Loan modification and avoiding the scams

During this economy, more scammers appear to take advantage of people in financial distress. One of the more common scams involve loan modifications. Basically, these companies promise they will negotiate a loan modification on your behalf for an upfront fee. That is your red flag. The loan modifications are approved directly only at the banks, finance or loan companies. These loan modification scammers can do no more than you can on the telephone. Avoid these companies at all costs and make the call directly to your lender yourself. The process is long and frustrating but if you want the loan modification it will be worth it.

Just like any other service, take precautions such as checking the company out at the BBB, look the company up at internet complaint sites like Ripoff.com, and never pay upfront for the service. Use credit cards instead of paying cash or check since that method of payment offers another form of fraud protection. If you do not receive the goods or services promised, then you call the credit card company and they will charge back the payment made to that merchant.