Baltimore HUD Homes Blog

That Will Cost You BIG!

We are going to briefly address 4 misconceptions about Bank REO Bank Foreclosure - REO that can cost you thousands.

Misconception #1 Bankruptcy Will Stop Or Avoid Bank Foreclosure - REO.

This is a big one. Bankruptcy, whether chapter 7 or 13, will NOT prevent a Bank REO Bank Foreclosure - REO. What it will do is delay it for a time. As soon as a homeowner files BK, the lender(s) are held at bay by an “automatic stay?. The lender immediately requests a relief from stay, and as soon as it is granted they will complete the Bank REO Bank Foreclosure - REO.

Misconception #2 Bank Foreclosure - REO Is No Worse Than Bankruptcy On Credit.
Bank Foreclosure - REO is worse than BK on credit. It is the worst possible indicator of risk to a potential future creditor. In some cases, after filing BK, you can be re-established in 12 months. However, Bank REO Bank Foreclosure - REO will give you a very hard time for years. This also trickles down into other areas of your life, such as rate adjustments on auto insurance, credit cards, even employment review can be affected.

Misconception #3 Deed-in-lieu Of Bank Foreclosure - REO Is a Godsend.
Not really. It is only slightly better on a credit report than Bank REO Bank Foreclosure - REO. There are some potential nasty surprises with a deed-in-lieu that most people don?t know about if the document isn?t prepared properly in the homeowner?s favor. This should be a plan Y (plan Z being Bank REO Bank Foreclosure - REO) and handled correctly.

Misconception #4 After The Bank Foreclosure - REO, It?s All Done.
Wrong! In some states, the lender has the right to pursue deficiency judgment against the borrower if the sale of the property does not recoup the lenders investment. This may include junior lienholders as well. There are also possible tax implications that are complex and beyond the scope of this article

The bottom line is to completely avoid Bank REO Bank Foreclosure - REO. This may mean keeping your house with proper arrangements being made with the lender if your financial situation has changed for the better. However, if your financial situation has not changed you may need to sell to avoid Bank REO Bank Foreclosure - REO. This may enable you to better protect your future. Either way, seek competent help.

Greg Picone is the President of Ideal Homes, LLC, a company that specializes in helping folks out of Bank REO Bank Foreclosure - REO even with little or no equity. You can visit their website at http://www.solvedquick.com