Good Foreclosure Assistance Companies can do several things. First they can work with your bank on a payment arrangement. This arrangement is known as a loan modification. A Loan modification is something where the bank agrees to lower your payment to help you stay in your home. There are lots of guidelines for homeowners behind on house payments to be accepted into this program. In many cases the bank demands money upfront from homeowners behind on house payments. And it amuses me that if they have an extra $10,000 then how could they be behind on payments.

A few of the banks allow this amount to be put on the back end of the loan, and then they readjust the loan. A rate adjustment brings the interest rate down. A rate freeze can be applied to an adjustable rate loan. Rather than allowing the rate to go up the bank freezes the rate for 1-5 years to keep the installments even.

Another option is to work with a reputable Foreclosure Assistance Company. The company may work with a pool of private investors to offer banks less than what is owed on the property, in cash. As we have discussed in other articles how much it cost a bank to take a property back, so the bank usually sell the property to private investors in order to minimize their losses. The investment pool purchases the property as long as it fits their guidelines. Once it is done then they allow homeowners to stay in their home.

So being homeowners, you don’t have to relocate with your family and move your kids out of the school. Payments typically become less than what you were paying to the bank. However the most critical part of this program is finding those who you can trust.