The biggest mistake you can commit when you fall behind on your mortgage payments is to wait too long to tell your lender what is going on. It’s never too late to do anything but to prevent foreclosure, it is better to be proactive than reactive.

Acting fast is very important. It is extremely important to contact your lender as early as possible, after you find yourself unable to make your loan payments. Most of the major lenders have programs for mortgage modification, forbearance, or other remedies that can help you prevent foreclosure. More than half the people who go into foreclosure never respond to letters from the lenders, nor contact the lenders. Your options become limited as time passes by. Contact your lender immediately and tell the lender about your situation. Once you contact your lender, they can allow payment delays, mortgage modification, and come up with new repayment plans, or they may negotiate a lump-sum payment.

When it comes to preventing foreclosure, every minute counts. Early contact – within the first 15 days of missing a payment – is critical in saving homeowners from the devastation of foreclosure. More than half of those in foreclosure did not call for help when they fell behind in their mortgage payments. Do not hesitate to contact you lender. There is nothing to fear about or be embarrassed.

You can get emotional or fear contacting the lender when you face foreclosure. But you must contact the lender. You are not alone. There is nothing to be embarrassed about missing a mortgage payment.

Remember your loan servicer – who you get your monthly statements from may be different from the one who actually owns your loan. If you are not sure whom to contact, call the number on the statement and they will advise you.

Explain your situation to the lender. Once the lender appreciates the situation, he may come up with a workable suggestion. Remember, all this time his aim would be the same as yours – you are able to pay and the house remains in your hands. This can be done by increasing the number of installments which you were required to pay. This will ease the situation for your and lender’s money also remains the same. In fact, as a simple calculation may tell, the lender gains financially. Depending on your situation and the status of your mortgage, there may be different options available to you including restructuring.

• refinancing
• selling your home
• deed in lieu of foreclosure

Be honest about your situation, so they can help you find the right solution. Lenders usually offer a variety of solutions for people who have fallen behind on their mortgages including temporarily reducing or waiving payments, setting up short-term repayment plans to help you make up the deficit, adding the unpaid balance to the principal of your loan and increasing your payments slightly to cover the extra amount, refinancing the debt, arranging a repayment plan or modifying the loan by adjusting the interest rate or extending the terms to make it more affordable. These options are discussed in detail in the following chapters.

However, if your situation is really bad, the lender may even agree to make other concessions. For example, the lender may be willing take less money in settlement of your dues. Once the lender realizes that the situation of the borrower has become very nonviable, it is time for the lender to retrieve whatever possible from a potentially bad situation.

If the lender feels that the only way of saving the situation is to reduce the financial burden on the homeowner, the lender may also agree to reduce the interest.

The lenders have even been known to reduce the principal. It all depends on what sort situation the borrower finds himself in. It goes without saying that the lender will not be happy to do this, but then again, he has to reassess the circumstances and then decide.

If you cannot keep your home, your lender can work with you to avoid foreclosure and reduce the negative effect on your credit reputation. For example, the lender can permit a qualified buyer to take over your mortgage debt and pay the mortgage payments, even if the mortgage is non-assumable. As a result, you may be able to sell your property and avoid foreclosure.

Don’t just sign your home away and walk out. Negotiate. Whatever be your situation, never ever enter into any deal without consulting an attorney. Never make an impulse decision. Your instincts will drive you to make quick decisions in order to resolve defaults as soon as possible. Before taking any decision, weigh the pros and cons.

Foreclosure is an undesirable situation especially for those who desire to keep on living in the homes that they’ve grown used to. When this happens, they often seek ways to avoid foreclosure and if possible, to stop foreclosure for good. There are many situations when foreclosure happens to people: when they lose their source of income, when they forget to pay the necessary expenses, when they have to move away, etc. Though this may be a stressful situation, it may be dealt with effectively with the proper attitude and adequate help from those who can resolve the situation. Seeking ways to get themselves out of their predicament is a sign that they’re taking responsibility for the foreclosure, and is the first step towards solving the problem.

