Can a loan moratorium save owner from forclosure if behind on payments (real estate, California)

[dvanvorous]

Several people I know are working with a Law firm that is basically saying they can keep people out of foreclosure by getting them into a loan moratorium which will enable them to go for 12 months without making a payment and the interest will be added to the principle. Most of these people who are in need are real estate agents or related to that industry. I am wondering if this is something that can be done or are the people who work for this attorney scamming people in need. They are asking for a fee up fount and none of the people who are currently working with this group has actually gotten their moratorium they are all in process. The attorney is real and has been checked out but no information can be found either negative or positive on this group. I am concerned as there are several people putting their trust in this group and when I talk to them I can not get specifics only generalities. So the question is how do I find out if this is passable and if it is how can I find out if this group of people who are "helping distressed home owners" are for real. No one that i know who is involved was smart enough to check references that i am aware of and all have paid money and are just waiting to see if this works. Some were only slightly behind or going to not make a payment and have completely quit making payments following the enlistment and promises of this group. This group is in southern California which has tons of foreclosures so maybe banks are willing to do this I really don't know but am looking for some advice as someone near and dear to me is getting on this train and is asking my advice and I don't know what to tell them. I also do not want them to loose their house.

Thanks,
BTL

[rcarrillo]

These same people probably listened to a broker and Realtor about becoming "real estate millionaries" without looking at their references just a few years ago. A clear example of people jumping into situations without doing their research, so its good that you are doing so.

Can a loan moratorium be negotiated where a owner won't have to pay the mortgage for months?? Yes. Can someone negotiate with a bank to do a short sale or refinance into the new FHA program?? Yes.

Can an attorney or anyone else guarantee these sorts of things?? Nope.

There are never guarantees in life, and while this might work it might end up costing you the attorney's fees, time, energy, stress and pain. The mortgage company could at any point after you are in default start foreclosure proceedings. You signed a contract with them to lend you X amount of money at Y per month, and a consequence of not doing so was the bank could foreclose on your home.

Some banks may negotiate, some won't. If the company is adivising you that you are paying a fee for their services to attempt to do this, then its the owners risk to take. Just as they took on the risk to buy the home and it did not pan out, this might not either... if they are offering any guarantee then RUN.

When times become tough, a lot of these companies emerge. I get solicited every week to join the "booming business" of foreclosure rescue. Some are legit, many are scams trying to steel deeds to the homes, steel identities, collect fees for nothing or just peddle empty promises.


Kind of funny that the same people that jumped into the mortgage industry and sold Option ARMS or high cost loans to the masses with zero warning are now out there "helping" the homeowners out of those loans. Buyer beware. They prey on emotions, greed on the way up and fear/pain on the way down.

[Modification Specialist]

BTL

Let me tone in.....

I'm an agent for the largest attorney based modification company in the country. Doing modifications take time, and it is different from lender to lender. Right now one can expect a mod to be completed in 90 days.

You ask if anyone has had a successful mod done. Last month we negotiated an elderly lady's mortgage to 2.5% fixed 30 year loan, we proved she was a victim of predatory lending. She has agreed to be on our upcoming our nationwide commercial. The owner of our company just paid for 1200 commercial spots scheduled to start on air September 21st.

Another one of my clients - was on the brink of losing her home, after 11 months of not paying her loan. Last week she received notice her loan was going to be reinstated November 1st. She paid me up front, and I got it done!

When a borrower has a mortgage attorney on their side, you can expect to much better terms then if you compare it to a person doing it themselves.

Two weeks ago spoke to this mother of three young children who tried to do her own modification with Option One. She sent in all her financial paperwork, they call her back screaming at her to put the kids in day care and go out and get a job!!!!.... She was crying as she told me, she was already working part time with her husband and retired father both working full time.

Understand every situation is different, so the exact outcome is hard to predict. The typical time line of the foreclosure process - after 4 months of non-payment, a registered notice of intent to foreclose is mailed to the home owner and a Les pendis is filed at the court house. After 8 months of non payment, it is deemed the homeowner has given up all rights to a home and a court date is set, for the sale of the home. Again, every case is different due to lender, location, amount owed, value, etc.....

A bankruptcy will save the home for the short term, but honestly all your doing is postponing paying the debt and destroying your credit. Eventually you will have to settle up with the lender and it will be listed on your credit report for seven years........

This is the main reason people are looking at modification, it will give them a second chance of rebuilding their lives with a better loan terms.

Due to the rules of this forum, prevents me from mentioning my company name. I really believe I can help to people you mention. please PM me with your contact information. I would be glad to discuss the options available.......


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