How to use Third Party Foreclosure Professionals to solve your Bank or Real Estate Foreclosure Problem
Lenders lose thousands of dollars every month to delinquent mortgage accounts and because they need to try and recover as much of that money as possible, many lenders have resorted to using an internal collections department. Quite often, when you call about your delinquent mortgage, you'll be transferred to someone whose job title is "counselor" or "customer care specialist", but this person is actually the lender's in-house collector. They have only one job; to get you to pay up. They hear the same old stories so often they have become callused. They don't bother to really look at your situation, they just assume you are a deadbeat and treat you that way. Bottom line: they are not going to help you save your home!
These in-house collectors are paid and earn huge bonuses based on their ability to collect money. Collectors that do not produce are terminated which explains why they demand payment in full and will accept nothing less. To back up the collector's efforts, most lender's policy is to return any payments that are less than the full arrears. Even cashier's checks are returned. If you do not pay the full arrears, the lender will file foreclosure paperwork in the hopes that the threat of losing your home will force you to somehow come up with the money. If you fail to pay they simply complete the foreclosure and get their money anyway.
Perhaps the hardest obstacle to overcome is convincing the mortgage company to work out an alternative payment plan. In a recent survey, more than 80 percent of homeowners, who were delinquent, said their lender refused ANY plan except full payment of the arrears. They were told to either pay up or lose the home through foreclosure - no mercy! If this describes your situation, then a Third Party Foreclosure Professional is your best option.
Third Party Foreclosure Specialists can save your home using a variety of legal strategies that can delay foreclosure until work out solutions are implemented. Lenders show respect when they discover you have hired an experienced foreclosure professional that knows how the process works, understands your state laws, and speaks the bank's language.
Up A word of caution about third party assistance. Not all "so-called" specialist have your best interest in mind.
As soon as the foreclosure legal notices are filed, your foreclosure becomes public record! This means that within hours, that's right--hours, you'll receive calls from people promising to save your home. Everyone will go out of their way to appear as helpful and unbiased as possible. Some of these may be very legitimate offers but before doing anything consider the following:
Watch out for people posing as foreclosure specialists who are actually nothing more than marketing specialists for bankruptcy attorneys. They convince you to declare bankruptcy and of course just happen to have a referral to a local bankruptcy attorney. In some situations, bankruptcy might be a solution but before filing it you should know how it works, the advantages and disadvantages to filing, and what other options are available to save your home. DO NOT rush into any decision but especially filing bankruptcy.
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Watch out for so-called "investors" who understand how you feel! They take advantage of your frustration and convince you that you have no way out of the situation except to sell the home to them for exactly what you owe on it. They will hope that you are so stressed out by the whole thing that you just "want out" and will willingly sign over ALL of your equity to them. If you have equity in your home, don't lose it by panicking! Consider ALL options before signing anything!
If anyone calls you offering a sale/leaseback scheme--hang up immediately! This scheme involves signing over your house to an investor and then leasing or renting it back with an option to repurchase it later. This type of situation is ALWAYS structured to favor the investor and usually costs you a great deal in the end. If you want to try this option, get professional help when evaluating the paperwork. Use an attorney or other profession that is NOT recommended by the investor!
Foreclosure Consultants: The key word here is consultant! Companies pay consultants millions of dollars every year to look over their process and recommend a solution. Keep in mind that consultants do not actually do any of the work they recommend--they are just a middleman. The same principle applies here. Most foreclosure consultants promise to solve your foreclosure problem and may even promise to perform negotiations but, after charging an arm and a leg, they just refer you to their clients; investors, mortgage brokers and bankruptcy attorneys. In the end, you end up with no solution and worse off than when you started! These types of companies are difficult to spot so be sure and ask for references and check with the BBB. Look over all paperwork carefully before signing or paying anything!
Equity Skimming: This is an outright scam! Con artists promise to bring your delinquent mortgage current and perform any foreclosure resolution services. They convince you to sign a quitclaim deed by telling you that they'll let you pay a reduced monthly "rent" payment. This seems like a perfect solution because it supposedly frees up more funds for your other bills. In reality, the equity skimmer collects rent from you without ever performing any foreclosure resolution services or bringing your mortgage current.
They continue to collect rent while allowing the lender to foreclose. You are not aware of any of this because you signed the home over to them thus the legal foreclosure notices go to the scam artist not you. The first you'll know anything about it is when the house is suddenly sold at auction.
Here's the real kicker; you're still responsible for any portion of the mortgage not covered by the sale of the property. Although State laws vary on how this issue is treated, the lender can usually obtain a deficiency judgement for the difference between what they collected at the auction and the total amount owed including arrears, attorney fees, court and auction costs. This deficiency judgement is levied against you, not the equity skimmer.
Up Legitimate Third Party Foreclosure Assistance
First and foremost, your third party professional must be familiar with all major workout solutions and have YOUR best interest in mind. You should not be pressured toward bankruptcy, investors or any particular mortgage company. Professional foreclosure specialist don't push just one standard solution. They explain your options, recommend the best solution and then, give you plenty of time to digest the information and make a decision. Before hiring anyone, check out their reputation with the national and local better business bureaus and read this third party caution.
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