You've probably seen or heard a dozen different "tricks" to stop a foreclosure. We're dedicated to providing our Austin and Texas clients with the truth about foreclosure scams. We invite you to keep reading about what doesn't work when it comes to debt settlement and ending the foreclosure process.
Hundreds of these companies have come out of the woodwork since the housing crisis began. In exchange for a large upfront fee — usually from $3,000 to $4,500 — they offer to negotiate a mortgage modification with your lender on your behalf. They also advise you to stop making mortgage payments during the process. The usual result? You lose the fee, don't get a modification and end up even more behind on your mortgage. These people cause more harm than good. If a mortgage modification can be negotiated, you can do it yourself.
The so-called foreclosure rescue scam is similar to the modification scam in that it also takes advantage of the desperation of people afraid of losing their homes. The ”rescue specialist” drains all the equity from your property and then finds another buyer who takes possession right out from under you. Please remember, only an experienced debt settlement attorney can stop the foreclosure process in Austin, TX once it has started.
Most people who are having trouble paying their mortgages have maxed out their credit cards in the process of trying to make things work. This is how the so-called debt settlement companies got into the picture. These people promise that they'll negotiate a settlement of your credit card debt — promising reductions in total debt of 40 percent and more. All you have to do is pay them a large fee in advance.
But most banks won't even deal with debt settlement companies, and using the industry's own figures, we see that they settle only about 20 percent of the debt they take on. The largest settlement companies are being sued for fraud and deceptive marketing methods by attorneys general in many states. Debt settlement is one of the most pervasive scams out there. Stay away!
Don't let foreclosure happen to your family. Fill out our contact form and find out for free if our plan is a better plan for you. Our Austin foreclosure attorney will talk with you to discuss your options.
Our law office provides legal services to victims of foreclosure as well as loan modification relief to clients throughout Austin. We can help!