does anyone know about home loan modification? can a real estate agent, lawyer or someone else help me?

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we bought a home in july 2007, and since my mother’s fiance lost his job (due to the economy) to a much lower one, we no longer can afford the house like we once did. we also cannot sell it, as homes are becoming much more readily available for much cheaper than we paid. i pay rent, i have a 3 year old brother in the house, so she’s desperate to keep the house. we had a man come to us about savemyhomenow.com trying to help us. it sounds too good to be true, so we’ve of course been hesitant but as things get harder and as our home mortgage company doesn’t do much to work with us, my mom is getting more desperate. the guy wants 1500 up front, 1500 dollars later. does anyone know if this home loan modification works? he’s promising us a lower mortgage rate, and no payments for a couple months because we “got a mortgage when we shouldn’t have” (her fiance is not on the mortgage.) is this guy a scam? is there any companies like this that AREN’T scams? Please let me know all you can. Thanks so much.

My husband and I got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. We live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. But after adding up all the extra costs we would have, the income we’d be getting from rent would only make us break even and wouldn’t be worth it.

There is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. And I was looking into maybe purchasing a vacation rental there. I found a property there we can afford. I called around to places that manage rentals of similar vacation homes. It seems comparable properties make between $ 28,000 – $ 29,000 a year — this has the potential of being more profitable for us than a rental home, where there is month-to-month rent.

Even after using all the funds remaining in our equity LOC, we’d still have over 50,000 of equity in our home. But I’m afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. We may soon get a notice, as others have that the bank won’t let us have the funds they loaned to us from our home’s equity. And with mortgage rates so low, it seems like now is a good time to jump on this opportunity.

Yet, with a vacation rental, there’s not a steady income like there would be in a rental home. And with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future.

So, what do you think? Should we do it? Or let this opportunity pass us by, for now?

5 Comments
  1. Reply
    wizjp
    February 13, 2011 at 5:27 am

    I’m pretty sure that one is a scammer; run it by your state Atty general’s office before you send them a dime.

    “got a mortgage when we shouldn’t have” is crap.

    This is from HUD:

    HOW TO FIND LEGITIMATE HELP FOR YOUR FINANCIAL PROBLEMS

    Contact your mortgage lender or mortgage servicer as soon as you think you are unable to make your mortgage payment. Lenders are often in the best position to help, especially if you are current on your loan or not seriously late on your payments. Your mortgage lender or mortgage servicer may be able to identify options to help you bring the loan current or to modify your loan.
    Contact a legitimate housing or financial counselor to help you work through your financial problems. To find one:
    □ Call (800) 569-4287, or visit http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm to find counselors approved by the U.S. Department of Housing and Urban Development (HUD).

    □ Call the Homeownership Preservation Foundation at (888) 995-HOPE, or visit http://www.995hope.org, to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.

    Visit the following Web sites for information:
    □ NeighborWorks America, http://www.nw.org/network/home.asp.

    □ Federal Trade Commission, http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm.

    Finally, if you have a complaint or question involving a national bank and cannot resolve it directly with the bank, contact the OCC’s Customer Assistance Group by calling (800) 613-6743, by e-mailing customer.assistance@occ.treas.gov,
    or by visiting http://www.HelpWithMyBank.gov.

  2. Reply
    infinite crisis 247
    February 13, 2011 at 5:34 am

    i can almost guarantee you that this company is a scam. 1. legit companies won’t come to you or just show up out of nowhere. if you are in big financial trouble, scam artists are like sharks in the water. 2. most of them will not charge you 1500 upfront either. after all, if you had 1500, you’d be able to pay your mortgage, right? 3. the simple fact that this guy has promised all of these things and hasn’t even checked your situation yet reeks of a scam. don’t go with this guy!

  3. Reply
    Lisa L
    February 13, 2011 at 5:58 am

    SCAM – Without a a doubt. Keep current on the mortgage. March 4 all the details come out but it looks like your current mortgage has to be backed by Fannie or Freddie.

  4. Reply
    Doctor Deth
    February 13, 2011 at 6:53 am

    3rd party guy sounds like a scam – if you talked to the mortgage company and they won;t work with you to modify the loan, why would they work with a total stranger? – he will probably take your money and disappear – don’t do it

    she may just have to walk away, rent a cheaper place and go thru foreclosure and ruin her credit

  5. Reply
    tkahrs12122
    February 13, 2011 at 7:40 am

    You should never jeopardize your home on a gamble. Using your primary residence equity on purchasing rental property is just as risky as blowing it at a casino. Strangers coming and going. Who cleans the house between guests, Fire and theft insurance, liability insurance, real estate taxes, income taxes, repairs. Furnishings,
    Are you prepared for all that is involved?
    Suggest you research other ways of raising capital and leave the equity in your home for real emergencies.

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