Many home owners then fall into the
misinformation trap trying to find a
solution to their problem.
The bank said that I could do a
Deed in Lieu
and not have a foreclosure on my record.
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 cant 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 sheriffs 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
We help people with problem
properties escape the
Misinformation Trap.
Stop feeling confused and
helpless.