When Trying To Stop Foreclosure Don’t Fall For a Quick Fix

For a homeowner who is trying to save their home and stop foreclosure any solution is a good solution. Unfortunately desperation may not be allowing them to see things clearly.

There are foreclosure solutions out there that are scams and can leave you with no home at all or simply less money. Although these companies don’t all run scams you do need to be careful when deciding to try any of the follow solutions.

Loan Modification Company – One solution to foreclosure is to talk directly to your lender and try to reach an agreement that is mutually beneficial that will stop foreclosure. For some this solution may be fixing the interest rate while for others it might be waving the late fees. Loan modification is very successful however when you hire a loan modification company you need to be careful. You typically pay the company a flat fee at the start and if you are working with a dishonest company they will take the fee and you will never hear from them again and you will be right back where you started.

Straw Buyers – Refinancing is often a solution to help foreclosure however in order to refinance you need to have a solid credit history. To get around this some people will work with a straw buyer who will sign for the new loan on your home with you. Although both names will be on the deed the original homeowner is responsible for the mortgage payments, not the straw buyer. Hypothetically once you are on your feet you would again refinance the home back from the straw buyer into your own name. However in the mean time if you get scammed the straw buyer will take all the equity out of your home (since their name in on the title) and leave you with a home that you can no longer afford.

Lease Back – Similar to straw buyers another option is a lease back. This is when someone actually buys your house from you and they lease it back to you (rent it to you) for a set period of time until you can buy it back from them. In some cases the new owner will take all the equity out of the home and raise the price so it is no longer affordable. Otherwise if you are a day or a dollar short on your lease the new owner will cancel the contract they set up with you leaving you with no home.

All of these foreclosure solutions can be done honestly so they are successful for the homeowners. However when done by a scam artist they can jeopardize your home and leave you in more trouble than foreclosure will. Avoid this by doing your research and speaking with a qualified foreclosure attorney before making any decisions.

Article Source: http://EzineArticles.com/6784117

© Copyright 2018 Cary Amo..Your Lafayette Real Estate Pro | Powered by Stratosphere Marketing Solutions