Home > Blogs > California > Sacramento County > Sacramento > California Department of Real Estate issues a Consumer Alert - AVOID Loan Modification Scams!
26,144 views

Erin Stumpf's Real Estate Blog

Sacramento Real Estate and other items of local interest

By Erin Stumpf | Broker in Sacramento, CA

California Department of Real Estate issues a Consumer Alert - AVOID Loan Modification Scams!

Yesterday the California Department of Real Estate issued a new Consumer Alert to give homeowners tips to avoid Loan Modification and "Mortgage Relief" scams. I receive several calls per month from homeowners who feel that they are victims of these scams, and I can not offer much help except to direct them to report the scam to the Better Business Bureau, the California Department of Real Estate or their local law enforcement.

A few tips to make sure you do not fall victim to loan modification scam;
  • Don't believe promises that are too good to be true. No one can guarantee that a "mortgage relief" plan will be be successful.
  • NEVER pay an upfront fee for loan modification services. Such fees are illegal in California. Advance fees for short sale services, deed-in-lieu of foreclosure and other residential mortgage foreclosure rescue services are also illegal under a new federal rule, with a very limited exception for fees paid to lawyers.
  • Check with the Better Business Bureau, and verify the existence of appropriate licensing for anyone offering those services.
  • Google the company name to see if you can find any red flags.
A HUD approved counseling agency can provide loan modification or other mortgage negotiation services for free. There are many of them in Sacramento.

Comments

By Gena Riede,  Tue Mar 22 2011, 17:25
It is amazing how many of our Sacramento area homeowners are still falling victim to these predators. Seems like there is another new scam every time I turn my head.

I hope homeowners read this and share it with their friends, family and neighbors. Good job, Erin.

POST
 
Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer