I get a ton of mail from several different companies stating that they can help me. Who are these people, where are they getting my address, and can they really help me?

Many groups of people try to contact homeowners in foreclosure. Below, you will find a list of groups that my contact you offering help during a foreclosure. Because of the legal nature of the foreclosure process, your name and address may be part of public information offered through the court system and ultimately published in certain journals and publications.

Some of these companies can and will help you. We’ve listed most of these groups below with a brief description of what they may be able to do for you and what you should watch out for.

Mortgage Brokers: If there is enough equity in your home they can help you to refinance and stop the foreclosure by paying off your current mortgage in full. This solution often works well, but due to current market conditions, the value of your house may eliminate this option. If it is available, due to your credit situation, you will pay much more than at a bank. I would contact a Mortgage Professional that was either referred or that you already know and trust to help you with this situation. Calling someone off a piece of direct mail will lead you to some brokers that may try to charge even more points or interest then another just to gouge the debtor for more fees if they think they can get it.

Chapter 13 Attorneys: If you have the financial ability to complete the chapter 13 plan this also provides a valid way to save the house, just beware that many of these attorneys will be more than happy to file a chapter 13 for you whether it is the best option or not. It is my personal feeling that this should be an option of last resort unless your personal circumstances dictate this as the best solution for you. Keep away from lawyers running "bankruptcy mills" as I call them. These firms may offer low fees but will let paralegals handle your entire case, never really getting to know your situation or giving you the personal attention you need.

Mortgage Negotiators: Some people hold themselves out as professionals who can save you from foreclosure, other than those who fall into the crooks category below, some can be quite skilled at negotiating "repayment plans". These professional foreclosure negotiators can help in cases where the people seem to be failing at getting a "repayment plan" done with the bank on their own or where the bank's terms seem too demanding. Often more favorable terms can be reached by a professional.

Private Financiers: Two very distinct groups fall into this category. The most useful for people wanting to save their home from foreclosure will be private mortgage financiers who will help arrange a new home loan, even when they have been turned down by other high risk lenders. Other investors will want to buy the house from you. Keep a sharp eye on what they are doing for you and what they want for themselves. Sometimes these people can help save your home, other times they don't care about anyone else and depending on how they set things up they can make your situation even worse. Remember there are many ways to save a house from foreclosure. You do not need to sell your house unless you do not want to live there anymore or you can not afford the payments even if you got a new mortgage or could catch up on the old mortgage.

Your Current Mortgage Holder: Especially those involved with government backed mortgages will offer ways for you to reinstate your existing mortgage. While I have seen some of these letters which can be down right misleading compared to what the banks will realistically do, reinstating an existing mortgage is a viable option and in many cases the best option. Most times, using a mortgage mitigation professional can adjust terms to lower payments and stop the foreclosure in its tracks, in some cases even moving arrearages to the balance and extending the mortgage term.

Crooks and Con Artists: These groups include those that will; take your money with promises to keep the house, take your money and provide no services, and also groups which do no more than take your money as an illegal referral fee and then pass your name onto a chapter 13 attorney. In the worst cases I have heard of groups that will take title to your home, force you to pay them rent with the promise that they can save your home, with the result that either they save your home keeping any equity for themselves, or in the alternative, collect rent from you until the home is sold. Furthermore, since you would no longer own your home, Chapter 13 would be lost as an option.

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