Have You Been Contacted By A Loan Modification Company?
Consumers facing foreclosure might be tempted to retain the services of a loan modification company to help them obtain more favorable terms on their loans.
You may be struggling to pay your mortgage or you may simply need assistance navigating the complex mortgage world. You might see an appealing offer to provide you assistance. Offers may include obtaining an interest rate reduction, principle mortgage balance reduction, or the negotiation of reduced loan terms.
Of course, the loan modifier offers you assistance for a fee.
Before doing so, the Colorado Attorney General's Office encourages consumers to bear in mind several facts about Colorado law and the possibility that they may be able to accomplish a modification without hiring anyone.
Tips for dealing with a loan modification company:
- Before retaining an outside company to attempt to modify your home loan, consumers should first obtain free help from the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673).
- It is illegal in Colorado for a loan modification or renegotiation company to charge you an upfront fee. Ongoing or monthly service charges are also forbidden under Colorado law. These companies can only charge consumers once their services are completed.
- Never stop making your monthly mortgage payments. Consumers who do so could find themselves in foreclosure.
- Do not ignore communication from your lender. Most lenders have loan modification programs that can help you save your home. In some cases, all a borrower needs to do is call the lender and provide some current financial information.
- Beware of any advice from a loan modification company urging you not to contact your lender.
- If any company promised they will get rid of your debt, they are making a promise they cannot keep.
- Check out any loan modification company you are considering hiring with rating and review companies, such as the Better Business Bureau.
If you believe you have been victimized by a loan modification company or wish to report suspicious activity, please file a report here.