There's no shortage of people willing to take advantage of homeowners facing foreclosure. Two common scams are: refinancing scams and loan modification scams. The actual scams vary a bit, but pretty much result in the same thing—the scammer pockets your cash.
In a refinancing scam, the scam company or individual sends a mailer or calls you. The scammer offers to help refinance your mortgage loan at a new, lower interest rate. Most of the homeowners targeted by this kind of scam have difficulty making their monthly loan payments. In some cases, you might have a high-interest rate, and are looking to benefit from a lower rate to save money.
Here are some "red flags" that might indicate a refinance scam:
If you're struggling to stay current on your mortgage payments, a loan modification might be the perfect solution to your problem. With a loan modification, the lender agrees to take certain steps, like reducing the interest rate or extending the term of the loan, to lower the monthly payments. (Here's what you need to know about getting a modification.)
You can easily apply for a modification on your own. But a scammer modification company might try to convince you that you’re better off hiring their company to help you "negotiate" with the lender. In truth, there's little negotiation in the modification process. If you meet eligibility requirements, you'll get a modification.
Modification companies, however, often exploit a homeowner by:
(If you want to get a loan modification, learn five tips to improve your chances of getting one).
If you're contacted by a company you believe is trying to scam you, turn over the scam information to your state Attorney General. The Attorney General's office can then investigate the company. Such an investigation might protect other homeowners.
If you need help completing an application for a loan modification or want more information about different ways to avoid foreclosure, consider talking to a foreclosure lawyer or a HUD-approved housing counselor. You should, however, avoid hiring a loan modification company to help you.
**mental anguish**
went to a used car dealer in manassas, VA to purchase a car. with my bad credit they ''approved'' me anyway. signed all the papers and left with the car. they call me a day later to say i was denied, the loan agreement was terminated and i need a co signer. with out showing me the ''new'' agreement, they mail it to my cosigner (who has great credit) with an outrageous interest rate.--name removed--we both refused to agree. i attempted to return the car in exchange for my downpayment (which at first they insured me was ok to do) but i was told later by the manager ''there is a law'' requiring them to deduct finance fees and mileage out of my downpayment. to my knowledge i did not sign or agree to their ''law'' on refunds. i do not wish to agree to the new loan and simply want to return the car for my money back. they refuse to refund it(even after i sent them a formal, signed letter). i went back to them to hand them the letter in person and they said it's too late, we alread got your first agreement approved. though they told me it was denied and terminated and created a new one to be signed. what can i do?
Family Law
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We provide DirecTV service for a hotel. The hotel was foreclosed on by the private money lenders that were lending the money. The hotel owed us a bill of $5000. They now are refusing to pay the bill saying it is not their problem even though they are using all fo the same equipment that the money is owed on? How is the best way of going about collecting our money? If the private money lenders forelcose on the borrower don't they assume all liabilities etc.. from the property?