CONSUMER TIP #2
You receive an offer from a company to save your home from foreclosure. The company will, for a fee, paid up front, negotiate with your lender. If that fails, the company states it will file bankruptcy in your name to stop the foreclosure process so you can retain your home.
Don’t do it.
A bankruptcy filing often stops a home foreclosure, but only temporarily. What’s more, the bankruptcy process is complicated, expensive, and unforgiving. For example, if you fail to attend the first meeting with the creditors, the bankruptcy judge will dismiss the case and the foreclosure proceedings will continue.
If this happens, you could lose the money you paid to the scam artist as well as your home. Worse yet, a bankruptcy stays on your credit report for 10 years, and can make it difficult to obtain credit, buy a home, get life insurance, or sometimes get a job.
If you’re looking for foreclosure prevention help, avoid any business that guarantees to stop the foreclosure process – no matter what your circumstances; instructs you not to contact your lender, lawyer, or credit or housing counselor; collects a fee before providing you with any services; or pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.
If you’re having trouble paying your mortgage or you have gotten a foreclosure notice, contact your lender immediately and consult with a HUD certified no-fee housing counselor.
More information is available through the Marin County district attorney’s consumer protection unit at 499-6495 or through its web site at www.co.marin.ca.us/da.
