Guest Post Authored by Jonney Pean.
Loan modification has helped many homeowners from losing their homes. In loan modification, the existing terms of your loan get modified making the monthly mortgage payments more affordable. Whether your mortgage loan is eligible for modification is decided solely by your lender. The incidence of loan modification scams has increased noticeably.
The state attorney general of Colorado reached agreements with 7 loan modification companies in recent months that failed to deliver what they promised to the borrowers. Moreover these companies were also deceiving consumers by making false promises through their advertisements. The 7 loan modification companies that were banned include the following –
1. Summit Resolutions
2. Eugene Alkana Law Firm
3. Rescue Home USA
4. Legal Home Solutions
5. Traut Law Group
6. Nationwide Modification Center Inc
7. Infinity Group Funding
The 7 loan modification companies mentioned above will not be able to carry on with their operations unless they comply with the provisions of Colorado Foreclosure Protection Act. As per the Colorado Foreclosure Protection Act the consultant will not be allowed to take upfront fees and must enter into agreements with borrowers that have specific provisions.
The banning of 7 loan modification companies was a part of the “Operation Loan Lies”, a combined effort of many states to eradicate loan modification scams. This was announced by the Federal Trade Commission and the operation will be taking place in nearly 20 states as well as in the District of Columbia.
Loan modification will enable you to make payments for your mortgage regularly. This is because the lender will increase the duration of the loan, allow you to make payments as per fixed interest rate. The principal balance of your loan may also be reduced under certain circumstances.
In case you have doubts that your lender has manipulated the terms of your mortgage, you can opt for a forensic loan audit to find out the same.