Don’t Make These Mistakes When in Foreclosure!!!
1. Don’t make oral agreements with your lender to postpone your foreclosure sale. Get it in writing and be very specific about what you have to do. Make sure they are obligated to tell you the foreclosure sale postponement dates and times. This written agreement is called a forebearance agreement. lenders do not have to notify you of postponed sale dates. Once a sale is posted, you are in never never land for the owner. You realize the “misunderstanding” when they post the eviction notice after the sale. Your oral agreements with the lender are not worth the paper they are written on!!!!
2. Don’t sign up for short term fix it loans. Desperate people do desperate things but what happens in six months??? Short term lenders are not your solution- they are simply the next people who will be foreclosing on your house! They loan to own! Next time they will be the ones foreclosing and they will finish you off.
3. Don’t fall victim to the “foreclosure consultants” or other real estate “experts” such as loan modification people. Even though there is a strong law prohibiting these sharp practices new ones spring up every day. People in trouble desperately want solutions. These so-called consultants are prohibited from taking up front fees or an equity interest in your property by law, but they do it until shut down. But there is always someone to take their place.
4. Loan Modifications – Since October 8, 2009 it has been absolutely illegal to take any money up front by anyone, including Attorneys, for services related to a modification. Loan modification is a completely voluntary process for your lender. There is no legal obligation to modify your loan. The lender looks at your income, and the amount of mortgage debt and the value of the house. If your payment can be about 31% of your gross income and be sufficient to pay Principal, Interest, Taxes, and Insurance (PITI) at an interest rate acceptable to the lender then you may get a loan modification. The interest rate needs to be at least 2%. And perversely, the more upside down you are (amount owed is more than the value of your house) the more likely you are to receive a modification. If you have equity, then your lender may decide that the Net Present Value to them is higher by foreclosing rather than modifying your loan.
5. Don’t file multiple bankruptcies – Unfortunately, people are paying big bucks to get very short term postponements of their foreclosure sale by filing bankruptcies and letting them get dismissed. A lot of these involve emergency bankruptcy filings that get dismissed in a couple of weeks. There is no such thing as a “Ghost” bankruptcy – You are wasting the bankruptcy protection of the “automatic stay” by doing this. You have legal rights that are important protections to you. We can give you competent correct legal advice for free.
6. Don’t make your credit card and unsecured debt become “secured debt”. This an old con game of the credit companies. Don”t’ borrow on your home to pay unsecured debt like credit cards. All that unsecured credit card debt is now secured by your house! Don’t do it!!
7. Don’t use up your family and friends before you have a plan and a solution- save their help for later if you need it. Too many people are borrowing money from their relatives, sometimes on their relatives credit cards! You not only are not solving your problem, but you are taking others down with you!
8. Don’t just let this happen to you. Talk to us so you can understand your legal rights and the alternatives. Time is a wasting – call for the free no obligation consultation today.
Talk to us before you make a decision. Dont give anybody money, a deed, a deed of trust, or sell your house before you see us for free and correct legal advice.
9. Remember – even if you are going to sell your house, a bankruptcy can remove judgment liens so they don’t get paid. Call our office today for that free no-obligation consultation!
LAW OFFICES OF DAVID A. BOONE
1611 THE ALAMEDA
SAN JOSE, CALIFORNIA 95126
Come in for a free consultation before you make the wrong decision. Be sure to bring your notice of default and your notice of sale if you have them to your appointment. Beware of the imitators. We are the oldest and most experienced consumer law firm in the bay area and have helped several thousand homeowners. If you don’t think there is a difference between attorneys, then you missed that whole O.J. Simpson thing.
Our bankruptcy law firm is the oldest and largest bankruptcy attorney firm serving San Jose, Cupertino, Sunnyvale, Santa Clara, Mountain View, Los Gatos, Campbell, Milpitas, Morgan Hill, Gilroy, San Martin, Palo Alto, Los Altos, Saratoga, Santa Cruz, Watsonville, Aptos, and the unincorporated areas all over Santa Clara County, Santa Cruz County, and San Benito County.