The offers seem like answers to the prayers of a struggling homeowner: A promise of legal tactics to forestall foreclosure, reduce mortgage balances and interest rates, or restore credit. But these so-called mass joinder lawsuits being advertising in mailings are fraudulent – sent out by companies purporting to be law firms, according to a consumer alert by the Federal Trade Commission’s (F.T.C.) website.

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Consumers can lose valuable time to these dishonest players – not to mention money. The nonprofit Lawyers Committee for Civil Rights Under Law estimates that homeowners nationwide who reported scams to its database have lost more than $60 million in the last two years alone.
There are many credible law firms around to help homeowners. But some businesses might be promoting themselves as providers of legal services, they might have only one lawyer on retainer, as a way around F.T.C. rules that allow only lawyers to collect upfront fees on mortgage aid.
Such firms, and people posting as lawyers, are fueling a 60 percent jump in complaints about mortgage scams this year, according to a report by the homeownership Preservation Foundation, which helps distressed homeowners.
When speaking with a lawyer, consumers might ask about the lawyer’s track record, including documentation of successes via media reports or signed court documents awarding borrowers money or relief.
Consumers should beware of promises. According to the Homeownership Preservation Foundation, “legitimate lawyers don’t make guarantees, just like doctors don’t.”
There are plenty of free services available at nonprofit groups certified by the Dept. of Housing and Urban Development.

More Information   The New York Times

Homeowners considering finding a new job and refinancing a house may be wondering which task to take on first. According to mortgage experts, homeowners should complete their refinancing before making any major career changes, especially if they are planning to start their own business or become an independent contractor, in which case, income may fluctuate.

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•During the refinancing process, homeowners may find that actively looking to leave their current job may impact how the bank views giving them a mortgage. The search will raise a question mark about their future employment and their ability to pay the mortgage.
•In addition to checking employment at the start of the application process, many lenders will verify such information as late as the last 72 hours before mortgage closing. If they learn a borrower is starting a new job in the very near future, the mortgage can be delayed or even derailed. And borrowers who withhold such information could be committing income fraud. Other lenders, however, say they make loans based on a moment-in-time snapshot of a borrower’s finances.
•An advantage to refinancing first is that the borrowers are freeing up additional cash flow by reducing their monthly payment.
•All that said, however, there are advantages to refinancing later, especially for those who might have to relocate when they change jobs.
•A person may get a new job with more income, which may help him or her qualify for a larger mortgage, or even better terms.

Read the full story  The New York Tomes