The Minnesota Star-Tribune had an interesting article on December 27, 2024. Here is a link:
https://www.startribune.com/foreclosure-mortgage-delinquency-scam-late-payment-past-due-assistance-counselor/601199370
A couple of paragraphs caught my eye--
“They say, ‘Pay your mortgage funds to us, and we will work with the mortgage lender to secure a better rate,’” he said. “Asking for money up front is by far the biggest red flag. Any reputable foreclosure-assistance organization is not going to charge up-front fees.”
Another common ploy comes with a promise of a “forensic audit,” meaning scouring mortgage documents in hopes of finding errors that will void the terms of the mortgage or enable renegotiating more favorable terms."
It be incredibly frustrating to deal with the "loss mitigation" teams at the mortgage company or the mortgage servicer. I have had many clients tell me that they sent paperwork that the servicer claims they never got, and that they get repeated requests for the same information. However, you should not have to pay for that service.
Two things I wish the article had mentioned. First, Lutheran Social Services has a contract to help people in Greater Minnesota deal with foreclosure. Their assistance would be free.
Second, and dear to my heart of course, the writer did not mention that Chapter 13 bankruptcy can be used to catch up a delinquent mortgage. You have to make the regular scheduled payment plus a catch-up payment to the trustee, but if you are behind because of a temporary loss of income, Chapter 13 can be a very useful tool.
As always, feel free to call me to discuss your legal issues. My number is: 320-252-4473
