Be careful of groups that tell you they can help you (for a fee) with the new Obama Mortgage relif programs. The firms charge fees for what they tell borrowers are easy and simple negotiations with banks. In most cases, the firms take the home owners' money - often more than $1,000 - and do nothing or nothing more than the home owner could easily do himself.
The Federal Reserve recently issued this advice for people seeking to modify their mortgages:
- Work only with HUD-approved nonprofit counselors. (See www.hud.gov)
- Don't agree to pay a fee in advance.
- Beware of offers of "guaranteed" results.
- Don't sign blank forms or documents you haven't read.
Another option is to go a new Mortgage Help Site thru the U.S. Treasury Department. It went live on March 19 with its Making Home Affordable program, which aims to help home owners refinance or modify their mortgages.
The campaign includes a Web site at www.makinghomeaffordable.gov as well as a telephone hotline number at (888) 995-4673.
The federal government is targeting 9 million home owners whose loans are held by Fannie Mae or Freddie Mac.
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