Reposted most recent newsletter… hope people in need will use it. Sorry about the formatting but the newsletter has some horrible markup.
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December 19, 2008
Foreclosure Prevention Resources Newsletter
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Warning About For-Profit Loan Modification Firms Services are available FREE to Minneosta Homeowners. Don’t let homeowners fall for these scams. Homeowners facing foreclosure are frequent targets for predatory scams. The latest scam promises to “save” homeowners from foreclosure by helping them obtain a loan modification for a price. For-profit loan modification firms make exaggerated claims about what they can do for homeowners. For fees ranging from $500 to $3,000 or more, they offer to help homeowners work with their lender to modify their mortgage loan. However, the services provided by these companies can be completed either by the homeowner or with the free assistance from a non-profit foreclosure counseling agency, such as the network affiliated with the Minnesota Home Ownership Center.
In addition to charging hefty fees for a service that is available for free, loan modification services are troublesome because they do not have the best interests of the homeowner in mind. Unlike non-profit foreclosure counseling agencies that are mission-driven, for-profit companies have an incentive to promote loan modifications, even when it is clear that this action will not save the home. When a homeowner does not have the income to sustain a reasonable mortgage payment and household expenses, non-profit foreclosure counselors will present alternative options such as saving money for a damage deposit for an apartment. For-profit modification firms have every reason not to do this they only make money when the homeowner pays to seek a loan modification.
For more information, visit the Center’s website at www.hocmn.org, or the Federal Trade Commission at: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre42.shtm [Thank you to Amber Hawkins at the Home Ownership Protection Project for providing this information.]
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Foreclosure Tips Go YouTube
FHA and HUD have posted ten tips to avoid foreclosure on YouTube this week. The tips, which are presented through ten very short videos, provide useful information in a light-hearted way. Check it out at
FHA and HUD have posted ten tips to avoid foreclosure on YouTube this week. The tips, which are presented through ten very short videos, provide useful information in a light-hearted way. Check it out at
http://www.youtube.com/user/FHAHUD
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