REDUCE YOUR LOAN PRINCIPAL

    The Washington State Attorney General’s Office provides resources and assistance related to loan modifications and foreclosure, including information on scams and how to get help. They also help fund housing counselors who can provide free assistance to homeowners, even if they aren’t currently facing foreclosure. Additionally, the office can help investigate and potentially file complaints against companies that have engaged in illegal or deceptive loan modification practices.

    Here’s a more detailed breakdown:

    1. Scams and Fraud:

    • Be wary of unsolicited offers:
      Many companies claim to offer loan modifications but are actually looking to make a profit by charging upfront fees for services that homeowners could get for free. 
    • Check for legitimate offers:
      If you receive an offer for a loan modification, verify its legitimacy with your lender or the federal government’s Making Home Affordable program.
    • Report scams:
      If you suspect a scam or have been a victim of loan modification fraud, file a complaint with the Washington State Attorney General’s Office or the Washington State Department of Financial Institutions.


    2. Assistance and Resources:

    • Housing counselors:
      The Attorney General’s Office helps fund housing counselors who can provide free assistance with loan modifications and foreclosure. 
    • Northwest Justice Project:
      The Washington State Bar Association and Northwest Justice Project offer free legal aid for homeowners facing foreclosure, including assistance with loan modifications.
    • Washington State Homeowner Assistance Fund:
      This fund provides federal relief funds to eligible homeowners who are behind on their mortgage due to pandemic hardship.


    3. Enforcement Actions:

    • The Attorney General’s Office can investigate and take enforcement actions against companies that engage in illegal loan modification practices or foreclosure scams.
    • They have settled actions against mortgage companies for unfair or deceptive practices, such as those that pushed borrowers into foreclosure.

    4. How to File a Complaint:

    • You can file a complaint with the Washington State Attorney General’s Office online or through the mail.
    • You can also file a complaint with the Washington State Department of Financial Institutions.