Simple Tips to Avoid Loan Modification Scams
May 18, 2009
In my blogs, I like to focus on the great reasons for living in Reno and the Greater Reno-Tahoe area. From time to time, I also like to keep you updated with the Reno housing market and real estate trends. However, today, I am going to speak to homeowners in the Greater Reno-Tahoe area (and the rest of the nation) about loan modification scams.
Loan modification scams are afoot throughout the nation, especially in hard hit areas like Reno and Washoe County. Distressed homeowners should be very careful when contracting with any company offering loan modification help.
Beware when:
* A company contacts you first. The point of any company in business is not to help you but to make money; proceed cautiously. The only one that should be contacting you is your lender. Homeowners who re one or more payments behind may receive a notification from their lender offering the homeowner a loan modification (at no charge).
* A company charges an application fee. Most likely, the application form is a company form, not an application for the loan modification. You should never pay a fee just for filling out a company’s application form.
* A company asks for upfront fees. Under the Making Home Affordable program, their loan modification service does not charge fees. You are paying the company for their services. You need to know what service they are providing for the dollars you will be spending.
* A company guarantees a loan modification. No one can guarantee that a loan modification will be granted, not even your lender. You must go through a qualifying process.
* A company guarantees a reduction in payment, loan balance and/or interest rate. Because no company can guarantee that you will receive a loan modification, they cannot guarantee you will receive a reduction in your mortgage payment or your loan balance.
* A company promises or guarantees a lower interest rate. Because, no company can guarantee that you will receive a loan modification, they cannot guarantee that you will receive a lower interest rate.
* A company is not a member of the Better Business Bureau, an attorney or a law firm. It is up to you to be sure the company you are dealing with is reputable. Do not believe their words, promotional material or provided testimonials. Check out their credentials for yourself.
Be Aware:
* There are many organizations which offer free help and resources. MakingHomeAffordable.gov, Hope For Homeowners and various consumer organizations offer free help when applying for a loan modification.
* You must qualify for a loan modification and have a source of income. There a specific guidelines for qualifying for a loan modification. You must meet qualification criteria to receive a loan modification. You must show that you have a proven source of income with the ability to pay your modified mortgage payments.
* Money back guarantees can also be scams. Some firms will offer a partial refund if you do not receive a loan modification. This is certainly fair, as the company has worked on your behalf. Here is an example. If a company charges $2,000, after a specified time expires (as per your contract), a loan modification is not achieved. The company guarantees they will return $1,500 and retain $500 for services rendered. Although loan modification scammers do little if any real work to help you, you still must pay for services rendered. All a company needs to do is send a letter or two to met their “obligation” by law. If a scammer signed ten contracts a week, that would equal to an income of $20,000 per month.
Remember, when you hire a company to help you with a loan modification, you are paying for representation and services, NOT a loan modification.
Bonus Tip:
When negotiating a loan modification, you don’t have to accept the first offer made by the lender. If your negotiating skills are not the best, then using a reliable and reputable loan modification service may be the best service you can do yourself.
Before entering into an agreement with a loan modification company, check out the many free resources that are available to you.
* City of Reno Distressed Homeowner Resources - A list of various local and national organizations offering resources and help.
* Nevada HUD Approved Housing Counselors – A list of counselors (paid and free) which offer loan modification services.
* Making Home Affordable – Eligibility tool, FAQ page and resources.
* Nevada Foreclosure Information Workbook – This booklet is a great resource offering information and forms
Charlene Hamlton, your Reno relocation specialist
Bike to Work – Free Java and Pancakes
May 11, 2009
May is National Bike Month, May 11-15 is National Bike to Work Week and this Friday (May 15) is National Bike to Work Day. Biking to work and school promotes a lifestyle that is more conducive to our environment. It also promotes a lifestyle that is healthier for you. Biking to work and school is also a lifestyle that benefits your pocket. Foot power is relatively free compared to fossil fuel.
National Bike to Work Day is being celebrated and supported by many in Reno this year. Several local businesses are offering a free cup of java to those who stop by and show their helmet as they bike to work or school this Friday. The Reno Bike Project Shop will be serving a pancake breakfast with coffee on Friday to give you lots of energy for your commute. Pancakes will be served starting at 7 a.m
The Bicycle Commuter Challenge is offering a raffle prize of $500 to some lucky biker that may be used to towards purchasing a new bike or bike accessories. You will need to hurry to register. The raffle is only a few days away.
If it has been a while since you have ridden your bike, be sure to do a safety check before participating in the Bike To Work Day on Friday. You will also want to check out your route for safety precautions and commute time.
Related Information:
Bike Safety Tips
Bike Swap and Bike Out
* Plumas Park Gym – 475 Monroe St. – Reno
* May 16 : 8 a.m. – 6 p.m.
Spring is a beautiful time for a leisurely walk in the park. This Friday (May 8th) has been set aside as the nation’s first National Public Garden Day. Washoe County is proud of its public gardens at the Wilbur D. May Center and the county would like to show it off to you in honor of National Public Garden Day.
The county is offering a very special treat to the public. It will be conducting free guided tours through the Arboretum starting at 9 am on Friday only. Tours will be available on the hour, every hour, through noon (last tour). The tour will introduce you to the beauty of various Great Basin native plants and those that have been able to adapt to our unique environment. In addition, you will learn about the history of the Wilbur D. May Arboretum.
The native plants of the Arboretum are quite hardy; they live at an elevation of 4,600 feet and lie between the arid Great Basin Desert and the majestic Sierra Nevada Mountains. These plants must be able to survive on less than seven inches of water a year as well as survive temperatures which may vary as much as 50 degrees in one day. The unique plants have a very short growing season and can only be seen about one-third of the year (100-120 days).
The Wilbur D. May Arboretum is comprised of 12 acres of native plants, groves of trees and four secluded gardens. The Songbird Garden beckons songbirds to visit the vibrant blooms and nest in the comforting arms of surrounding trees and shrubs. Each flower, tree and shrub was selected with care to offer food and shelter to our feathered friends. Spring is the perfect time to visit Dixie’s Plaza Garden, which adjoins the May Museum courtyard. The colorful display of annuals and perennials will delight your eyes and bring a song to your lips. A covered bridge draped in vines leads to Honey’s Garden, just below the Ranch House. A gurgling waterfall cascades gently into a pool surrounded by yellow and white roses. Burke’s Garden, a quaint and elegant English country garden shaded by elms, will have you quoting sonnets in short order.
Bring a little box lunch to enjoy while picnicking next to the cool babbling waters of Evans Creek. The water’s song will delight your ears and soothe your heart. While relaxing, you will be entertained by the antics of the Evans Creek wildlife. After your informative and educational tour, I am sure you will come home brimming with ideas of how to create your own little interpretation of a garden paradise.
The Wilbur D. May Arboretum is located in Reno, just northwest of the University of Nevada at 1595 N. Sierra in the Rancho San Rafael Regional Park. The Arboretum is open every day of the year and entrance to this living museum is free. Maps are always available for self-guided tours. However, this Friday only, you will be treated to a special guided tour through the Arboretum.
Charlene Hamilton, your Reno relocation expert!
