With the real estate crisis in complete swing, people are looking anywhere they can to get relief from their debt problems and their troubled mortgages. The subprime mortgage industry ruined the lives of many people, and those same people are looking for ways to get free. Unfortunately, countless companies are looking to take advantage of people in need, meaning homeowners have to look to protect themselves.
One quick observe, not all mortgage modifiers are shady. Many homeowners have been able to get their monthly mortgage payments lowered with the assistance of highly qualified professionals.
Here are ten sure fire signs that a loan alteration company is either a fraud, or running a scam:
1. A guaranteed consequence. If a loan alteration company makes a guarantee, odds are there is something fishy about them. Either they do not understand how complicate the alteration course of action is, or they are trying to take advantage of you. Either way, you should steer clear of anyone making absolute promises. The reason these companies cannot make guarantees is that the edges and lenders make the final decision on approval, not the company you are meeting with.
2. Be watchful of any new companies. While this is not necessarily a sign that the company is running a scam, you should try to pick a loan alteration company with a history of success. A more established company will offer you experience and the opportunity to do a background check online or with the Better Business Bureau.
3. Be watchful of excessive upfront fees. A loan alteration company may charge you a few thousand dollars up front, but if the fees reach too high, or if you are charged every step of the way, then there may be a problem. The average cost is $4,000 to $6,000, and anything above that rate should be seriously looked at as a potentially dangerous situation.
4. Try to avoid a situation where multiple parties are handling your file. As you go about getting your mortgage alternation, you will surely call to check up on your file. If a different person seems to be handling your case every time you call, this could be a sign that either the company is inefficient, or that they have a high employee turnover rate. Neither of those situations bodes well for the possible success of your case.
In football, coaches teach their players to “keep their head on a swivel” which method that danger could come from any direction. Performing your due diligence, making as many phone calls as possible and doing your research are all important parts of the mortgage alteration course of action. If you invest enough time into the time of action, you should successfully navigate these dangers waters and hopefully wind up with the lower monthly mortgage payments you need.