There are many loan modification scams out there which homeowners need to become aware of. The most common loan modification Report Scam and get your money back involves signing over the deed to your property to someone else who promises to take care of everything. There are hundreds of variations of this loan modification scam.
For example:
The list goes on and on. The loan modification scam artists show up with dozens of official looking forms and documents. They make you feel more comfortable and ease your mind by explaining the documents in great detail. The bottom line is these people are not interested in you or your financial situation. All they want is to get legal possession of your home. Once they have the deed to your property, they have legal title to your home. This allows them to take out loans or sell it right out from under you.
Basically, the same type of people approach you and tell you they will negotiate with your lenders and creditors to try to get you out of your current situation. To do so they need you to give them Power of Attorney. You sign over Power of Attorney to them. Some might even request you write them a check to pay for their services. The next thing you know, your house has been sold or refinanced and you are being told to leave immediately!
What makes this loan modification scam so powerful is, it is based on a half-truth. Mortgage and short sale negotiators need you to sign a form in order to negotiate with your lenders but it is NOT a Power of Attorney. It is called a Mortgage Authorization Form. It allows a third party to talk to your lender on your behalf. A Power of Attorney on the other hand gives that person the right to act as if they were you. This means they can sign loan documents, deeds, etc. and actually sell your house without you ever knowing about it.
Again-Do not EVER sign a Power of Attorney to anyone unless you have been advised to do so by a competent real estate attorney you have hired to protect your interests. Unfortunately, during times of crisis, the lowest levels of society arise to feed on those most vulnerable. But–I have also found during these times good people who rally together to protect each other and look out for each other’s interests. It is my sincere goal in providing this information to do just that and reach as many people as I can.
