- Make a Workout Plan with Your Lender
- Action Plan
- Develop a budget. Cut all unnecessary
spending. Increase your income. What can you
promise and realistically do? You should be
spending 30% or less of your gross monthly
income on your mortgage payment and only 11%
for all other monthly debt payments.
- Write a hardship letter presenting a
past, present and future narrative about
your mortgage crisis. Detail what happened
in your life that led up to the delinquency
on the mortgage. Describe what your current
situation is and how you would like the
lender to help you. Emphasize how your life
will be improved by getting the lenders help
with the mortgage.
- Call your bank or mortgage company as
soon as you have a budget and hardship
letter. Ask to speak to someone in the loss
mitigation department and ask for a workout
package. A workout package is an agreement
between you and your lender that outlines
how you will pay your mortgage default and
avoid foreclosure. To negotiate a workout
package, know what you need and what you are
able to give. Be assertive, but not rude.
- Fill out the workout form promptly, keep
a copy for your records, and send the form
back by certified mail. Include your
hardship letter.
- Keep a record of all communications (cal
ls, letters, etc.) between you and your
lender including dates, times, names and
phone numbers. Purchase a spiral bound
notebook to organize your records.
- If the lender does not allow partial
payments, it is important to save the money
that you would have sent to the mortgage
lender each month in a designated savings
account. This will allow you to have a lump
sum to offer for a workout or to move if you
lose the house. Do not pay other debt with
this money. Focus on saving your house.
- Possible Workout Options: Not all lenders offer
the same workout options. I t is important to know
who your lender is and do research about what they
offer . Ask the servicer: Who owns my loan? Who has
the most to lose if this loan goes into foreclosure?
Consult a certified housing counselor if you are in
doubt. The following are general guidelines of
workout options when the mortgage is in crisis.
- Short-term:
- Request a delay of the Sheriff's sale.
After the Sheriff's sale, there are no
workout options available to you. You must
get a WRITTEN AGREEMENT from your lender to
delay the sale. Be aware of the timeline.
Move quickly!
- Reinstatement: All servicers are
required to pursue a reinstatement as the
first option for resolving a delinquency. A
reinstatement occur s when a homeowner pays
all delinquent mortgage payments and past
-due amounts, making the mortgage current. A
homeowner may reinstate a delinquent
mortgage at any time, even after foreclosure
proceedings begin or while a relief or
workout plan is in progress. A reinstatement
can be partial with a repayment option, or
full bring the mortgage completely current.
- Long-term:
- Forbearance: Not all lenders offer
forbearance agreements. If one is offered to
you, it will allow you to eliminate the
default (what you owe) by making your
regular house payment AND some of the past
due amount for a certain number of months.
This method works best if you had temporary
financial difficulties , are now able to
maintain financial stability, AND have
enough money to pay the extra amount owed
each month. Do not agree to an unrealistic
plan-if you default on a workout package
agreement, your lender will not be as likely
to work with you in the future.
- Loan modification: When you can no
longer afford the original loan terms due to
a permanent change in your financial
circumstances AND the lender is willing to
avoid foreclosure as well, you may be able
to can ask them to:
- Reduce your interest rate (the cost
of borrowing money)
- Extend the loan (increase the number
of ye ars over which you pay back the
money borrowed)
- Re-figure the loan using your equity
(the amount of the home that you own).
The past dues amount and fees are rolled
into the loan amount.
- Combine any of these approaches.
- Bankruptcy: Bankruptcy can stop the
collection activity and the foreclosure
allowing the homeowner time to bring the
mortgage current. Seek the advice of an
attorney.
- Special Mortgage Protections: You should expect
and ask for the most help from lenders that are
servicing FHA/HUD, Fannie Mae or Freddie Mac loans.
- Forbearance: If you have a reasonable chance
to recover from the crisis and begin paying
again, the lender may agree to reduce or suspend
payments for up to 12 months. After the period
ends, you make the original paym ent and a small
installment on the missed payments each month.
Do not agree to an unrealistic plan-if you
default on a workout package agreement, your
lender will not be as likely to work with you in
the future.
- Partial Claim: (HUD loans only). If you are
4 to 12 months behind but have not recovered
from the crisis, the lender can loan you money
to get your monthly payments caught up. HUD pays
the lender and puts an interest -free loan as a
lien against your property. When you sell or
refinance, you pay the partial claim loan back.
