When Your Home Is Financially Underwater

  • Published
  • By Latashia M. Backmon
  • 452 AMW Legal Services volunteer
MARCH AIR RESERVE BASE, CALIF. --  In today's economy, more and more military members are getting caught by scams involving loan modifications. If you are a homeowner who's struggling to make your mortgage payments, are overwhelmed by commercials offering mortgage modification programs to help you keep your home, or are a service member and feel that you have been targeted by scam artists, know that you are not alone.

Under the law, a homeowner can apply to the federal Home Affordable Modification Program (HAMP) in person or can be provided with free help from a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). It is critical to stress that there is no fee to apply for the program. Information on how to apply is provided by Homeowner's HOPE Hotline at 1-888-995-4673 or www.MakingHomeAffordable.gov.

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIG-TARP) is pushing hard to ensure that consumers are not victimized and has provided tips for avoiding mortgage modification scams. Keep the following in mind:

➤ Only a mortgage servicer has the ability to grant a loan modification. A third party cannot guarantee or pre-approve your HAMP mortgage modification application. You should be aware of anyone charging you in advance for mortgage modification services; in some cases it is illegal to charge fees in advance.

➤ If you're paying a third party to assist with your HAMP application, understand that this doesn't improve your likelihood of receiving a mortgage modification. Also beware of individuals or companies asking for payment and who boast success rates or claim that they are "experts" in HAMP.

➤ If you come across an individual or company claiming to be affiliated with HAMP or they display a seal or logo representing the U.S. government, call the Homeowner's HOPE Hotline to verify their affiliation.

➤ Beware of individuals or companies who offer money-back guarantees or individuals or companies who advise that you, as a homeowner, to stop making your mortgage payments or not contact your mortgage servicer.

These scams can be avoided by financially troubled homeowners by working with a HUD-approved housing counselor to understand their options and to apply for assistance.

"If you believe you have been a victim, please contact your base legal office as we can work to provide you with resources that are out there," said Maj. Deric Prescott, 452 Air Mobility Wing Staff Judge Advocate.

Failure to address these issues could result in long-lasting damage to your credit and may adversely impact your military career. Working with your lender early to try to avoid problems is always ideal. If you're not getting anywhere with your lender, try the Homeowner's HOPE Hotline or contact your base legal office which has a listing of additional phone numbers for loan counselors at major lenders. For additional information, check out the section "Real Property - Real Estate - Personal" at https://aflegalassistance.law.af.mil.