Do’s & Do Not’s

Why?

Do consider engaging the services of a third party you can trust

The home retention process can be complicated and time consuming, but with a capable company with professional negotiators, you can be assured of a successful outcome. Our home retention specialists have the industry knowledge and experience necessary to insure the absolute best possible outcome for your financial situation.

We put together a comprehensive package to send to your lender on your behalf, and negotiate terms that are right for you, saving you time and effort in the process! 

If your modification request has been turned down in the past, call us toll free at (800) 398-1960 to see if we can help.

Do communicate with your lender.

Your lender wants to hear from you, and many lenders and servicers are willing to work with homeowners who are behind on their payments.

Contact your mortgage lender or mortgage servicer as soon as you think you are unable to make your mortgage payment, or you have received a notice of foreclosure. Lenders are often in the best position to help, whether you are current on your loan or seriously late on your payments. They may be able to identify options to help you bring your loan current or modify the terms of your loan.

Do not pay your mortgage payment to someone other than your lender or servicer.

Some 3rd party organizations may claim they can modify your loan or stop foreclosure by processing your mortgage payment for you. Unfortunately, those who make these types of promises are often keeping your money, never intending to pass the funds on to your lender or servicer.

Do not stop making your monthly mortgage payments based on advice from others.

The number one reason you should continue to make your mortgage payment is that if you stop, you may lose your home to foreclosure. Another reason includes protecting your credit for any future purchases.

If you are dealing with an extreme hardship, and cannot afford to make your monthly payment, contact your mortgage lender or servicer right away.

Do not accept verbal or written guarantees regarding your loan from anyone other than your lender.

Be aware of guarantees from 3rd party organizations that claim to stop the foreclosure process, no matter what your circumstances.

And, unless specifically authorized by your lender in writing, no one has the authority to make guarantees regarding your monthly payment, interest rate, or principal balance, except for your lender or servicer.

Do investigate the qualifications of a third party provider of home retention/loan modification services.

The California Department of Real Estate suggests that if you are considering a loan retention/modification company, first make sure it is licensed in your state, second, ask about its success rates, and finally be sure you read your contract closely.

Also, make sure services offered to you include not only loan modification, but all home retention and loan workout solutions, financial education, and a guarantee that if the company does not deliver services outlined in your contract you do not pay a fee.

Do not pay an advanced fee for loan modification if you have received a Notice of Default.

If your lender has recorded a Notice of Default on your property, do not pay an advanced fee to a real estate licensee, or to any person or entity, unless they are an attorney authorized to do business in your state.

Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

Beware of anyone who says they can “save” your home by signing or transferring over the deed to them. Fraudulent companies often promise that if the homeowner transfers title to them the homeowner may stay in the home as a renter and buy their home back at a later time. Also, be suspicious of anyone who offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.

Do not sign documents without reading them first.

Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to a 3rd party. Never sign documents with blank spaces that can be filled in later. Never sign a document that contains errors or false statements, even if someone promises to correct them later, or offers to fill out paperwork for you, etc.

Read and understand every document you sign. If a document is too complex, seek advice from an attorney, your mortgage or real estate professional, or an approved, trusted financial counselor.

Do get promises in writing.

Oral promises and agreements relating to your home are usually not legally binding. Protect your rights with a written document or contract signed by the person making the promise. Keep copies of all contracts you sign. Also, in reference to your mortgage loan, keep a log of the names of people you spoke to, the date you spoke to them, and notes regarding the conversation.