Loan Modification Help in Houston: What You Need to Know
If you’re facing foreclosure and seeking loan modification help in Houston, you may have seen ads or heard solicitations from companies like Ocwen, Nationstar, or Greentree. You might have received offers in the mail, and now you’re wondering whether these companies can truly assist you.
As someone with over 25 years of experience helping debtors navigate consumer bankruptcy, having filed over 4,000 Chapter 7 and Chapter 13 bankruptcy cases, I now represent creditors seeking to recover debts owed by Texas debtors. Throughout my career, I’ve witnessed the aftermath of individuals who sought help from loan modification companies but ended up in foreclosure anyway. While some of these companies may offer legitimate services, I have seen enough failures to advise caution, especially when dealing with scams.
Recognizing Loan Modification Scams in Houston
Loan modification companies often advertise that they can help prevent foreclosure or negotiate a loan modification on your behalf. If you have a loan with Ocwen, Nationstar, or Greentree, here are several things to keep in mind to avoid scams:
- You Can Contact Your Lender Directly: These companies are NOT allowed to tell you that you should not or cannot contact your lender or servicer directly. You have the right to communicate with your lender and attempt to modify your loan on your own.
- Upfront Fees Are Illegal: A company that asks for upfront payment is a red flag. Under the Mortgage Assistance Relief Services (MARS) Rule, no company providing loan modification help can charge an upfront fee. You can only pay after you’ve accepted a written loan modification offer from Ocwen, Nationstar, or Greentree. These companies also cannot charge you fees for initial consultations, document preparation, or communication with your lender.
- Misleading Claims Are Prohibited: Be wary of companies that make false claims about being affiliated with government agencies, non-profits, or lenders. These companies are not allowed to misrepresent their services or offer unrealistic promises, such as a guarantee of loan modification or a specific timeline for resolution.
- Legal Representation Matters: Many of these loan modification companies are not law firms, and they cannot provide legal advice. If your home is facing foreclosure, you should seek competent legal representation in addition to pursuing a loan modification.
The Best Way to Handle Loan Modifications in Houston
You may not need to hire a third-party company to help you with a loan modification. Most mortgage companies, including Ocwen, Nationstar, and Greentree, have dedicated departments that handle loan modifications directly. These companies usually have websites with all the necessary information and forms to help you apply for a loan modification.
The typical process involves:
- Mortgage Assistance Request: You’ll need to fill out a request for mortgage assistance form.
- Hardship Application: This form explains why you need the modification.
- Financial Documentation: You’ll need to provide proof of income, such as pay stubs or bank statements.
- IRS Form 4506T: This form allows the lender to access your tax returns.