People can choose to avoid foreclosure for as long as possible, or they can decide to stop foreclosure. Avoiding or stopping it depends on the particular circumstances that they’re in, but it mostly depends on the lender’s decision. To avoid the foreclosure, it’s best to be in good terms with the lender. Avoiding doesn’t mean ignoring the lender especially when he’s trying to establish communication. They must talk with him, answer his letters or calls, and seek to reach an agreement. By negotiating, the lender may allow them to pay when they already can, or pay little by little until the complete amount is reached. In case that the lender can’t be negotiated with, there are companies and organizations that can help those who are burdened by foreclosure. However, they must avoid abandoning the home or going into hiding, because doing so disqualifies them from being helped by these people.

To stop foreclosure means to pay whatever amount is being required by the lender. This may also mean that the lender will just forget about the whole matter. The first option is easier and more possible than the second, but both can happen. To have money to pay the lender, home owners must seek ways of getting money such as working, finding sources of income, borrowing money, selling their possessions, etc. It may take some time before the desired amount of money is reached, but once this is paid, the foreclosure is cancelled. The lender may choose to cancel the foreclosure, but it will need a high degree a rapport between the lender and the home owners. This may work when they’re very good friends, or if the lender is indebted to the home owners in some way.

To avoid foreclosure is often the easier alternative. For more information on how to avoid foreclosure visit our website consumerdefenseprograms.com

Stopping a foreclosure is really very simple if you understand a few keys to the process. It is very important that you first evaluate your situation to see if stopping foreclosure is what you really want to do. This article will outline some guidelines that you can follow should you find yourself in the unfortunate need of stopping foreclosure.

Should You Be Stopping Foreclosure

Before you take the necessary steps in stopping foreclosure you must evaluate your entire financial state and see if stopping foreclosure will really help your situation. If you find it hard to make payments on your credit cards, car, or other items you probably need more help than just stopping foreclosure on your home.

You may want to seek the free advice of a credit counselor if you are simply going under on several other payments besides your house payment. These credit counselors can help in deciding if stopping foreclosure is going to help you or not.

Should You Be Stopping Foreclosure

If your home is in an area of homes that is increasing in value you may have more incentive for stopping foreclosure to reap some profits for selling in time. You could check with some local real estate offices and see what homes are selling for in your neighborhood. This will give you a good guideline as to what you could expect to gain. Make sure that you are using comparable results when determining the real value.

Should You Be Stopping Foreclosure

You should ask yourself if the home you are in is really what you want. Maybe it is time for a move to a new town or neighborhood. You might be able to walk into a very nice situation where you could earn credit towards a home by doing repairs. If this is the case you might be better off to let your home go into foreclosure, but you must act quickly.

If you have determined that stopping foreclosure is worth it for you then you should contact the lender and explain your situation. You might ask them to lower your payments. You could ask for a reduction of 50% or more in some cases for a certain period of time. This can work if you are several months delinquent on your payments.

If you are stopping foreclosure and choose to have your payments lowered you will most likely not gain on your principle very quickly, but you will at least be able to continue enjoying your home. Once you get back on your feet you can regain equity by making extra payment that is applied to the principle only.

If you need more foreclosure help then quickly head over to consumerdefenseprograms.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Stopping Foreclosure.

If you want to find out the best way to stop foreclosure, the answer should be to act promptly. That is definitely the solution that lots of folks overlook when they want to know tips on how to stop foreclosure. Stopping foreclosure isn’t as hard or as frightening as lots of people believe. Needless to say, home owners which have been dealing with foreclosure have gotten on their own right into a pickle, but that doesn’t imply there isn’t any technique to stop foreclosure. They basically must alter from ignoring what exactly is going on to taking handle of their lives and operating challenging to stop foreclosure and continue to keep their property.

Chances are if you’d like to know ways to prevent foreclosure, you’ve obtained a discover of default, which is your bank’s technique for letting you already know that there is an issue, nonetheless they are supplying you a while to do the job it out ahead of the foreclose on your own property. Tend not to make the error of considering your lender is performing very little following receiving your recognize of foreclosure. The lender is beginning the legal foreclosure method therefore you only technique to stop foreclosure is to do the job out a method to fix the challenge.

Once you are searching for precise methods for the best way to stop foreclosure, you should begin along with your financial institution. Call them nowadays, clarify the problem briefly and request to speak to an individual inside their loss prevention department. They’ll direct you for the accurate human being or division. Though financial institutions really don’t wish to foreclose, they’re going to when they don’t have any other preference. Foreclosure isn’t their 1st decision.

