HAMP load modification scams have been front page news over the last year, with Bank of America leading the charge on systematic fraud and deceptive practices inside their loan modification department.
It isn’t only customers of Bank of America putting home owners into foreclosure for fraudulent reasons, banks sell their loans to non-bank loan servicers that are even shadier. Servicers who purchase servicing rights are not obligated to follow through on prior agreements with homeowners on loan modifications that aren’t yet permanent. In addition, servicers get paid fees for servicing loans and troubled loans generate more fees than performing loans. If a loan mod is granted, the servicer’s revenue drops. Homeowners who thought they were getting relief instead have to start over with a new servicer and end up back in load modification hell.
What is a distressed home owner to do?
As part of Cossit Law’s commitment to protecting our client’s best interests we offer these points to consider when entering into a HAMP loan:
- Don’t believe or trust anything not in writing
- If you can’t get an agreement in writing, don’t do it
- Keep detailed records of all loan-related documents as one of the most popular scams includes loan servicers claiming documents were never received
- Know that your loan could be sold to a shady loan servicer
- Be aware that the HAMP trial period is often used as a scam
- Most importantly, before you sign anything, hire a competent lawyer to review the deal
Save yourself heartache and headaches by contacting Cossitt Law before entering into a HAMP loan modification. HAMP may not be your best option. We have a variety of tools to choose from to help you save your home from foreclosure.
Read about the Bank of America HAMP scam here.