On October 1, 2008, a new law went into effect in Florida the “Foreclosure Rescue Act”making it a crime to accept money upfront to help a homeowner modify their existing loan or other alternative to foreclosure.
The foreclsoure resue consultant must provide a written agreement to the consumer and obtain the consumer’s signature before beginning any services.
The legislation also requires the rescue consultant include in the written agreement a specific notice of the homeowners’ right to cancel, including the procedure for canceling, and a disclosure that the consumer should contact his or her lender first before signing because the lender may be willing to negotiate a payment plan free of charge.
Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan. Do not pay anything upfront – walk away!
Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
Never make your mortgage payments to anyone other than your mortgage company without their approval.
There is never a fee to get assistance or information about Making Home Affordable from your lender or a HUD-approved housing counselor.