The National Association of Mortgage Brokers(NAMB)is a not-for-profit organization of mortgage servicers, investors,mortgage insurers and non-profit counselors. They recently released their May 2012 loan modification information.
An estimated 63,000 homeowners benefited from affordable loan modification during last May.To infuse humanity into the statistic, that means 63,000 people were granted loan changes that prevented foreclosure. They and their families remained in their homes. For more statistics check out Hope Now, A Homeowners’ Support and Guidance, group, click here.
We of Palm State Mortgage want to make our readers aware of a startling number of loan modification scams we are seeing in the news and on the internet, and right here in our own hometown of Orlando.
In the first place, we need to define a “loan modification. This is a change or changes made to an existing loan made by a lender in response to a borrower’s long-term inability to repay the existing loan. The modification might be in terms of these points:
1. It might lessen the interest rate on the loan.
2. Perhaps it would extend the length of the term of the loan.
3. It might be a different type of loan.
4. It could be any combination of the above three.
The reason a lender might be amenable to such changes is that it is sometimes more cost effective than the cost of default. We believe that you should be informed about several scams related to this type of loan situation. Thousands of homeowners have complained of scam artists who say they can help the homeowner attain a loan modification. Then these unscrupulous people take the fees and never do anything to help the homeowner.
Here are three common scams to watch for as you navigate your way through a loan modification or re-finance situation:
1. A person advises you to stop paying your mortgage company. The scammer says “Just send your payment to me instead of your mortgage company and I’ll take care of you.” (Then they take the money and run!) Our advice: The first time you can’t make a payment, call your mortgage lender.
2. A person guarantees they can totally stop a foreclosure. The guarantee is the scam. (Oh, yes, they will also take the money and run!) The legitimate agencies will only promise to help you to the very best of their ability.
3. A person says they are offering special “official government loan modifications,” in return for a fee, of course. Be cautious! Your lender can explain any government programs that can prevent foreclosure, and such programs are free. Find infomation on more scams by clicking here.
We want you to know that a NAMB certification means that you are working with people who are highest ethical standards in the industry. They are the knowledgeable, recognized professionals in the mortgage industry. To best avoid being scammed, work with one of their members. Learn about NAMB at this source.
At Palm State we are pledged to provide our clients with the most economical mortgage that fits their situation. We are proud to bring families the beautiful benefits of American home ownership. Thank You for reading our blog this week, and we hope you will visit us often for more financial news and mortgage tips.