- Assumptions: A mortgage assumption permits a
qualified applicant to assume both the title to
the property and the mortgage obligation from a
homeowner who is currently delinquent in the
mortgage payments.
- Refinance Your Mortgage with Another Lender
- Consider this when:
- You have a high enough credit score to
refinance.
- You have enough income to support the
new mortgage amount including your insurance
and taxes.
- You would have a lower interest rate or
longer payment period than on your existing
mortgage.
- You refinance a low interest first
mortgage and a high interest home equity
loan into a single medium interest mortgage
that is affordable and include taxes and
insurance.
- How to refinance:
- Shop 'til you drop. Be honest with
banks, credit unions, and mortgage
companies. Tell them your credit score and
current mortgage rate. Ask if they could do
better.
- Compare interest rates, length of the
loan and closing costs. Get an idea of what
you would qualify for, and then apply to a
reputable lender.
- Do not assume that you can only get a
high interest loan.
- Review the loan documents carefully with
a real estate attorney if a possible, to be
sure you are getting what you asked for!
- Reverse Mortgage: For people over 62 years
of age only.
- You can use the equity in your home to
live on, with payments not due until you
move or pass away.
- It is a VERY expensive mortgage and may
not solve your financial problems, but in
some circumstances, it is a good choice.
- Legal Possibilities to Save the Home
- Procedural defenses: If anything was done
incorrectly with the foreclosure process, the
lender has to start over. This could buy you
some time in the process.
- Bankruptcy: This slows everything down so
you have more time to get money together, sell
the house, or get rid of other debt so you can
pay th e mortgage. This is a very complicated
process and should not be entered into lightly.
Please consult a Bankruptcy counselor to
understand the implications of this option.
- Substanital hardship or substantial equity:
Some circumstances can result in speci al
judicial consideration, including a high amount
of equity in the home or an unforeseen
catastrophe.
- Truth-In-Lending Recission: A complicated,
but powerful tool when dealing with predatory
mortgage companies and home improvement
companies. It is only for refinanced mortgages,
home equity loans or credit lines, debt
-consolidation loans, and home improvement loans
that involve the house as collateral. Was the
lender dishonest? Did a bad loan put you at risk
of foreclosure? A truth-in-lending recission
cancels the mortgage and therefore the
foreclosure.
- General Mortgage Foreclosure Prevention Tips
- Get help early in the process. You don't
have to go down this road alone, contact a
certified housing counselor and discuss all of
your options.
- If the foreclosure sale date is close at
hand or the lender will not agree to a workout,
try to save your house through the courts.
- Often, people postpone getting legal help
until it is too late. Others walk away from the
homes in frustration, leaving thems elves
without equity and vulnerable to deficiency
claims.
- Most lawyers will provide a free or low cost
30-minute consultation. Go prepared with a copy
of your mortgage document, your home budget and
a hardship letter. It is up to you and the
attorney to negotiate fee for service.
************
A mortgage crisis can be a stressful time and many
decis ions must be made by the homeowner. When the
homeowner avoids dealing with the crisis it can mean a
loss of control over their finances and a loss of
control over the impact the mortgage crisis can have on
their credit report. If, after a review of your finances
and conversations with your lender and housing
counselor, it is determined that you can't keep your
home there are still options available to you to AVOID a
foreclosure on your credit report.
- PRE-FORECLOSURE SALE OR STRAIGHT SALE : Even in
a bad housing market put the house up for sale with
a reputable realtor at a fair market price.
Interview the realtor to be sure they have
experience with foreclosures and short sales.
- Ask the lender to delay the foreclosure sale
and for permission to complete a pre-sale. GET
THE AGREEMENT IN WRITING.
- In a bad real-estate market do not assume
that the house will sell quickly.
- A pre-sale works if the sale price is high
enough to pay off the mortgage, any home equity
loans, back taxes, selling expenses and
foreclosure fees.
- SHORT SALE: The lender may allow you to complete
a sale even though the price is less than what you
owe them.
- Ask your lender to delay the foreclosure
sale and for permission to complete a short
sale. GET THE AGREEMENT IN WRITING.
- Ask the lender to "cancel any deficiency,"
so that the lender will not demand repayment of
the rest of what you owe and will not report the
deficiency to the credit bureaus. Get all
commitments in writing.
