You may have seen mortgage assistant companies mentioned in the news before but exactly what are they? These are the companies that may stand between you and foreclosure, so it's best that you know how they work in case you would need their services.
Mortgage assistant companies are actually acting as go-betweens or negotiators between a mortgagee and the mortgagor. They are the ones that come up with a compromise – a mortgage payment that is affordable on the part of the borrower and avoiding the foreclosure proceedings that could be very costly for both parties.
These services are varied: they can have your loan modified, have the term extended, or to have the whole mortgage refinanced. There is, however, a price you have to pay for all these services, if you choose one that is for-profit. If you are in real dire straits, then you may be able to locate one that is a non-profit organization. Both of them perform the same types of services.
Be very careful of the organizations that you deal with, however. Some are outright scams that are just itching to make money out of your misery. It's for this reason that non-profit mortgage assistant companies are literally overflowing with clients. The borrowers would be quite sure that these people are not there to make a buck out of them.
Stay away from companies that require a deposit equal to a month's mortgage before they start to do anything for you. Avoid too, any company that requires your credit card or Social Security Number. There is no legitimate reason why a company of this sort would require that information.
The best people that can guide you to legitimate companies would be government housing departments, the Better Business Bureau, and people that you know who have gone through the same situation.