Avoid Scams
While it may be tempting to respond to calls and letters that you receive from individuals or companies guaranteeing loan modifications, these solictations could be scams. These companies can damage your chances of receiving a workout with your bank* and may result in not only the loss of your home but your savings. The Washington State Department of Financial Institutions recommends that you only seek assistance with agencies approved by them. Contact the Washington Homeownership Resource Center to be connected with reputable organizations. If it is too good to be true, chances are that it is.
Organizations providing assistance with loan modifications in Washington State must be:
- HUD-Certified Housing Counselors
- Licensed Loan Originators
- Mortgage Brokers
- Consumer Loan Companies
- Washington State Licensed Attorneys
Things to Watch Out For:
According to the Department of Financial Institutions (DFI) if you are solicited by any of the following RUN, RUN FAST and contact DFI to report the company immediately:
- Upfront fees are required prior to the modification being received
- Company operates outside of Washington State
- You are instructed to NOT to contact your lender
- Does not have an address on their website or cannot provide one
- Ensure that the company/organization is licensed with the Department of Financial Institutions
- Claims are made that license is not required because attorneys are involved
- Attorneys must be licensed in the state of Washington
- Money is required upfront before any paperwork is reviewed or signed
- You are required to provide direct access to your bank account or credit card
The Washington State Department of Financial Institutions website lists alerts on a regular basis. Check their website for up-to-date scam information.
