About Bethlehem's Bethlehem Township

If you've been reading about foreclosures and loan modifications on the internet, its very likely you've come across some "warnings" regarding rescue scams.

The cold hard truth is that there are people out there who are willing to take advantage. Homeowners who have nowhere else to turn will often fall prey to unrealistic promises made by "foreclosure resolution consultants". I have spoken to many homeowners who have paid anywhere from $3,000 to more than $10,000 to have a company represent them in their foreclosure matter, hoping to earn that much prayed for loan modification to save their home, their family, their way of life, and the American Dream they worked so hard to achieve.

What really gets my blood boiling is that I do represent homeowners, do provide solutions to their mortgage default matters, including loan modifications; and have to hear about these unscrupulous idiots who want to take advantage of their fellow Americans while they are down and out! So, to those of you who have been scammed, please accept my sincerest apologies. While I cannot take back what happened to you, I certainly can help you and others to prevent this situation from occurring again.

If you know anyone who may be facing foreclosure, or just having mortgage trouble and thinking about a loan modification, please forward them to this blog, so they can be protected!

So, how do you know if the person you speak to is reputable? How do you know if they really can help? How do you protect yourself from the unscrupulous? Here's some pointers:

Ask Questions! You need to know how the process works, ask the following questions of the "consultant" you are speaking to:

• How long have you been doing this?

• How many resolutions have you been able to procure for your clients?

• What is your success ratio?

• Does your company provide a refund of fees paid if you fail?

• What policies/programs do you have in place to protect me and my investment in your program?

• Can I see some examples of resolutions you have been able to obtain?

Do your research! Do Not feel obligated to sign any contracts agreements or other documentation from these "companies". It is important that you understand every line of the documents that have been provided to you. If any of the following apply to the documentation you are presented with, drop them like a bad habit!

• No refund clause provided in writing.

• No options for payment to be received by the company (i.e., only accept credit cards)

• No check list of items or documentation required.

• No Financial Analysis (this is an important part of the workout process, if you haven't completed one, then they obviously don't know what they are doing).

• An invoice should be provided if there is a cost associated with representing your case.

• Contact information should be posted on the letterhead of the company wanting to represent you.

• Legalese you can't understand. Documentation should be easy to read & understand.

• Process in writing. You should have a clear understanding in writing of what the company will do for you, steps they will take, and an approximation of when they expect to obtain a resolution for you.

Other points of note:

If you have representation already, and cannot reach the company/representative to discuss progress on your case/file, follow up with your mortgage company to see what kind of correspondence they have had.

Never allow your representation to accept a plan on your behalf without discussing it with you first!

Never work with someone who advises you not to speak to your mortgage company!

Never send payments or monies for the mortgage company to your workout representative!

Should you have questions pertaining to this post, please feel free to comment here, or post your questions to my twitter site: @realhelp4you

*1st Choice Mortgage Resolutions is a resolution company, helping homeowners to obtain true resolutions to their foreclosure default matters. If you would like to discuss your matter with us, please email your contact information to info@1stchoicemortgageresolutions.com We will be happy to discuss your options with you, and advise you as to the best steps to resolve your mortgage default matter. There is NEVER a fee for consultation!*

When it comes time to find a solution to your mortgage default matter, do you do it alone, hire an attorney, or try to find some other type of help?

As it has been proven time and time again, doing it alone is not the best option. Kudo's to those of you who make a go of it, but unless you understand the mathematics of foreclosures, you most assuredly will not be able to get the best plan to resolve your mortgage matter. But that's not our focus today....

Many of you consider and hire an attorney to find the solution for you. Many attorneys recommend bankruptcy, Chapter 7 for those of you who don't wish to keep the property, and Chapter 13 for those of you who want to keep your home. While bankruptcy can be a viable solution for some, it is not a fix all solution. Yes, it will delay the foreclosure. No, it will not make the lender more willing to work out a plan. In fact, in many cases, the lender is LESS likely to work with you should the bankruptcy fail, and why shouldn't it? More and more bankruptcies are dismissed by the court because it is not a viable solution. Now you've spent $800-2,500 for an attorney to resolve your matter, and are right back where you started. If you do get approved for your Chapter 13, be prepared to make your mortgage payment, as well as an additional payment to pay back your arrears as well as paying off any other creditors you include. Can you afford your current mortgage payment, plus an additional payment of $500-1,000+? Most likely not.

