Loan modification programs or “loan mods” have become very popular. However, you need to be careful because not all programs are legit. There are a lot of crooks preying on people with fraudulent loan modification scams. Here are 3 signs that the loan mod may be a scam
1. Upfront Fees Required
You should be skeptical of any loan mod program that requires that you pay an upfront fee. Most genuine loan mod programs do not ask the borrower to pay fees in advance.
2. Too Good to Be True
As the saying goes, if it is too good to be true it usually is. If the interest rate and monthly payment is crazy low, you better take a step back. Most loan mods will help reduce your payments but not down to current rock bottom rates. If they do reduce your interest rate to current low rates, you are usually ending up with a balloon payment at the end. Most people don’t read the fine print and realize the bank is getting you in the end.
3. Computer Generated Offer
Beware of any unsolicited form letters. If you call your bank and they don’t know what you are talking about, throw it in the trash. Simple as that.
Carmen Brodeur JD
Trillium Properties, LLC
9825 E Bell Road, Suite 120, Scottsdale AZ 85260