Be Careful of Forebareance Rescue Scams
During the great recession, we had foreclosures and short sales. As I recall there were loan modification programs for borrowers but the rules kept changing about who was eligible and who was not. Sometimes people who were behind on mortgage payments were eligible and sometimes they were not.
During the current crisis and it is crisis there are forbearance programs and various laws that prevent foreclosure. Forbearance programs allow borrowers to skip payments. The payments are added to the end of the loan repayment period.
There will always be people who want to separate you from your money. Now we have a growing industry of company’s who claim to rework your mortgage. Since there isn’t equity any longer, they charge upfront fees. Be very careful before you hire anyone to help you with your mortgage and please read the article below.
As always be aware of scams. I am not aware of the latest but I know there are always people out there ready to trick people out of their homes and life savings. If a program sounds too good to be true the Minnesota Homeownership Center can help with that and the Minnesota Attorney General’s website has some useful information on it about scams.
These suspicious companies typically charge an upfront fee of up to $3,000 to help borrowers get lower rates on their mortgages from their lenders. But borrowers often cannot afford the fees, the service can be bogus and, in the worst cases, the homeowners lose their chance to renegotiate with their bank or to file for bankruptcy protection because of the time wasted.