Get out of your mortgage for
FREE?!?
Probably not...
But that doesn't mean that people
aren't trying it and it doesn't mean
that people aren't getting in trouble
for it.
Here is the way it works (and it all
sounds so legit...):
Mr. and Mrs. Consumer buy a
house and get a mortgage from
Monster Mega Mortgage Company
(MMMC).
MMMC sells their mortgage to
Investor Pool #1.
Then it is bundled and sold to
IP#2... and #3 and #4 over a span
of a few years.
Mr. & Mrs. Consumer start having
problems, and despite everything
they are facing foreclosure.
To try to get help they contact a
"Foreclosure Mitigation" Law Firm
that fights the foreclosure by filing a
"missing title" lawsuit.
The law firm (or other entity)
charges an up-front fee (maybe
$2000) and then monthly fees
(maybe $1000 or $1500)... as well
as a contingency fee upon
settlement of either 50% of the
reduction or 75% or 80% of the
value if the mortgage were
completely eliminated.
After stringing along Mr. & Mrs.
Consumer for a few months or
longer (collecting fees), they fail to
actually prosecute the case.
Mr. & Mrs. Consumer lose their
home...
According to a few of the sources I
looked at, their are no recorded
examples of any suit of this type
EVER being resolved in the
consumer's favor.
The basis of the lawsuit is that if
the mortgage holder can't produce
the documents from the mortgage,
it will be set aside and the
consumer will own their property
free and clear. Sounds nice, huh?
Before getting sucked into
something like this, here is a little
more reading...
Source 1
Source 2
The State of California is going
after one of the firms involved in
this practice. I would expect that
there are similar cases in other
states.
Times are tough and these
unscrupulous thieves know it, too
People being foreclosed on are all
over the place. They are vulnerable
to people that approach them to
"help." There are a variety of
scams and plans that mostly just
revolve around generating a profit
for the "helper."
Be careful! There is help for many
home owners that are in trouble,
but the easy sounding solutions
often aren't what they are cracked
up to be. If it sounds too good to
be true, it likely is...
Who wouldn't love to lose their
mortgage, but this isn't the way.