While the premise of your article is right on, and there are many for profit foreclosure specalists who have their own interest in mind first, that is not Always the case.

There are in fact foreclosure and loss mitigation specialists who help borrowers modify their current lending terms. They assist the borrower by utilizing a state licensed attorney to negotiate the modification process on behalf of the borrower to ensure the modification will put the borrower into a position where they CAN afford to stay in their home whereas many of the non-profit HUD approved agencies are volunteers who simply fill out the same paperwork the borrowers could on their own. They often get the borrower into a forbearance agreement, which raises their current mortgage payment to catch up the past due.

A modification will often eliminate past due interest and modify the terms to significantly lower int rates and extended terms to allow the borrower an affordable payment. This saves the lenders often tens of thousands of dollars in loss that would occur through a foreclosure or short sale and allows the borrowers to immediately be considered CURRENT on their mortgage and a fresh start with a lower mortgage payment. If it were my home at stake, I would rather pay a professional legal attorney to represent me than a volunteer who has the right intentions, but not the professional skill and knowledge to get the job done correctly.

Thanks for letting me comment.

James Prince
james@jblmortgagenetwork.com

Happy to get your comment, James.

I should point out, though, that nonprofit housing counselors are supposed to be doing precisely what you're talking about -- negotiating with lenders to get a modification or other change that actually helps the borrower. Some of them have been doing it for years and years, so they're very skilled at it. The nonprofits I've talked to have full-time employees doing this work, not volunteers. Also, some groups, such as St. Ambrose in Baltimore, have attorneys on staff.

But as always, homeowners' experiences may vary. I'd love to hear from folks who have gone through the process.

Jamie, St. Ambrose have some realtors on staff, too. Not too long ago I heard a story there that North Ave. would soon be like Georgetown, so go & grab something...

Thank you for your comments, Jamie. It is imperative in these days and times that homeowners have the most education and information possible to make the correct decision about their property. Although housing counselors provide a great resource for pre-foreclosure families, not all housing counselors are trained well enough to provide the information homeowners need to weigh all the options they have available. In addition, we are all hearing about the lack of counselors available to those in need due to the increase in pre-foreclosures.

We are in agreement that there are foreclosure consultants who are not working in the homeowner’s interest. There are also “consultants” that have agency with investors and only work to feed properties to those interests. However, this is against the law – SB761 was initiated to regulate foreclosure consultants and provide structure to investor sales and protection for the property owners. This is the information homeowners need more education about – the rights and protections they have under the law.

There are also investors whose sole purpose is to scam a homeowner out of their property. However, this is not always the case. When Mr. Gruhn says that homeowners are better off selling their home on the market, this is not always an option. There are investors who will buy a property in as-is condition and provide a solution that a market sale would not.

It is important that homeowners have the education necessary to empower them to face their foreclosure situation. When this is in place, a homeowner can utilize the services of a housing counselor more effectively and create a plan that will truly help. They will also have the savvy to deal with any third party that offers services or assistance. If not, then going to a housing counselor, no matter how well trained, will be a waste of time.

Thanks for allowing me to comment!

Carla Douglin
info@foreclosurehelpdvd.com

Interesting. How often do you think cases like this tend to happen? I work a lot with Toronto houses in general, so I won't defend or condemn foreclosure. But I will say this, as always: know what you're getting yourself into. Personally, a bulb starts flashing in my head whenever someone wants to sell something quick. Oftentimes, the light blinks red.

It helps a lot to read articles on cases like this from time to time. Thanks, and best of luck.

- Julie

I went to the foreclosure prevention event in Upper Marlboro and I listened to the speakers, the counselors and THE LENDERS! Yes, lenders... all lined up in a row like vultures looking for fresh meat. I wish someone would have told me about your foreclosure DVD web site Carla. I sure could have used a quick solution to the mess that my lender tricked me into. Now I'm not passing all the blame. I knew what I was signing and I was hoping I could refi into a better loan after my I got married. Then I would have had better income to show. But I didn't think I would get sick and have to miss time off work. After getting back to work and trying to catch up on bills the loan reset before the 3rd year. Before I knew it, I was facing foreclosure.

It's true, lifes' surprises can have you in situations you never expect. I wish I would have had the education about how to deal with it quickly, and have some step by steps on how to fix it faster than going down to the vulture lot. They all were well meaning but none of them had any solutions that could address my specific family dynamics, health situation and intermitant financial issues. Lucky for me people give you money as a gift when you get married. Thanks for letting me vent.