10 Common Myths about Foreclosure

Myth #1: You can’t save your home once Foreclosure begins

Yes, you can! At the Law Offices of Neil Crane we’ve had tremendous real success in saving homes through foreclosure mediation. While the process is often laborious and somewhat slow, our office has successfully negotiated mortgage rate reductions, principal reduction and home retention solutions through the Connecticut foreclosure court system.

Myth #2: Banks want to help you keep your home

Don’t rely on the bank to save your house. Banks and mortgage companies many times don’t have the resources or incentives to help you keep your home. As an institution, Banks and servicers don’t care about your home, your family, or your future.

How to Win at Foreclosure Mediation

Financial turmoil can turn your life upside-down. Debt problems can quickly overwhelm you – you are several months behind on your mortgage and the bank stops accepting payments. Phone calls and efforts with your bank prove unrewarding. You may even receive the dreaded foreclosure notice. This is happening to hardworking homeowners just like you, all across Connecticut. The government’s answer for homeowners? Work with your lenders to modify mortgage obligations, and when that doesn’t work, negotiate terms under the foreclosure mediation process. But lenders don’t seem interested or motivated, and don’t often help – You need to get solid advice from our experienced mortgage modification and foreclosure experts.

Myth #3: I can just negotiate with the Banks to adjust my mortgage

Foreclosure mediation is mandatory in all foreclosures of owner-occupied homes in Connecticut upon the proper filing of a request for mediation within 15 days of the foreclosure return date. A properly filed application is an absolute necessity for any homeowner that does not wish to be evicted from their home through a shortened mortgage foreclosure process that works only to the benefit of the banks and their attorneys.

Foreclosure Mediation is a Borrower’s Right Upon Proper Application – Don’t ever miss it! Obtain a Foreclosure Relief Attorney to Fight for You.

Everybody should participate in foreclosure mediation in every foreclosure in Connecticut. Successful mediation is your only chance to save your home once you’re in foreclosure. Other than properly successful mediation, the rest of the foreclosure process is a steady path to home loss and deficiency judgments. Unfortunately, thousands of homeowners fail at mediation because they try to go it on their own. This is a huge mistake.

Myth #4: I don’t need a lawyer for Foreclosure Mediation

Foreclosure Mediation Attorneys Save Homes

The foreclosure system scares homeowners, causing them to freeze up or go it on their own. In fact, the system often encourages self-representation, and many unknowing homeowners fail to obtain the counsel and experience necessary to save their homes. Mediators and court officials are wrongly encouraging homeowners to fight their banks for modifications without the benefit of any legal representation. Banks have attorneys hired to take your home as promptly as possible. Mediators are paid by the foreclosure courts. Who represents you and your family?

Attempting foreclosure mediation without the benefit of experienced legal counsel is the biggest mistake made by homeowners in foreclosure.

Myth #5: I can Refinance to save my home from Foreclosure

Don’t rely on a refinance to save your home. Do not count on a modification or forbearance to save your home. Despite what you may be promised, banks rarely resolve or refinance loans for borrowers that are already in trouble. This is especially true with today’s economic climate.

Myth #6: There is a guaranteed way to reduce your mortgage payments without Foreclosure Mediation

Avoid scams. Seek out only legitimate and experienced professional help. Avoid out of state companies and internet scams. Remember that foreclosure is a legal proceeding.

Predatory Loan Modification Companies Continue to Hurt Homeowners

You may have seen the advertisements, perhaps on Internet advertisements or on flyers. “Reduce your mortgage payments now! 100 percent guarantee or your money back! We know the tricks banks aren’t telling you!” Sounds too good to be true? Unfortunately, it is. With a continued high rate of foreclosure, unsuspecting homeowners can be trapped into paying a large fee to companies who end up hurting the homeowner’s situation even more.

Nearly half guaranteed success, even if they didn’t know any particulars about a homeowner’s financial situation. Nearly a quarter of the companies told homeowners to stop making payments or to stop contacting their lenders. This is also illegal, unless the company also lets the homeowners know they can lose their home if they forego contact with their lenders.  You should always check the state bar association where an attorney is licensed by calling or checking its website to make sure you are dealing with a legitimate attorney.

Myth #7: There are Government programs that can bail me out

Unfortunately, there are very few, if any, government programs that provide real help to distressed homeowners. Don’t wait for someone else to save you, take action now.

Government programs don’t help Second Mortgages and Lien Removal

Many homeowners over-leveraged their properties through second mortgages, HELOCS and credit lines that now destroy their homes’ equity and threaten their ability to make monthly mortgage payments. Many of these “easy” credit lines were interest only and are now coming due. While the government is tempting troubled borrowers with loan negotiations and meditations to modify home mortgages, these approaches are often unsuccessful and do not address second mortgages or other problem encumbrances liened against your property. Fortunately, with proper legal counsel, homeowners can resolve these second mortgages and equity lines by restructuring or eliminating those secured obligations through the Chapter 13 bankruptcy process.

 

Myth #8: The only alternative to Foreclosure is Short selling my home

Make sure you understand the full short sale process before allowing lenders to press you to “sell your home.”

Be careful. Banks always encourage short sales but don’t often help assist the homeowner in producing a swift and successful short sale.

In many situations, a short sale is not a viable or proper option.

Consult with our experienced attorneys in advance to determine if a short sale will provide you with full debt relief now and assure you a lasting and improved financial future.

 

Myth #9: The bank is offering Mortgage Modification risk free

While everyone wants a lower mortgage payment, the mortgage modification process is rife with dangers and pitfalls. Modifying your mortgage often means risking your family’s home. Be certain that you understand all of the risks involved and don’t ever try to modify your mortgage without the experience and assistance of an expert mortgage modification attorney.

The mortgage modification process has a number of substantial risks, many common mistakes are made by families seeking modification without the benefit of legal counsel. At the Law Offices of Neil Crane, we have saved thousands of Connecticut homes. Let our knowledge and experience guide you through the mortgage modification minefield.

 

Myth #10: Once the Modification process starts, I can stop paying on my mortgage

 Missed Monthly Payments are the greatest danger to successful modifications and the leading cause of lost homes in Connecticut. Missed payments create big back balances, including late fees, default charges, home inspection fees and forced insurance. These back charges or “arrearages” are due at once on demand. If your bank doesn’t modify your mortgage, missing payments will cause you to go into foreclosure. Missing payments means that even modified mortgages will have high monthly payments as back balances are jammed into the remainder of the loan.

Lack of Savings creates an inability to catch up on payments missed during the modification process. Families who miss payments never save the money. Over 30 years of experience saving homes shows us the people who don’t make mortgage payments never save the money they don’t pay on the mortgage. Failing to save missed payments is the biggest mistake made by homeowners seeking modification. Missed mortgage money is spent on everything imaginable, from food to car repairs to wasteful credit card payments. Unfortunately, even the best reasons never matter, as missed payments get spent and arrears build to unmanageable amounts.

Ways a Bankruptcy Attorney Can Help

An experienced bankruptcy attorney can help you with a thorough discussion of your financial situation. An attorney can explain certain government programs that might help you save your home or help you prepare for mediation with your lender. An attorney can also explain how Chapter 13 bankruptcy might be right for you – and how it can be one of the most reliable ways of saving your home.

If you are in danger of losing your home, don’t panic and fall for a loan modification scam. Speak with a bankruptcy attorney who can fully explain all of your options and work with you and your lender to save your home. Find out more about the Foreclosure and Mortgage Modification process