Turning to foreclosure bailout lenders may seem like a reasonable solution in a highly stressful financial situation, but take heed; while some of these lenders are completely legitimate, some of these lenders are out to swindle you or get the title to your home and leave you with nothing.
Assistance from Foreclosure Bailout Lenders
These lenders market to homeowners who are behind in their mortgage payments and have no way of catching up before foreclosure proceedings begin. While some lenders offer legitimate loan programs that -although often costly- will allow homeowners to retain their homes, some lenders are out to scam vulnerable homeowners. Read the Consumer Advisory issued by the Office of the Comptroller of the Currency of the U.S. Department of the Treasure for a complete listing of signs that a lender may be a fraud.
The homeowner's original mortgage lender is always the best place to start since some lenders would rather offer assistance in the form of a modification or refinance instead of foreclosing, but if the original lender is unwilling to assist the homeowner, it may be time to seek out assistance from lenders specializing in foreclosure bailout. Be sure to check with the Better Business Bureau prior to doing business with any lender claiming to assist homeowners facing foreclosure.
Private Lenders
Private lenders may be willing to lend homeowners money to avoid foreclosure, but these lenders may be more difficult to find since they are not affiliated with a commercial lender. A private lender may be someone you know, or may be someone you locate online who invests in private mortgage loans for people facing foreclosure.
To locate a private lender, use a website like Prosper or Peer Lending Network. A mortgage broker may be able to find you a private lender as well.
Brokers
Consider utilizing the services of a mortgage broker who specializes in matching clients with foreclosure lenders. A broker will take your application and forward it to several lenders to find one that is willing to accept your application and save your home from foreclosure. Examples of this type of foreclosure loan broker includes Forclosure-Loan.com and HelpForHomeowners.org.
Keep in mind that not all mortgage brokers are equal. While some brokers genuinely want to help people who are stuck in a financial mess with their homes, others will send applications only to one or two lenders who the broker has a professional (and financially advantageous) relationship with, and may wind up costing you more money in the long run.
Loan Modification Specialists
Instead of turning to foreclosure lenders, many homeowners are instead choosing to utilize the services of agencies offering loan modification specialists. This alternative service allows you to hire an attorney or other specialist who is well-versed in requesting and obtaining loan modifications from existing lenders in lieu of foreclosure.
Some homeowners facing foreclosure have already exhausted the process of trying to get a loan modification from their lenders and have abandoned the process, resolving themselves to the foreclosure process. Specialists can make incredibly aggressive efforts in getting homeowners loan modifications as an alternative to seeking assistance from foreclosure bailout lenders who may charge much higher fees in the long run.
Seek Help First
With new laws and programs often being developed to protect homeowners from foreclosure, it is worth it to seek assistance from an organization prior to resorting to foreclosure lenders for a bailout. While you may eventually need to borrow money from a lender to get caught up, it is a good idea to know all your options first. There may be a free program that can help you keep your home.
To find out more about saving your home from foreclosure, call or visit the website for The Department of Housing and Urban Development.
