4 Mistakes to Avoid During Foreclosure in Chandler AZ

by | Sep 20, 2016 | Lawyer

Top Of The List



Many companies promise an easy way out of foreclosure, but clients should understand that not all live up to their claims. In many cases, these companies are more interested in taking a person’s home and their equity than they are in offering any help. Click Here for some mistakes people make when facing Foreclosure in Chandler AZ.

Hiring a Bankruptcy Lawyer With the Assumption that Foreclosure Will Stop

Many homeowners spend thousands on bankruptcy lawyers, only to lose the home in the end. This can be frustrating, especially when a person could keep their money and achieve the same results. Before a client files for bankruptcy, they should know what the new monthly payment will be, and they should ask the attorney these questions before filing.

Spending Every Penny on a Lender-Sponsored Payment Plan

Increasing monthly payments won’t solve a borrower’s problem, as they are in such a situation because the payment was already unaffordable. Lenders increase monthly payments through forbearance, with the knowledge that over 85% of borrowers will not make a second payment. A client should know their budget before agreeing to a forbearance, and they should ask the lender to send written notice of the payment amount.

Signing a Deed in Lieu

Lenders ask borrowers to sign deeds in lieu, leading many to believe that the choice is in their best interests. However, this arrangement only benefits the lender, and it will go on the borrower’s record as a voluntary foreclosure. It will not benefit the borrower, and it eliminates the person’s ability to control their financial situation.

Waiting Until the 11th Hour

During the foreclosure process, time is the borrower’s enemy. Many wait because they are depressed or in denial about the situation. A long delay will leave the borrower with few options in this situation, and clients should make an educated decision early on.

Many homeowners decide to sell the home, stop the Foreclosure in Chandler AZ and get a fresh start. However, an attorney may advise them against it without offering a different solution. The foreclosure process is about the homeowner alone, and the final decision is theirs.