Loan Modification Pitch Warnings

Some homeowners should be wary of some loan modification pitches. There has been a lot of recent fraud in the industry with fraudsters claiming to be helping homeowners with foreclosure closings, but in reality they are just trying to steal money.

There are some signs that a loan modification company may not be legitimate, please make sure to keep these in mind.

Loan Modification Risk Factors

Here are some helpful Web links and phone numbers:

• Hope Now is a free service that offers HUD-approved counselors: http://www.995hope.org/ (1-888-995-4673).
• Hope Now also provides contact information to reach out to your loan servicer and to start the communication process. Go to http://www.hopenow.com/loan_services/servicer_directory.php

• State Department of Real Estate Winter 2008 Bulletin: http://www.dre.ca.gov/pdf_docs/rebwinter_08.pdf

• The Department of Real Estate has a list of companies that have submitted and have been approved for advanced-fee agreements for loan modifications. For more information, go to http://www.dre.ca.gov/mlb_adv_fees_list.html

• ByDesign Financial Solutions, established in 1964 as Consumer Credit Counseling, has real estate specialists. Go to www.bydesignsolutions.org or call 1-800-750-2227.