With so many loan modification companies advertising their services, it can seem a daunting task to tell the legitimate from the unscrupulous. State and federal officials suggest a few guidelines to help you sort it out:
- If you are asked to notarize loan modification documents for a transaction taking place directly between the actual lender and the borrower, it is likely to be legitimate.
- Check the references of any company offering work that claims to be affiliated with the government or uses a government name as part of its title. The Department of Housing and Urban Development provides a list of government-approved foreclosure avoidance counselors and organizations that do not charge for their services here:
- Confirm with the appropriate state agency often the attorney generals office that the business is authorized to offer loan modification services in your state.
- Contact your state bar or attorney generals office to verify the credentials of any law firm offering you loan-modification-related work, as some companies fraudulently pose as lawyers or claim to be lawyer-advised.
- Check a companys rating with the Better Business Bureau to see if there are any complaints about its services.