Foreclosure Scams: Foreclosure "Mediators"

Foreclosure "mediation" is one of the most common scams, and this particular scam grates on my nerves more than most. This group of vultures gives the business a bad name, and the way they take advantage of the homeowner in distress is truly inexcusable.

Foreclosure Mediators make promises of negotiation and home salvage, but are really in it for the money you pay up front. The scam follows this trail:

You contact a Foreclosure Mediation service and submit an application.
They “review your file” (usually within 24-48 hours).
They inform you that, for an upfront fee, they can assist you by structuring a forbearance agreement with your lender or negotiating a smaller payment, no matter what your foreclosure situation is.
You submit paperwork and your NON-REFUNDABLE fee... and wait.

In this case, they have what they want from you – the upfront payment. If you attempt to follow up with them and actually get someone on the phone, they will tell you that the fee you paid was enough to get the ball rolling, but it’s a hard process filled with lots of red tape. They may say that your bank refused their workout proposal, and that’s the end of it. They MAY say that the process will take longer than expected, and more money is needed to finish the negotiations. Whether you pay more money or give up at this point, the money that you have paid to the company is gone.

DID YOU KNOW THAT YOU CAN NEGOTIATE A WORKOUT AGREEMENT ON YOUR OWN? It may seem complicated – even scary, because you’ll be dealing with creditors that you may have avoided up until this point – but it is not a difficult process. Patience, persistence, clarity, and The Foreclosure Workbook are all you need to face your situation head on!