Effect of Bankruptcy of Loan Modifications

Many debtors are attempting to modify their loans with the hope of reducing their loan payments to a point where they can afford the payments.

BEWARE OF THE MANY SCAM ARTISTS MASQUERADING AS “LOAN MOD SERVICE FIRMS” .   The California Attorney General has filed suit against numerous companies and individuals.

While there may be some legitimate ones, there are many companies who are preying on at-risk homeowners.  There have been many loan modification shops that have been shut down by the State in an effort to stop distressed homeowners from being taken advantage of.  Some of  the indications of a scam are:

  1. Were you guaranteed a loan modification?
  2. Did you sign over title to your property?
  3. Were you instructed to redirect mortgage payments?
  4. Were you instructed to stop making your mortgage payments?

Even attorneys are prohibited from accepting money in advance for negotiating a loan modification.  The loan modification process is relatively simple, and the need for an attorney is uncommon.  Though our office does not provide loan modification services, we can provide guidance which will help you better understand your options and possible other solutions to mortgage problems.

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