Check Out the "Work-out" Plan
March 3, 2009
The new stimulus packages have created an incentive for servicers and lenders to work with borrowers to find a solution to the flood of foreclosures. We have had some of our clients inquiring about calls they have received from companies and individuals claiming to be "work-out" specialists. While there are some reputable firms that can assist borrowers, there are also some that see opportunity in the incentives offered by the stimulus plan.
Here are a few offers to that may not be in your best interest.
You are approached by an "investor" who offers to bring your mortgage payments current and who will make your mortgage payments. In exchange they will ask you to deed the property to them and they will lease it back to you. We have seen instances where this transaction has resulted in the former owner being evicted or the rent being continuously raised. If there was no official transfer of the mortgage to the "investor". you are still the borrower who is responsible for the mortgage payments. Some of these less than honest individuals even keep your rent payments and never make your mortgage payments.
Another scam will offer to refinance your mortgage or to negotiate a repayment plan with your lender. Again, the unscrupulous will charge you a fee and may even fake your new mortgage without paying off the existing loan.
We realize from the calls we receive, that working with banks and servicers can be frustrating. The unsophisticated borrower has a difficult time knowing the terms and the process. We are now trained to speak "lenderese", but we do advise you to seek help from a professional you know or your local banker with whom you can sit down and discuss your situation eyeball to eyeball.
The new stimulus packages have created an incentive for servicers and lenders to work with borrowers to find a solution to the flood of foreclosures. We have had some of our clients inquiring about calls they have received from companies and individuals claiming to be "work-out" specialists. While there are some reputable firms that can assist borrowers, there are also some that see opportunity in the incentives offered by the stimulus plan.
Here are a few offers to that may not be in your best interest.
You are approached by an "investor" who offers to bring your mortgage payments current and who will make your mortgage payments. In exchange they will ask you to deed the property to them and they will lease it back to you. We have seen instances where this transaction has resulted in the former owner being evicted or the rent being continuously raised. If there was no official transfer of the mortgage to the "investor". you are still the borrower who is responsible for the mortgage payments. Some of these less than honest individuals even keep your rent payments and never make your mortgage payments.
Another scam will offer to refinance your mortgage or to negotiate a repayment plan with your lender. Again, the unscrupulous will charge you a fee and may even fake your new mortgage without paying off the existing loan.
We realize from the calls we receive, that working with banks and servicers can be frustrating. The unsophisticated borrower has a difficult time knowing the terms and the process. We are now trained to speak "lenderese", but we do advise you to seek help from a professional you know or your local banker with whom you can sit down and discuss your situation eyeball to eyeball.
posted by shirley harry at 8:10 AM
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