According to the Homeownership Preservation Foundation‚ California accounted for nearly one quarter of the calls by homeowners who believe they have been victimized by a foreclosure rescue scam.
Los Angeles Bankruptcy Lawyers understand that desperate homeowners hoping to keep their homes believe that a loan modification company or other mortgage-related company may be able to help. And some may be able to‚ but others are just scams. Filing for bankruptcy in Los Angeles will immediately stop a foreclosure and allow you to figure out how to keep your home or deal with other debt.
Homeownership Preservation Foundation is a non-profit Minnesota-based group that operates a hotline that acts as a resource to homeowners who are financially distressed.
A survey of those calls revealed that Californians‚ especially minorities‚ which accounted for half the calls‚ are susceptible to scams. About 22 percent of the calls came from the Golden State and Los Angeles was one of the five highest cities in the country. Florida ranked far behind California with 7 percent of the calls.
But good news for homeowners came in February‚ when the Federal Trade Commission ruled that these loan modification companies can’t charge payments up front. What many of these scam artists do is charge a fee‚ an average of $2‚589.58‚ to modify a mortgage. But these companies have no pull with the banks and in many cases did nothing at all‚ but simply kept the money.
Unfortunately‚ banks aren’t jumping at the chance to modify underwater mortgages. Instead‚ many would rather let a house go into foreclosure than work with a homeowner who wants to try to save their home. Therefore‚ these so-called companies don’t get anywhere‚ if they even try in the first place.
A guaranteed way to stop your home from going into foreclosure is by filing Chapter 13 bankruptcy in Los Angeles. Filing for bankruptcy immediately stops creditors and collection agencies from harassing you. In Chapter 13‚ people with large assets they want to keep‚ such as a home‚ are able to set up a payment plan over a 3 to 5 year period to pay back debt. It is designed to help people stay in their homes. And while the bankruptcy process is ongoing‚ families can still live in their homes.
In the 12 months ending in March 2010‚ nearly 26‚000 people filed for Chapter 13 bankruptcy in the Central District of California‚ according to statistics from the U.S. Bankruptcy Court. This has become a widely accepted practice because the laws allow people who want to take control of their finances to do so. If you are in this type of situation and need legal advise‚ call today. We will set up a free consultation to discuss your best legal avenues.
Los Angeles Bankruptcy Attorneys will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale and Los Angeles‚ just call.
If you need to speak with a foreclosure litigation attorney in Los Angeles‚ Encino or Glendale‚ contact Cal West Law at (800) 568-0707 for a free consultation.