- Do a short sale only after you learn about
the income tax consequences of this option. In
situations like this, the IRS considers the
amount of debt the lender cancels for you (the
amount you don't pay back) to be income! If you
have lost income and will be in a lower tax
bracket , it could work out fine. If not you
could be left with a big tax bill. Talk to a tax
professional, a tax lawyer, or a non-profit
advocate familiar with tax law. If you will owe
the IRS, how will you pay them? If by doing a
short sale you will be facing a big tax bill you
cannot pay, sometimes the better choice is to
let the foreclosure proceed.
- MORTGAGE ASSUMPTION: A third party takes over
your mortgage, brings it current and continues
paying it.
- Some mortgages are assumable, others are
not. Look at your original mortgage documents or
ask your lender. The person assuming the
mortgage must qualify with a good credit score,
good debt to income ratio, strong credit
history.
- See a lawyer before you proceed with a
mortgage assumption because when someone else
assumes the mortgage, they become the new owners
of the home. It may work, but you need to fully
understand it and avoid some major pitfalls.
- Sometimes adult children assume their
parents' mortgage or vice versa in order to keep
the equity (the amount of the house that you
own) from being lost to foreclosure and to keep
the equity within the family. Consider this if
you have an assumable mortgage, have a lot of
equity in your home and have a relative who has
the money, credit, and willingness to assume the
mortgage.
- DO NOT WORK OUT AN ASSUMPTION with strangers
or real estate companies who claim to want to
"save your house." There are scammers in the
community that will offer to assume the mortgage
and allow you to become a renter. While you are
"renting" from them they can "strip" or take the
equity in the home and often times will leave
town allowing the home to foreclose anyway.
- DEED IN LIEU OF FORECLOSURE: You voluntarily
turn over your house to your lender. This is almost
always a bad idea for you and a good idea for your
lender.
- DO NOT DO THIS unless you get something in
return and in writing.
- Ask the lender to:
- Cancel any deficiencies and fees.
- Eliminate negative credit references.
- Allow you to have extra time in the
house.
- Pay your moving expenses.
- GENERAL FORECLOSURE SELLING TIPS
- Record information on calls. Open and keep
ALL COMMUNICATION in writing. Get all agreements
in writing.
- Never sign a release giving up all legal
claims until the actual workout agreement with
your lender is finalized.
- If you are ever unsure, seek advice from an
attorney or non -profit housing counseling
agency.
- Stay organized. Stay focused.
************
USEFUL LINKS:Homeownership Resources:
Financial Literacy
Mortgage Foreclosure Prevention
Regulatory Resources
Information on Scams and Predatory Practices
************
Month One Missed Mortgage Payment:
The first month that you fail to pay your mortgage
payment, your mortgage company will try and contact you,
usually by mail, to inform you that you are delinquent
on your mortgage. The mortgage company will charge you a
late fee on this missed first month mortgage payment. It
is very important that you speak to your mortgage
company and honestly explain your financial situation.
Make certain that you tell your mortgage company when
you believe that you can make your missed mortgage
payment. If you believe that your situation will not
improve in the near future, or you are uncertain how to
proceed, you may return to the home page and click on
the button at the top left hand corner that says, “Begin
Now by Submitting Your Foreclosure Case online”,
complete the application and certified, experienced
foreclosure counselors will assist you in negotiating
with your mortgage company.
Month Two Missed Mortgage Payment:
The second month that you fail to pay your mortgage
payment, your mortgage company will try and contact you
by any means, including mail and telephone, to find out
why you missed your first and second months mortgage
payments.. Do not avoid your mortgage company’s calls.
In fact, it is best to initiate the call to your
mortgage company to explain the reason for your missed
mortgage payments. Your mortgage company will be more
likely to work with you in the future as your situation
progresses. When you speak to your mortgage company, ask
for the loss mitigation department. When you speak with
the loss mitigation department of your mortgage company
be honest, respectful and calm on the telephone and
explain to them your situation and what you are trying
to do to resolve your financial issues. If at all
possible, offer to make one mortgage payment at this
time to prevent yourself from falling three months
delinquent and potentially into mortgage foreclosure. If
you believe that your situation will not improve in the
near future, or you are uncertain how to proceed, you
may return to the home page and click on the button at
the top left hand corner that says, “Begin Now by
Submitting Your Foreclosure Case online”, complete the
application and certified, experienced foreclosure
counselors will assist you in negotiating with your
mortgage company.
