Industry Tips
Foreclosure Consultants
Are you having problems making mortgage payments on your property or are you concerned that you have lost equity in a property you own? The BBB suggests that it might be a good idea to first contact your lender to determine if there is a way to negotiate revised terms for your loan. Many banks and lenders are willing to offer extended payment plans or reduced annual payments to prevent foreclosure on the property.
It is also prudent to speak with a non-profit agency that provides free credit counseling services to consumers. There are several such agencies in San Diego County, and they can be very helpful in offering alternative ways of solving your particular concern, and give you advice about the effect that the alternatives could have on your credit history, and on your mortgage liability. You should not have to pay for these services. The US Department of Housing and Urban Development can provide you with a list of HUD approved counselors. They can be reached by calling 1-800-569-4287.
BBB files indicate that there are several companies operating in the state who promise to assist homeowners by taking over the title to their property, and thereby help to avert the impact of tax liability for debt relief. Some of these companies have allegedly indicated that this type of transfer might also minimize or eliminate your liability for repayment of your mortgage. These companies charge a high fee for their services, and it is wise for the consumer who is considering doing business with a company of this type to request that any claims made by the company be in writing and reviewed by your attorney, before signing.
The BBB suggests that consumers contact a tax expert and the Internal Revenue Service to determine if the claims made by these companies in reference to both the tax relief issue, and your liability to repay your mortgage are legitimate. Recent IRS press release indicates otherwise. The BBB also suggests you check to see if the foreclosure consultant you are considering doing business with is registered with the Attorney General's office. Effective July 1, 2009, foreclosure consultants must be registered with the Office of the Attorney General as provided in Civil Code section 2945.45
Investigate all of your options before you sign any agreements or turn over your property to anyone. The time you spend investigating may well save your property, and your credit.