Demystifying Foreclosure Myths

I have been helping homeowners in foreclosure since 1995, and my colleagues call me “the Queen of Short Sales.” But I recently came across a statistic that caught me completely off guard: 70% of homeowners in foreclosure still don’t know their options and alternatives.

Browsing the Internet and watching television, I noticed lately an abundance of information about foreclosure , but instead of helping educate homeowners, it seems to be adding to their confusion and frustration. Troubled homeowners often believe that they are alone with their challenges, and the information they receive often provides conflicting advice on how to proceed.

In San Francisco, over 209 homes entered foreclosure in March, up 30 percent from January. In January of this year, 30% of homes were taken back by the bank. This is NOT acceptable for the community I serve. Here at the Ildiko Pali Team, we are local homeowner advocates. We have created a FREE report to HELP that 70% of homeowners called “Stopping Foreclosure, Understanding Your Options.” This detailed report throughly educates homeowners on their options, providing various alternative solutions that examine the short and long term consequences of homeowners that want to KEEP, RENT, or SELL their property.

Click the link to download and print your FREE report. Below, I’ve compiled the Top 3 Foreclosure myths debunked to sprinkle a little clarity on the recent foreclosure information storm.

Top Three Foreclosure Myths:

  1. Myth: Lenders will not accept Short Sales unless the homowner is behind on their payments.
    Truth: This is simply not true. In most cases, we have successfully completed short sales for clients who haven’t missed a single payment. The homeowner must show a valid hardship, which could be out of area job transfer, loss of income, dwindling savings that will be used up by a certain date in the near future and can not hang on to the property any longer.
  2. Myth: Homeowners must be late on their payments to try for a Loan Modification.
    Truth: Many banks suggest homeowners can try for a loan modification once they are behind on their payments. However, once they are behind the bank moves the property into foreclosure, and then the homeowner often runs out of time and doesn’t have enough money to cure the loan. Look into your options before you even get behind of payments. We can also refer you to reputable Loan Modification consultants if needed.
  3. Myth: Homeowners can save their home by paying off mortgage payments with their credit cards.
    Truth: Using a credit card just borrows the debt from one place to another, while adding 18 percent of interest. This is not a solution!

How WE can HELP: At our FREE consultation, we review all your options, looking at various alternative solutions, and show you the short and long term consequences of each. We will then design a plan and backup plan with step by step guidelines on how to implement it to accomplish your goals.

How YOU can HELP: If you have an acquaintance, a loved one, or know of a business professional with a client that could benefit from this information, please forward our post!