So, attorneys are pushing bankruptcies, we know that's not a solution, what about having them negotiate a workout plan for you? Does this make sense? As Americans we are trained that attorneys are as good as gods! They know everything! Sure, if it has to do with the law! You can learn the law aspect of your foreclosure in about 10 minutes using Google.com. If you have a serious legal issue with your mortgage, then the attorney is what you need.

Fact is, it's highly doubtful that an attorney knows how to use leverage to negotiate a plan for you. They are not financial advisers, they know the law, not the mathematics. You wouldn't take your car to a detailer to fix your radiator problem would you? Of course not, we all know that a mechanic that will fix that. We should use attorneys for legal issues, and seek professional help for our financial issues from those that understand our needs, and can provide true solutions.

Fortunately, there are SOME companies out there that will be able to provide the answer for you. In coming blogs, I'll go over how to pick the right company to represent you, the questions you should ask, and where to go to make sure they are a real company. Until then, save your money, use the right tools to fix your problems, and above all, stay in your home!

*1st Choice Mortgage Resolutions is a resolution company. What we do is in our name. No hype, no gimmicks, just true solutions for your mortgage default matter. Contact us today to talk about your situation, discuss the pros and cons, options for your next step, and get some piece of mind, knowing that you will be able to resolve your default matter professionally, and completely, with a resolution you can truly afford!*

It is hard enough to deal with the stress of dealing with a foreclosure. Compounded with the stressful situations that create the situation in the first place, its NO WONDER homeowners make rash decisions and poor choices when it comes to attempting to resolve their mortgage crises.

If you do nothing else right, don't make THIS mistake!:

Do NOT abandon your property!!

Many homeowners assume that if they abandon the property the bank will just take it back. While this is true, it closes many doors that provide viable and realistic options for you when it comes time to discussing a resolution. If your primary residence is being foreclosed on, do not leave! Stay in the home up to and even beyond they posted sale date, so you are in the best position to take advantage of any "workout" opportunities that may come your way. Should you abandon the property, the bank can and most likely will lock you out of the property, greatly reducing the chances you have of finding a workout plan that will save you from foreclosure.

Should you have any questions in regards to this topic, you can post them here, email them to me at info@1stchoicemortgageresolutoins.com, or post them for more to see on Twitter at http://www.twitter.com/realhelp4you.

You can find more information like this at 1stCMR

The government launched its Making Home Affordable plan this spring, with news that lenders were clammering to sign up. Problem is, only 14 lenders have active contracts to participate in this program. Signing up for this program is by choice.

The head haunchos at the banks/lending institutions/mortgage companies have to decide that the program is worthwhile for them to join up. While this may save tax payers money, its certainly not showing the effectiveness of the program. Many of my clients have tried themselves to qualify for this program, completed the necessary documents and filed them with their mortgage company, only to be denied a modification.

There are currently over 250 financial institutions that have recieved funds from the EESA (Emergency Economic Stablity Act), and still the number of homes lost continues to climb. If you ask me, if your taking my money to bail yourself out, you should be subject to more strict guidelines on how that money can be used, and programs/actions you should be required to impliment to keep these foreclosures from happening. Billions of dollars were given to banks, that STILL find themselves in Bankrupcty. Where'd our money go? Of course, I don't want to shout this out too loudly, I'd be out of business, but if the government is going to "warn" homeowners about companies like mine, who actually ARE finding and negotiating solutions with the financial institutions, they should be taking over my job, and doing what I do.

So far all I see is whole lot of money being spent on programs to assist homeowners, with many homeowners finding no true help, and more money flying out of the windows, not to mention precious time being wasted for homeowners who truly want to resolve their foreclosure default matter.

In closing I sincerely hope that this program works better than the program enacted last year to help homeowners. Hope.gov took in 440,000 applications last year, spent $271 milllion taxpayer dollars, and successfully helped 25 homeowners! That's a cost of $10,840,000 per home saved! I'm no pessimist, but I doubt we can afford this! Kudos to the efforts being made, but can we streamline this a little better, and impliment more stringent policies? The homeowners are what need saving, if the lender's had bad business processes and fail, isn't that the consequenses of working in a free trade environment?

View other blogs I've written about foreclosure, short sales, & loan modifications here. Send me a comment on Twitter! @RealHelp4You