SCAMMERS WELCOME FORECLOSURE PREVENTION PLAN
Home owners are hiring firms to renegotiate their mortgage loans but they rarely come out ahead. Troubled burrowers just want to reduce their monthly payments but scammers are waiting to fleece them instead of helping.
Many of the loan modification companies charge substantial front end fees with promises to negotiate with banks to restructure the loans with more attractive terms. Most of the borrowers would be better served if they would make direct contact with their lenders and avoid the cost of outside parties. The secured lenders do not charge front end fees.
Borrowers just do not need to pay anybody for the needed assistance. They are steered to the wrong places by the constant advertisements by the loan modification companies. Many of the advertisements are deceptive and make it appear that the firms are connected with government agencies or the lenders themselves.
The best advice for troubled borrowers is not to pay a fee for anything until the service is provided. And, they should beware of "guaranteed" results that are promised by the promotions. They should seek advice from a reputable real estate agent or use a HUD approved non-profit counselor. See www.hud.gov
Some real estate investor groups train prospective investors to contact and meet with home owners in default and negotiate with them to acquire the homes at the lowest possible cost. Some convince the owners to deed over the properties with the promise of assistance but with the intent to strip any remaining equity before the homes reach foreclosure. If a property is scheduled for foreclosure, the home owner will definitely be contacted by many individuals that offer a range of questionable assistance.
Many home owners are finding that they can sell their homes in short sale transactions to gain relief from the mortgage obligations. These transactions require approval of the mortgage lenders since the proceeds of the sales will not fully cover the mortgage balances. Many title companies and many real estate agents offer professional assistance with short sales. Some of the title companies will negotiate with the lenders for the home owner and receive a fee paid by the lender at settlement. There is no front end cost to the home owner in these transactions.
We provide exclusive representation for our real estate clients in Maryland. Contact us with your questions. firstname.lastname@example.org
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group
Client Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008