How the scam works:
(with video below) With the recent recession, loan modifications have become a very popular way for people to make their mortgage payments a little more manageable.
Unfortunately, this creates yet another way for ruthless people to help you part with your money. Let's say you're struggling to pay all your bills on time. You again stumble upon an ad, this time it's for a company promising great change to your loans, money-back guaranteed!
They might even say they can get refinancing through a federal program. What could possibly go wrong? You contact them and they send you a “Quick Qualification” questionnaire to see if you qualify for approval for the loan modification by their attorneys. Surprise, surprise, you do get approved!
You must submit a one-time fee of over $1,000 and some necessary documents. Once everything is in, the “company” informs you that the paperwork will take one to two months to complete. Of course, the paperwork doesn't go through and your bills are still piling up.
Watch the video below to see the Loan Modification scam exposed:
How to avoid:
According to reports, over 80% of loan modification companies that are self-promoting online are scams. So do your homework and don't contact these companies unless you are sure they are trustworthy.
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