Should You Hire a Foreclosure Consultant?

When you are facing a foreclosure, you might run across the suggestion of hiring a foreclosure consultant. Most people are not very familiar with foreclosure consultants or what they do. Depending on your situation and how far along in the process you are, a good foreclosure consultant may be able to help you. Here are the basics of what a foreclosure consultant can do and whether or not you should hire one. 

What is a Foreclosure Consultant?

A foreclosure consultant is someone that offers to perform a service that can help you when you face foreclosure, for a fee. They may offer to help you get your mortgage reinstated and help you keep the house. They may promise to help you get an extension to get reinstatement or they may even help you try to find an alternate source of funds. If you are not comfortable dealing with your lender, they will even talk to them for you. They can help you negotiate the terms of your loan modification as well. 

A foreclosure consultant could work for a company, or they may be self-employed. Some foreclosure consultants charge a great deal for their services while others do not charge much for their services. 

Foreclosure consultants can perform a number of services that have to do with your foreclosure situation. In fact, pretty much anything that you need help with during your foreclosure, the consultant may offer to do. Their job is to make this process as painless as possible for you.

What to Watch Out For

While the position of foreclosure consultant is legitimate, that does not necessarily mean that all foreclosure consultants are legitimate. Just like every other business out there, some people are not honest. They might lead you to believe things that are not true or could just be an outright scam. 

When you are facing a foreclosure situation, you are obviously not in the best financial situation. You have many financial needs in a number of areas. If you had a lot of extra money lying around, then you could probably afford to pay the mortgage. Therefore, any foreclosure consultant that charges you a lot of money may not be worth the investment. 

If the person asks for a large upfront fee before any work has been done, you should probably be a little leery of the idea. The last thing that you want is someone to take your last bit of money and run without performing any services for you. Try to include a third party, like an escrow company. If they help you save your house or meet the terms that you put forth, they will receive payment from the escrow company. If they don't, they will not receive anything. 

If they do not agree to these terms, there is a chance that they may not be a legitimate consultant. Before you hire any foreclosure consultants, make sure that they are legit and you feel comfortable with them. Get personal references and recommendations from past clients before you do business with anyone.