Mortgage Problems And The Myth Of Foreclosure Help

Mortgage Problems And The Myth Of Foreclosure Help



Mortgage Problems and the​ Myth of​ Foreclosure Help
For a​ number of​ reasons,​ the​ rate of​ home foreclosures is​ rising in​ the​ United States .​
in​ fact,​ the​ rate is​ up some 70% over a​ year ago .​
Part of​ this is​ due to​ rising interest rates that are making payments unaffordable to​ homeowners who bought their homes three or​ four years ago with adjustable rate mortgages .​
Many of​ these mortgages were set to​ adjust after three years,​ and the​ resulting increases in​ payments have left the​ homes unaffordable for their owners .​
With little recourse,​ thousands of​ owners have had to​ walk away from their homes .​
This unfortunate situation may be avoidable in​ some cases,​ particularly if​ the​ owners discuss their troubles with their lenders .​
Instead,​ many owners have answered ads posted by companies offering foreclosure help,​ hoping to​ find a​ way to​ keep their houses despite their financial troubles .​
in​ many cases,​ the​ owners not only fail to​ get the​ help they need,​ but they often end up literally giving their houses away to​ the​ companies they thought would help them keep them.
The scam is​ a​ common one that takes advantage of​ people in​ desperate situations .​
Mortgage companies that intend to​ foreclose on​ delinquent customers file notice with the​ counties in​ which the​ homeowner resides .​
the​ county posts those notices and investors make note of​ the​ addresses .​
With a​ bit of​ research,​ they determine the​ value of​ the​ property and the​ amount owed on​ the​ mortgage .​
the​ investors seek properties with large amounts of​ equity .​
They then approach the​ owner with an​ offer to​ help them with their financial troubles .​
the​ offers vary,​ but the​ deal usually involves an​ offer to​ make good on​ the​ delinquent amounts while renting the​ home back to​ the​ owner for a​ set period of​ time .​
At the​ conclusion of​ that time period,​ the​ investors say they will offer the​ owner-turned-tenant the​ opportunity to​ repay and take their home back .​
For desperate homeowners who want to​ keep their houses,​ these offers seem like a​ Godsend.
Unfortunately,​ the​ deals rarely work out to​ the​ benefit of​ the​ owner .​
More often than not the​ paperwork provided with the​ offer includes a​ quitclaim deed,​ which,​ once signed by the​ owner,​ essentially gives the​ property to​ the​ investor .​
the​ investor,​ now the​ owner of​ the​ property,​ then demands an​ unreasonable amount of​ rent from the​ owner-turned-tenant .​
When he or​ she cannot pay,​ the​ investor evicts the​ tenant and sells the​ house,​ pocketing the​ profits .​
in​ some cases,​ investors have pocketed several hundred thousand dollars from a​ single property,​ all for the​ minimum investment of​ a​ few months' of​ delinquent mortgage payments .​
the​ former owner is​ left with nothing.
Some states,​ such as​ Minnesota,​ have passed laws that severely restrict this practice,​ but others,​ such as​ Florida,​ have so far been unable to​ overcome large opposition from business interests .​
in​ the​ states with few restrictions,​ flyers offering foreclosure help can be found on​ telephone poles in​ just about every city .​
Unfortunately for homeowners who have financial trouble,​ the​ last thing they will receive if​ they respond to​ these flyers is​ help .​
Homeowners who are in​ financial trouble should call their lender first .​
the​ last thing lenders want to​ do is​ foreclose,​ so buyers would be better off calling their lender rather than trusting their home to​ a​ stranger who advertises on​ telephone poles.




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