Partial Mortgage Relief

It is common knowledge that the economic crisis facing our nation has caused an avalanche of foreclosure actions.  The magnitude of the problem is such that the banks are somewhat receptive to renegotiating mortgage terms.  Do not believe, however, that the change of attitude is the product of a sudden attack of generosity.

It is an undeniable reality that if the banks expect to survive this crisis, they must reduce their inventory of properties acquired in the foreclosure actions.  The banks make money lending money and earning interest.  Therefore, accumulation of real property seriously hampers the ability of these institutions to generate profits.  Even though this situation could benefit the consumers that hold problematic mortgages, we must be aware of certain individuals or businesses that are deceiving  consumers in need of modifying their mortgage loans. 

We have seen a surge in advertisements by companies that claim to have the ability to renegotiate mortgages in arrears and avoid foreclosure.  Even though these negotiations are feasible, one should be mindful of certain unscrupulous individuals that only seek compensation in exchange for nothing.  There is existing and pending legislation designed to protect the consumer from these scams.  Unfortunately, the existing legislation is so complex that only an experienced professional in the field can interpret the alternatives available.

I thus recommend that you seek counsel from a professional that is experienced in mortgages, the secondary market, fluctuations in the market, and bank regulations.  At a minimum, the individual should be a licensed mortgage broker, and if possible, should be an attorney experienced in commercial matters. 

Luis A. González
Attorney and Mediator
L. A. González Law Offices, P.A

(407) 649 - 8389
laglaw@cfl.rr.com