I have received many calls from homeowners who are underwater on their mortgages and/or are having trouble making their payments due to job loss or rates that have adjusted too high to be affordable. The first place I direct distressed homeowners is to the free HUD hot line, HOPE NOW. The website is http://www.hopenow.com/ and they offer free counseling to homeowners. You call also call 888-995- HOPE. This is a government sponsored site and there are no fees. The HUD counselors can listen to your story and offer you guidance as to your options.
I would be very careful about responding to any advertising sent to your home or your hear on TV or radio, as they may be scams. Unfortunately, there are always those who prey on others in vulnerable circumstance. If you have decided to go through a paid service, I STRONGLY recommend only using a company that has come recommended by an actual person that has used their services and had success. You may also want to talk to a local Real Estate Attorney that can council you on your options.
The two main options for a distressed homeowner who can not afford to stay in the home and wants to avoid foreclosure, are to apply for a loan modification or to do a Short Sale. For a loan modification home owners can call their lender directly at no cost. For a short sale, a homeowner should work with a recommended Realtor with short sale experience. There should be no required upfront fees for any of these services.
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