SellQuickForCash.com Investigates Deceptive Mortgage Advertising. How America Is Facing Foreclosure!

SellQuickForCash.com Investigates Deceptive Mortgage Ads. What They Say; What They Leave Out!

So we all see those ads from Ditech.com or Countrywide.com that pitch low fixed rates, low monthly paymenst, or mortgage rates at 30 year lows. When we talk with homeowners that are Facing Foreclosure we ask them why they are in the situation they are currently in. The majority of them explain to us that their mortgage lender placed them into a bad, adjustable rate loan, a loan with a prepayment penalty, or had them maximize a HELOC (Home Equity Line Of Credit). Deceptive advertising got you in the door, and an unregulated loan officer placed you into a bad loan. Why we can only cross our fingers and hope that the mortgage industry becomes regulated, we can be proactive and unveil the mystery behind some of these deceptive mortgage ads!

The following is from the FTC.Gov website concerning mortgage advertising.

If you’re looking for a mortgage to buy a home or refinance an existing loan, you may see or hear ads with offers of low rates or payments. Whether you see them on the Internet, on television or in the paper, or whether they come by fax or mail, some of these ads look like they’re from your mortgage company or a government agency. Regardless of where you see the ads, remember that while the offers are tempting, some are terribly flawed: they don’t disclose the true terms of the deal as the law requires.

The Federal Trade Commission, the nation’s consumer protection agency, says that when you’re shopping for a home loan, it’s important to understand all the terms and conditions of a proposed loan. Start with what is in the ad itself. Read what’s between the lines as well as what’s in front of your eyes.

What The Ads Say

To help you recognize an offer that may be less than complete, the FTC wants you to know the buzz words that should trigger follow-up questions, as well as information to insist on after you’ve read an ad.

A Low “Fixed” Rate: Ads that tout a “fixed” rate may not tell you how long it will be “fixed.” The rate may be fixed for an introductory period only, and that can be as short as 30 days. When you shop for a mortgage, you need to know when and how your rate, and payments, can change.

Very Low Rates: Are the ads talking about a “payment” rate or the interest rate? This important detail may be buried in the fine print, if it’s there at all. The interest rate is the rate used to calculate the amount of interest you will owe the lender each month. The payment rate is the rate used to calculate the amount of the payment you are obligated to make each month. Some offers advertise a low payment rate without telling you that it applies only during an introductory period. What’s more, if the payment rate is less than the interest rate, you won’t be covering the interest due. This is called “negative amortization.” It means that your loan balance is actually increasing because you’re not paying all the interest that comes due, and the lender is adding the unpaid interest to the balance you owe.

Very Low Payment Amounts: Ads quoting a very low payment amount probably aren’t telling the whole story. For example, the offer might be for an Interest Only (I/O) loan, where you pay only the amount of interest accrued each month. While the low payment amount may be tempting, eventually, you will have to pay off the principal. Your payment may go up after an introductory period, so that you would be paying down some of the principal – or you may end up owing a “balloon” payment, a lump sum usually due at the end of a loan. You must come up with the money when a balloon payment is due. If you can’t, you may need another loan, which, in turn, means new closing costs, and potentially points and fees. And if housing prices are falling, you might not be able to refinance to lower your payments.

Mortgage rates near 30-year lows! Rates as low as 1%! You are paying too much! Who doesn’t want to reduce their mortgage payments? Loan amount $300,000 - pay only $900 per month!: Ads with “teaser” short term rates or payments like these don’t often disclose that a rate or payment is for a very short introductory period. If you don’t nail down the details in advance about your rates and payments for every month of the life of your loan, expect payment shock when the rate and payment increase dramatically.

Important Notice From Your Mortgage Company. Open Immediately - Important Financial Information Enclosed. Please do not discard - account information enclosed: Appearances can be deceiving. Mailers that have information about your mortgage and your lender may not be from your lender at all, but rather from another company that wants your business. Companies can legally get your information from public records. Before you respond to any offer, review it carefully to make sure you know who you’re dealing with.

