There has been a lot of talk lately everywhere in the media about foreclosure scams. some of them include loss mitigation companies. Is loss mitigation really a scam? these companies get paid by helping homeowners stop foreclosure on their property. these services can be done by the homeowners themselves so why should they pay for it. in reality not everybody has the knowledge or experience with loss mitigation and have no idea what steps to take stop foreclosure on their protperty. so is getting paid to help a homeowner in distress really a scam?
No it is not a scam, however there are some companies who are scamming. As we have seen in this business and almost every branch of finance and real estate, there are people who take advantage of others and have no problem sleeping at night. You can read post after post and see people argueing what is a scam and what is not. Fact is: there are shaddy crooked people in this world and they are waiting to sweep down and pick your carcass apart, take everything from you and leave you to rot while promissing the world. The good news is, there are still alot of good people in this world.
It is always recommended to do your research first and don’t believe everything you hear in the media. Guess what, Foreclosures are on the rise. You’re gong to hear alot of new ideas coming out to turn this economy around.
Here’s a new one and is NOT A SCAM:
Fannie Mae just came out with a new loan program offering help for those in need. This is for borrowers who are in foreclosure or going into foreclosure. Fannie Mae will give the borrowers a new loan for $15,000.00 or 15% of the (UPB) unpaid principal balance to bring their loan current and to pay for attorney fees and costs associated with the foreclosure. The good thing about this loan is the borrowers will have no payments for the first six months and then after that they will have a rate of 5% principle and interest, so for $15,000.00 their payment will be $87.77. The $15,0000 however, does not go to the borrower so they can go on vacation. The money goes directly to the lender to pay for their behind payments, attorney fees and associated costs. AND, it IS a loan. BUT it is stretched out over time at a lower rate and it is supposed to be used to keep the homeowner from going into foreclosure. So, someone four months behind could benefit from this program, then go in and modify their loan through principal reduction and interest rate reduction, thus improving the homeowners financial monthly payment structure for the better furhter down the road.
Some people have more knowledge than other people. Some have only enough knowledge to create a scam and take advantage of someone. Typically it costs 1% of your loan balance for the bank to complete your foreclosure, so why not try and keep your home for less?