Scam Alert! Homeowners Please Read?
SCAM ALERT
It’s despicable what I am about to write about. Every homeowner should know and beware.
If you have listened to the radio, turned on the TV or read a newspaper in the past 9-months or so you are well aware of the credit crunch facing the lending community. Tens-of-thousands of homeowners are in loans they can’t afford and can’t refinance out of. Foreclosures are at an all-time high and show every indication of getting higher.
If you are one of these unfortunate people you are probably willing to do just about anything to save your home. This is why I’m issuing this warning.
Wouldn’t you know an entire cottage industry has popped into existence as result of this crisis? These companies contact you and offer to negotiate your debt with your lender. They claim a track record of success saving people from foreclosure. It all seems on the up-and-up. You pay them a fee…. And they’re gone.
FACT: The only entity you can negotiate with is your lender. They are the only ones who can help you. YOU DO HAVE OPTIONS. Speak to your lender’s “Work Out” or “Loss Mitigation” departments and see if there is a loan modification program available. Other options include a forbearance agreement or as last result a short sale.
If you have exhausted all options you may be able to seek relief through bankruptcy protection. Speak to an attorney to see if you are a candidate for this option.
The worst thing you can do is NOTHING. The problem isn’t going to go away. Get proactive and deal with it, and for God’s sake STAY AWAY FROM THESE MORTGAGE PRTECTION COMPANIES! They can do NOTHING for you.
Just to add. Be very careful of too good deals or we can help you. The lender has to be involved. A lawyer can negotiate for you and credit counseling companies can help (reputable ones - check on companies background) to negotiate but you have to be invovled.
That is Great advice! He is right on the money! I wish I could click that you are a “best answer”. People, do not be afraid of contacting your lender. They WILL work with you.
Excellent advise. I actually went directly to my lender when I needed a forbearance. I really hadn’t thought about having another company do it, glad I didn’t.
Actually, while there certainly are scam artists out there, there are also very reputable companies which do, in fact, help people everyday and have been doing so for over a decade. It’s not all that hard to check companies out on the Better Business Bureau site (bbb.com) and on the Dun and Bradstreet site. Many lenders, in fact, make it almost impossible for homeowners to make deals for forbearance. Often the only department a homeowner hears from is the collections dept which has no power to do modifications and no interest in doing them. They get paid to collect the TOTAL AMT DUE and that is all they are interested in. If you can believe it, there are homeowners who can’t even get the lender to tell them the exact amount due (including all legal fees)!! When homeowners go to attorneys they often are told to file a bankruptcy which DOES NOT SAVE THE HOME from foreclosure, it just delays the process and makes a bigger mess. Loss mitigation companies that are highly reputable are out there and have been really helping people. The lenders loss mitigation departments are so overloaded with foreclosures right now that they will ignore homeowners that don’t know the right paperwork and procedures until it is too late and work only with loss mitigation companies. Don’t throw the baby out with the bathwater!
have to agree with statement & advice.
there are too many companies trying to guarantee they can help & they can’t. or companies that want you to give all info so they can run credit reports, or ask you to pay for running credit report…keep in mind additionally with what this email said, & believe it. & know that each time companies run reports & you don’t get accepted..it lowers your credit. they don’t tell people that. heed well given advice from loancareer.