Rancho Cucamonga, California (PressExposure) August 05, 2009 -- Given the current state of the economy and the rising unemployment rate, many homeowners are facing financial distress and foreclosure. For these homeowners, struggling to make their mortgage payments, the optimal way to save their home is to work out a mutually beneficial payment plan with their lender, or to revise the terms of their original loan agreement in order to make more manageable monthly payments. Unfortunately, banks and lenders have been overwhelmed with loan modification [http://www.stonehavenlaw.com/loan_mod.html] requests and are very difficult to work with.
This crisis has created an entire market of scammers and fly-by-night modification companies who promise to stop foreclosure and save homes. While seeking assistance is often necessary, homeowners need to be beware of these âcompanies.â The following is a list of tips to avoid foreclosure rescue/loan modification scams:
1) Beware of companies that charge all their fees up front and offer no money back guarantees. Some companies charge upwards of $7500 upfront to do a loan modification, and keep all that money even if they are unable to do anything. Itâs therefore important to look for a company that offers a money-back guarantee or other payment alternatives, and if they do collect fees upfront, an enquiry should be made on where those fees are going.
2) Beware of companies that are not law firms. Attorneys are regulated by state bar associations and risk losing their licenses if they are engaged in scams. A homeowner has no recourse against non-legal modification services. To make sure it is a law firm, he or she should ask for an attorneyâs license number and do the required research.
3) Beware of companies that do not have an office or are unable to meet in person. Full verification is necessary regarding whether the company has a physical office and makes an appointment to meet in person before anything else.
4) Beware of companies that sound too good to be true. Any company that makes promises and guarantees as to an outcome is just telling what he or she wants to hear in order to get money. Itâs worth remembering that there is a third party involved (your lender) who makes the final decision.
5) Beware of companies that tell you to make your mortgage payments to them instead of to your lender. Many companies claim that they will be putting their fees towards mortgage payments. This is not usually the case, and one should get the lenderâs approval before agreeing to this.
The Stone Haven Law Group is, therefore, a reputable law firm specializing in the field of loan modifications and bankruptcy law. To speak with an attorney regarding home and mortgage, contact Stone Haven Law Group at 909 457 8200, or a must visit is necessary at http://www.stonehavenlaw.com.