Has anyone out there used a foreclosure prevention service? How was your experience?

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We don’t want to lose our home, but we are very skeptical of those who claim that they are trying to “help” us. We don’t want to get taken advantage of a second time to add insult to injury! That’s what the mortgage company foreclosing on us did by selling us a predatory loan in the first place! >:-(

2 Comments
  1. Reply
    VanJohn ♫
    April 29, 2011 at 11:20 pm

    There is too much risk for fraud in those kinds of services. They do not exist to give you the service that you expect, that’s for sure. Experts in the field will tell you that you should go to you lender – the people that may initiate the foreclosure and seek solutions there. The presumption is of course that your loan is through through a conventional lender. The lender loses money also if they have to go through foreclosure and re-sell a property, so if there’s a way to work out a solution, they may be willing to assist you. That doesn’t mean of course that you’re current financial condition allows you to fulfill the barest of remedies, but I’d start there before going to any of the “Let us help save your home” places. What that often translates to is, “let us save your home from the lender, and we’ll foreclose on it ourselves’.

  2. Reply
    Darren Meade
    April 29, 2011 at 11:20 pm

    Hello –

    It is sad to say you’re not alone. In the next two-years, over
    2 Trillion Dollars will reset on adjustable rate mortgages making many unable to pay their mortgages.

    To make things worse, many people do not even know they have this type of loans.

    I’ve utilized foreclosures prevention services for my clients. My advice varies on situation and states. The most important issue is that you have enough time to handle the course of action you wish to follow.

    Have you received a notice of default, or are you simply in forebearance?

    In my industry, they have what is called ‘ Hard Money Lenders ‘, they will write you a loan, but the interest rate will be extremely high and so will the fees. So you will be paying more money per month on your mortgage and the mortgage company will make you pay a large amount of points. Then depending on the state your located, they could lock you into a 2-3 year prepayment penalty. Which means if you cancel the loan, once again you have to pay high fees to get out. The reason that this might be pushed on you is that the loan officer makes rebate (commission) depending on how long they can lock you in on the deal.

    Who they are?
    They are a foreclosure bail-out company and are not a conventional lender; their funds come from private investors.

    What they do?
    Foreclosure bailouts are our specialty. If you have exhausted all of your resources trying to refinance your clients but cannot, there is a possibility that we can be of service.

    They purchase your home and lease it back to you for 12 months. They will work out a lower monthly payment for you. They will report a payment history and they will create a one-year history of on-time payments with them. They will cover all costs so that the client will not be out of pocket any money. All costs associated with the program are deferred to the end of the 12-month term and will be rolled into a loan you get them to pay us back. The property will also be put into a trust whereby the client is one of the beneficiaries of that trust. According to the instructions of the trust, upon receipt of 12 months lease payments, the trustee will offer the house back to the client.

    How do they do this?

    The program is equity based; we don’t care about credit score, mortgage history, or employment history. All they need is equity. Our guideline for determining if there is enough equity is: 85% of home value minus $ 25,000.00 = Max. Payoff.

    (NY deals have a little different equation)

    How long will the entire process take?
    We can’t predict how long it will take. Keep in mind that this is not a refinance, and it can’t be compared to one. We will intervene if there is a sales date prior to us completing the process and we will take action to stop it.

    Please feel free to contact me if you want to go over anything. I want to help you improve your mortgage situation, credit status and peace of mind.

    Please note that we the foreclosure bailout company will not do rural properties, commercial properties, or mobile homes. If that is your situation, then a traditional lender will be best.

    Therefore ask the loan officer you work with to devise the plan of how 10 months from now you will change out to a cheaper loan. Make sure that you do not sign up for any prepayment penalties.

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