Be Careful of Companies Offering to Bail You Out of Your Mortgage Problems

THEY ARE HOPING YOU WILL BE A WILLING "SUCKER" FOR THEIR SCAM

There are a number of predatory entities out there. Be careful of anyone offering anything that sounds too good to be true.

Warning signs that a company with whom you are dealing may be a predator:

1. They make claims that sound too good to be true:

WE WILL NEGOTIATE LOWER PAYMENTS FOR YOU. The reality is that (1) most lenders will not reduce payments or modify terms; (2) the lenders that will do so would do so if you contacted them (you don't need a company to do it for you); and (3) the company offering this "service" is usually trying to ultimately purchase your home or earn unrealistic fees from you.

PAY US YOUR PAYMENTS, AND WE WILL HANDLE YOUR MORTGAGE FOR YOU WHILE WE NEGOTIATE WITH YOUR LENDER. It is amazing how many home owners fall for this. The company is simply using your payments to the company as a fee (the funds do not usually go to your mortgage company). The company negotiates with your lender, and, when negotiations fail, the company will send you to a bankruptcy attorney.

2. The company requires you to sign your house over to them with a promise that they will sell it back to you when you are able to pay for it.

3. The company offers to negotiate a short sale (see discussion below).

GET RICH QUICK VIDEOS TELL INVESTORS HOW TO DO THIS

Have you ever seen the infommercials that have people sitting around a dock talking about making thousands of dollars in a single day? Many of these infomercials sell books/programs telling investors how to take advantage of people who are struggling just like you. They hope you are desperate and will not think rationally. One plan is to have you sign the home over to them, with you signing a lease/option in return. The investor uses your lease to get financing for the deal. So, you have given them the ability to buy your home by signing the lease. In return, if you want to buy the home back, you must pay huge fees. So, in the end, out of desperation, you lose the equity in your home. And, because you were behind on your mortgage, your credit is destroyed, which often prevents you from actually behind able to buy the home back. You have given this Good Samaritan your equity.

SHORT SALES DO NOT ACCOMPLISH WHAT YOU ARE SEEKING

1. Your credit will be at or below a bankruptcy credit score (see us for proof of this-we can show you actual credit scores of people who are behind on their homes).

2. A short sale means that you are selling your home for less than you owe. The lender does not forgive the balance. Instead, once the purchaser buys your home, the original lender comes after you for the balance, further ruining your score.