Many Nebraskans are falling behind on their house payments. Barbara Floyd-Jones is a foreclosure expert with NeighborWorks, National Homeownership Program and says those numbers nationally are higher than they were before the housing crisis. These owners are desperate to keep their homes and that makes them vulnerable to loan modification scams.
Floyd-Jones says typically scammers making false promises to work with your lender to modify your loan – for of course a fee. However, there is no fee associated with a loan modification and only the lender can grant one. She says there are HUD certified housing counselors available that can help you through the process.
More than 45,000 Americans have fallen for this scam and reported it. Floyd-Jones believes that is just a fraction of victims and there are many more.
Floyd-Jones says if you are approached by one of these scammers there are a few red flags to be aware of. Some advise you to stop paying your mortgage company and give the payment to them instead. Never sign paperwork you haven’t had a chance to read or don’t fully understand as you may be signing the deed to your home over to them. Finally, Floyd-Jones says never release personal information online or over the phone.