Dear Sue,
I have a great job and a wonderful family. My husband and I both worked to pay the mortgage on our beautiful home.
He passed away three years ago. Since then I have been taking money from our savings to make the payments.
I worked through an on-line loan modification company and was turned down. It was suggested that I sign a deed in lieu of foreclosure.
I couldn’t believe that my only recourse was to give up my home. I simply signed my home over to the lender. We not only had a lot of years in our home, we also put a lot of money into it.
Within weeks the lender turned around and sold our house for half of the loan balance. I am furious!
I could have easily kept our home if I had been given the opportunity to have it for half of what I owed.
I checked with my attorney to see if I had any legal recourse. It seems as if I don’t.
How do I go about finding out if the loan modification company is legitimate?
— Furious Fran
Dear Fran,
First it’s important that you understand that lenders are ill-prepared for the onslaught of loan modification requests.
They are inexperienced and under-staffed and are being forced to learn as they
go.
Loan modification companies that negotiate short sales, various modifications to the loans, short sale refinances, stream-lined refinance loans and every other type of rescue plan, are popping up everywhere.
Beware! Many of these companies are unlicensed scam artists. Check the company out through the Department of Real Estate. Be particularly cautious if the company is asking for fees in advance.
A legitimate loan modification company is required to be licensed. If they collect advance fees they must have approval from the Department of Real Estate. Go online to www.dre.ca.gov and search for the list of all approved loan modification companies.
No matter whom you are working with, always consult your attorney before signing anything! It’s a matter of good Home $$$s and Sense.
Sue Thompson is owner and sales manager of HomeTown Realtors. She can be reached at seesue@seehometown.com, or on the Web at www.homedollarsandsense.com.
