Do The Right Thing

During the last several weeks, the national news programs have be flooded with stories of homeowners facing foreclosure.  Sally and Sam Homeowner has had their face plastered all over the news, with pouting lips, long faces, seeking sympathy for the problem.
While some homeowners are really suffering legitimate hardships and bad luck that’s forced them into foreclosures, there are homeowners who are in foreclosure for reasons that are simply their fault.

They didn’t read the fine print.  As a result, the government, in their infinite wisdom has began chattering, whispering and talking out loud about helping homeowner avoid foreclosure by bailing them out.  This bailout consist of the government making payments on behalf of the homeowner.  Exactly what does that mean.  Who qualifies for government help?  Is the government only going to help homeowners with sub prime loans or will those of us with conventional loans qualify for assistance.

Are you going the help the homeowner who suffered a real hardship with their payments and when do you stop?

Does the homeowner, who didn’t read the fine print and their ARM goes from $1400 a month to $2300 a month qualify?  If the government is going to help that person, when will the homeowner be responsible for the payments again.  How long will the government help them.  Do they qualify for 30 years of assistance from the government?  I hope not!

Do you help the homeowner, who elects to not make payments because he/she bought a new car and the payments on the Cadillac are more important?  Do you help the homeowner, who decided to build a bigger and better house to move into without selling the other house first?

Along with long faces of homeowners facing foreclosure are the many stories of investors ripping them off.
Mortgage rescue services are cropping up all over the country, taking advantage of homeowners .  Here’s how they work:
The homeowner falls behind in their payments and when the official “Notice of Default” or the “Notice of Trustee Sale” is recorded and made public record, these scammers began marketing to homeowners with the promise they will “guarantee” to stop their foreclosure.

Once the homeowner calls, the scammer shows up and again “guarantees” to stop the foreclosure by working with the lender.
Unfortunately, there is a cost.  Usually the scammers charges anywhere between $500-$2000.  The scammer collects the fee upfront, has the homeowner sign several documents and off into the sunset the scammer goes leaving the homeowner, the kids, and scruffy waiving good-bye the lone-scammer-ranger as he rides off $2000 richer.

What’s sad is the homeowner has no idea the scammers’ true intent is to never attempt the contact the lender.

Several weeks into the foreclosure, the homeowner hasn’t heard a word from the mortgage rescue company and they began calling.  After several attempts, without success, the homeowner starts calling the lender, checking on the status of their foreclosure.

The lender informs the homeowner there foreclosure is still scheduled for sale.  Now in the 11th hour, they began screaming foul; and they should.