Empire Loss Mitigation

5 MISCONCEPTIONS ABOUT ATTORNEYS, REALTORS, AND MORTGAGE LENDERS

Misconception #1: “The bank said that I can do a DEED in LIEU and not have a Foreclosure on my record.”

This is probably one of the worst things you can do in your situation. When the Lender asks you to do this, they are asking you to voluntarily Foreclose. Don’t let the Lender fool you, your credit report and personal record will clearly read DEED IN LIEU in other words a VOLUNTARY FORECLOSURE. A DEED in LIEU is not for your benefit, it is for the lender’s benefit, it eliminates the cost of them having to formally Foreclose, but you still lose the house and have your credit record permanently scarred.

Misconception #2: “The Lender told me I can work out an affordable payment plan”.

Sometimes Lenders will work out a payment plan called forbearance, but it is almost never reasonable and your payments will increase significantly. If you can’t afford your payments now, how does the lender expect you to pay hundreds or sometimes thousands of extra dollars, each month in your monthly payments? Statistics show that approximately 85% of homeowners in Foreclosure do not make the second payment with a forbearance plan.

Misconception #3: “The Lender won’t kick me out because my husband and I have medical disabilities and 6 kids living in the house”.

The sad unfortunate truth is that the lender only cares about collecting their debt no matter what your situation is. The harsh reality is that once the house goes to Foreclosure, in most states, the sheriff will show up at the house and order you and your family to vacate the property immediately after your redemption rights expire. (Which in Colorado is 75 days after the sale date.)

Misconception #4: “An Attorney told me all I have to do is file CH 13 BANKRUPTCY to stop the Foreclosure”.

Yes, a CHAPTER 13 temporarily stalls the foreclosure proceedings; however it is only a Temporary Solution!! Bankruptcy can carry Attorney’s fees of up to $1,500.00 or more, appearances in court and the humiliation of public record showing you filed Bankruptcy. Remember that after you file Bankruptcy you are required to resume payments on the house, plus all arrearages or you will still lose the house.

Misconception #5: “The bank told me if I sold my house with a Realtor® before the sale date, I could stop the foreclosure.

Unfortunately, in many situations the person in Foreclosure can’t sell the house to stop the proceedings because they can’t afford the thousands of dollars in Realtor® Commissions and Closing Costs or there is not enough time to sell the house and close it before the auction date. We also find that many times the person in foreclosure owes more than the house is worth, which makes it almost impossible to sell at a realistic price. These problems can be overcome by working with an experienced investor that has a working relationship with lenders, and is willing to negotiate with these lenders on your behalf. There are many times where the investor is willing to take risks and pay money to buy time through negotiating with lenders.

Well, we hope we cleared up any misconceptions you may have had about the Foreclosure process. Also, be sure to ask these 5 questions and listen carefully to your own answers:

1) Is filing Chapter 13 Bankruptcy going to make the Foreclosure go away forever or will I have to pay to keep the house?

2) Can I really afford the significant increase in payments through forbearance or payment plan?

3) Should I wait until the sheriff shows up and orders me and my family to vacate the house or should I do something about the situation now?

4) How much money can I comfortably afford in monthly payments?

5) How can I get out of this situation without having to pay thousands of dollars in Attorney’s fees, Realtor® Commissions and Closing Costs?

Now that you’ve learned some common misconceptions and great questions to ask, we encourage you to explore these on your own and find your own answers. You have important choices to make and educating yourself is one of the best ways to make an informed and confident decision.

To learn more about your rights, foreclosure in Washington and how we can help, give us a call at our office, (509) 534-1548


		Homeowner Education

	5 MISCONCEPTIONS ABOUT ATTORNEYS, REALTORS, AND MORTGAGE LENDERS Misconception #1: “The bank said that I can do a DEED in LIEU and not have a Foreclosure on my record.” This is probably one of the worst things you can do in your situation. When the Lender asks you to do this, they are asking you to voluntarily Foreclose. Don’t let the Lender fool you, your credit report and personal record will clearly read DEED IN LIEU in other words a VOLUNTARY FORECLOSURE. A DEED in LIEU is not for your benefit, it is for the lender’s benefit, it eliminates the cost of them having to formally Foreclose, but you still lose the house and have your credit record permanently scarred. Misconception #2: “The Lender told me I can work out an affordable payment plan”. Sometimes Lenders will work out a payment plan called forbearance, but it is almost never reasonable and your payments will increase significantly. If you can’t afford your payments now, how does the lender expect you to pay hundreds or sometimes thousands of extra dollars, each month in your monthly payments? Statistics show that approximately 85% of homeowners in Foreclosure do not make the second payment with a forbearance plan. Misconception #3: “The Lender won’t kick me out because my husband and I have medical disabilities and 6 kids living in the house”. The sad unfortunate truth is that the lender only cares about collecting their debt no matter what your situation is. The harsh reality is that once the house goes to Foreclosure, in most states, the sheriff will show up at the house and order you and your family to vacate the property immediately after your redemption rights expire. (Which in Colorado is 75 days after the sale date.) Misconception #4: “An Attorney told me all I have to do is file CH 13 BANKRUPTCY to stop the Foreclosure”. Yes, a CHAPTER 13 temporarily stalls the foreclosure proceedings; however it is only a Temporary Solution!! Bankruptcy can carry Attorney’s fees of up to $1,500.00 or more, appearances in court and the humiliation of public record showing you filed Bankruptcy. Remember that after you file Bankruptcy you are required to resume payments on the house, plus all arrearages or you will still lose the house. Misconception #5: “The bank told me if I sold my house with a Realtor® before the sale date, I could stop the foreclosure. Unfortunately, in many situations the person in Foreclosure can’t sell the house to stop the proceedings because they can’t afford the thousands of dollars in Realtor® Commissions and Closing Costs or there is not enough time to sell the house and close it before the auction date. We also find that many times the person in foreclosure owes more than the house is worth, which makes it almost impossible to sell at a realistic price. These problems can be overcome by working with an experienced investor that has a working relationship with lenders, and is willing to negotiate with these lenders on your behalf. There are many times where the investor is willing to take risks and pay money to buy time through negotiating with lenders. Well, we hope we cleared up any misconceptions you may have had about the Foreclosure process. Also, be sure to ask these 5 questions and listen carefully to your own answers: 1) Is filing Chapter 13 Bankruptcy going to make the Foreclosure go away forever or will I have to pay to keep the house? 2) Can I really afford the significant increase in payments through forbearance or payment plan? 3) Should I wait until the sheriff shows up and orders me and my family to vacate the house or should I do something about the situation now? 4) How much money can I comfortably afford in monthly payments? 5) How can I get out of this situation without having to pay thousands of dollars in Attorney’s fees, Realtor® Commissions and Closing Costs? Now that you’ve learned some common misconceptions and great questions to ask, we encourage you to explore these on your own and find your own answers. You have important choices to make and educating yourself is one of the best ways to make an informed and confident decision. To learn more about your rights, foreclosure in Washington and how we can help, give us a call at our office, (509) 534-1548

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