When it comes to choosing between New Jersey mortgage companies it’s imperative to keep several factors in mind to ensure you are getting the best deal. Additionally, you want to make certain you are working with legitimate lenders that are registered, licensed and regulated in the state. One area where scam artists frequently take advantage of those dealing with foreclosure or looking for affordable mortgage options is in the area of loan modification. During times of housing difficulties and weak employment, many homeowners seek to modify their loans and this can often lead them to working with unscrupulous scammers.
Many scam artists will target New Jersey mortgage companies, brokers and bankers in hopes of receiving referrals for homeowners that are having difficulty paying their mortgages and running the risk of foreclosure. The scam offers mortgagees the option of modifying their existing loan by lowering their interest rates or adjusting the loan’s term. Though there are legitimate loan modification opportunities available, those will come through those who are legally able to process loan modification for the purpose of debt adjustment. These include the loan’s lender, a mortgage company that operates on behalf of the lender, an entity that operates legally and is licensed by the New Jersey Department of Banking and Industry as a Debt Adjuster, and those that act on behalf of the debt adjustor or mortgagee that are exempt from the Debt Adjustor licensing requirement.
Individuals or business that are not exempt from the Debt Adjuster Act licensing requirement , those that are not licensed Debt Adjuster, and New Jersey mortgage companies, bankers, or brokers that are not the owner of the loan or represent the owner of the loan are prohibited from engaging in loan modification. If you are seeking loan modification then you should speak to your mortgage company or go through a licensed Debt Adjuster.
Those who choose to use a loan modification service through a company not licensed with the state of New Jersey runs the risk of facing a number of problems. First, these companies require a substantial, upfront fee for services that may be provided through legal avenues for either free or low cost. Additionally, debt adjusters and those who provide legal methods of loan modification, such as New Jersey mortgage companies that represent the lender, are bonded for up to $50,000. Those who use a different lender may find that they lose the money paid to these businesses and never reap the benefits promised them. In addition to the financial losses that can be experienced by those who fall prey to scammers, those who may be facing foreclosure may lose precious time that could be spent utilizing efficient methods that would help save their home.
Loan modification may result in a person losing their title to their home and can cause significant damage to a credit report. In order to make certain that you use legal efforts that will help you save your home and not ultimately lose it, make certain that you only engage in loan modification from licensed and registered New Jersey mortgage companies, bankers and brokers and licensed Debt Adjusters.
New Jersey residents can contact the Department of Banking and Insurance in order to find a licensed Debt Adjustor or may speak to their lender regarding legal avenues of loan modification. Those who engage in illegal loan modification activity may be fined, undergo criminal prosecution and charged with fraud. If you believe you have been contacted by a fraudulent company that has tried to offer you loan modification without the legal ability to, then contact the New Jersey Department of Banking and Insurance to file a complaint. You may file a formal complaint online, by mail, or through the toll free hotline at 1-800-446-7467. The toll free consumer hotline is also a great resource for those who have any questions as well.