Foreclosure Brokers LLC
Leave No Stone Unturned™
HOW TO AVOID THE 5 FORECLOSURE TRAPS
TRAP #1: THE FORBEARANCE TRAP (Lender repayment plan)
Forbearance is generally not a good solution for debtors in foreclosure, although the lender would like you to think so. The lender knows that over 85% of debtors that do forbearance do not make the 2nd payment. The lender also knows that the debtor can’t afford the current payments. So, why are they going to drastically increase your payments and expect you to be able to afford them?
Make sure you know how much you can afford comfortably each month before you commit yourself to forbearance.
TRAP #2: THE MORTGAGE BROKER TIME TRAP
First of all, it is very common for someone to go into foreclosure because of the false promises of a Mortgage Broker. Mortgage Brokers make money through points, which are a percentage of the loan and closing costs. However, if the house goes to foreclosure they have nothing to lose. Understand that a Mortgage Broker is just a Middle Man; they don’t make the final decision. Mortgage Brokers are at the mercy of the banks/lenders, which is why they always have many deals going, hoping one of them actually goes through.
TRAP #3: THE DENIAL TRAP
Today foreclosures are on the rise. The most common reasons why a debtor will find themselves in foreclosure are: The false promises of a Mortgage Broker, Divorce, Medical Problems, Job Loss, Adjustable Rate Mortgages or a Tragic Event.
Any of these events followed with foreclosure can leave a debtor distressed and many times depressed, in a state of mind where they are in denial. It is imperative that you realize that you do have options and the power to stop the foreclosure and get a fresh start. Remember that time is your worst enemy. The longer you wait the more difficult it is for us to help.
TRAP #4: THE TRADITIONAL REALTOR® COMMISSION TRAP
“Realtors® are the experts” Many people believe this is true and that they have to list their house with a Realtor® to sell it. Did you know that realtors do not receive any formal training on how to market and sell a house quickly, let alone foreclosure issues. Listing a house with a traditional Realtor® can cause many problems, other than not selling the house quickly. Your financing may be leveraged to a point were you would have to come out of pocket to pay the Realtor® $1000’s (thousands) of dollars in commissions to sell the house. Also, by signing most listing agreements, the Realtor® is still entitled to $1000’s of dollars in commissions even if you found someone to buy the house and stop the foreclosure. The harsh reality is that a traditional Realtor® could actually prevent your ability to stop the foreclosure because they have nothing to loose if it does. Foreclosure Brokers knows foreclosures inside and out and we make this our only business.
TRAP #5: THE BIG CHAPTER 13 BANKRUPTCY TRAP
Attorneys will often advise you to file a Chapter 13 Bankruptcy and charge you $1000’s (thousands) of dollars to do so. They do this knowing that more than 2/3 of their clients still lose the house to Foreclosure. Did you know that a Bankruptcy is only a temporary solution? Yes, the Federal Courts protect you from the Creditors temporarily. Then a payment plan is worked out with Attorney’s Fees, Court Fees, Late Fees, and then, arrearages are factored in. This is a type of Forced Forbearance. Once this payment plan is established you must make the payments or you will lose the house. So, before you quickly go file bankruptcy, under the advice of an Attorney, make sure that you plan your budget and know how much the costs are really going to be. If you won’t be able to afford the new Bankruptcy monthly payments you might want to reconsider giving the Attorney $1000’s of dollars to do something that won’t work. Also, remember that Bankruptcy is public record, and everyone will see that you filed Bankruptcy, so you might want to make Bankruptcy your very last option.
You have important choices to make and educating yourself is one of the best ways to make an informed and confident decision. 