I am on a short sale specialists team in Denver, Colorado and have recently been in awe of how many stories I have heard lately about how organizations (not to ignore the dreaded "investor-negotiators" doing double-closings) are seriously taking advantage of home-owners who can no longer make their mortgage payments. Guising themselves as professional "relief" specialists or agencies they are charging upfront fees ($2500-$15000!) for what should be free service and is now protected by the Foreclosure Protection Act. It is illegal to charge upfront fees for any kind of service for home-owners facing foreclosure such as loan modifications, short-sale negotiation, or bank mediation, unless one is an attourney.
A few weeks ago I met a lady named Teresa who was recently charged $2500 from a company out of California calling themselves "U.S. Foreclosure Relief" just to see if she would qualify for a loan modification! She had no idea until I informed her that they have illegally acquired money from her for services that are free. Of course now they are not returning her calls and leave her on hold for hours. I even tried calling this company to no avail. When she asked me "How much do you guys charge?", to her surprise I said "Absolutely nothing."
The Foreclosure Protection Act recognizes that homeowners are vulnerable to “deceptive or unconscionable business practices designed to dispossess them or otherwise strip the equity from their home” and that there is a serious need to protect the homeowner from such practices and practitioners.
If you think you are being illegally practitioned or charged for services to help you avoid a foreclosure, DO NOT pay them a dime. Avoiding foreclosure should cost you nothing unless you get a loan modification, which is paid to the loan originator AFTER the loan has been modified.
If you have any questions, give us a call: (720)987-8998
Know your options. Know your rights.
-Your Castle Real Estate Short Sales Team