Scam of the day – June 10, 2012 – Home loan modification scams

A new wave of home loan modification scams is sweeping across the country.  The Washington State Attorney General just issued a warning to residents of that state, but his warning should be heeded by homeowners everywhere.  What many of these scams have in common is a promise that they can assist you in modifying your home loan to a more affordable monthly payment.  Often the companies have names that sound official or like a law firm and the advertisements for these companies appear in the legitimate media on radio, television and trusted newspapers.  One thing that they all have in common is an upfront fee of between $1,500 and $5,000.

TIPS

Never pay an upfront fee for any company offering to assist you in a loan modification.  Check out the company with the Better Business Bureau and your state Attorney General.  Also, Google the name of the company with the word “scam” and see what comes up.  Also, remember merely because you learn about a company offering these services from legitimate media sources does not in anyway mean that the company is approved by or been checked out by the media carrying the advertisement.