Beware of Loan Modification Scams

IN THESE troubled economic times, the financial vultures have started appearing.

More and more, so called "loan modification" or "loan-mod" companies are springing up like weeds, with promises of loan forgiveness, easier payments, or a "little known government program."

Most are scams, pure and simple.

If someone is already in foreclosure, the only person who can help is an attorney, and even their help is limited to state and federal law.

If someone is simply behind in payments, or even if they aren't but simply want to refinance at a better rate, they don't need to hire a loan modification company to do so.

One can simply contact the mortgage company, bank or other financial institution that holds the mortage on your home and deal with them directly.

That is all the loan mod company would do anyway, but they would charge you a fee from $500 to $5000 to do so.

I am currently looking at filing suit on behalf of a client who fell prey to one of these boiler room type operators. I will keep you posted on the progress.

These types of companies are most prevalent in California, Arizona and Florida, but are becoming more and more prevalent all across the country.

If you are tempted to pay someone a fee for helping you modify your loan terms, think twice, then call an attorney who is well versed in this area of the law.

You will thank yourself later.