this seems like a real estate grab. they sent us a deed of trust with mixed facts.
for giving us a couple mortgage payments, they will either (a) forgive it in 5 years or (b) only forgive 30% in five years and the whole amount (which is going to be $3200) in 30 years with owing them an additional $33,000 by that time. If we contest them as a scam after we sign it, we will be liable for all attorneys fees whether the outcome of the court case is for them or you. I never thought our own government would scam us after all others have attempted to. This is sad.
The deed also forbids you from selling the property without their consent, even if the sale will satisfy their deed in full. They are essentially making you a prisoner with no consideration for disaster or hard economic times. If you fail to obey, they will not only take the property and place it for sale with or without the bank, but still hold you liable. This legal document appears to be a scam from the state of California.
they do this contract because those who need help will never be able to afford any legal assistance from anyone as "fair and reasonable" legal fees in California can range to a $100 an hour and those lawyers will charge a minimum of 1 hour every time they pick up your case and are can legally only work 10 minutes of that hour. They can do this many days on end. The contract even seems to suggest they can sell the property out from under your lender for the recovered amount and leave you in debt for the remaining amount. This is a very sketch deed of trust.
If you can find free legal advice for this, take it. In addition, we kept asking them about tax liability. They constantly replied, we don't know as we are not tax people. Then the document they send says you can be liable for much tax depending on the amount.
the program is speaking with two tongues.
Early on, the people assisting us were nice and friendly, when we got to the later stages, the friendliness suddenly dropped. I think we know why, the conscience of the people taking calls were under stress.
Product or Service Mentioned: Keep Your Home Federal Assistance Program.
Reason of review: Problems with payment.