It has been amazing to see how many mortgage loan modifications companies have come onto the scene in the past year or so. I received a call from a homeowner asking for advice, after she had hired a loan modification company to help her after she had fallen behind in her payments. I listened to her hardship details and how the company had negotiated a deal that was impossible for her to complete. When she complained about the terms, she was told that her home was going into foreclosure and the sheriff would be there soon to evict her. I suggested that she should seek legal counsel and referred her to the U.S. Department of Housing and Urban Development (HUD) approved counseling agencies.
Home owners need to be careful when seeking help. Phony schemes for foreclosure prevention and mortgage rescue are becoming a problem in Arizona. Home owners that fall for these schemes can end up losing equity and their homes.
How do you avoid these scams?
Contact your lender directly and seek a workout solution
Call an approved HUD counseling agency
Consider selling your home
Consult a licensed real estate broker or agent trained to handle distressed property situations
