More Calls From My “Brutal Banking Practices” Article
I just got another call from a struggling homeowner caught in the mortgage meltdown mess. She had read my article and wanted to know if she could hire me to help her out of her negative equity, unaffordable monthly payment situation.
Seems she bought a house near Sacramento, was talked into a bad loan and is now in big trouble. Her lender has agreed to reduce her monthly payment, but only for a limited period of months. Meanwhile, her principal balance would continue growing. This is not the long term solution she is seeking.
She is contemplating a short sale and wondered what other options she might have. I quickly said I was not the right person for her to hire, rather, she should first talk with a financial advisor to determine whether a short sale, deed in lieu of foreclosure or some other option would make most sense for her. I also gave her the name and number of a real estate attorney who can tell her if she has any legal claims worth pursuing.
In addition, I warned her that she needs to be careful about con artists who will promise to negotiate with the bank for her. These people, I explained, usually charge an illegal, upfront fee and then do nothing to help the distressed borrower.
The buzz keeps getting louder that, as a Bay Area real estate expert witness, I can expect many calls on these types of cases in the years ahead.