The Advantages and Warnings about Foreclosure Prevention Services
When you receive a foreclosure notice in the mail it is best to
understand what their procedure will be. If you know this then you
will be able to tell how much time you have, to see if you can
prevent repossession. It is good to be able to explore your choices
rather than just sitting back and letting it happen. Repossession of
your home is a nasty affair and has far reaching affects. If you can
stop this from happening then you will be able to stop further
problems. Once you know the steps that will be taken you can be
prepared. Here are the steps that are taken when your house is to be
Many states have different laws concerning foreclosure process. You
will need to check your particular area for details. However the
basic steps will be the same. Firstly you will have to understand
exactly what this term means. It is when you default on your
payments and you receive a notice from the lender that they will be
repossessing your home. Your circumstances will determine your next
steps. As soon as you get the notice, find out as soon as you can
what your choices are. Do not think that just because you received
the repossession notice your home is gone there are steps you can
take too save your house and credit rating.
Foreclosure prevention services are companies that can assist you to
stop your home from being repossessed. They will advise and help
you, by suggesting ways that you can use to prevent this disaster.
It is crucial to know all about the company before you sign any
contracts. There are some good companies that will be able to
resolve your problem. However there are also a fair number of
scammers out there.
Warning signs when you choose a foreclosure prevention service:
In order to keep away from any further problems be careful to check
for these warning signs. When you see these tactics being used by
the company you are dealing with you should think twice before
signing up with them. There are a lot of people who get scammed by
these disreputable companies and lose everything. You do not have to
be one of these people, and when you stay alert and do not panic you
can resolve your problem without getting conned. Watch carefully for
Fees for a foreclosure prevention service:
If a company is asking for fees before they deliver any service, be
careful. They may just take the fees and run, leaving you in a worse
position than before. It is common for these scammers to charge
large fees and then just disappear without providing any services.
They either cannot be contacted for inquiries or just close their
doors and run.
A couple more tricks:
Another scam these disreputable companies have is to try to get you
to give the mortgage payments directly to them. This is taking a big
chance and can put you in bigger trouble that before. Another way
foreclosure prevention services can con you is when a company asks
you to sign over the property deed to them. You are taking a huge
risk doing this as you may end up losing everything. Be very sure to
make sure what they will be capable of doing for you. If possible
get it in writing. Read the contract very carefully and if necessary
get your attorney to examine it before you sign anything. It is
better to be safe than sorry. Remember it is your home and
reputation on the line.
Positive signs when you hire a foreclosure prevention service:
Try to find a company that gives a free consultation at first. This
will help you to clarify your situation and allow you to see what
choices are available. This will also give you the opportunity to
check out the company and know fully what they can do for you in
your specific situation. A free consultation usually means that the
company is more reliable as they are prepared to give you some of
their time to enable you to resolve your problem, before they ask
It is wise to check out their credentials. A foreclosure prevention
service should be honest about their success rate in helping you.
There is no way that they can give 100% guarantee that they will be
able to help you out. Also they should be registered with the Better
Business Bureau (BBB).
In the end however, if you see that circumstances will not improve
then you might think about selling your home and arranging someone
to invest in your property. Try not to let your home go through the
foreclosure course of action as this will ruin your credit and you
will not b able to get another mortgage easily for a second home.
You will lose a lot of money when you lose your home.
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