Burgeoning Demand For Foreclosure Advice

With rising foreclosure numbers, real estate agents and mortgage houses are closing shop. In this melee there is plenty of work for those dealing with foreclosure advice. The Carlsbad Company named You Walk Away plans to increase its staff by five times. It is the same with HomeFreeMe a similar company kicking off in San Diego. Other copycats are following – Walk Away Smart and Walk Away Plan in Los Angeles and Arizona respectively.

The surfeit of foreclosure advice giving companies is causing concern for some housing advocates who are recommending the government supported agencies that offer free advice. The promises of these new companies do not ring true – underlying it seems to the greed for fishing in troubled waters. People are so desperate that they will cling at any straw. The advice companies that have sprouted overnight argue that for a fee the victims will get peace of mind and swift personal attention.

Since the beginning of this year the banks have bought more than 4,000 foreclosed houses in San Diego County. This a 250% rise as compared to the same period in 2006. In February – in just a month – 3,000 borrowers received foreclosure notices – this being the first step in the foreclosure process.

HomeFreeMe and You Walk Away also provide for consultation with legal experts and discuss plans for credit repair. The same services are offered free with non-profit bodies like Community HousingWorks being backed by the government. They too have their offices in San Diego and Escondido. You Walk Away takes $995 for its services while that of HomeFreeMe is slightly lower at $897. Jon Maddux, a representative of the former says that their services are better and swifter than the non-profit groups. Perhaps the non-profit groups help but they do not give personalized service. It is little wonder then that these private advice groups are simply flooded with work. It is difficult to get an appointment with Community HousingWorks – sometime one has to wait for a month. Throughout the counties families are being helped. 60 telephone calls are pouring in each day and the filing cabinets are overflowing with folders. The job is very sensitive. Once a 60 year old gentleman sat down crying and could hardly talk. In the last 6 months out of 215 families 28 have been able to get their loans modified. In some cases the advice is given on steering through the foreclosure process.