Keeping a roof over our heads is becoming harder and harder to do lately. Many families are prioritizing their expenses: should we buy food or pay the electric bill? Home owners become desperate as they search for a way to alleviate the financial pressure. They do not want to have to take a trip to a Chicago bankruptcy lawyer. Instead, they go to companies specialize in loan modification hoping for help.
How the Scam Works
This particular scam targets those who have trouble making mortgage payments. Home owners who got in over their head or one they took out a second mortgage on their homes. Whatever the reason, bills are not getting paid and the families are going into debt. They just want a quick fix.
There are so-called companies that call these families offer just what they want. With a simple up-front payment they will modify your loan to terms that are easier to make payments. Meanwhile, they tell homeowners to stop making mortgage payments until the companies call them back.
Spotting the Scam
The biggest key to spotting a scam is using common sense. Many scams can be seen through if the right questions are asked. Not to mention, the Federal Trade Commission has deemed it illegal for companies to tell home owners to stop paying their mortgage. So, right off the bat, if the company even mentions not making mortgage payments, it is a scam.
Also, in some states, it is illegal for a loan modification company to charge an upfront fee. With a little research, home owners can find out if that law applies to your state or not.
Moreover, if the offer is too good to be true, then it most likely is. There is something fishy happening if a company wants an up-front payment of $4,000 will take care of a loan amount of $100,000. Home owners will most likely be able to spot the fake if they stay alert and ask questions.
What to do if you have Been Scammed
No one ever wants to admit to being scammed. But, it happen more often than we would like to think. Some just pretend it never happened. Or they do not know who to go to or what to do. Contacting a Chicago bankruptcy attorney can help. He will know who to contact.
Home owners could also contact businesses like the Better Business Bureau. Reporting the fraud is the first step in getting back on track.