Mortgage modification help is free!

Since 2010 Federal Trade Commission rules have forbidden collection of advanced fees for mortgage modification services.  But there are limited exceptions, and one of them allows lawyers to get a retainer in advance for services.  This has led to a scam under which lawyers or firms that contract with lawyers promise mortgage modifications they seldom ever get in return for up-front fees that can run to $10,000.

One scam promises to get you a modification under one of the various new programs you can read about in these entries.  Another one claims you are signing up for some sort of class action suit against your mortgage holder that can reduce (or even eliminate) the principle of your mortgage.  No suit is ever filed, of course.

As we have said, there are a large number of government sponsored agencies that will help you with mortgage modification at no charge.  A list of local counselors is available from HUD .  You can also get names of approved  counseling organizations from the Hope website or by calling the HOPE HOTLINE at 888-995-4673.  You can also call 1-877-894-HOME (1-877-894-4663).  The Neighborhood Assistance Corporation does this work too.

Remember, you should never pay in advance for mortgage modification, and in most cases you can get the service for free.

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