HELPING HOMEOWNERS AVOID LOAN MODIFICATION
SCAMS Ameer Elahee
A
fter the financial crisis of 2008, most of the homeowners in the United States were left in an impossible situation, and most of them lost their homes to foreclosures, simply because they couldn’t pay their mortgages.
In such a situation, what most homeowners try to do is to stave off the inevitable foreclosure through loan modifications, only to realize that their desperate acts led them to fall into a scam. Since the 2008 financial crisis, the housing market has improved dramatically. Right now, when I look at the housing markets and the trends in foreclosures in the last few months, I am so worried. It takes me back to the periods prior to the 2008-09 recession. The possibility of losing a home to foreclosure is a scary one. But the reality is, expert scam artists are devising their schemes, preying on the desperate homeowners. Many companies say that they will change your loan that will reduce your monthly mortgage payment, or even promise you that they can save your home. Some will tell you nearly all their customers were fully satisfied with their services. Others will tell you that they are affiliated with the government or your lender. Given the options, you definitely will choose these companies, Afterall, who would want to lose a roof over their heads? Unfortunately, the reality is that many of these companies will tell you half-truths and even lie to your face for them to sell their services to you. They will promise relief only for you to get distressed. The fact is, most of these companies will leave you in a bad financial situation than you were before. 52
l
Before we get into the ways NHPS is helping you stay safe, let us first examine what loan modification is. What is loan Modification
As a homeowner, when you fall behind with your mortgage payment, you have several options at your disposal to avoid losing your home. One of these options is a loan modification. A loan modification is a plan that will permanently restructure your mortgage by changing its terms. The terms may include reducing the interest rate and/or the monthly payment. A loan modification can also entail the conversion of the interest rate to one that is more financially feasible for the homeowner. For instance, modification may convert the rate from fixed to a variable rate. In some cases, the loan modification may even extend the length of the term of the loan. And it gets interesting. The first qualification to a loan modification is proof of financial hardship. The homeowner may be needed to provide proof of hardship and what better time than during the COVID-19 crisis. This is the time that so many Americans have lost their jobs, and raising a monthly payment may be hard.
THE POWER IS NOW MAGAZINE | JUNE 2020
