Meracord / Noteworld is Offering Me a Loan Modification for a Fee. – Noreen

“Dear Steve,

Received a call from a Mr. Chapman from Meracord offering to get us a loan modification for less than what we pay on two mortgages now. Claims that there is no charge for this they get paid by the company they work for? He just asked for $1,060. in escrow and told us not to pay next months mortgage. In checking things out I read your article about it formerly being Noteworld and that they did not have a good reputation and that all the “players” at Mercord were the same as at Noteworld. We are seniors and a terrified of being scammed yet again.

Please verify that Meracord is legit and we are not yet again being taken down the garden path. We are desperately in need of help, but the right kind of help not another scam. Thank you.


Dear Noreen,

Well that would be odd indeed. I have no idea why a third-party escrow company would call to sell you a loan modification program.

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Asking for money in advance and telling you to not pay your next mortgage payment is highly suspect.

Before you do anything I suggest you contact a free HUD Housing Counselor and discuss your situation with them. Alternatively if you are eligible for a loan modification you can contact your lender yourself.

Asking for advance fees for mortgage assistance does violate the FTC Mortgage Assistance Relief Services rule that says:

Know your Rights

The FTC’s MARS Rule gives you rights – and sets out requirements for people who sell mortgage assistance relief services:

You don’t have to pay any money until the company delivers the results you want. It’s illegal for a company to charge you a penny until:

  1. it’s given you a written offer for a loan modification or other relief from your lender; and
  2. you accept the offer. The company also must give you a document from your lender showing the changes to your loan if you decide to accept your lender’s offer. And the company must clearly tell you the total fee it will charge you for its services. – Source

What I’m hoping is that this is a mistake and the person who called you did not work for Meracord but instead used their name without authorization or permission.

The folks over at Meracord are generally very good about responding to posts on this site so I’m hoping they will respond to this one and shed some clarity on the issue.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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