Do's and Don't on a Loan Modification
Tips for Homeowners - Avoid being a victim of a loan modification
1. DON'T pay money to people who promise to work with your lender to modify your loan. It is unlawful for
foreclosure consultants to collect money before (1) they give you a written contract describing the services they
promise to provide and (2) they actually perform all the services described in the contract, such as negotiating new
monthly payments or a new mortgage loan. However, an advance fee may be charged by an attorney, or by a real
estate broker who has submitted the advance fee agreement to the Department of Real Estate, for review.
2. DO call your lender yourself. Your lender wants to hear from you, and will likely be much more willing to work
directly with you than with a foreclosure consultant.
3. DON'T ignore letters from your lender. Consider contacting your lender yourself, many lenders are willing to work
with homeowners who are behind on their payments.
4. DON'T transfer title or sell your house to a "foreclosure rescuer." Fraudulent foreclosure consultants often
promise that if homeowners transfer title, they may stay in the home as renters and buy their home back later. The
foreclosure consultants claim that transfer is necessary so that someone with a better credit rating can obtain a new
loan to prevent foreclosure. BEWARE! This is a common scheme so-called "rescuers" use to evict homeowners and
steal all or most of the home's equity.
5. DON'T pay your mortgage payments to someone other than your lender or loan servicer, even if he or she
promises to pass the payment on. Fraudulent foreclosure consultants often keep the money for themselves.
6. DON'T sign any documents without reading them first. Many homeowners think that they are signing documents
for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred
ownership to the "rescuer."
7. DO contact a housing counselor who may be able to help you for free.
For more help and free consultation please call 714-442-9692
Copyright 2009 Wright Consulting Group LLC
David Alex Wright DRE 01828188
2500 E. Imperial Highway
Suite 201 PMB 354
Brea, CA. 92821
Free Consultation, No Obligation!!