Beware of Loan Modification Scams

Obama’s epic presidential sweep doesn’t entirely erase racism in the US. Although many are saying that the modernity of the time has been slowly affecting people’s way of thinking about race and color, there are still some life aspects where minorities are undermined. One of which has something to do with the legalities of loans. For those Hispanic minorities who are drowning in loan debts, things could get even worst. Since some may not know other options aside to avoid foreclosure, they end up losing ownership of their homes. Unknown to them is the best solution to end the endless cycle of foreclosure woes---loan modification.

By negotiating with lenders, borrowers can enjoy the benefits of lower interest rates and monthly payments. Loan terms can also be extended depending on the deal given by the mortgagee. In the end, borrowers get to preserve home ownership, and at the same time, be saved from the worries that tomorrow might be the day they’ll go homeless.

If only proper information about this mortgage process is readily available to borrowers belonging to minority groups, a lot of foreclosure proceedings might have been avoided in the US. It is sad to note that there are a lot of loan modification companies taking advantage of these people by offering them false hopes. I’ve read somewhere that there was an American loan consultancy company that ran away from its clients without doing its end of the bargain to process their papers for said mortgage process. The worst thing about this is that all of this company’s clients are poor Hispanic minorities.

Loan modification might just be the key to save borrowers, minorities or not, from an alarming foreclosure. I hope that the government will be more vigilant in ascertaining that loan modification companies are not going to scheme their clients.