Real Estate Corner
Q. What is “Loan mitigation”?
A. Loan mitigation is a fancy term for the renegotiation of a mortgage.
These days there are dozens of companies advertising that they can successfully negotiate with your lender for more favorable loan terms thus reducing your payment and enabling you to avoid foreclosure. All, of course, for a fee.
The problem is that 75% of these companies are scam artists and they work like this: The homeowner pays an initial upfront fee of several hundred dollars to have their case reviewed. Then the loan mitigation company claims it can help you and will typically charge a few thousand dollars more to get the process started. The owner is told the company “Will do all the work for you” in negotiating with the lender.
But once they get your money, you wait and wait only to finally realize that these people have not made one phone call to your mortgage company and have not made any attempts to reach out to solve your situation with your lender. They took your money and they walked away.
The bottom line is, don’t jump at the first solicitation of help. Investigate, research and call reputable resources to learn about the company or person you’re considering getting help from.
You can contact the fraud-investigation unit of your state’s attorney general”s office to find out if they have any complaints on file against a particular person or business who offers foreclosure services. A phone call like that could save you from financial ruin.
I’d be delighted to discuss this with you in more detail or answer any other questions you may have about real estate.
Feel free to give me a call!