The best way to stop foreclosure together with your bank will be to put in place a payment method that should do the job out what you owe when nonetheless holding you latest with your approaching mortgage loan payments. You have to truthfully supply all the info they ask for. Not carrying out this could interfere with the best way to stop foreclosure. Tips on how to stop foreclosure all is dependent on contacting your financial institution, how ready and equipped you might be to fork out what you owe, and next through along with your guarantees.

There’s always a possible way to stop foreclosure. However you are not able to wait around for your wonder, or neglect the notices and calls out of your lender. If you are certainly not in a position to stop foreclosure by shelling out the missing mortgage loan payments, take into consideration promoting your house. This can also be considered a great way for how you can cease foreclosure. You will discover selections for tips on how to stop foreclosure that continue to keep you in command of the situation. All you need to do is act, and select an answer.

If you’d like additional info regarding how to stop foreclosure, you may drop by Foreclosure Knowledge Lender. On top of that to staying an outstanding foreclosure listing support, they can be also a source of very helpful data on how to cease foreclosure.

Check our Foreclosure Defense programs web site for a lot more good ideas: www.consumerdefenseprograms.com

Everybody appreciates the real estate sector is not just thriving right this moment. The rate of foreclosures has greater drastically inside the past 3-5 a long time. The specific situation that U.S. homeowners are struggling with is much the exact same throughout the nation. Individuals either obtained into a home they couldn’t manage to pay for or they are really enduring a specific set-back this kind of as health and fitness issues, task loss and much more.

Too many owners are foreclosing on their homes. But, a good a lot more alarming number of these property owners are undertaking it the incorrect way.

Is there a right way along with a inappropriate way to foreclose with your household? Unquestionably! When you have been forced to foreclose on your dwelling, you will need to do it the right way. You require discovering a foreclosure legal professional.

A foreclosure lawyer might help advise you all through the complete foreclosure practice. In the event you proceed without a foreclosure legal professional, you might be incredibly discouraged along with the lengthy process and together with the ignorance that your bank or lending institution provides.

That may be why you require a foreclosure lawyer. Your lawyer will help you establish irrespective of whether or not you qualify for guidance from your Federal government and/or the Utah state government.

Your foreclosure legal professional has particular teaching and practical experience that can assist you by this challenging time. You will find particular programs which might be accessible to you personally at the same time. Your lawyer may help you find these programs, apply for these systems and perhaps, be accredited for these systems. These courses include things like: Hope for Home owners, FHA Protected, Foreclosure Avoidance Counseling – HUD, The home Very affordable Refinance Program and much more.

For anyone who is struggling with a foreclosure, you require the aid of a qualified foreclosure lawyer. This can be a single procedure that should really not be completed without specific legal counsel. Merely set, the foreclosure course of action is going to be more rapidly, extra efficient and less chaotic using the assist of a lawyer.

The recession that hit us hard in last couple of years has left many out there jobless, or to a lesser extent, with lower wages and salaries. And when your source of income is affected, you tend to struggle to stick to your payment schedules, especially for large payments such as your monthly loan payment for your home! Missing your mortgage payment for a few consecutive months would leave you vulnerable to the risk of being exposed to foreclosure proceedings, especially if your creditor is eager to recover his losses by selling your home to someone who is willing to buy it as soon as possible! If you are caught in such a situation, what can you do to stop foreclosure?

There are many methods and solutions available to homeowners today that seek to put an end to foreclosure proceedings. For one, you could try negotiating with your creditors to delay foreclosure until you get your finances in place, probably with the aid of a hardship letter. Or you could try to refinance your home by making use of the government’s foreclosure assistance! If any of these solutions do not work, then you could, as a last resort, opt for the most drastic move of them all, bankruptcy! File for either Chapter 7 or Chapter 13 Bankruptcy now, and forget about mortgage debts ever again!

Do not fall into the delusion that you would be able to save your home through filing for bankruptcy. The truth is you would not be able to salvage your home, but you can definitely stop foreclosure once you file for bankruptcy, and get your lenders off your back for good! Not only will you eliminate all your current debts, you can also make sure that your creditors do not have the capability of suing you for missed payments in the future after you are declared bankrupt. Nevertheless keep in mind that bankruptcy should only be taken into serious consideration once all other ways of stopping foreclosure has been exhausted, as it has serious implications on your financial stability, especially for the long run! Once you are declared bankrupt, you would struggle to get approval for future loans and credit cards, and even have difficulties when you apply for future employments.

