Struggling homeowners may qualify for help under federal Making Home Affordable programs, but the deadline to apply is fast approaching. The last day to apply for assistance is December 30, 2016. If you’re behind on payments and need assistance, you may qualify for this program that can help save your home. There are also programs to assist you if you no longer wish to or cannot afford to be a homeowner, if you’re unemployed, if you’re looking to refinance, considering a short sale, or if you owe more than your home is worth. There are different programs to meet individual homeowners’ needs and financial situation.
If you need free assistance, contact a HUD-approved housing counselor by calling 888-995-HOPE™ (4673) 24 hours a day, 7 days a week. Representatives can help you find and understand options available to you, go over and discuss the documents you’ll need, help prepare your application, and work with your mortgage company. Visit www.makinghomeaffordable.gov for more information.
Scam Warning
Though there are many reputable programs available to struggling homeowners, there are also many mortgage relief scams around. They make overinflated promises claiming they can save your home for an upfront fee. Some claim they will negotiate with your lender or obtain a modification for you or some other form of relief to help you avoid foreclosure. They may claim to be affiliated with the government, or a government housing program, while others claim to offer legal services that will help you—but you have to pay first. In most cases, these operations are scams that fail to do anything for you except string you along and get more money from you.
Avoid any company that wants you to pay an upfront fee. The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for companies to collect any fees until a homeowner has actually received an offer of relief from his or her lender and accepted it. That means that even if you agree to have a company help you, you don't have to pay until it gets you the result you want. They must provide you with a written offer for a loan modification or other relief from your lender, you must accept the offer, they must provide you with written documentation from your lender showing the changes to your loan if you decide to accept the offer, and the company must clearly give you the total fee it will charge for its services.
If you choose to use an attorney to help you, the attorney may require you to pay an upfront fee, but only if they are licensed to practice law in the state you live or where the home is located; if they provide you with real legal services; or if they are in compliance with state ethics requirements for lawyers; and if they place the money in a client trust account that they cannot withdraw fees from until they complete actual legal services and notify you of each withdrawal. Check out Business Consumer Alliance’s Resource Guide, “Avoiding Mortgage Relief Scams” for more information and tips.
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About Business Consumer Alliance
Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.