You are eligible to take part in an exclusive interest rate reduction program. This financial institution has been licensed to negotiate your existing adjustable mortgage to a new fixed rate mortgage. You must contact us immediately regarding this notice. Some businesses use official-looking stamps, envelopes, forms, and references to make you think their offer is from a government agency or program. If you’re concerned about a mailing you’ve received, contact the government agency mentioned in the letter. If it’s a legitimate agency – and not one that just sounds like a government agency – you’ll find the phone number in the Blue Pages of your telephone directory.

What the Ads Don’t Say

The APR: The Annual Percentage Rate is a critical factor in comparing mortgage offers from different lenders. It is the total cost of the credit expressed as a yearly interest rate. This rate is different than the simple interest rate on your loan note, because the APR includes all costs of the credit such as points and processing fees. Knowing the APR makes it easier to compare “apples to apples” when considering mortgage offers. Look for the APR for your loan. The amount may not be in the ad at all; it may be hidden in the fine print, or it may be available deep within a website after multiple clicks.

Important Payment Information: It’s hard to know what you don’t know, and often, some of the most important information you need isn’t in the ad, is hidden in the fine print, or is available only at a website after many clicks. To make an informed judgment about any mortgage offer, you need to know – or ask:

• What will the monthly payment be for every month of the loan, and could it increase?

• When could it increase?

• What would your new payment be?

• Could your monthly payment increase more than once?

• Does the monthly payment include an escrow amount to pay for your property taxes and homeowners insurance, or must you pay these costs on your own?

• If you have to pay on your own, ask your lender for an estimate so you can budget accordingly.

• What is the term of the loan (for example, 15 years? 30 years?)? How many payments will you have to make?

• Would the loan be paid off at the end or would you still owe a “balloon” payment?

• Will you have to pay prepayment penalties to refinance and pay off the loan early? If so, how much, and when would they apply?

• If the loan has an introductory or teaser rate, can you refinance, without penalties, before the rate resets and your payment increases?

At Sell Quick For Cash Dot Com, we want to take a proactive approach to solving Arizona's housing problem. We believe that through education, homeowners can choose the right mortgage option that fits their families needs. Use our website as a tool and together we can hault the rising Foreclosure rate. We are a highly trained group of Foreclosure Specialists that understand Arizona's Foreclosure Process so if you are facing a Foreclosure auction, please feel free to call us at 602-626-3598 or visit our website at http://www.SellQuickForCash.com/ today. Each homeowner has a unique situation, and we provide free, no-obligation phone consultations to explain your options.

How Does Filling For Bankruptcy Affect Foreclosure? SellQuickForCash.com Investigates!

SellQuickForCash.com Investigates Common Questions How Bankruptcy Affects Foreclosure!

When Facing Foreclosure, it is very important you understand how bankruptcy works and we suggest you meet with a bankruptcy attorney before considering this option. Many people use bankruptcy as a scare tactic. There are several different “chapters” of bankruptcy. Some are work-out others are wipe-out, but here is the general idea. When someone files bankruptcy it’s almost like someone builds a temporary “bullet-proof” barrier around the house. No one can touch you! However, you are not free of all responsibility and most people do not understand that. We are not bankruptcy attorneys, but you need to know the difference between a Chapter 7 and a Chapter 13 bankruptcy so you know what happens. Like we mentioned earlier, some bankruptcies are “work out” others are “wipe out”. The two that we will focus on are the Chapter 7 and Chapter 13. These are the most common in your situation. Chapter 7 is the “wipe out” and Chapter 13 is the “work out”. Bankruptcy is a federal court action designed to help individuals repays their debts or eliminate their debts depending on their circumstances. Chapter 13 bankruptcies are designed to reorganize debts in an effort to repay all debt. Chapter 7 bankruptcies are geared more towards liquidation of assets. Both Chapter 7 and Chapter 13 immediately stop the foreclosure process and any creditors from taking further action against you.

