Property Mortgage Service

These companies typically offer to stop foreclosure on your home and assist in obtaining a repayment plan from your mortgage company. Some companies may make reference to your mortgage company in their solicitation implying an affiliation or may use other insignia or names that imply a relationship or affiliation with a mortgage company or government agency. Despite their claims these companies do not have affiliations with any government agency or any special relationship with your mortgage company. Nor do they as they may imply have the ability to obtain more lenient repayment terms than you may be able to obtain by contacting your mortgage company directly. ~~Complaints concerning similar offers allege that these companies misrepresent their ability to stop foreclosure fail to perform services as promised and generally deny requests for refunds based on non-performance.~California Law requires that these companies have a bond from a surety insurer in an amount equal to at least twice the fair market value of the real property that is the subject of the contract. The representative must provide the consumer in writing under penalty of perjury that they are properly licensed and bonded. Failure to comply with these requirements renders the contract void. By law the contract must also provide for a three-day cancellation right and no monies must be paid prior to performing all the services set forth in the contract. ~ ~If your written contract does not inform you of your right to a refund or to cancel you may demand your refund or cancel your contract at any time without regard to these time limits. ~ ~Despite the law’s protections if you are not dealing with a reputable company you may find it difficult to enforce your rights.~~In January 1995 the IRS issued a press release stating that transfers of property to companies like this will be regarded as a sham and will not be recognized as a bona fide sale for tax purposes. In other words if income tax comes due as a result of foreclosure or other transfer of property conveyance of the title will not avoid that liability. Most mortgage companies require that you obtain their permission before assigning the note to a third party. By not complying with that requirement the mortgage company will report any non-payment of mortgage and cancellation of debt to the IRS and the credit reporting agency in the name of the original holder of the mortgage. In addition the transfer of title with out the consent of the lender may be a default in the note resulting in a demand for full payment of the mortgage.~~Credit reporting agencies place credit information in the file of the person named on a loan in part identified by a social security number rather than the new person who has title to the property.