Answers about Mortgages
What disclosures are required to be provided by a mortgage relief company to a prospective client based on the Mortgage Assistance Relief Services (MARS) rule?
Any provider offering foreclosure rescue assistance must disclose the following:
- The amount of any fees associated with the service;
- That the provider is not associated with the government, and that its services have not been approved by the government or the homeowner's lender;
- That the lender or servicer may not agree to change the homeowner's loan;
- That the homeowner may stop doing business with the provider of the mortgage relief service at any time, that the homeowner may accept or reject any offer that the company obtains from the lender or servicer, and, if the consumer rejects the offer, that the homeowner does not have to pay the company's fee; and
- If the provider tells a homeowner to stop making mortgage payments, the provider must also inform the homeowner that the consumer's home could be lost and the consumer's credit rating damaged as a result.