How to Avoid the 5 Biggest Foreclosure Traps:
#1: Choosing a Predatory "We Buy Houses" Investor
are many companies and individuals in Michigan that promise
that “I Buy Houses” or “I Stop Foreclosures”.
You need to understand that many of them are much more interested
in taking your home and your equity than they are about
helping you. See this Special Report for details.
#2: The Forbearance Trap (Or Any Lender payment plan)
is not a good solution for home owners in foreclosure, although
the bank would like you to think so. The bank knows that
over 80% of home owners that do forbearance do not make
the 1st payment, and over 85% do not make the 2nd payment..
The bank also knows that the home owner 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.
#3: The Mortgage Broker Promise Trap
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 don’t lose any money. 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, which is why they always have many deals going,
hoping one of them actually goes through.
#4: The Denial Trap
foreclosures are on the rise. The most common reasons why
a home owner will find themselves in foreclosure are: The
false promises of a Mortgage Broker (or other Loan Fraud
or Predatory Lending Practices), Divorce, Building Medical
Bills, Job Loss, Adjustable Rate Mortgages or Another Tragic
of these events followed with foreclosure can leave a home
owner 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 so get us on your side today!
#5: The Big Chapter 13 Bankruptcy Trap
will 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, arrears 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 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.
About Chapter 7 Bankruptcy?
If you file Chapter 7 Bankruptcy, your home becomes property
of the Bankruptcy Trustee. If you have equity the trustee
will require the sale of your home. If you don’t have
equity, the court will allow the lender to proceed with
the foreclosure. Obviously, this buys you nothing.
that Bankruptcies are public record, and everyone will see
that you filed Bankruptcy, so you might want to make Bankruptcy
your very last option. Be sure to ask the attorney these