Beware of Loan Modification Scams

As most San Diego homeowners know, loan modifications did not turn out to be solution that was promised.

A program that was supposed to give aid to more than 3 million troubled homeowners across the U.S. within the first year has instead, after several years, helped only about 600,000 homeowners nationwide.

So, while we know that most loan modifications fail – or end in foreclosure for San Diego homeowners – the slight chance of success gives hope to some who desperately want to keep their homes.

As a result, troubled homeowners have become the latest “easy target” for con artists. These con artists run crooked companies that promise that for an up-front fee, they’ll handle all the paperwork, details, and follow-up – and the homeowner will get a loan modification.

The truth is, many of these companies don’t even attempt to help the homeowners. They simply take the fees, which can range from $750 up to nearly $4,000. Even worse, they advise the homeowners to stop making payments – a move that almost guarantees foreclosure.

Some of these companies have been shut down and fined. Others are still in operation and still fleecing homeowners when they can least afford it.

If you are considering a loan modification on your San Diego home, please realize that you will be your own most effective negotiator. However, there are things you need to know before you start the process. The first is whether your payments, income and assets fall within your bank’s guidelines for loan modification.

If they don’t, the bank will take your application and let you wait for several months before they send you a rejection notice. By then you will have wasted precious months when you might have been considering other alternatives – such as offering your home as a San Diego short sale in order to avoid the stain of foreclosure.

Talk to us first…

Before you apply for a loan modification, call Tom Dunlap and make an appointment to come in and talk. We have obtained the software and the guidelines that will enable us to tell you within minutes whether your San Diego loan modification application will even be considered.

If the answer is yes, we can explain some things that the banks won’t tell you. For instance:
• How to write an effective hardship letter
• The 3 most common loan modification mistakes – and how to avoid them
• What not to do so you don’t risk being carted off to jail
• How to calculate and present your budget properly to increase your chance of success

If the answer is no, We’ll be happy to explain how you can still avoid foreclosure through the short sale of your San Diego home.

And yes, when considering foreclosure versus short sale, a short sale is the far better choice.

Over the past 9 years, Tom has successfully helped hundreds of San Diego area homeowners avoid foreclosure through short sales. In fact, he has a 98% success rate. He can do the same for you – as long as you don’t wait too long to ask for assistance.

So if you own a home in Carlsbad, Coronado, La Jolla, Rancho Bernardo, North County, Del Mar, Mission Hills, Kensington, or Metro San Diego and are contemplating either a loan modification or a short sale,call 619-929-1413 or write to tell us your situation. We’ll be happy to help you determine whether you’ll be eligible for a loan modification, explain the real estate short sale process, and answer your questions about both the benefits and consequences of a short sale.

Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.