The foreclosure process has started on my brother's home in Jan. 07. He has not been served but the papers were mailed to him and it is in the paper. He has been trying to work with his mortgage company to make payment arrangements that would add the payments at the end of the loan so he want lose his home. The only thing is that his mortgage company is saying because of the backlog of request it will be a couple of months before they could get to his case meanwhile the house could be sold before they get to his case. He owes about $6000 total they are asking for him to pay $4800 down then $1000 a month to catch up. He is still unable to come up with the $4800 (he can put $2500 down). He said he received a letter from a debt midiation financial counseling company saying they can work with his morgage company where he wont have to pay $4800 down maybe less....they are experience in getting the companies to work with them to help homeowners keep their homes. The only thing is they are asking for him to pay them $800 for their services. They claim they will return his money if they are unable to help him. He asked me about this but I have never heard of this. Has anyone else? Is this legit? He certainly does not want to throw away $800 on a scam that could be use toward the payment if it is not going to work.
Debt mediation is honestly a term I've never heard of before your post. From the sound of it, it rings true as a "debt settlement" company which I wouldn't recommend for these purposes whatsoever. Moreover, $800.00 for a one time negotiation is in my opinion unconscionable and at the very least, far too expensive. I would not recommend engaging the company he spoke with any further without due diligence as to their Better Business Bureau profile, licensing status within his jurisdiction and at least a cursory review of their litigation history.
