From Consumer Bankruptcy to Creditor Representation
With over 4,000 consumer bankruptcy cases handled during my legal career, I’ve transitioned my practice to focus on assisting creditors with judgment collections and family law matters. However, my extensive experience in consumer bankruptcy has left me uniquely positioned to guide homeowners and creditors through the challenges of loan modifications.
Here’s what you need to know about seeking loan modification help in Galveston County—whether you’re dealing with Secure Mortgage Company, Frost Bank, or St. Charles Mortgage LLC.
Understanding Loan Modification Assistance
Loan modification assistance companies often promise relief but can sometimes leave homeowners worse off. While there are reputable companies that offer genuine help, many engage in misleading practices. It’s crucial to understand your rights, the services these companies can legally provide, and how to recognize red flags.
Beware of Scams in Galveston County
When seeking loan modification help, always verify the legitimacy of the company you’re working with. Here are some key rules companies must follow under the Mortgage Assistance Relief Services (MARS) Rule:
1. No Upfront Fees
- It is illegal for loan modification companies to charge any fees before delivering a written offer of mortgage relief that you accept.
2. Transparency is Required
- Companies must disclose the total cost of their services.
- They cannot mislead you about their affiliations with the government, nonprofits, or your lender.
3. Misrepresentation is Prohibited
- They cannot guarantee specific results or outcomes, such as the likelihood of success in modifying your loan.
- They must provide accurate information about the terms of the modification and the role of your lender.
4. No Legal Advice
- Most loan modification companies are not law firms and cannot provide legal representation. If your home is in foreclosure, seek assistance from a qualified attorney.
How to Identify Reliable Loan Modification Help
If a company demands upfront fees or guarantees success, this is a significant red flag. Instead, consider working directly with your mortgage company. Many lenders have dedicated departments to assist with loan modifications and provide clear guidelines online.
Steps to Request a Loan Modification
- Contact Your Lender:
- Secure Mortgage Company: (409) 213-6793
- Frost Bank: (409) 763-1151
- St. Charles Mortgage LLC: (409) 229-7478
- Prepare Necessary Documents:
- Request for Mortgage Assistance Form
- Hardship Letter: Explain why you need assistance.
- Proof of Income: Provide pay stubs, tax returns, and a detailed household budget.
- IRS Form 4506-T: Authorize your lender to access your tax records.
- Explore Online Resources:
- The Making Home Affordable website offers comprehensive tools and information to assist homeowners.
When a Loan Modification is Insufficient
While loan modifications can provide relief, they’re not always the best solution. If your home is already scheduled for foreclosure, you need immediate action. Delaying for a loan modification approval could result in losing your home.