ARE THERE ANY LEGITIMATE COMPANIES HELPING PEOPLE WITH FORECLOSURE?

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Finding Legitimate Companies to Help You Out of Foreclosure

There are many legitimate companies who can help a suffering homeowner who is near foreclosure and in jeopardy of losing their home. However, within this “angel” group also exists vultures and jackals who are ready to pounce upon a poor, unsuspecting homeowner and take everything they have for profit. It is up to the suffering homeowner to sift through the crowd and find a group that can actually help him keep his home without losing the shirt off his back.

The worst types of companies are the ones who want you to “sell” your home to them. By doing so, you give them the title to your home, and they take over the mortgage payments with your lender. In return, they agree to let you “rent” your home. Be sure, however, that even if rents are affordable in the beginning, you will pay higher rent in the future and may lose your home in the long run. The benefit is that although you may lose ownership of your home, it may be one of the last-ditch efforts you can do to get out of foreclosure.

Renegotiating a Mortgage

Many foreclosure specialist companies will work with your mortgage company to come up with a solution that lets you keep your home by paying the mortgage at lower terms. Many times, this requires a full loan modification with a change in interest rate and term. Oftentimes, you may even get forbearance on your mortgage payment for a limited time while you catch up with your finances. A foreclosure specialist doesn’t do this for free, however. Expect to pay them a hefty fee or even give up a partial ownership in your home for their efforts.

Home Sale Help

A foreclosure specialist can negotiate with your mortgage company to allow you to sell your home for a loss if your current principal balance is more than the actual value of the home. This is called a “short sale” with the mortgage lender. With the drop in real estate values over the last few years, this may be an option for homeowners who simply cannot afford to keep up with their mortgage payments. If your lender agrees, they will simply accept what your home sells for and write off the outstanding remaining balance. You will end up paying a fee to the company who helps with this negotiation, but it may be worth it to save your credit status and avoid foreclosure.

Reinstatement

Some foreclosure specialist companies will even help you “catch up” in full with your mortgage company by paying all mortgage payments in arrears, late fees and interest. This can be very helpful to securing your good standing with your lender. The catch is that you will need to work out a payment plan to pay the “angel” who kept you out of foreclosure. Usually payment plans can be reasonable, but beware of companies that charge high interest on these “loans” and insist that you pay large lump sums within a short time frame.

This article is intended for general information. Always seek sound financial and legal advice before making any financial decision.

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