Northeast Ohio's Better Business Bureau is warning homeowners in trouble about "loan modification" companies that promise more than they can deliver. As part of our ongoing coverage...Facing the Mortgage Crisis, Mhari Saito reports.
Borrowers late on their house payments or facing interest rate resets might look online for help negotiating help with their loan servicers but Greater Cleveland's Better Business Bureau says...beware. With the housing crisis and the flood of government programs now available to help borrowers in trouble, a cottage industry has boomed to help borrowers get loan modifications. Problem is, says Sue McConnell of the Better Business Bureau, the worst companies charge hefty up-front fees for little or no help.
Sue McConnell:They do not communicate, they do not answer emails and essentially they are wasting the valuable time a homeowner has to do the right thing and save their home.
Ohio Attorney General Richard Cordray has issued 23 cease and desist orders against foreclosure rescue companies since May. So far three of those orders have resulted in lawsuits. Borrowers can check a loan mod company's rating on the Better Business Bureau website. There is also free loan help available from counselors certified by the federal department of Housing and Urban Development. Details on those and other foreclosure assistance programs can be found at our website.