At some time in your life you have probably been approached via direct marketing or a telesales call by someone promising you they can reduce your mortgage payments each month. They promise you the earth – they will modify it, have it reduced, rectify any poor credit history so that you can apply for a mortgage again. But there is a catch – they want to be paid upfront for it. So ask yourself – if you didn’t approach them for the service in the first place they obviously want something from you, and it usually means financial benefits to them.
The mortgage loan modifiers operate in the guise of plausible, honest to goodness mortgage brokers who can save you lots of money so you can take your children on vacation. If you are approached by someone making these offers, the first thing to do is take all of their details – everything. Name, business address, ask them to show you any certificates of accreditation. If they call you ask them to email them to you, don’t use a usual email account – set up another purely for marketing, that way you won’t clog your inbox. If they are a genuine business you will find them online with a good reputation, reviews and testimonials, a legitimate business address and company registration number. You will be able to search the directors of the company, and feel free to give them a call back to double check they are who they say they are.
If someone asks you for money upfront to get your loan modified or reduced, tell them to contact your lender – they should know who your lender is already if they are contacting you. If they don’t know who your lender is, how are they so confident they can reduce your loan? You may have the lowest rate and best terms on the market! If the mortgage loan modifiers say they will contact your lender and negotiate new terms, ask for a written proposal and don’t agree to anything not even in principle until you have the paperwork and have treble checked everything. Oh, and still don’t hand any money over upfront.
In addition to the mortgage loan modifiers you also have the “forensic loan auditor”. They want to charge you to look over your existing paperwork, just to check everything is in order. They are also trying to scam you, I’m afraid. If you are unsure contact your mortgage broker or your lender and ask them any questions about your loan terms and agreement.
There are always legitimate companies and mortgage brokers who can work with you to modify your loan if you seek to do so, regulated companies like www.mortgagebroker247.com.au are always on hand to help with any queries.
If someone contacts you out of the blue, remember they probably want something, usually money.
• Don’t pay any fees upfront to any company
• Always check the company and individual’s references
• Be very careful who you let access your personal data
• Contact your lender or mortgage broker
If you follow these simple steps you will avoid being out of pocket and could prevent other people from being scammed too.