If you are one of the millions of families in the United States that are struggling to save their home and manage to make their mortgage payments every month, some relief by the Obama administration is indeed available. However, as sad as it sounds, there are shady loan modification shops preying on these struggling families and taking advantage of their financial desperation in finding help. Here are some tips that will help you find the legit program of mortgage loan modification by the federal government to avoid being taking advantage of.

Always Communicate

Whatever you are currently facing financially, try to always communicate your situation with your mortgage lender. Tell them that things are getting tight and why. There is always a possibility to stay current on your mortgage and also get a modification.

Look Around For Help

Note that mortgage companies are not allowed to charge you any fee on Obama’s loan modification program. Try and contact your lender’s loss mitigation department and ask about a loan modification or other alternatives to avoid foreclosure. If you are eligible for a modification, you should not be charged any fees.

Find Free Advice

Try and find advice for free from the Housing and Urban Development counselor. Find ways to contact them here at their website: http://www.hud.gov/assist/contactus.cfm

Play Hard To Sell

If you meet overly aggressive marketers, be suspicious. Legit companies offering lowered mortgage payments would probably not choose to aggressively send phone texts or make phone calls. Unfortunately Television ads and radio have been also used as breeding ground by fraudsters.

Background Check

Do your due diligence and always research first before trusting any mortgage loan modification companies. What you can do first thing you find one is to check whether they are registered with the Housing and Urban Development or the Federal Trade Commision or your state’s oversight agency. If you can’t find them anywhere, there is probably a reason why they aren’t listed.

Beware of Scam Artists

There are people who are actually tricking borrowers into signing over the deed to tehir home while claiming that what you are doing will save the house from foreclosure. If you meet marketers who pressure you to sign any documents right away, beware!

Find Backup Help

Always make sure you understand all the documents that you have to sign. If the docs is too difficult to understand, ask a lawyer or a trusted friend with financial knowleds to have a look at them and ask for their opinion.

Get It In Writing

Make sure that any agreements that you have reached with your lender is in writing. Oral agreements are not legally binding. If you get a nice low interest rate that you agreed on, make sure you lock it and have it in writing too.

Protect others

If you have experienced suspicious activities with your mortgage lender, report it to consumer protection agencis such as the Federal Trade Commission. By doing this you will be protecting other homeowners and taxpayers.

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