Foreclosure Relief Scams
Another story today about how these companies that are popping up all over the place to provide “foreclosure relief” only lead to people losing their home.
Not to mention a few thousand dollars.
There is a lot of buzz about loan modifications today where people are hopeful that they can just reduce their mortgage payment by hiring a company. You’re best off bugging your own mortgage company yourself.
Paying an outside “relief” outfit to do what you can and should be doing yourself can only lead to heartbreak and frustration. If you are supposedly hiring a foreclosure relief attorney — which is how they justify getting paid the big bucks up front — you have the right to speak to your attorney face-to-face.
If you don’t meet a foreclosure lawyer in person and across a desk, it’s a major red flag and time to hold your wallet.
Ask questions. How many people — with your mortgage lender — has this outfit helped with loss mitigation and loan modification? Get names. Call these people. Check out their stories.
How long did the process take? Months? Was a foreclosure auction sale date part of these other supposedly successful loanmods? How many days before the sale date was it averted? Do you feel like playing “Chicken” with your mortgage company, who is determined to sell your house to someone — anyone — who will make the payments on time?
Bottom line: be wary of hiring an outside firm to change your home loan. You’re best off bugging your own mortgage company and filling out all their paperwork. But be realistic, patient and persistent. At some point, if you really can’t afford the loan balance because the principal is just too big that no reasonable monthly payment can ever pay it off, look at the bright side… once you move out and rent, you’ll be able to save a lot of money.
Not just money on reasonable rent. Money that you didn’t throw away to a crook who is just another predatory mortgage ripoff company.