There has been a great deal of negative press regarding paid foreclosure assistance and in particular, loan modifications.
The media has taken the loan modification ball and they are sounding the TV trumpets, mis-informing consumers by the millions, “DON’T PAY FOR LOAN MODIFICATION ASSISTANCE!” “If anyone asks for money to help you avoid foreclosure , run!”
Personally, I feel this is both good advice and bad. Let me explain….
Many homeowners are in desperate need of legitimate legal help because they are in a predatory loan with federal legal violations or are in some type of “legal foreclosure predicament” that would require an experienced attorney to effectively protect the consumer from their lender/mortgage servicers deceptive business practices.
What?!
You mean lenders and mortgage servicers can be shady and unethical to consumers
Why yes Einstein, they have a loooooooong history of screwing Americans from the beginning of banking time.
It is no secret that some of these darn lenders and mortgage servicers have 
a long history of sending millions of homeowners up the foreclosure crap creek without a paddle.
Last foreclosure count, I believe that we have had 3-4 million homeowners who DID NOT GET FREE FORECLOSURE HELP and are now distant memories and unfortunate American casualties of a lending industry gone wild.
Unfortunately EVERYONE and their mother is now being informed that all paid foreclosure assistance is a scam. This confuses struggling consumers who may have been scammed by their mortgage broker or lender and are in need of legal help.
I truly feel that this will only make the foreclosure crisis worse.
Contrary to popular opinion in the media, there are individual attorneys and law firms that are helping homeowners legally and ethically. Unfortunately, there are loan modification companies or so-called foreclosure consultants that are the same people that placed unsuspecting borrowers in to predatory loans or, even worse, these scammers may know absolutely nothing about consumer loss mitigation at all. Of course, these types should be avoided at all costs.
Other types of private foreclosure consulting firms to avoid are firms that say they offer attorney representation but do not offer consumers the ability to receive an initial consultation with an attorney before making a payment. More often than not, these companies either do not have an attorney on staff or do not have an attorney review your case. These firms are typically staffed with ex-mortgage or real estate agents that utilize an attorney’s license to legally accept money up front.
But are all real estate and mortgage attorneys assisting homeowners bad or worse, a scam? NO!!
These law firms offering loan modification services today typically specialize in real estate and or mortgage law. They are licensed by their state bar and have to uphold a strict code of ethics in dealing with their clients.
Many of these firms are helping homeowners that can’t get free help from their local non-profit or mortgage servicer. Most of these homeowners are not your run of the mill mortgage situation and have multiple properties with complex financial situations. Some are just homeowners who are extremely busy and they do not have the time to dedicate to the loan modification marathon.
These people can benefit with the assistance from a qualified loan modification and real estate attorney. If you noticed, I said, “qualified loan modification attorney.” This is imperative because this are of mortgage law has only been around so long and success is built around connections with various mortgage servicers .
These firms must also have the ability to manage the very delicate foreclosure process in an effective manner. So, please do your due dillegence when seeking a lawyer.
In paid foreclosure assistance arrangements with qualified attorneys you should always receive a free initial consultation before making a payment.
Moreover, these attorneys may provide a wide range of services in their retainer agreements with you instead of simply promising a home loan modification. For instance, these attorneys may agree to assist you with a loan modification and if that modification fails, to assist you in obtaining a deed in lieu of foreclosure, cash for keys to walk from the property or assist you in negotiating the terms of a short sale to minimize the negative effects of the short sale to the consumer.
Just remember who the sharks are and where to swim safely….
An informed consumer, is a powerful consumer!
{ 3 comments… read them below or add one }
Dear Moe,
I have created the Dual Process and we invetigate the consumer’s Loan with a Full Forensic and Appraisal audit. We are not attorneys but previous underwriter which know what to look for when reviewing the GFE, TILA and the HUD/HUD1. We also review the one place we find must violations, inflatted Appraisals, especially when a Mortgage company paired up with a Builder. To enlighten your readers, loans for thos borrowers which were not Sub Prime, is where we find more violations. Sub Prime, were more careful than the A Paper Lenders. We also find a lot of Appraisal fraud. In any case, when we find these violations, we know how to demand, on behalf of our clients, that this is what we demand from you Mr. Bank and due to these 23 violations and the Appraisal violation, you will have 30 days or the consumer will seek the advise of Legal Counsel. 95% of the time, the Bank, is not prepared to get involved with an consumer, with evidence and an Attorney. The submit an settlement or accept the one we offer. We are not finding that an Attorney is needed and in fact, Attorneys are not helpful, when trying to get the Bank to do an acceptable workout plan.
However, when the Bank does say “Jump” we do turn the cases over to a ready line of Attorneys ready and willing to take our RESPA and or Appraisal violation which is a mandatory $10,000 fine per violation plus Attorney fess. The Banks, do on occasion, feel that they need to see we mean to file a lawsuit and in 99% of our cases, we educate the borrower to file on their own and seek counsel only if a court date is set. Almost always the Bank waits to see if the Lawsuit is file and then presents its own settlement. Less than .005% actually see the inside of a Court Room.
We have over the last three years an answer for the homeowner to file to stay the foreclosure and a TRO to use in the non-judical state with counter claims and discover to work in all 50 states. If you have an interest let us know.
Hi,
We have just added your latest post “Can all homeowners get free foreclosure help? | Loan Modification & Home Loan News” to our Directory of Foreclosure . You can check the inclusion of the post We are delighted to invite you to submit all your future posts to the directory and get a huge base of visitors to your website.
Warm Regards
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