|
|
Loan Modification ScamsLOAN MODIFICATION: DO IT YOURSELF AND SAVE (July 20, 2009)
If you are having a problem meeting your obligations on a loan (mortgage, auto, credit card, etc.) our best advice is to handle it yourself. Loan modification companies are springing up all over the country to help people who are struggling to meet their loan payments. But a growing number of customers of this burgeoning industry are reporting that rather than improve thier situation, the loan modifiers have left them in worse shape than when they sought help. Federal and state agencies are invesitgating complaints of businesses that made exaggerated promises, took money up front and changed nothing.
The District Attorney has previously cautioned consumers about paying upfront fees for various services, and we renew that warning for loan modification offers. Once the fee is paid, there is little incentive for the company to fulfill its promises. Many of the people who are now offering loan modifications were mortgage brokers in their previous employment, and were the people who set up the bad loans they now offer to fix.
(Go to http://www.msnbc.msn.com/id/32007521/ns/business-the_new_york_times for a revealing article about some of the people behind loan modification).
If you are behind on any loan agreement, the District Attorney offers the following suggestions:
1. As soon as you know you will have difficulty making payments, contact your lender directly. You have a better chance of working through the problem the sooner you contact the lender.
2. Get credit counseling from a reputable non-profit agency.
3. If someone offers to help you with a loan modification, get a written agreement and read it carefully before signing.
4. And no payment up front. Pay only when you get what the contract promises.
|
Report a Crime
Contact the Law Enforcement Agency where the crime occurred. Click here for a complete Law Enforcement Agency Listing for the 18th Judicial District. News & Upcoming Events
The Citizen's Academy A free, four-week course that demystifies the criminal justice system and provides an inside look at your District Attorney's Office. The Citizens Academy is open to the public. Participants must be 18 years of age or older.  The 18th Judicial District - District Attorney Carol Chambers is now on facebook. Please visit our profile by clicking here. Sign up to become a supporter. E-Mail the D.A.
|
