Tag Archives: Mortgage modification

Mortgage Modification and the Dual Track Foreclosure Scam

Many lenders attempt to work out a mortgage modification with distressed homeowners in good faith, hoping that by doing so, those individuals will be able to maintain their property. Others are using the situation to prey on unsuspecting homeowners who feel they are safe from foreclosure while a mortgage modification is pending. Known as a “dual track foreclosure,” it has prompted legislation in California and Oregon prohibiting such practices. A dual track foreclosure happens whenever a mortgage company pretends to be working out a modification on a loan, yet simultaneously proceeds with a foreclosure. Since most people believe they are safe from foreclosure while a modification is pending, they often do not take measures that would protect them from this action, to include filing for bankruptcy. When finally hit with a foreclosure notice, those who are the victim of this dual-track scam often do not have time to react, and…
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Don’t Fall Victim To This Latest Scam

Following the nationwide foreclosure epidemic comes one more thing homeowners need to look out for. We’ve written multiple times about mortgage modification scams and it’s in the news again recently. The Detroit Free Press reported this week in the USA Today on what could save you thousands of dollars, or even your home. The scam stems from the nearly $30 billion set aside for the government’s foreclosure prevention initiative called HAMP (Home Affordable Modification Program). Applying for the program is free, as is access to housing counselors to guide you through the process. But those perpetrating the scam advertise online, on the radio, on TV and in print with official looking material aiming to convince desperate and under-water homeowners to pay them on promises of lowering their monthly mortgage payment better than they could on their own. So far, these mortgage modification scams have led to criminal charges brought against…
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Mortgage Modification Program: Problematic

Lost paperwork, lack of communication and wrongful rejections are just a few of the problems Missouri homeowners have reported. Launched in March 2009, the Home Affordable Modification Program was the Treasury Department’s keystone attempt to curb the nation’s rising number of foreclosures. The program gives homeowners the chance to reduce their mortgage payments if they meet certain eligibility requirements. If accepted, they pay a lower rate during a three-month trial period. And if they make their payments, the modification is supposed to become permanent, and they no longer have to pay the old, higher rate. That end result – a permanently reduced monthly payment – has proven elusive for most homeowners who’ve signed up. The program was created to make loan modifications easier by tackling a central barrier in the modification process. The banks and mortgage companies that receive mortgage payments – known as mortgage servicers – have little incentive…
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