So can bankruptcy stop foreclosure? Most definitely yes, but only if you know how the concept of bankruptcy works, and you utilize decent bankruptcy lawyers to help you out with your case.

This is Part 2 of my article on the “Secrets to Stop Foreclosure” In Part 1, I discussed the secrets of how to communicate with your lender and how to find the appropriate person at the lender’s office. In this article, I’ll discuss the secrets of finding someone with authority at your lender’s office, getting your files organized, and learning to understand the foreclosure clock.

A. Find Someone With Authority to Stop the Foreclosure

As you develop a strategy to stop your foreclosure, the secret is to be in close contact with someone at your lender’s office who has authority to stop the foreclosure. Don’t waste your time negotiating with a lower-level collection person who has little interest in your hardship or the reasons you are not making the monthly payments. All he wants to know is when you are going to pay.

The secret here is that collection personnel have no authority to negotiate with you or stop foreclosure. You need to find someone with authority. Here is another secret. If a collection person calls, politely say goodbye and hang up. Then call the main office of your lender. Ask for the names of the branch manager and the senior loan officer. When you get the information, thank the person you’re spoke to, and hang up again.

Wait one hour, call back and ask for the branch manager or senior loan officer specifically by name. Once you are connected, request an appointment. If you can’t get through and no one returns your call, send a letter. Be sure you send a copy to the president of your lender. Wait several days and call again. Sooner or later, you’ll reach someone with authority. This is the person you will want to meet with.

B. Get Organized

It is important to gather together all the documents that relate to your property and your loan. In a typical real estate transaction, you signed a purchase contract, escrow instructions, a promissory note, and either a mortgage or deed of trust. Organize and review as many of these documents as you can in order to understand how the foreclosure process applies to you.

Here’s what you should get:

• Copies of the promissory note, mortgage or deed of trust,
• Copies of all documents and letters in your escrow file (contact the escrow company or title company that handled the purchase of your property to get copies).
• A “property profile” which contains information on all documents recorded against your property. You can obtain a free copy of a property profile from the title insurance company that originally insured your purchase of the property. Also ask the company for copies of all documents recorded against your property in the county recorder’s office.
• Copies of all letters you sent to and received from your lender, along with the envelopes the letters from your lender came in, if you have them.
• Copies of your monthly mortgage statements, loan payment stubs, or any other billing and payment information.
• Copies of all foreclosure documents you’ve received, if any. Also save the envelopes of documents you’ve received, if available. Label one file folder for each group of documents and put them in the folders in chronological order. You will refer to these documents again and again as you fight your foreclosure.

C. Learn the Clock

Foreclosure involves very specific timetables in which notices must be carefully served, mailed, recorded, posted, and published before your lender can legally foreclose.

Foreclosures can be conducted either judicially or nonjudicially, depending on your state. You need to know which type lenders in your state use. Each kind of foreclosure has its own procedural rules, so you need to know whether you are facing a judicial or nonjudicial foreclosure. Here are the particulars:

Judicial foreclosure. Most foreclosures of mortgages are judicial. This kind of foreclosure starts when your lender files a lawsuit in the court in the county in which your property is located. You must be served (provided with) with a copy of the Summons and Complaint for foreclosure. A judicial foreclosure can take anywhere from one to two years.

Nonjudicial foreclosure. Most foreclosures of deeds of trust are nonjudicial. Your lender avoids the court system entirely by having a trustee (a third party who conducts the foreclosure) follow a specific series of notice procedures, then sells your property at a public auction. A nonjudicial foreclosure can take anywhere from three to four months depending on your state.

Knowing the foreclosure clock is another secret to successfully stopping your foreclosure. Once you understand the time constraints within which you are working, you can customize a strategy that fits your particular situation. For example, if you have two to three months until the foreclosure sale, you still have time to bring your loan current, negotiate with your lender, or refinance your property. On the other hand, if you have less than a week before the foreclosure sale, your only option may be to file for bankruptcy.

Remember, the secret is that these time periods are for your benefit–not your lender’s. This is your opportunity to apply a strategy that can most effectively stop the foreclosure.

This article was written by Lloyd Segal. Lloyd is a mortgage banker, attorney, and author of “Stop Foreclosure Now.” His new book helps homeowners understand the foreclosure procedures in their state and develop strategies on how to stop foreclosure.

