Many Indiana residents are curious about loan modification programs. With the number of foreclosures continuing to grow around the United States and the Indianapolis real estate market, homeowners are scrambling to come up with options to save their Indianapolis homes.
Loan modification programs have been presented as the possible answer for many facing foreclosure. While the jury is still out whether this is truly a viable solution for most Hoosiers, homeowners are still seeking out these options in great numbers. Some are finding salvation from these subsidized modifications that are sometimes hesitantly provided by lenders.
Is it the right answer for you?
First and foremost, protect yourself. As with any popular marketed program, there will be con artists trying to make their buck off a shady version. This is certainly the case in the world of loan modifications. Some people even find themselves in a worse situation than before they started looking for modifications because they stumble upon an organization designed to scam you out of money, all the while never intending to actually help.
Following are the ways you can protect yourself when seeking out your loan modification options:
1. Be educated. With so many things on the plate of the average American, adding one more item to research can be overwhelming. But if you’re facing foreclosure, this issue of education will probably need to move to the top. It is critical to understand what are your options and who is qualifying for assistance. Look at reputable sites online for information. Pursue your options with the program organized by the Obama Administration, Making Homes Affordable, and one in our region called the Indiana Foreclosure Prevention Network. Both programs offer opportunities for free assistance. Be very wary of help that comes at a cost as there is considerable help available for free.
2. Be on guard. If you are behind on your mortgage, you will be targeted by loan modification scams. Be on the lookout for anyone charging an upfront fee for their services and for marketing materials that look like official government mailings.
3. Don’t be in a hurry. If a company offers you a quick solution that includes immediately signing documents or wants you to sign over the deed to your home, be aware that you are probably being scammed. Loan modifications are worked out between you and the lender. Outside groups can be helpful but don’t ultimately make decisions so don’t hand your financial situation over to them.
4. Don’t sign your deed. Only sign over the deed to your home if you are directly dealing with the lender who can forgive the debt and you are selling it back to them.
5. Don’t pay anyone but your bank. If you are being asked by a loan modification program to pay your payments to anyone but your mortgage company, you are probably being scammed. A typical scam run by the fraudulent companies is to convince you to pay your payment directly to them so that they can negotiate with your mortgage company.
6. Be on the lookout for free services. Not all programs who ask for a fee are fraudulent, but regardless there are several legitimately free programs available. To be on the safe side, look for these free programs and pursue them before looking at other options.
Before calling an Indianapolis REALTOR® and putting listing your home among the other Indianapolis homes for sale, great care needs to be taken before making any a decision about selling and foreclosure. If indeed loan modification programs are not an option for a struggling homeowner, then all the foreclosure options must be considered.