Avoiding Foreclosure
I just learned about a company in Carlsbad, CA, called You Walk Away LLC, where home owners are being advised to stop making payments while they remain in their homes, until the lender forecloses. The money can be redirected to pay other bills. That is just one more piece of bad advice! In most cases, people are in this mess because they entered into interest only loans, Alt-A or Option Arms, all designed to enable people to buy more than they could afford, while keeping the payments very low. In some cases, the ARMS started as low as 2%. Sadly, many mortgage brokers made money, helping their clients get into debts they could not handle.
Here we are, the time has come for those loans to re-set. Homeowners know that they will not be able to make the payments, and they are opting to cease paying, while waiting for the ultimate result, foreclosure. Another bad decision.
There are options. Lenders are willing to agree to loan payoffs for less than the amount owed by the homeowner. Many have heard the term, short sale. Few understand how to reach that goal. Instead, they are doing nothing, watching a ticking clock! The answer is to find a real estate professional who has a clear understanding of the complex steps necessary to avoid foreclosure. Visit www.cdpe.com, to find the resource that is a real solution. 'Walk Away', is a path to greater difficulty.