Loan Modification Scams Is Happening Everywhere

Loan modification Scam can also be referred as the Mortgage Compression.  In this case, a fake lender will promise to help you in settling down any mortgage debt especially when you are facing difficult situations financially.  Usually, if you don’t commit your monthly mortgage payments, you risk a foreclosure of your property. Therefore, the so-called modification companies will promise to help you in paying the outstanding loan after you have paid them an upfront fee of a specific amount.  If you can’t raise the upfront fee, they will ask for other sophisticated ways as bait.

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These companies will come up with a “scheme” of refinancing where they will ask you to be paying the little amount and then they will pay the rest.  At this stage, they will ask you to pay them hefty fees and therefore ask your bank account information.  Eventually, these companies disappear with all amounts in your bank account, and they don’t make payments to your lender as you agreed and you are left with a foreclosure notice. That form of scam has been common in the Real Estate in recent years.  It is very critical to try and avoid this type of a scam. If you are buying a property in Singapore, we advise you to seek professional opinions from your real estate agent in Singapore.

These companies will even call you and pretend to be associated with various government-initiated programs such as HARP or HAMP.  Others will ask to offer you foreclosure counseling or even government loan modification programs.  Typically, these scammers have very convincing websites with even government logos at the end of them.  Other websites may be having a caller id on the phone call and an official name.  They will ask you to pay for the processing fees in your third or fourth meeting.  In this case, you should act vigilant and be very careful when you are dealing with these types of companies. Many property owners think that such scams will only happen to residential property owners. In fact, it is also affecting owners with commercial properties such as office space.

To avoid this type of fraud, you should not pay an up-front fee for their services. If they ask for upfront, you should beware of the scam.  In fact, it is illegal for any loan modification companies to charge you a fee in advance.  Since the foreclosure is normally processed by the government, nobody should guarantee to protect you from foreclosure.  If anyone or a company offers you such a “guarantee,” you should understand clear that is a scam.  Consequently, you should not sign any document that you don’t understand.  Additionally, you should beware of any person who asks you to send your personal financial information or pretends to offer “official” foreclosure counseling services and then ask you to pay for the services.