Month Three Missed Mortgage Payment:
The third month that you fail to pay your mortgage
payment, you will probably receive a letter known as the
“demand letter” or “notice of acceleration” from your
mortgage company telling you that you are delinquent on
your mortgage, the total amount that you owe and that
you have 30 days to pay that amount (“Acceleration
Period”). You have two options before that 30 day period
runs, you can pay the amount specified in the demand
letter or make an agreement with your mortgage company
about how and when you will pay the delinquency amount.
If you fail to pay the entire amount owed or make an
agreement with your mortgage company about how you
intend to pay that amount, then your mortgage company is
allowed at that time to put you in foreclosure or
accelerate your mortgage. They are unlikely to accept
less than the total amount due. The foreclosure or
acceleration letter will tell you that your mortgage
company forwarded your delinquent mortgage account to
their attorneys. Even at this point, you may still be
able to negotiate with your mortgage company to retain
your home if you have the budget to do so. At this
point, it is important that you or one of our
experienced and skilled housing counselors contact your
mortgage company to try and work out a deal for you to
either keep your home or enter into a dignified exit of
your home on fair and reasonable terms. If you believe
that your situation will not improve in the near future,
or you are uncertain how to proceed, you may return to
the home page and click on the button at the top left
hand corner that says, “Submit Your Foreclosure Case”,
complete the application and certified, experienced
foreclosure counselors will assist you in negotiating
with your mortgage company.
Month Four Missed Mortgage Payment:
The fourth month that you fail to pay your mortgage
payment, you will be at the end of the Acceleration
Period. If you have not come current on your mortgage
payments or complied with any agreements that you have
worked out with your mortgage company when the
Acceleration Period ends, your mortgage company is
entitled to take steps to foreclosure on your mortgage.
If your mortgage company begins mortgage foreclosure
against your home, you will be responsible for all back
mortgage payments, interest and penalties related to the
mortgage, as well as all attorney fees and these must be
paid in full in order to reinstate your mortgage. At
this point, it is important that you or one of our
experienced and skilled housing counselors contact your
mortgage company to try and work out a deal for you to
either keep your home or enter into a dignified exit of
your home on fair and reasonable terms. If you believe
that your situation will not improve in the near future,
or you are uncertain how to proceed, you may return to
the home page and click on the button at the top left
hand corner that says, “Submit Your Foreclosure Case”,
complete the application and certified, experienced
foreclosure counselors will assist you in negotiating
with your mortgage company.
Sheriff's Sale: If your mortgage
company has not received all amount due and/or you have
not entered into an agreement with your mortgage
company, a Sheriff’s Sale will be scheduled and that
becomes the date of foreclosure.. You will be notified
by mail of the foreclosure date/sheriff’s sale prior to
that date. In addition to the mailed notice of sheriff’s
sale/foreclosure date, a notice will be taped to your
home, usually on the front door.
For four (4) consecutive weeks prior to the Sheriff’s
sale/foreclosure date, your mortgage company will
publish the notice of foreclosure against your home in a
local legal newspaper with general circulation. At this
point, it is important that you or one of our
experienced and skilled housing counselors contact your
mortgage company to try and work out a deal for you to
either keep your home or enter into a dignified exit of
your home on fair and reasonable terms.
If you fail to pay the amount necessary to reinstate
your mortgage or work out a deal with your mortgage
company, the Sheriff’s sale will go forward and your
home will be sold to the highest bidder. If no bids are
made on your home, the title to your home goes to your
mortgage company. This is known as the Sheriff’s Deed.
Even at this point, you still have rights to your home.
YOU DO NOT HAVE TO MOVE OUT OF YOUR HOME AT THAT TIME.
Redemption Period: If you fail to
resolve the situation with your mortgage company; and
the Sheriff's Sale is completed, then you enter the
redemption period. The redemption period starts from the
date of the Sheriff's Sale and in the greatest number of
cases, ends six (6) months after the sheriff’s sale.
Most mortgages allow the homeowner six (6) months to
redeem their home with their mortgage company/bidder, by
paying the amount owed on the mortgage, plus interest
and fees. If property that your home sits on is over 3
acres, you may have a twelve (12) month redemption
period. You will be notified of your time frame on the
same notice that notifies you of your Sheriff's Sale
date. IT IS IMPORTANT TO NOTE THAT YOU HAVE AT LEAST SIX
(6) MONTHS TO STAY IN YOUR HOME AFTER THE SHERIFF’S
SALE.
