[legermarianne]

I have a relative that has a pending move into a home. Renting it from a co-worker. The co-worker was informed by a mortgage broker to let the home fall into foreclosure status and than have the mortgage re-finance and get a lower rate. Now the co-worker received the official foreclosure letter and the broker told him not to worry that it was normal. Something seems wrong. If someone paying on time and than goes into foreclosure on purpose. With the recommendation to do so by a broker. Is this really legal and on the up and up? And is there no guarantee that the loan will be re-financed at a lower rate? The plan is that my relative moves in after the paper and re-finance is completed and she pays the new mortgage monthly payment.