Foreclosure Scam War

[Moe Bedard]

There is a war and it is being fought on the internet daily. Loss mitigation companies are forming litterally by the second in response to the overwhelming demand of people that need pre-foreclosure help. The problem with this is that most of these companies are doing more harm then good.

People with absolutely now experience and training can get into this unregulated business. I don't know about you, but trusting my life in someones hands that has absolutley no experience is scary. Their are ads appearing everywhere and a lot of these companies are operating like MLM (Multi Level Marketing) companies. They seem to think saving peoples homes is like selling AVON or Amway. If you have money to buy thier training material then you can become a loss mitigation specialist and start from your kitchen table. No experience needed these ads say. Scary isn't it?

These armies are using strength in numbers by capitalizing on every single new hire. The more they hire, the more they infiltrate the internet and push out the professional companies and non-profit HUD Certified Housing Counselors. I am on a mission to unite the non-profits with one single goal in mind, to dominate the internet with an army of non-profits and to use this website as the meeting point and destination for people who want to avoid foreclosure. The more people we get to join this free and safe forum, the more people who help with content on this website, the more popular this forum will be and the higher it will rank in the search engines and it will reach the people who need it and not these websites that are in this to profit from peoples misfortune.

The safest place on the internet besides this great new forum would be the Official HUD website and also the hundreds of local non-profit HUD Certified Housing Counselors. Did you know that you can recieve free to low cost help from your local HUD Housing Agency? Please, before you talk with anyone, visit the HUD website and do some research. Here is the link to HUD.

This is from the HUD website:

Want advice on buying a home, renting, default, foreclosure, credit issues or reverse mortgages? HUD sponsors certain housing counseling agencies throughout the country who in turn give advice free or at low cost.

Search online for a counseling agency near you, or call HUD's interactive voice response system at: (800) 569-4287. If you are facing foreclosure, you need to act now!

Reverse mortgages (HECM) are a good option for some seniors and a local HECM housing counselor may will be able to counselor you about the options and what to be wary of. Some HECM counselors serve nationwide.

I plan to partner with HUD and non-profits to make this website the number one safe place to share and find free information for people who need help in America. Please assist me being active in our community on the internet and providing useful content and advice for the people who visit. Together we can fight the war and win!

[rdc5000]

Hello, I've been looking at getting into Loss Mitigation and I will be doing this to help people in what could be their most frightening time. I will also be doing this to make a profit, I must be honest. My background is in debt settlement and found that it could be very rewarding when you only work with people that actually need the service. Much of my time was was spent counseling people and convincing them not to try and settle their debt. Debt settlement is the can be the right choice for someone that is contemplating bankruptcy.

Anyway, to my question. I would like to start in Loss Mitigation and have found numerous companies that offer training and the back office of the actual negotiation with mortgage companies. I would like advice of which company is a real loss mitigation organization. I can talk with individuals/families about their situation and help them choose what's best for them and if it is loss mitigation, I HAVE TO KNOW that the company that I'm working with will do their best to negotiate their mortgage.

Any insights?

[Moe Bedard]

Thanks for the post and a subject that I have been wanting to adress. I feel there is a HUGE need and there will continue to be a need for "qualfied" loss mitigation consultants over the next few years as homeowners reach for help and need someone to go to bat against the lenders for them.

There are HUD Certified Housing Counselors that will assist homeowners in negotiating with their lenders and I feel the offer a great service to people. Some do it for free or a small fee.

There are also for profit's that are VERY GOOD at what they do. But as you mentioned, wou want to make sure that whom ever you work with, that the clients you do refer are taken care of.

I am currently investagating this and I have some good prospects that I will share next week.

If you can find a good attorney that is doing this, then that might be a ggod start. Many state are placing some tough regulations on these firms but brokers and lawyers who hold various professional licenses are exempt as long as they follow the various rules and state regulations, like the Foreclosure Consultant Act.

So long story short, next week I will have some good insight as I plan to align with a REPUTABLE AND LEGIT firm.

[rdc5000]

Moe, I really appreciate the information and look forward to hearing who you think is a reputable company. I was planning on joining a firm tomorrow but I think I'll wait and here who you've selected.

Thank you,

David

[Moe Bedard]

Great David! I'll be in touch!