Eviction Period: : If you have not
redeemed your home within the redemption period,
ownership of the home is transferred to your mortgage
company or the highest bidder. At this point, if you
have not left the home, the new owner starts eviction
proceedings to evict you from the home. An eviction
hearing is held within two weeks, followed by a 10-day
grace period for you to leave the home. When the grace
period ends, the eviction is certified. Court bailiffs
or County Sheriffs are notified and empty the home.
************
Loss Mitigation
“Loss mitigation” is the term used by mortgage
companies to describe their programs and department that
can assist borrowers in negotiating to resolve their
mortgage situations. If you find that you have a
financial hardship or difficulty paying your mortgage,
this is the department that you must insist on working
with. The number one requirement of Loss Mitigation is
affordability of the mortgage. To be able to assist you,
the mortgage company must see a budget that demonstrates
to them that the income coming into your home is
sufficient to support all of the household bills. When
speaking to your mortgage company, ask to speak to their
Loss Mitigation Department, which is sometimes called
the Loan Counseling Department. These are the people
that have the authority and knowledge to assist you with
resolving your issues on your mortgage. The first thing
that you need to do is request a loss mitigation package
for your loan from them. Find out what type of loan you
have (i.e. Freddie Mac, Fannie Mae, VA, or FHA). This
will help to determine how easily your mortgage case can
be resolved. When you contact your mortgage company, ask
them who the investor is on your loan, or if you have
mortgage insurance.
Options You May Have
- Repayment Plan
This is when the mortgage company can take the
amount that you are delinquent and add it on to your
regular payment, and spread it out over 3-12 months.
(Some mortgage companies will allow longer.)
- Loan Modification
This is when the mortgage company adds the amount
that you are delinquent to the principal balance of
your loan. If they think that it is necessary, then
they may consider extending your loan term to 30
years and/or adjust your interest rate.
- Partial Claim
This strategy is used on FHA loans or those with PMI
insurance only. This is when the insurer of your
mortgage gives you a loan for the amount that you
are delinquent. This is a non-interest loan that
does not require payment until the sale of the home
or until you pay off the first mortgage.
************
There are different options available to you when you
no longer have enough income in the household to support
the mortgage and all other bills. These options assist
with preventing the foreclosure, but do not mean keeping
the home.
Short Sale
The mortgage company allows the homeowner the sell
the home for less than what is owed on it. This option
can be utilized before the Sheriff's Sale. Prior
arrangements need to be made with the mortgage company
before the official sale of the home.
Deed-in-Lieu
The mortgage company allows you to give back the deed
to the home in exchange for “forgiveness" of the debt.
This must be done before the Sheriff's Sale. The
mortgage company may require you to have the home listed
on the market for a period of time before considering
this option.
Sale of Home
List the home for sale. This can be done before or
after the Sheriff's Sale. However, to prevent the
foreclosure from going on your record, the sale must be
completed before the Sheriff's Sale date. During this
time, the best thing for you to do is to stay in contact
with the mortgage company. This is important to prevent
the foreclosure of your home, if at all possible.
Unfortunately, it may not mean keeping your home, but
will allow you to "spare" your credit, so that you may
purchase a home in the future when your situation
improves.
You have up until the date of a Sheriff's Sale to
"work out" arrangements with your mortgage company. So,
if you can re-establish sufficient income before that
date, then options that involve keeping your home become
available to you. If this does occur, contact us.
************
- A Sheriff Sale occurs after 4 consecutive weeks
of publication of the mortgage foreclosure in a
newspaper of general circulation and posting of a
notice of foreclosure on your home, usually on the
front door.
- Sheriff Sales are scheduled for Friday, at
10:00, in the Wayne County Courthouse in downtown
Detroit. You are not required to attend the Sheriff
Sale on your home. The home is sold to the highest
bidder and if there are no bids, to the mortgage
company.
- In most cases, the home is purchased by the
mortgage company that holds the loan for the amount
of the outstanding loan balance plus various fees
and interest.
- The purchaser receives a Sheriff's Deed
(Sheriff's Deed on Mortgage Sale) but does not yet
own the property. You still have redemption rights
to your home, in most cases for six (6) months.
- The purchaser records the Sheriff's Deed with
the Wayne County Register of Deeds. Once the sale
occurs, the redemption period begins. You still have
the right to remain in your home, in most cases, for
six (6) months
- You may still be able to redeem your home. If
you are uncertain of your rights or how to proceed,
you may return to the home page and click on the
button at the top left hand corner that says,
“Submit Your Foreclosure Case”, complete the
application and certified, experienced foreclosure
counselors will assist you in negotiating with your
mortgage company.
