Perhaps you are one of the folks who was preyed upon by lenders who wanted to give you a loan that you really couldn't afford but took after some smooth talking. Now the rate of the loan has gone up and you are scrambling to try to make the payments.

Many home owners then fall into the misinformation trap trying to find a solution to their problem.

Fact - This is Probably the worst thing you could do in your situation. When you give the deed back to the bank,you are volunteering to foreclose. A Deed in Lieu will not benefit you, but the lender: it will save them costs associated with the foreclosure process. You will still lose the house and your credit.

Trap Two - The lender told me I could work out an affordable payment plan.

Fact - Sometimes lenders will offer a payment plan called Forbearance but it is never reasonable and your payments will increase significantly. If you can’t afford to make your payments now, how does the lender expect you to pay more each month? Statistics show that 85% of homeowners go into a forbearance are unable to make the second payment.

Trap Three - An attorney told me all I have to do is file chapter 13 to stop the foreclosure.

Fact - Chapter 13 will temporarily keep the house from the sheriff’s auction. After filing, you will resume regular payments on the house, plus arrears. Also, you will pay an attorney a lot of money and you will need to appear in court, and your name will be listed in the public records. Attorneys know that more than two-thirds of their clients will fail to make all of the Chapter 13 payments. If you are late on any payment, the bankruptcy can be dismissed. You may then need an attorney to file Chapter 7 bankruptcy and you will pay even more attorney fees.

Trap Four - I owe to much on the house, so if I use a real estate agent to sell it I would pay thousands of dollars in commissions and closing costs. I can't sell the house. It is not an option - I don't have the money.

Fact - When facing this type of situation, you need to use a real estate agent, or investor, who has a working relationship with lenders, and is willing to negotiate with these lenders on your behalf. The primary tool of choice is known as a SHORT SALE – an offer is made to purchase the house for less than what is owed. Lenders will consider a short sale because they stand to lose thousands if they take the house back at auction.

FINALLY, a SOLUTION that makes sense! We are EXPERTS in negotiating short sales with lenders and have helped many people in our community