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Tips for Avoiding Loan Modification Fraud

Loan modification scams cost consumers considerably and it is imperative to know how to spot them and avoid them. As the economy shudders, these real estate scams will become increasingly common and consumers should stay alert for deals that “sound too good to be true.” The following tips can help consumers avoid the traps these scammers set.

1. Watch for Upfront Fees

Many scammers offer their services only after homeowners pay an upfront fee. Once paid, the scammer vanishes into thin air, phone numbers no longer work, and the money evaporates. 

2. Avoid “offers” to Forward the Mortgage Payment

Scammers may offer to forward the mortgage payment to the lender. Homeowners should never send these payments to anyone but the lender.

3. Pay Attention to Titles

If the person’s title sounds too good to be true, or too illustrious for the job duty, it is likely a made-up, meaningless title crafted to entice consumers to fork over their money. 

4. Run when the Internet Draws a Blank

The internet is filled with information, and a quick search can help consumers find practically anything and everything about a company. If the company doesn’t have a website (or has a website that looks less than professional), isn’t registered to do business in the state, or has a host of negative reviews, consumers should run. 

5. Always Contact an Attorney

Scammers are masters of making outlandish promises. They will tell consumers their interpretation of the law and how they have a system that uses a rule or statute to go around the law or regulation. It may sound official, it may sound good, but any legal advice they offer should always be verified by a licensed attorney

6. Always be Skeptical

Scammers know that consumers facing mortgage defaults and foreclosure are under significant stress. They use this to their advantage and prey on people eager for a way out of their financial predicament. Consumers contacted by these fraudsters should always be skeptical, should never pay for the “help,” and should guard personal details, deeds, and other documentation carefully.     

Finally, the US Department of Housing and Urban Development offers free loan modification counseling. Consumers can contact the nearest office and learn more about the options available to them and the steps required to complete a proper loan modification. 

What Our Clients Say

My family and I are thankful to Maddox, Segerblom and Canepa for their assistance during a three year case regarding construction defects to our home. We are truly appreciative of their knowledge, determination and assistance during this process. They were always courteous, and available to answer any and all of our concerns and questions. Thank you for the wonderful resolution. Many thanks to you and your staff.

Frances Castelli

We used Maddox, Segerblom & Canepa to represent us in a legal suit re problems in construction on new properties that we purchased from a developer.

We were very pleased with the representation provided by this law firm. They were fully communicative, responsive to our questions and were very knowledgeable about the issues that required resolution. Even after we reached a resolution, they have been responsive in making sure to point us in the right direction for help with repairs that are required.

We would recommend them to others with similar issues that require legal help.

Atam & Margo Lalchandani

Maddox, Segerblom & Canepa did a FANTASTIC job in our construction defects case. I interacted with several people from their office throughout our 2 year litigation. Their staff is friendly, knowledgeable and always prompt about getting back to you when you have questions/comments/concerns. I especially enjoyed working with Darcy, Ardea, Eva, and Sandra. Being part of a lawsuit is no fun for anyone, but if you have to be a part of one, I can’t say enough positive things about this firm!

Victoria Fox

The law firm of Maddox, Segerblom, and Canepa were amazing to work with. They were thorough and always available for any questions we had. We worked a lot with Sandy who was always professional, friendly, always on time for appointments and just a great person to represent this firm. We have never been involved in a law suit before and they made it comfortable for us. We appreciate the hard work the lawyers and people who work for the firm did and would recommend them.

Becky Loudenburg
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