Your Rights After Sheriff Sale
- Even though a sheriff’s sale has occurred on
your home and a Sheriff's Deed issued, you still
have rights to your home.
- Most mortgage foreclosures give you a 6-month
redemption period which usually begins on the date
of the Sheriff's Deed (if your property is large or
you have a lot of equity, your redemption period may
be longer). If you know you won't be able to redeem
your home, you can use this time to find new
housing.
- For the entire six (6) month redemption
period and as the captain of your financial
destiny, you can make the decision that you will
not pay anything to your mortgage company and;
save your money for moving expenses and/or a
rental deposit.
- No matter what your mortgage company or its
attorney or property management company tries to
tell you, you do not have to move out during the
redemption period. If you do move early, your
property can be declared "abandoned" and the
redemption period can be shortened to as little
as one month. If you get a notice of abandonment
and you have not abandoned your home, be sure to
respond quickly and in writing explaining that
you have not abandoned your home.
- You can “redeem” your home, meaning that you can
get your home back by paying the full amount to the
owner of the Sheriff's Deed, usually your mortgage
company. The amount due may change from the amount
noted on the Sheriff's Deed; so confirm with the
owner of the Sheriff's Deed the correct amount
required to redeem your home. If you are able to
redeem the Sheriff's Deed, make sure that your
redemption is recorded with the Wayne County
Register of Deeds so that your ownership of your
home is clear in the public record.
- Another option is to try and sell your home
during the redemption period. This option will be
helpful if you have a lot of equity in your
home("equity" means the difference between the value
of your home and the remaining amount of the loan).
You must confirm with your mortgage company's
attorney or the owner of the Sheriff's Deed the
amount needed to pay off the debt. If you sell your
home for more than is owed to your mortgage company,
you will be entitled to that amount and it should be
payable to you at the closing on your home.
- At the end of your redemption period, if you
have not already moved out, you will be served with
eviction papers. A court hearing will be scheduled,
usually within 10 to 20 days. You will then have an
additional 10 days after the hearing date to move
and remove your possessions (mortgage company
attorneys will often give you more time if you ask).
If you do not leave the home on or before the
court-ordered date or the agreed upon date, a court
officer will go to the home to remove you.
- Once your redemption period ends, you no longer
own your home. "Deficiency" means your home sold for
less than was owed to your mortgage company and this
difference between the amount of the Sheriff's Deed
and the amount that your former home sold for (plus
additional costs). It is possible, but unlikely that
your mortgage company will sue you for any
deficiency. Being sued for a deficiency is somewhat
more common with second mortgages or home equity
loans. If this happens to you, you should contact an
attorney to respond to the lawsuit. If you are
unable to afford an attorney, find a free legal aid
attorney in your area.
- It is rare for a mortgage company to sue a
borrower for a deficiency. Typically, the mortgage
company will file an IRS form 1099 which treats the
deficiency as income to you. You would then owe
taxes on the deficiency. You can protest this with
the IRS-contact an attorney, certified public
accountant, or qualified tax preparer to assist you.
- Unfortunately, there are many scam artists
targeting people who are facing financial
difficulties, including mortgage foreclosure. You
should be very suspicious of anyone who contacts you
offering to "help". In most scams someone will
contact you and offer to help save your house if you
pay a fee. OUR SERVICES ARE FREE AND WE ARE HERE TO
HELP YOU. Another scam is an offer to buy your home
and allow you to stay on as "renters". If you feel
that you may be the victim of a scam, contacts the
Michigan Attorney General’s Office and report this
immediately.
************
Normally legitimate businesses do not advertise on
utility poles or on temporary signs along the side of
the road. Be suspicious of anyone who calls or stops by
your home with an offer too good to be true. Offers that
seem too good to be true are. Predatory buyers or scam
artists may pretend to help you. What they really want
is your home. You may be faced with a predatory lender
if that person: Comes to you to "solve" your financial
problems
- Pressures you to make a quick decision
- Demands big up-front fees
- Tells you not to contact your current mortgage
company
- Tells you not to contact an attorney
- Asks you to sign papers without giving you a
chance to read them
- Asks you to sign papers with blank spaces
- Asks you to sign a deed
- Offers to file bankruptcy for you
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