How can I tell if a foreclosure help lender is legit?
Jul 01, 2009 in
Financial and Loan Tips
OscarRoscar
I am facing a foreclosure on my house and keep getting tons of offers to help me in the mail.
I am facing a foreclosure on my house and keep getting tons of offers to help me in the mail.
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5 comments
Expert Realtor on July 3, 2009 at 3:23 pm
No one has a better incentive to work with you than your CURRENT lender.
99% of the ‘offers’ you get are going to be scams.
Realtor in CA on July 7, 2009 at 3:08 am
I’m on the other end of the foreclosure chain: I sell homes that have already been foreclosed.
The obvious answer to help you stop a foreclosure is to first ask for a loan modification. This is basically a request to the lender to lower the interest rate so your monthly payments are managable. They will never lower the original loan amount (principal) but may be willing to get less return on their investment (less interest).
Keep in mind they don’t have to do anything! You signed a contract (the loan) and agreed to pay back the amount plus interest.
The only way anyone (lawyers, loan modification companies, etc.) can ever help you is if there’s a chance that your cirmustances will change in the near future so you can continue to pay your mortgage.
As an example, if you or your wife lost your job and your income is not enough to pay the mortgage, even after a lower payment, then there’s no hope for you to stop the forecosure and the bank will not agree to anything (why should they?).
Also, the bank really doesn’t care about the lower value of your home since the time you bought it. It’s not their problem that you can’t sell it at the same price you bought it for.
If you think about it, how can anyone promise you that you can keep your home if you don’t have the means to pay for it?
Save you money and don’t pay anyone a nickel with a promise of “save your house”.
I’ve heard of a few illegal schemes where you sign over the house to someone and they supposed to pay your mortgage payment for you.
Since all homes loans have a “due on sale” clause, this method avoids recording the sale, so the bank is not notified that an owneship change had taken place. This is a very risky deal, because if the other person decided to stop making payments, your name is still on the mortgage. Then it will foreclose anyway, and you would be in the same situation.
Again, what can these people do for you that you can’t do for yourself? There’s no magic cure.
foreclosurefish_com on July 9, 2009 at 1:21 am
Do research, find out which government agency the lender is regulated by, and ask that regulatory agency for any help. They won’t be able to give you a direct referral, but they can give you some statistics about the lenders and if there have been any complaints lodged against them.
And remember to check state and federal regulators. If a homeowner has a problem with a lender, they may submit a complaint to the state attorney general but not the feds. So it’s best if you do research at both levels of government.
Also, check online for any horror stories or success stories. And evaluate the content of each, if you find them. Does the borrower seem like they understood the loan and was happy with the results? If not, you may want to avoid the company.
Good luck.
ForeclosureFish
geowjohnson on July 11, 2009 at 1:22 am
There are a dozen ways to prevent foreclosure. Do not panic, learn your options but take action quickly. Check out the links below to find free information and possible government help for you.
InfoDoc on July 11, 2009 at 5:54 am
“Most mortgage lenders are trustworthy and provide a valuable service by allowing families to own a home without saving enough money to buy it outright. But dishonest or “predatory” lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Here is a pretty good article I found for you about this subject: