Beware of 3rd Parties Offering Assistance in Obtaining
Loan Modifications, Foreclosure Consulting, or Other Similar Services
You can obtain Free Help in Working with Your Servicer or Lender from Non-Profit Counselors
Call (1-877-462-7555) or visit MDHOPE
DO NOT PAY - WALK AWAY!!!
The Problem - The Commissioner of Financial Regulation is receiving a growing number of complaints regarding third parties who offer to "assist" consumers in negotiating with lenders and servicers to obtain a loan modification or otherwise prevent foreclosure, frequently in exchange for up-front fees. Investigations have shown that these providers often charge high fees, yet often provide substandard services, or no services at all, leaving the homeowner closer to foreclosure and in a worse financial situation. The Commissioner has also seen an increasing number of advertisements, direct-mail solicitations and other marketing offering these services - typically described as "loan modification," "loss mitigation," or "foreclosure prevention consulting" - in exchange for up-front fees.
The Law - Up-front fees are illegal under the Protection of Homeowners in Foreclosure Act ("PHIFA") and the Maryland Credit Services Business Act. ("MCSBA"). These statutes also mandate other consumer protections, including requiring such companies to be licensed as Credit Services Businesses, subject to certain exemptions.
If you are a victim of a loan modification scheme or
any other form of mortgage fraud,
file
a complaint with the Office of the Commissioner of Financial Regulation.
Si usted o alguien que usted conoce a sido victima de un fraude
hipotecario,
llame 410-230-6365 or 410-767-0392.
What is a loan modification?
A loan modification involves modifying the terms of an existing loan, typically to make it more affordable for a
borrower. The terms commonly modified are the interest rate and/or the term of the loan. A loan modification is not
a form of a mortgage loan refinance.
How do I avoid a loan modification consulting scam?
- There is never a fee to get assistance or
information about the "Making Home Affordable
Plan" from your lender or a HUD-approved housing
counselor. Approved, non-profit counselors can
be accessed through 1-877-462-7555.
- Beware of any person or organization asking
you to pay up-front fees in exchange for providing
mortgage counseling services or modification of
a delinquent loan. Do not pay - walk away!
- Do not believe guarantees. A reputable
counselor will not guarantee that they can stop
the foreclosure process, regardless of your circumstances.
Working with a legitimate counselor can certainly
increase your chances of keeping your home --
but be wary of people who promise a sure thing.
Again, first get the details of your transaction
and any related promises in writing before you
enter into an agreement.
- Beware of anyone who says they can "save"
your home if you sign or transfer over the deed
to your house. Do not sign over the deed to
your property to any organization or individual
unless you are working directly with your mortgage
lender, or with your attorney.
- Never submit your mortgage payments to anyone
other than your mortgage lender without your mortgage
lender's approval.
- If it sounds too good to be true, it probably is.
If you feel you may be the target or victim of a mortgage
modification scam or of foreclosure fraud, trust your
instincts and seek help. File a complaint with the Office
of the Commissioner of Financial Regulation. For tips
on spotting scam artists, visit the
Federal Trade Commission's website on foreclosure
rescue scams or
Neighborworks America's Loan Modification Scam Resource
Center.
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