Since the rise in Foreclosure rates in 2006 companies and individuals have positioned themselves to take full advantage of the situation and in many cases, the homeowners as well. There are legitimate companies out there and some that were positioned well before the Foreclosure rate increase. Unfortunately, it’s those very companies that may be having difficulty staying a float.

The Better Business Bureau has reported an outrageous number of complaints placed on “Foreclosure rescue” companies. Some have resulted in litigation. What happens many times is a company or individual will collect monies before even knowing if or what you qualify for. loss mitigation is a viable service. However, there ABSOLUTELY must be an approval process. If they can collect your financial information and basic home information a legitimate company should be able to determine whether or not they can help you. This pre-approval stage should NOT require information such as signed authorizations, social security numbers and/or bank account and credit card information. Most legitimate companies will ensure they have checked if you qualify before proceeding with a contract.

In addition, there are some companies charging to provide a short sale. You should not be charged for an investor to negotiate a short sale with lender if they are finding the buyer or acquiring the property from you. A short sale specialist will receive considerable profits be it real estate commissions (if applicable), profit from selling property and/or profit from renting the property on the back end of a deal. If someone is charging you money for a short sale it should be nominal in nature. Any company or individual charging fees over $300 should be researched thoroughly. You are facing Foreclosure. You need what money you have to find a new place should you feel short sale is your last resort.

In my time in this industry I have stumbled upon quite a few companies and scams that have taken advantage of homeowners whom I have helped later. The problem is most of these companies eat up valuable time that a real company could have used helping them save their home or prevent Foreclosure. Unfortunately sometimes it can be too late. The most important thing, and I must stress this to every extreme, DO YOUR RESEARCH and investigate the company you are getting involved with. Try to go with a company that can provide you literature or a website with an actual company name that you can research via the internet or with the Better Business Bureau.

Foreclosure is a scary thing but don’t get sucked in by companies offering a rescue without doing your due dilligence. There are plenty of legitimate companies out there like Freedom Foreclosure Prevention Services that can and want to help. For every ONE of those there are THREE more that are scams. Recently a company called FAS - Foreclosure Assistance Solutions took $1,200 from an unsuspecting homeowner in Columbus, Ohio.

There is a another company that sends out a postcard that appears to be official in nature. When homeowners call they are taken through a mini application and told little to nothing about what will “Really” occur and then they come in for the kill and get the homeowner’s bank information or debit card. The company has been known to call themselves the Fresh Start company and charges a flat fee for loss mitigation services. Their charge is $1,300 when last I heard and they seem to have call centers in Texas and Florida. They could have other locations and the information I have been able to obtain about this operation is little to nothing other than they collect this fee for $1,300 and don’t seem to do anything. There may be clients that have been helped by this company and I may not even have the correct company name. If you have any further information your comments would be appreciated.

In addition, if you have been taken advantage by a Foreclosure prevention company we want to know. It is important to understand that though you had a bad experience passing the information along would keep someone else from having one. There is always going to be someone that gets victimized that has a worse situation, ie more children, maybe less family to help…It is important to share your experiences so that others can learn and grow together. If you have been a victim of a Foreclosure scam please tell us about it by commenting on this article. Thank you for your participation and time. Save a family today!

http://www.cfreedomforeclosure.com

Many of us in the industry are seeing the market shift. Those not in the industry, homeowners facing a time where careful decisions must be made, have only the information spoon fed them by the media and those knocking on their doors. The information about all options to stop Foreclosure or avoid the Foreclosure action is out there and obtainable should you have an accurate source. Unfortunately most of those providing the information are trying to persuade you into thinking the option they happen to offer is the right option.

An attorney thinks bankruptcy is the right option, a mortgage broker will try refinance, an investor will try to buy your home and a short sale specialist will convince you of a short sale. Are all of these alternatives wrong or inappropriate? Absolutely not! But they are always offered by their appropriate provider simply because it’s what they know to offer. These are their areas of expertise. So who should you trust when facing Foreclosure?

Yourself!

Educate yourself on all your options. Are refinance, bankruptcy, loss mitigation, selling your home and short sale all options to prevent Foreclosure? Yes they are! The key is which one is right for your unique situation.

This is where you come in. Do your research and determine what your situation warrants and what will have a long term positive effect. Don’t blind yourself with fast, fancy, glittering dreams that everything is going to be okay. It will be okay eventually but now you have found yourself in a precarious situation and the best thing you can do for yourself is go into this decision process with eyes wide open.

So when is a short sale right? A short sale should be considered when you are absolutely sure you cannot afford to stay in your home. Further, with market prices declining, your home will most likely have little equity if you are a fairly new home buyer or you took advantage of the appreciating market a year or two ago. If you are not able to sell your home traditionally by listing your home with an agent without coming to the table with money than a short sale is probably the best solution at this point.

Remember that neither option, when in a situation such as Foreclosure, bares resemblance to a bed of roses. However, you should choose the most amicable situation to avoid the Foreclosure. short sales are not always done right nor are they always done with the clients’ best interests at heart. There are some companies that consider the short sale a fresh start for their clients. The service offered should not stop at just a short sale. A company should be chosen by how hard they will work for you in fully achieving that fresh start. Find a company that is working close to you and has community connections. You can also use a national company but they should have someone fairly local to you or have someone they can reach out to. Find a company that will tell you ALL the pitfalls and pluses of a short sale.

Here we are again where I will impress to you one last time - Educate Yourself! Realistically take a look at your situation and determine what will work BEST for you. Find out all the pros and cons of each option you are considering. If you aren’t concerned about your future and educated about your options you will leave yourself wide open for victimization and scamming.

If you are facing Foreclosure and just want answers, no selling, no cost, no obligation and NEVER any pressure than please visit our website at Creative Freedom Foreclosure Prevention, Inc. where educating homeowners IS our primary focus.