Knoxville Loan Modifications – How To Identify A Loan Mod Scam

loan-modification-deniedFor Knoxville homeowners facing foreclosure, there are a few different options to avoid foreclosure, one of them being a loan modification. A loan modification gives homeowners an opportunity to change the terms of their loan so their monthly payment is more bearable. Unfortunately, there are many scammers out there preying on Knoxville homeowners who are having trouble paying their mortgage. Here is how to identify a loan modification scam. One key sign of a scam is if an organization asks for money upfront when doing a loan modification. Anyone who promises to help you do a loan modification for a specific fee is most likely a scammer. No legitimate organization will charge you fees for this service since it is illegal to do so, according to the Federal Trade Commission. If someone approaches you about doing a loan modification on your Knoxville home and what they promise sounds too good to be true, it could also be a scam. There are absolutely no guarantees when it comes to loan modification success. Legitimate organizations, like HUD approved counseling services, will do their best to help you but are unable to make promises about the outcomes. Loan modification scammers will also put a great deal of pressure on you. They may pressure you to deed your house over to them or to sign paperwork quickly without having fully reviewed it. They may also pressure you to start making your mortgage payments to them instead of your mortgage company. Anyone who puts pressure on you should immediately raise a red flag. Legitimate organizations will not put any pressure on you, they will only provide you with the loan modification information the you are seeking. Finally, if you are contacted by someone out of the blue about doing a loan modification that can also be a sign of a scam. You should only be giving out personal information to your mortgage lender or a HUD approved counseling information. Be wary of any company that claims to be "government approved" without doing prior research into the company. Are you facing foreclosure on your Knoxville home? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure, give us a call today for a free consultation.

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