Many groups of people try to contact homeowners who are in or about to be foreclosed. Below is a list of groups my contact offers help to during a foreclosure. Due to the legal nature of the foreclosure process, your name and address may be part of the public information provided through the court system and ultimately published in certain newspapers and publications.

Some of these companies can and will help you. I’ve listed most of these groups below with a brief description of what they can do for you and what you should be aware of.

• Mortgage Brokers: If there is enough equity in your home, they can help you refinance and stop foreclosure by paying off your current mortgage in full. This solution often works well, but due to current market conditions, your home’s value may eliminate this option. If it is available, due to your credit situation, you will pay much more than in a bank. I will contact a referred mortgage professional or one you already know and trust to help you with this situation. Calling someone direct mail will lead you to some brokers who may try to charge even more points or interest than another only to scam the debtor out of more fees if they think they can get it.
• Chapter 13 Lawyers: If you have the financial ability to complete the chapter 13 plan, this also provides a valid way to save the house, just keep in mind that many of these attorneys will be more than happy to file a chapter 13 for you, whether you are the best choice or not . It is my personal opinion that this should be an option of last resort, unless your personal circumstances dictate it to be the best solution for you. Stay away from attorneys who run “bankruptcy factories” as I call them. These firms may offer low fees, but they will allow paralegals to handle your entire case, without really getting to know your situation or giving you the personal attention you need.
• Mortgage Negotiators: Some people present themselves as professionals who can save you from foreclosure, aside from those who fall into the crook category below, some can be quite adept at negotiating “payment plans.” These professional foreclosure negotiators can help in cases where people seem to be failing to work out a “payment plan” with the bank on their own or when the bank’s terms seem too demanding. Often a professional can come up with more favorable terms.
• Private funders: Two very distinct groups fall into this category. Most helpful to people who want to save their home from foreclosure will be private mortgage lenders who will help arrange for a new home loan, even when they have been turned down by other subprime lenders. Other investors will want to buy the house from you. Be aware of 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 organize things, they can make your situation worse. Remember that there are many ways to save a home from foreclosure. You don’t need to sell your home unless you no longer want to live there or can’t make the payments, even if you got a new mortgage or could catch up on your old mortgage.
• Your current mortgage holder: Especially those involved with government backed mortgages will offer you ways to reinstate your existing mortgage. While I have seen some of these letters that can be misleading compared to what banks will realistically do, reinstating an existing mortgage is a viable option, and in many cases the best option. Most of the time, using a mortgage mitigation professional can adjust terms to reduce payments and stop foreclosure, in some cases even moving arrears onto the balance and extending the term of the mortgage.
• Thieves and scammers: These groups include those who will; take your money with promises to keep the house, take your money and provide no service, and also groups that do nothing more than take your money as an illegal referral fee and then pass your name on to a chapter 13 attorney. In the worst cases, I have heard of groups that will take title to your home, force you to pay rent with the promise that they can save your home, with the result that they either save your home and keep it. own capital, or in the alternative, collect rent from you until the house is sold. Also, since you would no longer own your home, Chapter 13 would be lost as an option.

When trying to decide the best option for your situation, keep in mind that you must do your due diligence. Do some research on the companies you plan to use. This is a very serious decision you are facing and it is important that you feel comfortable with the professional you choose.

Companies like Michigan Mortgage Modification offer services to homeowners where they negotiate with the homeowners’ lender/servicer to modify the terms of the existing mortgage. Michigan Mortgage Modification has a very informative website where you can review your options. They also offer two levels of service including a DIY loan modification kit and a full loan modification service.