After the civil war unsavory characters descended on the South with less than good intentions. The people of the war ravaged countryside were in need of assistance. The unsavory men who came with all their worldly goods packed into a single carpetbag took advantage of every possible chance. They lied, stole and cheated the citizens of the south who made the simple mistake of trusting them.
The Carpetbaggers are back. Not in the civil war sense, but in a modern day global sense. They are popping up all over the U.S. offering services to the economic war now being lost by the masses of folks who over-estimated the appreciation of their homes and their ability to repay loans.
Short sales, bankruptcy, deed in lieu, reo, foreclosure, sheriff’s sales, delinquent mortgage payments have become the evil terms of today. Homeowners in fear of being tossed upon the street are grasping at every straw they can in hopes to avoid disaster.
Fear coupled with a lack of understanding of one’s rights and remedies often leads the innocent consumer to the nasty old carpetbagger.
Today’s carpetbaggers aren’t all that easy to spot. Most of the time they look like an ordinary citizen. They dress nice, they can emphasize with the best of us. They appear to want to help.
But they don’t tell you the whole story.
Before a distressed homeowner pays a third party company to cure their credit problems, they should take the time to understand their predicament.
Ads in the newspaper and online that promise to free of your mortgage with no negative credit reporting to those who “qualify”. Are not totally accurate. They are speaking to a very small (if any) group that might “qualify” assuming mistakes had been made to the credit reporting agencies. Most people will not fit this criteria.
Having a foreclosure on one’s record is a black mark on your credit that will NEVER go away. Yes, after 2 years and if the default was due to extenuating circumstances (death of a primary wage earner, divorce (rarely) or debilitating health issues) the borrower may be able to get another mortgage. Normal time for qualifying for a mortgage is 4 years.
Once a homeowner has experienced a foreclosure, forever afterwards the box on any loan application that asks “have you ever lost a home to foreclosure” will need to be checked, yes.
Is there help? Read on…
The National Association of Realtors is pushing for Homeownership Protection for Older Americans. Foreclosure rescue scams (Carpetbaggers) are causing many older Americans and other vulnerable borrowers to fall into their trap.
In Colorado, the State Legislature passed a law, changing the foreclosure time line. The new law went into effect January 1, 2008, giving homeowners a longer time to work out their delinquency issues with the banks.
Consumers in trouble should not wait for the knock on the door. Your power comes from taking the initiative now. Call your lender, YOU REACH OUT and ask for help.
If you can’t get a response go to the next level. Be persistent. Take notes. Record date, time, contact person of every conversation. Be consistent.
There are remedies. Social Service organizations have been formed to help answer questions and perhaps help get consumers on the right track.
Here are some resources to assist in helping consumers learn about loans and foreclosures.
Mortgage Bankers Association: Home Loan Learning Center
Department of Housing and Urban Development (HUD) 1-800-569-4287
Homeownership Preservation Foundation 1-888-995-HOPE
Colorado Foreclosure Hotline 1-877-HOPE
Things to know and financial tips for homeowners
In the end, if foreclosure is your only option remember, there is life after foreclosure.
(Carpetbagger: cartoon by Nast> “Online Photograph. Encyclopaedia Britannica Online. 14 Feb. 2008 http://www.britannica.com/eb/art-4724 )
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6 Comments
Hi Kristal,
Great post. I love your analogy. The advice at the end is excellent, but I would add in caps BE PERSISTENT AND DON’T GIVE UP! The banks seem to be exacerbating the situation by not talking to their borrowers until after several payments are missed. They should be more proactive than reactive, but seem to only react to the piles of files of foreclosures on their desks.
Gretchen
Gretchen ~ I agree with you, the banks are exacerbating the situation by not being more proactive. With the change in foreclosure laws, hopefully that will give the homeowners more time to deal with the issue.
thanks for stopping by!
kk
Wonderful, never thought of them as carpetbaggers but this is a really good analogy.
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Outstanding post Kristal.
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This is linked to my blog tomorrow Kristal excellent advice!
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Love this…it’s so true, now all of a sudden there “we buy houses” scams appear.
Someone told me about a place (around here) that will buy your house without going to the bank they will assume your mortgage payments. And the will only change the Deed of Trust to reflect them as the owner. Say What? The previous owner’s name stays on the mortgage but not the deed…hmmm not a bad deal for the buyer…yeah, I smell scam
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[...] (and it is), but some truths hold true from State to State. Kristal Kraft is a Denver broker who wrote an excellent post today warning everyone to beware of help in sheep, er, carpetbagger [...]