California Loan Modification Scams: California Homeowners Beware

As if the mortgage / foreclosure crisis wasn’t bad enough on its own, it’s been worsened significantly by the fact that a number of scammers are taking advantage of the problem. One of the most devastating scams is the loan modification scam. Although this scam is affecting people all throughout the nation, it has been a particularly big problem in California. This is due in large part to the fact that California cities rank among the worst in terms of foreclosure rates which makes homeowners there just desperate enough to get taken in by these types of scams.

Loan modification scams involve promises of renegotiating a better mortgage fee if you’re willing to make some upfront payments in advance. People who are facing foreclosure if they can’t make their payments may find themselves tempted to take this deal. The problem is that the fees that you pay end up going out the window and you still owe your mortgage amount.

California homeowners can protect themselves from these scams by avoiding making mortgage choices that are based on their fears of foreclosure. Tips to follow include:

  • Be wary of anyone who approaches you with a mortgage offer. If you don’t actively seek out the offer by going to your lender or a qualified loan modification expert then the deal is probably something to look at with a cautious eye. Scammers may approach you through phone, email, mail or even at your doorstep.
  • Don’t be impressed by credentials. There are a lot of ex-realtors and ex-brokers in California who are getting involved in these scams since they’re out of work. Don’t assume that a deal is legitimate just because someone has a California real estate license.
  • Read the fine print. As with any mortgage contract, you should be sure to read the fine print carefully so that you fully understand what you’re getting into.
  • Understand that California homeowners are particularly at risk. Being aware that you are being targeted helps you to make wiser choices.
  • Don’t spend money to save money. This is a case where common sense should prevail. It simply shouldn’t cost you money to save money on your mortgage.

California cities have been hit hard by the foreclosure problem. Don’t let your fears about this drive you to get suckered into a scam that you’ll regret for years to come!

 

 


Publish Date: 2009-07-06 19:49:35

Loan Modification Articles

Mortgage Loan Modification Articles

Loan Modification - Making Home Affordable Program
Date: 2009-07-12 16:02:13

California Loan Modification Scams: California Homeowners Beware
Date: 2009-07-06 19:49:35

Read All Mortgage Loan Modification Articles


Mortgage Loan Modification Articles RSS Feed