I have people come in my office frequently who have had this happen. They defaulted on their home loan and the house is going into foreclosure. They were contacted by someone who offered to help them get out of the default. They offer to help in different ways: (1) buying the house, (2) assuming the loan, (3) making payments until the borrower can refinance, and (4) getting a new loan for the borrower. Most of the time, however, they charge high (and hidden) fees and/or they buy the property for a fraction of what it is worth.
Some groups have been caught by the California Attorney General, but there are many more out there. Consumers need to know that there are laws protecting them against these predators. California Civil Code Sec. 2945, et seq. severely restricts what a foreclosure consultant can do and provides extensive remedies when a foreclosure consultant does not comply with the law. The Better Business Bureau provides an explanation of this law here.
If a foreclosure consultant has taken advantage of you, please call our office to arrange a free consultation (559.436.6575) or visit my website to schedule an appointment online.
