Working with a Lawyer for a Loan Modification or Foreclosure? Watch Out!
Working with your lender or a HUD-approved counseling agency for a loan modification or to stop a foreclosure is free. But if you prefer to pay a company, know the warning signs. Watch out if the company name or company website suggests it has lawyers or provides “legal” help.
There may be times when you want to pay a local, licensed lawyer to represent you. But ask questions first and AVOID any company offering legal help if:
- You have not met with the lawyer.
- The company’s office is not in your state, or you don’t know where it is located.
- The lawyer is not licensed to practice law in your state, or you haven’t checked where he or she is licensed.
- The lawyer does not represent you in any legal proceedings or you can not verify it.
- You are told to send your documents to a company office in another state.
- The person offering legal help guarantees you will get a loan modification.
- A lawyer you don’t know reaches out to you and wants you to hire him or her.
To avoid fraud and get free assistance, work with a HUD-approved counseling agency. They can determine if you qualify for mortgage assistance programs and may refer you to free or low-cost legal assistance if you need it.
To speak with a housing counselor 24 hours a day or find a local agency, call 888-995-HOPE (4673).
Download the PDF here for more information on working with lawyers