Loan Modification Frauds

What I want to share with you today is on the topic of loan modifications and more specifically using a third party to help you with a loan modification. The reason why I bring this up is because the California Department of Real Estate said it had revoked a record number of licenses in 2009.
All in all, over 775 licenses were either revoked or surrendered by individuals who were facing investigations. That’s about a 50% increase in license revokations over the previous two years. This is due to the downturn in the housing market and the rise of foreclosure prevention cons such as loan modifications. Now, when it comes to loan modifications what I really want to caution you about is if they don’t have a license, stay away! Ok, and that’s not to say that any licensed individual is going to be good but that should be the first criteria because in 2009, the Department of Real estate actually conducted 2000 investigations arising from loan modification complaints, and what they found was that 60% of those were by unlicensed professional. Oh and by the way those 2000 investigations only account for about 25% of all cases, so there’s a lot of fraud going on and as a result 775 agents, licensed professionals actually lost their license because of their involvement in some type of fraud related to foreclosure prevention.

Background check are crucial and for that purpose the Department of Real Estate has posted on their website a list of those accused of loan modification complaints. I would definitely check that out if you are currently dealing with someone for that, it’s just crucial that you get all the information. In my personal opinion I would deal directly with your bank, with you lenders in order to get that modification resolved. It’s free to just talk to your lender, pick up the phone and more likely than not they’ll be willing to work with you as far as communication letting you know what you need to qualify for it, and if you don’t then it’s time to look at your options. I am here to help you. Just no pressure information on what other options you have if you’re facing foreclosure.

About Daniel Di Matteo

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.