Q. An attorney told me all I have to do is file chapter 13 bankruptcy to stop my foreclosure. Is this true? A. Yes, a CHAPTER 13 temporarily stalls the foreclosure proceedings; however it's only a temporary fix!. Attorney's fees of up to $5,000.00 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 arrears or you will still lose the house.You will be putting a band-aid on a broken leg. Again, bankruptcy will stall the foreclosure sale for a short time. However, it is only delaying the inevitable. The bank will be able to pull the home out of the bankruptcy and continue the foreclosure. Q. The bank said that I can do a DEED in LIEU and not have a Foreclosure on my record. What does this mean? A. 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. Again, This will show on your credit record as if the bank has gone through the entire foreclosure process. The only benefit here is to the bank, not you. It saves the bank attorney fees and time, so they benefit, but you still end up with no home and a ruined credit. Q. I am in foreclosure due to a serious illness of a family member. Will the bank really still take my house? A. Absolutely. Remember, the bank does not care about you, they care about the debt and will do whatever they need to do to recover their money, regardless of how it effects you. In these situations, generally your best option is to work with an experienced investor, such as House Everything, who can handle the bank for you, negotiate the debt and possibly put some cash in your pocket for fresh start. 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. Q. The Lender told me I can work out an affordable payment plan. Is that true? A. Sometimes Lenders will work out a payment plan called forbearance, but it is 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 90% of homeowners in Foreclosure do not make the second payment with a forbearance plan. Q. I owe too much on my house so if I sold my house with a realtor I would have to pay thousands of dollars in commissions and closing costs. I can't sell the house, it's not an option, and I don't have the money. What should I do? A. Remember, you don't need a Realtor to sell the house. Unfortunately, in many situations the person in Foreclosure can't sell the house to stop the Foreclosure because they can't afford Realtor Commissions and Closing Costs or there is not enough time to sell the house and close it before the auction date. These problems can be overcome by working with an experienced investor, such as House Everything, that has a working relationship with 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.
.