Loan Modification Scams Spring Up in Schaumburg Area

According to the Illinois Department of Financial & Professional Regulation, the state has seen an increase in solicitations to the general public in the form of direct mail, advertisements and other marketing mediums offering foreclosure-related services. These unsolicited businesses are claiming assistance to struggling homeowners in the form of loan modifications in addition to loss mitigation and foreclosure prevention. These services purportedly provide consumers assistance in the negotiation and resolution of delinquent accounts with lenders in exchange for fees paid upfront. If you or someone you know has been the target of a loan modification scam, contact an Illinois foreclosure attorney right away to protect your rights.

Loan Modification Explained

A loan modification occurs when an underwater homeowner, or the homeowner’s authorized representative, successfully negotiates with the mortgage lender to obtain a permanent change in the terms of the underlying loan resulting in reduced and affordable payments. It is possible that a successful loan modification may reduce the interest rate on a mortgage to as low as two percent, for the life of the loan. Additionally, a loan modification may allow the borrower to add overdue payments to the back end of the modified loan in order to make the loan current. An alternative to foreclosure, if approved, a loan modification helps to keep a homeowner in the property.

How to Avoid Being Scammed

If you or a loved one is facing foreclosure, contact an Illinois foreclosure attorney right away to protect your interests. Some examples of current loan modification scams include mortgage payments to a third party without prior approval of the lender, stating that signing the deed over to a third party will save the home, requiring an upfront fee in exchange for mortgage counseling or modification services, and charging a fee to obtain assistance through the federal Making Home Affordable program.

Should mortgage counseling be of interest, ensure that the agency providing the services is one approved by the Department of Housing and Urban Development before conducting any business with the agency. Do not pay money unless you know exactly what services will be provided and clear away from agencies that only accept cashier’s checks or money orders. Beware of “guarantees” promised by anyone assisting in this process as the final decision in approving a loan modification is made by the lender. Moreover, do not sign any paperwork that hasn’t been read – or reviewed by a reputable foreclosure attorney – especially if the documentation relates to transferring title to a third party.

Contact a Chicago Loan Modification Attorney

If you believe you have been the target of foreclosure fraud, contact an Illinois foreclosure attorney today for advice on your rights. With over 35 years of experience fighting for clients’ property interests, the Law Offices of Gilbert C. Schumm can provide competent and reliable legal assistance to you or a loved one. We service the Chicago area, including Arlington Heights, Rolling Meadows, Des Plaines, Schaumburg and Streamwood. Call (847) 559-9109 today to schedule your initial consultation.