If you’re having a hard time keeping up with mortgage payments in Houston, you may be interested in a home modification loan. While these loans can help you lower your mortgage payments, you should also be aware of common frauds targeting individuals in a tough financial spot. The Federal Trade Commission explains different tactics and how you recognize a potential issue.
You have rights when it comes to home loan modification assistance. If you’ll be charged a fee for services, you’ll never have to remit payment before receiving these services. For instance, the company helping you must provide verification that your lender has accepted the offer, and you must consent to the offer before the modification can move forward. If you’re being counseled to stop paying your mortgage, you must be made aware of the possible consequences of that action. For instance, you could face foreclosure, as well as being subject to added costs.
Services that contact you before you reach out for help should also be approached cautiously. Foreclosure information is public record, so it’s easy for a fraud artist to scour public records and find people in financial trouble. As a result, you may receive a seemingly official notice accompanied by outlandish claims touting the company’s ability to help. Remember, if an offer seems too good to be true, it probably is.
Many scam artists also use certain language, which can be a huge red flag. Be aware of any of claims regarding money back guarantees, exceedingly high satisfaction rates, or boasts that the company has a close working relationship with your lender. If you’re unsure of how to proceed, your best bet is to seek out the services of an experienced attorney. He or she will be able to help you select the best course of action.