Legal Question in Credit and Debt Law in Ohio

Hi I am trying to make a very important decision on my finances, any help would be deeply appreciated. I was contacted by a company called Freedom Banc they want to put me in the HAMP program but something doesn't feel right. I am recently unemployed and my wife works part time.The man we spoke to says we qualify for the program and he will negotiate our mortgage down to a lower principal and lower interest rate. He says our payment would be $435 a month and includes everything tax interest, ins,.and principle and only for 20 year loan. Right now I have interest only and pay $593 a month tax ins.,and interest no principle. I have a 1.75% interest rate. In a nutshell he would have to take at least $34000 off my priciple. Is this legal and are there any ramifications that will come back on me? Right now we are not struggling with our payments but like he said my unemployment will runout and I already lost $1500 a month when I got laidoff. If I don't go back to work he is correct but I do not want to do anything that would put me in a worse situation. Knocking the $34k off would be great and help me out I just don't understand the legal papers they want me to sign and they are trying to do all this over the phone, so it's like walking into a cave without a flashlight. Any light you can shine on this subject I again would deeply appreciate.


Asked on 5/03/10, 7:16 am

1 Answer from Attorneys
Harold Paddock Harold Paddock Co. LPA

I might suggest talking to a HUD certified housing counselor. It is free and the counselor knows the current mortgage assistance programs. These counselors are NOT attorneys but they are knowledgeable about the various mortgage workout programs. Check your local yellow pages of look online for "HUD certified housing counselors". Good luck.

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Answered on 5/10/10, 8:02 am


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