DO NOT FALL VICTIM TO MORTGAGE SCAMS
September 25th, 2008 Categories: Carlsbad Business Community, Carlsbad Real Estate
Carlsbad– GOOD NEWS, the rate of foreclosure filings took a break last month only up 23% from the year previous. The average going into August had consistently been over 60%. BAD NEWS, as the flood gates of bad economic conditions continue to open further, I have a feeling this will be a brief respite.
So in this time of a seemingly endless parade of bad news, there are those out there looking to make a buck by scamming desperate homeowners out of money and sometimes their actual home. Nothing like kicking someone while they’re down.
While there is a great article from MSN about three of the most common scams, the most common potential for a scam in our area is probably the “Phantom Help”.
The “phantom help” scammers are usually the guys placing the yellow signs offering help at the freeway offramps and on the telephone poles. In this scam the company charges you thousands of dollars for various administrative duties like filing forms and phone calls, or else keeps simply promising a big rescue late. What the company is really doing is nothing and
eventually you will fins this out. Unfortuantely, by that point it is generally too little too late to take real steps. On top of this, you are out of the money you spent.
These companies can also target you through foreclosure sites and/or the public record. When your lender starts the foreclosure process in California they file a notice of default and list the amount of money your are delinquent on. These companies now know you are behind in your mortgage payments and you become there target.
There is help though.
If you are falling behind on your mortgage or know that is inevitable, there are things that can be done. First and foremost, you have to be honest with yourself with regard to your situation. Chances are time will ont heal this wound.
Your first line of defense is your phone and your computer. You have to communicate with your lender. Not only explain to them what is happening in your life to cause your situation, be prepared to back it up with documentation. I recently wrote a blog post about loan modifications and it was reported that almost half of all loan workouts were loan modification. Statewide this number monthly hoovered between 9,000 to 10,000. Realize this is a real possibility. You just need to be proactive and patient. This process can take many weeks. You are trying to save your home and your 
credit so do not give up.
If you do not seem to be getting anywhere or you do not have drive to push it through, I do have a lender who has a team that will work on a loan modification for a fee. How this is different from the scam mentioned, is they do not collect any money unless they are successful in getting the modification. Additionally your fee is based on the amount of money you have saved.
If you can not get your loan modification I can help you with the sale of your home. If you are delinquent on your current mortgage, we would do a preforeclosure or short sale. The diifference between the two is your standing with the lender. It would be considered a short sale up to the point that the lender files Notice of Default initiating the foreclosure process. At this point it technically becomes a preforeclosure sale. The bottom line is we do everything we can to find a buyer and submit that offer to your lender along with a hardship letter explaining why you no longer can afford your home in the hope that the lender will take the short payoff and not foreclose on your home. 
Again, probably the most important thing you can do is to acknowledge your situation promptly and try hard to work with your bank to come to agreeable terms. While you are doing this, CALL ME, work with someone you cna trust to evaluate your situation. Your goal should be to try to keep your home, but I realize that is not always possible and I will do everything I can to help you. Remember, even renters are buying a home. Just not theirs.
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