[lvlj65]

Hi Moe--

I am also interested in seeing what your thoughts are on this. I few days ago I posted the question about these loss mitigation companies that charge a fee--usually 1 months payment. That doesn't seem unreasonable to me. I was thinking of learning to become a loss mitigation specialist and was looking into a company called Freedom Foreclosure. Have you heard of them? I'm not interested in the MLM aspect of it at all, I just want to be able to help homeowners avoid losing their homes. And yes, it's a way to earn some income as well. I do home mortgages (responsibly) and when a homeowner calls me because their rate adjusted and they have no equity to refinance, I would like to have some other option available to them. You talk about HUD agencies that do this for free, but in researching this, people have mixed experiences with how much help they are getting from these agencies. I don't want to charge people for something if I know the same service is available for free, but is it really the same service? Freedom Foreclosure claims to train you on how to interview the homeowner and fill out the online app for them correctly because putting inaccurate info can make the difference between getting the modification or not. Then we would pretty much hand over the case to their processing center and they do all of the actual negotiations with the lender. So it's not like they are sending out inexperienced people to do the actual negotiations.

I haven't signed up yet, as I'm doing more research into the company. But in reading your information here, and your posts in broker outpost, I respect your opinion and would be interested to see if there is a company you recommend. So, I'll wait with David and see what you think. Thanks again--

[Moe Bedard]

Hello There!

I believe loss mitigation is a new emerging field and there is a need for it in the market. At what capacity is the question? There are many good for profits and non-profits as is there bad.

I truly think there will be a need to contract these services out of just non-profits because of the demand. What people fail to realize is that it's just not about a loan modification or a repayment plan, it's about minimizing loss to you or the homeowner. That can be done several ways, it's a system and there is a time line that needs to be followed.

There is no one cure all to help someone stop foreclosure. There are procedures you need to follow because many times option 1 may fail, so option 2 is next and so on. Companies that offer a full service loss mitigation package will prove of great value to a homeowner.

Freedom Foreclosure seems to be recruiting like crazy. You see them everywhere. I haven't heard much good of them. If I have I would say it here. It looks like they are heavy on recruiting a sales force and it's all in the numbers. I don't think loss mitigation should be ran like that and it's not for everyone. You need to have a background in sales or collections and maybe even poker. It's no walk in the park and you get abused by these lender's employees sometimes.

Some non-profit charge a small fee. I have heard of it being like $299 and also free. I have heard some just guide you on what to do and some non-profits do it all. It takes a lot of man hours top handle each one and phone time. If they are HUD approved then they are getting funding right now. How much? Not sure.

If you would like a referral to a for profit then please give me a call and I'll tell you my honest opinion, "off the record". How about start your own non-profit?

Take Care and Best of Luck!

[lvlj65]

That's what I'm talkin' bout! The "off the record" info is the best--I'll call you! Thanks, Moe--

[Moe Bedard]

You're welcome! It was nice speaking with you and we will be in touch

[Mike86]

I went to a non-profit local and they couldn't do squat for me. I called 995 Hope and they seem to be on top of their game and know how this all works. Thye are just so busy and I get the feeling that I am lost in the shuffle there too. I had so many of these foreclosure rescue firms mailing me and calling. I had 2 guys come to my door. Friggen ambulance chasers. It's crazy out there.

I'm thinking about starting a non profit that really helps people that are going through what I am. There is a huge need right now and it's not being met.

[Moe Bedard]

There is a big need and will be for non-profit housing counselors. At least you will have come from experiencing it on both sides of the fence and will be able to relate with people who are sitting in the other chair.

Best of luck on that!

[indebtwetrust]

The documentary In Debt We Trust is exposing this disease

This excellent documentary by Emmy winner Danny Schechter is used by our campaign Stop The Squeeze - Americans for Debt Relief Now! Danny Schechter is writing a weekly blog dissecting the news and exposing the crisis and the powers that create it -

[Moe Bedard]

Thats great and I have much resepct for Danny and what he is doing.

Did you get a chance to read my rules and regs for posting. This is a place to pay it forward and help one another. NOT promote.

So, unfortunately, you cannot come here and promote products and blogs. Even though I 100% support what he is doing, I have to follow my own rules.

I don't care if your the President of the US. ESPECIALLY without even contributing one ounce of help to the "community" here.

If Danny and or you want to come here and be involved with my fight, I will contribute to yours and promote it. All links will be removed but like I said, if Danny or you want to contribute, cool, I'll most likely allow that, but until then, it's not going to happen.

Great documentary by the way.

[joanengland]

I read that the hud counsler services were funded money from the federal goverment to help people like me...that are facing forclosure, well I called the hud office in Indianapolis, and all they said was that I was just one person..
I don't understand what that means.. They were funded money to help but the money they were gifted isn't to be used to help it is to counsel us..
The Lady said she was sorry but she didn't have help for me..
That I didn't make enough money to even bother to help me.. I don't get it

[Moe Bedard]

A lot of non profits are under staffed and that is not their fault but lack of funds. Every non profit is different on what they will and will not do for homeowners. Try 888-995-HOPE or www.995hope.org

Many are overwhelmed and stressed out too. Keep trying and see if you can get a legal aid attorney in your area.