Re: Foreclosure "consultants"

Posted by Julio Martinez-Clark on April 28, 2008 at 20:32:23:

In Reply to: Foreclosure "consultants" posted by JL on April 28, 2008 at 18:52:03:

JL,

My question to you is...why do you need the services of a "foreclosure consultant"? Have you tried calling your lender's loss mitigation
department? Have you read and answered the letters sent by your lender offering help to settle the default? Have you taken advantage of
some of the help available to homeowners in default in their mortgages offered by HUD
(http://www.hud.gov/offices/hsg/sfh/econ/econ.cfm) including but not limited to seeking in-person help from a community housing
counseling agency (for free or for a minimal fee)?

If you have extenuated all avenues to negotiate with your lender and the "foreclosure consultant" offers some extraordinary magical
solution, I just don't justify paying a fee. There are some excellent "foreclosure consultants" out there; unfortunately there are terrible
stories of homeowners who have been scammed by these outfits.

No company can possibly offer the guarantee of an investor purchasing a home in a short-sale; specially in this times of declining market
values in most parts of the U.S.. Short-sale negotiations can become a lengthy, laborious, and unprofitable process for any investor.
Lease-back options are a tool that many unscropulous so called "investors" use to deceive homeowners taking advantage of their
emotional attachment to an asset that the investors know with almost certainty that they will lose eventually in a year or so. Read this
excellent study by the Consumer Law Center, a non-profit dedicated to defend the rights of consumers here: www.consumerlaw.org/news/ForeclosureReportFinal.pdf

If any "foreclosure consultant" is really serious about assisting you, at the same time they are negotiating a workout plan with your lender,
then put your property in the market for sale, get the best and highest offer from their "investors" to purchase it in a short-sale and/or to
lease it back to you. After you get your two offers plus the workout proposal from your lender, then make an informed decision.

I hope this helps,

Julio Martinez-Clark






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