How A Chapter 7 Bankruptcy Works:

When someone files a Chapter 7 bankruptcy, all assets and creditor collections are technically frozen which is called an automatic stay. The person filing bankruptcy cannot buy or sell anything, nor can they give away their property. If they try to sell their home, the court could order the receiving party to return it to the custody of the court appointed Trustee. Unsecured debts such as credit cards, unsecured loans, etc. are typically eliminated, although you should confer with your attorney on the rules regarding this. Then the trustee or attorney who represents the court and the creditors will look at all the assets (house, car, furniture, and equipment) a thing of value and decide what must be liquidated to pay some of the debt that was wiped out. The statute provides that there are some minimal assets a person filing bankruptcy may keep. If the homeowners are involved in a pending foreclosure, a Chapter 7 will stop the foreclosure process temporarily. Usually, your lender will request the court appointed Trustee to release the property from the automatic stay so they may continue with the foreclosure process. Once the property has been released from the bankruptcy, the foreclosure process starts up again.

Chapter 13 Bankruptcy Is a Little Different:

When someone files a Chapter 13, they usually keep their assets and repay their debts in a debt consolidation plan. Whatever amount is agreed upon has to be paid to the Bankruptcy Court every month for the next 3-5 years. The homeowner usually keeps their house, car, and other assets. The homeowner is required to stay current with the mortgage payments and pays the amount agreed upon. If any payments are missed, the trustee will dismiss the bankruptcy and the foreclosure process will begin again. Bankruptcy is usually a last resort and should not be used to stop foreclosure unless you have no other option or else you need the protection of a bankruptcy due to other circumstances. If you feel this may be your best option, please seek legal advice.

Bottom Line: To take advantage of this solution you should consult an experienced bankruptcy attorney. We are not in the business of giving legal advice and in no way are we bankruptcy experts. This information is deemed reliable but no guarantees or warrantees are expressed or implied!

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Some Commonly Asked Questions About Bankruptcy & Foreclosure:

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What exactly is bankruptcy?

Bankruptcy is a federal court process designed to help people eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization."

Will filing for bankruptcy protect me from creditors' efforts to collect what I owe?
When you file bankruptcy, an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?
In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.

In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own.

What might I lose if I file for bankruptcy?

• You may be able to exempt up to $17,425 of your homes equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.(this is only an estimate and to please consult a local Bankruptcy Lawyer to discuss your individual situation)

• Insurance. You usually get to keep the cash value of your policies.
  Retirement plans. Pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected in bankruptcy. So are many other retirement benefits; often, however, IRAs and Keoghs are not.

• Personal property. You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to $1,000 or so. Most states let you keep a vehicle with more than $2,400 of equity. And many states give you a "wild card" amount of money -- often $1,000 or more - that you can apply toward any property.

• Public benefits. All public benefits, such as welfare, Social Security, and unemployment insurance, are fully protected.

• Tools used on your job. You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession.

• Wages. In most states, you can protect at least 75% of wages that you have earned but not yet received.

How Creditors Can Get Around the Automatic Stay.
Usually, a creditor can get around the automatic stay by asking the bankruptcy court to remove ("lift") the stay, if it is not serving its intended purpose. For example, say you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property. The foreclosing creditor is apt to run to court soon after you file for bankruptcy, to ask for permission to proceed with the foreclosure - and that permission is likely to be granted.

Will bankruptcy stop a foreclosure?
Yes and No… A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound… it may help you at first but major surgery is still required.

Bottom Line: Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone else’s hands. Your best option is for you to stay in control, and allow SellQuickForCash.com work something out for your prior to filing.

Pros for filing Bankruptcy to Stop Foreclosure

• The Foreclosure proceedings will be temporarily suspended.
  
  

Cons for filing Bankruptcy to Stop Foreclosure

• There will be a bankruptcy on your record for 10 years.

• The Mortgage Company can work around the Bankruptcy and still Foreclose.

• You lose any leverage and control you once had.

• A deal must still be worked out with the Mortgage Company to repay the past due amount. If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure.

• SellQuickForCash.com can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.

