4 minute read
Helping homeowners avoid loan
HELPING HOMEOWNERS AVOID LOAN MODIFICATION SCAMS
Ameer Elahee
After the financial crisis of 2008, most of the homeowners in the United States were left in an impossible situation, and most of them lost their homes to foreclosures, simply because they couldn’t pay their mortgages.
In such a situation, what most homeowners try to do is to stave off the inevitable foreclosure through loan modifications, only to realize that their desperate acts led them to fall into a scam. Since the 2008 financial crisis, the housing market has improved dramatically. Right now, when I look at the housing markets and the trends in foreclosures in the last few months, I am so worried. It takes me back to the periods prior to the 2008-09 recession.
The possibility of losing a home to foreclosure is a scary one. But the reality is, expert scam artists are devising their schemes, preying on the desperate homeowners. Many companies say that they will change your loan that will reduce your monthly mortgage payment, or even promise you that they can save your home. Some will tell you nearly all their customers were fully satisfied with their services. Others will tell you that they are affiliated with the government or your lender.
Given the options, you definitely will choose these companies, Afterall, who would want to lose a roof over their heads? Unfortunately, the reality is that many of these companies will tell you half-truths and even lie to your face for them to sell their services to you. They will promise relief only for you to get distressed. The fact is, most of these companies will leave you in a bad financial situation than you were before.
Before we get into the ways NHPS is helping you stay safe, let us first examine what loan modification is.
What is loan Modification
As a homeowner, when you fall behind with your mortgage payment, you have several options at your disposal to avoid losing your home. One of these options is a loan modification. A loan modification is a plan that will permanently restructure your mortgage by changing its terms. The terms may include reducing the interest rate and/or the monthly payment.
A loan modification can also entail the conversion of the interest rate to one that is more financially feasible for the homeowner. For instance, modification may convert the rate from fixed to a variable rate. In some cases, the loan modification may even extend the length of the term of the loan. And it gets interesting. The first qualification to a loan modification is proof of financial hardship. The homeowner may be needed to provide proof of hardship and what better time than during the COVID-19 crisis. This is the time that so many Americans have lost their jobs, and raising a monthly payment may be hard.
Preying on the Vulnerable
Perhaps one of the most common scams entails a socalled agency. They will promise to help you obtain a loan modification for an upfront fee. This should be your first red flag as a homeowner can receive such counseling for free by contacting HUD.
But they know their way, which explains why so many people fall for these low-lifes. As such, if you come across people who say they can help you as long as you pay them, run for the hills. These are people who just want to take your money and then runoff.
Some of the things you should watch out include; if a person keeps on insisting that you do not contact anyone about the agreement, they are trying to reach with you, that should tell you something. Remember, these scammers can also be so egregious as to ask you to pay whatever mortgage payment they can muster up directly to them instead of the lender.
Take a look at the following message, given as an example of how these scammers will reach you in a message by FTC;
NPHS Helping you to Avoid Loan Modification Scams If you’re struggling with your mortgage or trying to
get your mortgage reduced, you can find help, free of charge, from NPHS. Loan-modification scams take many forms: Some mimic government foreclosureprevention programs, others guarantee to stop foreclosure for a significant fee, and still, others strip the homeowner of equity or of the home itself. NPHS is here to help. Give us a call at (909) 988-5979.
If you get a message suspecting to be these scammers, contact us immediately and help us to stop these people. If you still don’t know the way forward, talk to one of the masterminds behind this program, Ameer Elahee, who also is a member of the VIP Agents, a program run by The Power Is Now Media. Find out more about the program here.
Mr. Ameer Elahee is a very successful realtor, consultant, international speaker, and motivational life coach. One of Ameer’s true passion is real estate sales, first-time homebuyers, and homeownership education. Currently, Ameer is fulfilling his lifelong passion in real estate at Keller William’s, where he has achieved every milestone he could as a market leader in the organization where he is very involved. Talk to Ameer today and learn more about the Just how to stop these scammers from crushing your homeownership dream. To find out more about Ameer, go to https://thepowerisnow.com/ vipagentsservices/test/.
Ameer Elahee Real Estate Services Manager Neighborhood Partnership Housing Services, Inc.
Sources
https://nphsinc.org/2020/04/17/avoid-scams/ https://www.preventloanscams.org/avoid-loanmodification-scams/ https://www.consumer.ftc.gov/articles/0100- mortgage-relief-scams
