Fraud is on the rise and loan scams are not always easy to spot. The following list contains some warning signs of loan modification scam artists:
You are asked for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
The company only accepts payment by cashier's check or wire transfer
A company guarantees they can stop a foreclosure or get your loan modified.
You are advised to stop paying your mortgage company and pay them instead.
They instruct you not to contact your lender, lawyer, or credit or housing counselor.
A company pressures you to sign over the deed to your home or sign any paperwork that you have not had a chance to read or do not fully understand.
They tell you to sign documents with blank lines and spaces.
They offer to complete paperwork for you.
They encourage you to sign over your title in order to "lease" your home now and buy it back over time.
A company claims to offer "government-approved" or "official government" loan modifications.
Someone you do not know asks you to release personal financial information online or over the phone.
They offer to give you a "second opinion" on a denial of your loan modification application, for an upfront fee.
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