Hi this is Emily Danger with Great Lakes Home Solutions and StopMichiganForeclosure.com with 6 foreclosure traps.
Trap number 1, choosing a predatory, we buy houses investor. There are many companies and individuals in Michigan. Their promise, I buy houses or I stop foreclosure. You need to understand that many of them are much more interested in taking your home and your equity than they are by helping you.
Trap number 2, the Forbearance trap. Lender-payment plan. Forbearance is not a good solution for homeowners and foreclosure, although the banks would you like you to think so. The bank knows that over 80% of homeowners that do forbearance do not to make the first payment and over 85% that do forbearance do not make the second. The bank also knows that the homeowner cannot afford to the payments. So why are they going to drastically increase the payments and expect you to be able to afford them. Make sure that you know how much you can comfortably afford each month before you commit yourself to a forbearance.
Trap number 3, the Mortgage broker promise trap. First of all, it is very calming for someone to go onto foreclosure because the false promise of a mortgage broker. Mortgage brokers make their money through points, which are presented as a loan enclosing cost. However, if the house goes in foreclosure, they do not lose any money. Understand that a mortgage broker is just a middle man. They do not make the final decision. Mortgage brokers are the mercy of the banks, which is why they always have so many deals going hoping that one of them actually goes through.
Trap number 4, The Denial trap. Today, foreclosures are on the rise. The most common reason why a homeowner will find themselves in foreclosure are: the false promise of a mortgage broker or other loan fraud or predatory lending practice, divorce, building medical bills, job loss, adjust for rate mortgages or other tragic events. And if these follows with foreclosure can leave a homeowner distressed and many times feeling depressed. In the state of mind where they are in denial, it is imperative that you realize that you do have options, and the power to stop for foreclosure and get a fresh start. Remember that time is your worst enemy.
Trap number 5, The Realtor Commission trap. Realtors are the experts. Many people believe this is true and that they must list their house with the realtor in order to sell it. Did you know that realtors do not receive any formal training and how to market and sell a house quickly? Listing a house with the realtor can cause many problems. Other than that selling your house quickly. Your financing maybe leverage to a point we have to come out package to make the realtor thousands of dollars and commissions to sell the house. Also, by signing a listing agreement, the realtor is entitled to thousands of dollars and commissions even if you found someone to buy the house and can stop the foreclosure. The harsh reality is the realtor could actually prevent your ability to stop the foreclosure.
Trap number 6, The big bankruptcy 13 trap. Attorneys will advise you to file chapter 13 bankruptcy and charge you thousands of dollars to do so. They do these knowing more than 2/3 of their clients will still loose their 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 the attorney’s fees, court fees, late fees and then over is a factor then. This is a type of forced forbearance. Once this payment plan is established, you must make the payments or you will loose the house. So before you quickly go file bankruptcy under the advice of an attorney, make sure that you can plan your budget and know how much the cost are going to be. If wont be able to afford the new bankruptcy monthly payment, you might want to re-consider giving the attorney thousands of dollars to do something that would not work.
How about chapter 7 bankruptcy? If you file chapter 7 bankruptcy, your house becomes property of the bankruptcy trustee. If you have equity, the trustee will require the sale of your house. If you do not have equity, the Courts will allow your lender to proceed with the foreclosure. Obviously, this buys you nothing. Also remember that bankruptcy is a public record and everyone will see that you filed bankruptcy. So you might want to make bankruptcy your very last option.
If you like more information on how to stop foreclosure, you can visit our website at www.stopmichiganforeclosure.com or you can read our blogs at www.stopmichiganforeclosure.com/blog.
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