Beware of Loan Modification Scams

January 14, 2013 | Category: Chapter 13, Chapter 7, Mortgages

In the wake of the recent economic crisis, loan modifications have become a popular and frequently effective form of relief for Georgia homeowners who have missed mortgage payments or who are subject to loans subjecting them to unfavorable interest rates and terms. When successfully obtained, modifications can bring loan payments current and reduce monthly payments.

However, the New York Times writes, the popularity of loan modification programs has given rise to an increased number of scam artists targeting borrowers in distress with the promise of loan modifications that never materialize, in exchange for thousands of dollars in upfront fees. Borrowers are cautioned to be wary of lawyers or services whose only business is obtaining loan modifications, or that promise “so-called loan workouts and forensic loan audits.”

The Rothbloom Law Firm represents Atlanta homeowners who are under financial stress due to their mortgages. Our attorneys are experienced in advising our clients how to best obtain relief from their mortgage problems. Contact us today to discuss whether you should consider bankruptcy as an option to alleviate your mortgage problems, and what other options might be available to you.