GUEST POST: Watch Out for Mortgage Modification Scammers!

Our guest blogger is Jon Wagner, home mortgage loan originator with Wintrust Mortgage in Eagan.  You can find more information about Jon here.

 In the last few years, companies have popped up that offer homeowners "forensic loan audits."  They say they will review the homeowner's mortgage loan documents, establish whether the lender complied with federal and state laws, and speed up the process of requesting a loan modification.

The truth is that even if the audit reveals errors in the loan documents, the process very rarely results in a loan modification or rescind.

Even worse, scammers will often make false promises that they will secure a loan modification, a principal reduction, or have the loan fully rescinded.  They they just the string the homeowner along or simply disappear.

Thankfully there are a few things you can do to best protect yourself:

• Don't trust anyone who guarantees results.
• Don't work with anyone who ask for an upfront fee.
• Don't sign any contracts under time pressure and don't sign any that you don't understand.
• Don't stop paying your mortgage, even if they tell you to.
• Don't give anyone your personal financial information, except an appropriate loan help organization.

Fortunately, free and legitimate help is available from the not-for-profit Homeownership Preservation Foundation.  Call 888-995-HOPE or visit their website for more information.  The U.S. Department of Housing and Urban Development (HUD) also lists by state legitimate housing groups that can help homeowners.  You can view that list here.

And of course, we're always here to answer any questions.

Respectfully,
Jon R. Wagner
NMLS: 331960
Company ID: 1048 

p.s.  Are you thinking of taking advantage of today's affordable home prices and historic-low mortgage rates to upsize, downsize, or refinance?  Please call or e-mail us now to discuss your situation.