Spotting Mortgage Modification Scams and Scammers

When you watch late night TV and see ads for deeply concerned-sounding loan modification experts, how can you tell who's the real deal, and who's been caught--or is in the process of being caught --shafting their clients?  A group called the Lawyer's Committee for Civil Rights Under Law and their partners are trying to make it easier for you.  Their website, Prevent Loan Scams, gives you lots of tools to help.

One page can let you know if you have already been a loan modification scam victim--it's easy--by answering two simple questions.  For a full list of loan modification scammer tactics, see this.  Another feature is a list of companies that have been found guilty--or have action against them--across the country.  There's a list of resources state-by-state, including recent scam news, local sources of legal and law enforcement help, state laws and regulations, and more. 

And, as always, remember that NOBODY can promise you a loan modification.  If they do, don't believe them.  You always have a FREE source of help in the HUD-approved foreclosure counseling.  Call 1-888-995-HOPE to find your nearest counselor. 

New Consumer Hotline for Mortgage and Credit Card Complaints

The feds have created a new place for homeowners with mortgage complaints to contact and (hopefully) get them resolved.   This includes escrow disputes, mortgage modification issues, or mortgage fraud.  you can go online to www.consumerfinance.gov, or call toll-free 1-855-411-2372.  It was created through the Dodd-Frank banking law that passed in 2010.  What can they do for you?    They are supposed to mediate complaints, and if a complaint isn't within their sphere of power, they will refer you to an appropriate agency.

They also field credit card disputes.  If you run into your very own "Peggy," or have other credit card problems that can't be resolved you can file a complaint. 

It's got other good stuff: a page on student debt--with information to know BEFORE you get into student debt, and an online "assistant" to walk you through your options now that you have a ton of student debt. 

Other places you might want to go if you have mortgage or credit card issues: your own state consumer protection office,  or your state's attorney general office. 

Are You Eligible for a Mortgage Modification? Here's How You Can Find Out.

The feds revealed the details of the new plan to allow refinance of Fannie Mae and Freddie Mac mortgages. If your home is your primary residence, you have a loan of less than $729,750, and you are having trouble with your mortgage due to a sudden decrease in your income--or rise in your mortgage--you may be eligible for a mortgage modification. Details are at this site. If you are not eligible, this site will give you some ideas of how to save your home, and who to contact.

Even more links are here. Whatever you do, remember that FREE help is available from HUD counselors that can be reached by dialing 1-888-995-HOPE (4673). Don't pay for help from dubious sources that promise they can help--scam artists are out to take advantage of desperate people. Don't become one of them!