Millions of
anxious homeowners are turning to loan modification
programs, where homeowners and banks get together and try to
negotiate a more user-friendly loan. However, be VERY
cautious when contracting with companies or people calling
themselves ‘loan modification specialists’.
The Division of Mortgage Lending has received numerous
complaints about ‘loan modification companies’ offering
unrealistic loan modification options to unsuspecting
borrowers, charging excessive fees for doing what the
borrower can do for free, and then not delivering the
promised services.
The State cannot recommend or endorse any particular
company or individual offering loan modification services.
However, we are committed to helping you learn to protect
yourself and avoid being scammed. Use the tips listed on
this page to avoid losing your hard-earned money to loan mod
con artists.
Most of these scams ask homeowners for an upfront fee in
order to start a loan modification program. At best, the
homeowners may end up paying for work that is completed by
the group asking for the money when it is work that likely
could have been done for free – either directly with your
bank or through a HUD-certified counselor:
http://foreclosurehelp.nv.gov/HousingCounselors.htm. At
worst, the homeowners pay for work that isn't done at all.
Even worse, some of these con artists use the personal
information they collect during the process to steal
borrowers’ identities!