The #1 thing that most real estate investors and homeowners facing foreclosure want to know is: “what is the timeline for foreclosure?” In other words: “how long does it take?” The answer is that the mortgage foreclosure process and timeline varies from state to state. This article provides the information and resources that you will need to find out the foreclosure laws, procedures and timelines for all 50 states.

As mentioned, each state will typically have a different set of rules and a different timeline for foreclosure.

20 states utilize only “Judicial” Foreclosures.
5 states and the District of Columbia utilize only “Non-Judicial” Foreclosures.
25 states utilize both Judicial and Non-Judicial Foreclosures.##
## Of the 25 states utilizing both types of foreclosure, Non-Judicial Foreclosures are more common. In fact, Non-

Judicial Foreclosure is the most commonly used form of foreclosure nationally.

I. JUDICIAL vs. NON-JUDICIAL FORECLOSURES:

The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. As you might have guessed, Judicial Foreclosures are processed through the courts. Non-Judicial Foreclosures are not.

Regardless of the type used, the timeline for foreclosure is always preceded by a borrower defaulting on their mortgage payments. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed. However, once the lender concludes that the mortgage is in default and the homeowner is not going to catch up on their overdue payments, a legal filing is made by the lender and the timeline for foreclosure begins.

A. JUDICIAL FORECLOSURES:

In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allowed to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.

If the court rules that the debt is legitimate and in default, it will send a notice to the homeowner demanding payment of the amount owed (plus penalties and foreclosure costs). The borrower is typically given 30 days to respond and satisfy the debt. If they do not, the court will tender a judgement in favor of the lender, instructing that the home will be sold at a “Sheriff’s Sale” auction.

After the judgement is entered, in most states that utilize Judicial Foreclosures, the homewner has about 90 days prior to the Sheriff’s Sale to pay the entire amount owed and stop the mortgage foreclosure process. There are other alternatives that could stop the timeline for foreclosure during this 90 day period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)

• Sell the home.
• Refinance the loan.
• Declare bankruptcy.

If the mortgage foreclosure process isn’t stopped, the property goes to a “Sheriff’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

How long does the Judicial Foreclosure process take?

This is almost impossible to predict. The judicial timeline for foreclosure is entirely driven by the court schedule and literally “at the mercy of the court”. However, most experts will agree that Judicial Foreclosures can often take more than a year to complete.

Important Note: Even after a home has been sold at the Sheriff’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

B. NON-JUDICIAL FORECLOSURES:

Also known as “Power of Sale” Foreclosures, Non-Judicial Foreclosures are conducted outside of the court system by either a third party “Trustee” or an attorney. This mortgage foreclosure process is used when a “power of sale clause” exists in a mortgage or deed of trust. This clause states that the borrower agrees to the sale of their property to pay off the balance of their home loan in the event of a default.

As with Judicial Foreclosures, most lenders will not begin the Non-Judicial Foreclosure process until several payments have been missed and they are convinced that the homeowner is not going to catch up on their overdue payments. However, once the lender determines the borrower to be in default, a legal filing is made by the lender and the timeline for foreclosure will begin. This filing is known as a “Notice of Default” (NOD).

After the NOD is filed, the homeowner typically has a 90 day “Reinstatement Period” to catch up on missed payments and stop the foreclosure before the lender can take further action. There are other alternatives that could stop the timeline for foreclosure during the Reinstatement Period:

Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)

If the borrower remains in default at the end of the Reinstatement Period, a “Notice of Trustee’s Sale” will be filed with a date and time posted for an auction sale of the property. After the Notice of Trustee’s Sale is recorded, the homeowner typically has another 21 days before the auction date. During this period, the borrower can still stop the timeline for foreclosure with any one of the alternatives mentioned above in the Reinstatement Period.
If the mortgage foreclosure process isn’t stopped, the property goes to a “Trustee’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

Important Note: Similar to Judicial Foreclosures, after a home has been sold at the Trustee’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

THE BOTTOM LINE:

Regardless of the mortgage foreclosure process used, it is very important to know the laws and procedures for your particular state. To help with that, here is a link to the Foreclosure Process: All States.

