Property Solutions of America, Inc.

This company claims to provide services to stop foreclosures, avoid bankruptcies, and help homeowners sell homes for less than what is owed. They also claim to keep foreclosures off credit reports.

We believe the company may be acquiring these properties subject to the existing encumbrances. Transactions structured in this manner may trigger the due on sale clause, putting the borrower in default if they are not already. Of greater concern, is the fact that the transaction is less a purchase, and more of a transfer of title without the assumption or paying the loan. Once the title is transferred, the former owner is totally out of control, and left to suffer the consequences of foreclosure or non-payment. In addition to the problems that may fall at the doorstep of the property owner, the lenders are being deceived.

We urge caution. Homeowners whose residences are in foreclosure are targets for fraud, deception, and unfair dealing by foreclosure consultants. Foreclosure consultants take many forms. Some charge high fees which are often secured by a deed of trust on the residence to be saved, but they generally perform no services of value. Others may take title to the property along with an assignment of the proceeds. Still others may charge fees claiming to be able to save the home without providing any relief. These practices will sometimes deter homeowners from seeking legitimate assistance which may be able to mitigate their loan or preserve excess proceeds of sale from the foreclosure process.

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. 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.