About The Author:

WWW.SELLQUICKFORCASH.COM has a team of highly trained short sale experts who have established fantastic relationships with most banks. We will handle your short sale transaction for you giving you the peace of mind you are searching for. The short sale process is NOT a "do it yourself" project. To successfully negotiate a short sale with a bank takes an experienced and highly trained real estate agent as well as a skilled negotiator. Our advanced process is extremely organized and we conduct these short sales in the quickest time possible relieving you of the fear of foreclosure! We are Arizona’s Premier Short Sale and Foreclosure Experts!

CALL 602-626-3598

http://www.SellQuickForCash.com/shortsale.htm

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Arizona Foreclosure Experts SellQuickForCash.com Created A System To Help Local Homeowners Avoid Foreclosure!

Local Arizona Company SellQuickForCash.com Helps Homeowners Stop Foreclosure Fast!

We know what you're feeling. You've had more than your share of difficulties the last few months. The good news is that you are not alone. Sell Quick For Cash can help you Stop Foreclosure Fast!

We understand that good people sometimes need a second chance. Most foreclosures are a result of an unexpected life event, such as:

• Death In The Family
• Difficult And Costly Divorce
• Lost A Job Or Had To Change Jobs
• Health Problems With Expensive Medical Bills
• Bad Decision When Pulling Out Or Refinancing Your Old Loan

Maybe you're struggling with increased utility prices or fuel expenses or an adjustable rate mortgage (ARM) that is unbearable. Maybe you've already had to file bankruptcy or get a forbearance and the repayment plan is not working out. Maybe this is all a big mistake and the payments you've been sending were rerouted or lost because your mortgage has been sold or traded. Let us help you stop foreclosure and get back on track.

When Good People Need A Second Chance

Whatever the difficulty, we understand how it feels to choose between a mortgage payment or groceries. We understand what it's like to have continual phone calls from your lender ... calls at home, calls at work and letters in the mailbox. You need to save your home but your lender is asking for too much money. You're not asking for them to forgive the loan but you need help creating a payment plan that you can handle. You just need someone on your side to negotiate with your lender to get you back on track.

Some Solutions If Your Financial Situation Was Only Temporary

Most Mortgage Companies will consider a Loan Modification, Deferment, Forbearance or a Repayment Plan as a first option to quickly bring the loan current. Our Foreclosure Specialists will use one of those options or perhaps a combination of those or any of the options below to develop your personalized strategy to stop Foreclosure.

• Reinstatement Plan
• Repayment Plan
• Loan Modification/Loan restructuring
• Loan Refinance
• Loan Forbearance
• Partial Claim

Some Solutions If You Can No Longer Afford Your Home, But You Do Not Want A Foreclosure On Your Record

• Pre-Foreclosure Sale
• Short Sale
• Deed-in-Lieu of Foreclosure

"Make no mistake.... to Stop Foreclosure you must act quickly and decisively. Your home will be sold unless you take the correct steps to satisfy the Mortgage Company and get your loan caught up."

We understand that each situation is unique and requires a custom solution to Stop Foreclsoure from a trusted expert. The best part about dealing with us, is we are a group of trusted experts that all contribute and play an important role on your foreclosure file. So when you chose to work with us, rest assured each team member of SellQuickForCash.com will get personally involved and collectively work towards a common goal...helping you avoid foreclosure fast!

SellQuickForCash.com has the resources and team in place to handle any housing / financial situation. Our team of specialists are highly educated on Arizona's foreclosure laws as well as the foreclosure process. Short Sales (http://www.sellquickforcash.com/shortsale.htm) are our specialty and we offer a no-hassle, quick close without Realtors and the fees associated with a traditional sale. We pay cash for houses fast in the Phoenix - Metro market. We buy both nice and ugly homes and we can close within 3 days, sometimes faster or slower, depending on your financial needs. We are Arizona's #1 "Cash For Houses" homebuyer dedicated to helping families in their time of need.

http://www.SellQuickForCash.com/

INFO@SELLQUICKFORCASH.COM

602-626-3598