Are "foreclosure rescue consultants" worth the money?

Submitted by tgeller on 15 April 2008 - 8:05pm.

Readers of Save My Home probably got the impression that I don't think much of "foreclosure rescue consultants" (FRC) who advertise on the Internet and charge for their services.

That's mostly true. But since every field includes decent, honest, hard-working professionals, I feel it's necessary to explain why I'm so down on the group as a whole. In most cases:

They're underqualified. With rare exceptions, FRC's aren't lawyers, tax experts, certified financial planners, or even real-estate agents. "A little learning is a dangerous thing", and you could find yourself with a massive tax bill a year after your "rescue".
They're overpriced. Generally speaking, their services are available for free from such organizations as are listed on our Resources page.
They have no accountability. Lose your home? End up paying massive penalties because of their bad advice? Too bad, so sad. Worse yet, some recommend "solutions" that are illegal, while others are merely fronts for scammers or lowball investors. How can you tell the good ones from the bad?
You're better off doing it all yourself. Sure, it's nice to have an "expert" telling you what's best. But since the field has no real standards or credentialing process, it's unclear that the "expert" knows any more than you. Further, the people you'll be negotiating with -- lenders, courts, and so forth -- want to talk with you. For some things they can only talk to you, not your "expert."
Their profit comes before your salvation.. There's a reason they're called for-profit companies. Non-profits aren't necessarily sparkling clean in this regard -- many a non-profit executive has been found guilty of inflated salaries and bonuses. But non-profits have to make their books available for public inspection; for-profit companies can more easily rip you off without fear.