Foreclosures are at an all-time high and that has resulted in more debt relief companies appearing almost overnight. It became too easy to claim to be an expert at negotiating with banks and helping people obtain loan modifications or to facilitate short sales. The Federal Trade Commission (FTC) Mortgage Assistance Relief Service (MARS) act aims to prevent these potential scam artists from taking advantage of people with homes in distress.
The MARS act has implemented more rules on companies and individuals who negotiate mortgage debt and assist with short sales or loan modifications. Companies and real estate agents must be licensed, and they cannot tell you to stop communicating with your bank, or charge you an up-front fee. Companies must also let the client know that they can stop using their service at any time and they have the right to reject or accept the offer from the lender.
Other important guidelines MARS requires debt relief companies to disclose up front and throughout the process:
- They are not associated with the government, and their services have not been approved by the government or the consumer’s lender.
- The lender may not agree to change the consumer’s loan.
- If companies tell consumers to stop paying their mortgage, they must also tell them that they could lose their home and damage their credit rating.
MH Solutions Inc. has been licensed and bonded in the state of Maine for debt relief services since March 2009. If you or someone you know is struggling to pay their mortgage or facing foreclosure please check out our website www.mhsolutionsme.com for information about short sales, loan modifications and what your options are. You don’t have to face foreclosure and you shouldn’t be taken advantage of. Our negotiation services are free to sellers, it is the buyers that pay once closing takes place. That’s right no money is exchanged until the transaction has closed, and the seller who is in distress does not pay us a penny.
For more information about MARS visit:
http://business.ftc.gov/blog/2010/11/life-mars-new-rule-protects-homeowners-mortgage-relief-scams
or
http://www.ftc.gov/opa/2010/11/mars.shtm
