Loan Modification Scams

Time flies doesn't it?  I can't believe I'm already posting up news tidbits for 2009.  The new year has brought along with it many real estate changes.  Despite the lagging real estate industry, new debt relief and loan modification companies have sprung up everywhere.  Be extremely wary if any of the companies ask for an upfront fee!  If it smells like a scam, it is probably a scam.  My boyfriend was contacted by a legitimate loan modification service, it was through his lender.  The service was completely free.  It did take some time though, about 3 months before all the paperwork was squared away.  For those who think a loan modification might help you, contact your lender right away.  Unlike a short sale, you don't need to miss any payments to get the process started.  You do need to have a pretty good financial status to get a loan modification.  They will ask for bank statements and tax info and other financial documents.  This article from CNBC goes into more detail about the loan mod scams.  Read up and be smart homeowner! 

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