ABOUT THE AUTHOR:
The author, John Hanlin, recently published the HOT NEW E-BOOK: “The LazyMan’s Guide to Understanding Foreclosures & REO Property Investment”. Click here for info.

Mr. Hanlin is an Independent Investors’ Consultant who provides FREE investment advice on his website:
http://www.JohnHanlin.com where you can sign up for a copy of his FREE Special Report: “The Safest High Yield Investments You Can Make Today”.

Never before in the history of the U.S. have there been so many people who have lost their homes to foreclosures. Banks and lending institutions are foreclosing on homes at a rate that is unparalleled when compared to historic periods, even when there was a recession and depression taking place in the country.

Finger pointing suggests that Wall Street’s near total failure is to blame. Others believe the government and other economic woes are at fault. No matter whom the blame is being attributed to, what matters is that many people are eager to find a way to save their homes. This places many unknowing homeowners at risk for foreclosure fraud.

Just as the Internet has become a venue for many individuals to attempt and successfully engage many people in identity theft, there are risks associated with entrusting your information to a person or business that may be conducting foreclosure fraud. Not sure what to look for when you’re dealing with a foreclosure? Here are a few tips you can use:

o Home loan modification agencies and the specialists who work for them will not solicit money from you before an initial consultation to determine whether or not you qualify for their help. If you receive an e-mail, a postal mail letter, a telephone call or a visit to your home from someone who claims to be a home loan modification specialists who asks for money in any form, contact your local authorities. Likewise, do not provide any information to such an individual.

o Lenders do not offer home modification loans. Many hackers are very sophisticated and can create a web page that is designed to mirror your lender’s web site in virtually every way. If you receive an email that appears to be from your lender telling you to log in, provide your account information and pay a processing fee for a home modification loan, forward the e-mail to your lender, a crime tracking website such as Scambusters and to your local authorities. And again, do not provide any information or follow the link to the web site in the e-mail.

o If you believe you have received a legitimate offer from an agency you’ve never heard of or want to investigate, check with the Better Business Bureau to see if the company is registered. If it is a newly formed company, they may not be. This doesn’t mean they are a foreclosure fraud, simply that you need to conduct more research to find out if they are legitimate. Don’t be afraid to ask for references from previous clients they’ve served.

Recognizing foreclosure fraud often just involves common sense. If something seems too good to be true regarding an offer you’ve received to help solve your foreclosure, chances are it isn’t true. Don’t allow yourself to become a victim of foreclosure fraud. Take the time to check and recheck your source.

Article Source: http://EzineArticles.com/2907880

Foreclosure attorneys are drawing a lot of attention in California these days for scamming distressed homeowners. The most common method is to charge a large upfront fee for a loan modification and then to do very little to actually help the beleaguered homeowners. Among the agencies looking into the practice are the State Attorney General, the FBI, the California State Legislature, the State Bar, and the Department of Real Estate.

Last spring the Department of Real Estate in California had received more than 750 complaints of lenders taking advantage of distressed homeowners, and nationally, the FBI is investigating more than 2,100 companies accused of this practice. The California State Bar is currently handling in excess of 800 cases relating to foreclosure practices. A spokesman for the Bar says he has not seen a crisis of this magnitude in his 21 year career.

The State Bar recently identified sixteen lawyers who had received multiple complaints and were under investigation. Nearly two thirds of those attorneys practice in Orange County. The press release noted that it is unusual to release names of those being investigated but not yet convicted, but the organization was dismissing investigation confidentiality in favor of public protection.

The State Legislature has also acted on the situation. The bill AB 764 – Nava noted that under current law, both lenders and attorneys may charge distressed homeowners an upfront fee for negotiating terms of loans. It goes on to say that under these terms, the law has let down the homeowners and allowed them to be taken advantage of. The bill changes the law to disallow upfront fees and requires lenders and lawyers alike to produce a successful result before charging the troubled homeowners. The bill also mandates that the language in any contract for loan negotiation clearly state that it is not required to pay for an attempt at loan re-negotiation. The required statement includes the web address http://www.hud.gov, where homeowners can access a list of free loan counselors. The bill had tremendous support and almost no organized opposition. It has been passed by the legislature and is awaiting the Governor’s signature.

Ron Parks has been buying Marin real estate for 27 years. Year after year he is one of Marin’s top real estate agents. Ron specializes in all areas of Marin County, including Belvedere and Mill Valley. {Article source}