Where to turn for mortgage help - and how to avoid being scammed
Attorney
(866) 735-1102 Ext 542
You're trying to figure out how to make next month's mortgage payment. You heard something on the news about government help, but you don't know what's been passed and if you qualify. Meanwhile, you want make sure you don't pay money to somebody who won't help you at all. Where do you turn?
The scammers are out there; make no mistake. The schemes are creative, too. Deed us your house, we'll rent it to you and cover your mortgage. Meanwhile, you pay them, they don't pay your mortgage company and you're out in the cold - literally. Or you contact a loan modification company, they demand a large up-front payment and either do nothing or do what you could have done yourself.
Your first step, assuming you haven't already done so, is to use the 800 number on your mortgage bill. Call them and start a dialog. It can be frustrating at times. One person doesn't know what you told someone else last week, or you can't get a hold of a human being. But be persistent. If you're already behind on your payments (over 30 days late), your chances of refinancing with another lender drop substantially, so working out a deal on your existing loan becomes the focus.
Meanwhile, go to www.makinghomeaffordable.gov. You can - and should - do this at the same time you're working with your lender. This site is the clearinghouse for the mortgage relief that has been passed by Congress so far. It will take you through both options: the refinance and modification programs. There are lots of qualifiers on both plans, including who owns your mortgage, how much mortgage debt you have vs your house's value, etc., but the website is great at allowing you to input your information and get specific answers for your situation - without having to wait on hold for a human!
Be aware that as of this writing, one piece of the government's plan has not yet been put in place. That's the proposal to allow bankruptcy judges to modify the terms of your mortgage. So right now, if you file bankruptcy, you'll buy yourself a little time, but you'll still ultimately have to deal with the mortgage.
What about all those companies out there offering to work with you to get your loan modified? Be very careful, especially if they ask for money up front. Many of these companies may turn out to be either scams or simply overloaded with calls and not provide the kind of service you're paying for. Remember that you're probably going to be a much better advocate for yourself when it comes to talking to your mortgage company than someone who doesn't know you and isn't as up to speed with your financial information. And a word about up-front money: unlike paying a law firm a retainer, if you pay a modification company money, you're banking on their promise to deliver. When our firm gets a retainer from a client, it goes into a clients' funds account that's regulated by the state bar. We don't pay ourselves out of your money until we do the work.
So what kind of services do we offer? We can review your loan to see if there were any problems in its origination that would give rise to your right to cancel it, for starters. We can negotiate with your lender if you're not comfortable doing that yoursef, and we can advise you on the terms of any proposed modification you get from your lender. We can discuss with you whether bankruptcy is the best option. This, and much more is just a phone call away.