204
  • Do This Now If Your Wages Were Not Reported

    745 shares
    Share 298 Tweet 186
  • How to Find Out if a Debt Collector is Licensed to Collect Your Debt

    724 shares
    Share 290 Tweet 181

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap /Submit an Article / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist