Hiring Non-Attorney For Loan Modification Is A Big Mistake – The Tidal Wave Of Investigations And Lawsuits Has Begun
Many non-attorney and out-of state “rescue” companies are being investigated. Homeowners should never hire these types of companies. I have blogged on this a lot recently. Most of these companies are violating several laws . . .
by taking up front fees, by practicing law without a license, by fee splitting in violation of RESPA, and simply by taking fees and doing nothing. There are even some lawyers who are illegally trying to engage in loan mod services beyond the reach of their jurisdiction. Other homeowners make the mistake of going the pro se DIY route (“do it yourself”). Many find themselves deeper in the whole with no real understanding of their alternatives, budgeting or legal rights and risks.
The moral: hire a local attorney within your state if you need loan mod assistance. The cost is usually less than one month’s mortgage payment and well worth it.
Here are some articles concerning the latest investigations into illegal loan mod firms:
CBS News On Upfront Fee Loan Modification, Foreclosure Rescue Scams