Legitimate foreclosure rescue refers to funds received either through loan modification, funds received from a government grant that enable a homeowner to prevent foreclosure, or funds that allow the homeowner to purchase (repurchase) the property at or after foreclosure.
Legitimate foreclosure rescue is distinct from a foreclosure rescue scheme in that it is legal, and it gives the homeowner a realistic opportunity to regain his/her ability to get out of the hole and make regular timely payments.
Key signs of legitimate foreclosure rescue:
- No costs or fees until all services are rendered
- Home is saved *and* principal is reduced or modified
- No guarantee of saving home
- Recommends continuing communication with lender
- No false affiliation claims
- Only HUD approved non-profits can claim government affiliation
- Clear, written contracts
In 2009, President Barack Obama unveiled a plan to provide foreclosure rescue to homeowners. This included the ability to modify loans, lower interest rates, and to help homeowners before they defaulted.
- "How to Spot SCAMS: 6 Things You Should Know". Loan Modification Scam Alert. NeighborWorks America®. Retrieved 28 Jan 2013.
- Sweet, Lynn (February 18, 2009). "Obama mortgage foreclosure rescue plan will allow some struggling homeowners refinance options". Chicago Sun-Times (in English) (Washington). Retrieved 31 May 2011.
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