How Bankruptcy Saves Homes from Foreclosure Rescue Specialists
When you’re in danger of losing your home, a foreclosure rescue specialist may seem like the answer to your dreams. In truth, these “specialists” can turn out to be your worst nightmare.
Let’s say you’ve fallen behind on mortgage payments and the bank has sent you a foreclosure notice – or several. You get a flier in the mail or a knock on the door from a mortgage relief company, urging you to enlist their assistance now to save your home. In your state of distress, you believe them. Big mistake.
The people behind foreclosure rescue companies aren’t good Samaritans out to help those in financial trouble. They’re sly businesspeople hoping to make a buck (or quite a few bucks) off the misfortune of others. Essentially, they’re scammers.
Here’s how it works. In most foreclosure rescue scams, you pay an upfront fee to a specialist, who promises to work with your lender to negotiate lower mortgage payments and stop foreclosure. In the meantime, you’re directed to send your mortgage payments to the foreclosure rescue company.
Now the foreclosure rescue specialist takes his time negotiating those promised lower payments. After all, what’s the rush? He’s already gotten his money. As time goes by, the relief company begins deducting additional fees from your payments. Pretty soon, you’ve fallen even deeper into default with no “relief” in sight.
And the real kicker? Anything a foreclosure rescue specialist says he can do – including negotiating with your bank – you can do on your own, for free!
But that’s not even the worst-case scenario. Sometimes, mortgage assistance relief firms will encourage you to sell your home to them so they can purchase it with better financing, then rent it to you until you can afford to buy it back. Problem is, the terms of these deals are typically so expensive that homeowners never get the chance to buy back their properties. Other times, scammers will offer you a loan to save your house – but contained in the loan documents is wording that surrenders the title of your home to the rescue company.
Scammers will tell you anything to get you to bite – that they’re affiliated with the government, they work with your lender, they have a 90% success rate, etc. Don’t believe them.
If you’re facing foreclosure, you need to take action. Directly call or write your lender immediately. Explain your financial situation and ask about working out a plan. The sooner you make contact, the more likely it is you’ll be able to get help.
But what if you’re too deep in default to renegotiate your loan or stick to a payment plan? Bankruptcy is the only surefire way to stop foreclosure. In particular, Chapter 13 bankruptcy offers much-needed relief to homeowners by allowing them the opportunity to catch up on overdue mortgage payments.
When it comes to your home, you can’t be too careful. Never sign documents or enter agreements without first consulting an experienced lawyer. You never know if the guy who claims he can help save your home will actually end up costing you your home.
For honest and accurate information on stopping foreclosure, overcoming a problem mortgage, and getting out of debt, your best bet is to discuss your circumstances with a reputable bankruptcy attorney who can advise you on your options.
Contact DebtStoppers today to schedule your free personal debt evaluation and learn the truth about foreclosure – and how you can fight it.