The document discusses various topics related to foreclosure, including what a foreclosure is, types of foreclosures and foreclosure scams to avoid. It also covers options for stopping or delaying foreclosure such as loan modifications, bankruptcy, and deed-in-lieu of foreclosure. The document concludes by promoting the services of Allmand & Lee, a law firm that handles bankruptcy cases and can help homeowners facing financial crises and foreclosure.

1. Secrets about Foreclosure A Foreclosure is: The legal process whereby a mortgage lender or bank repossesses a home as a result of a borrower’s default under the terms of the loan.

2. Foreclosure SCAMS to Avoid: - Rent-to-Buy Scams - Equity Skimming Scams - Phantom Help (False Counseling Scams) - Bait & Switch Scams - Fraudulent Bankruptcy Scams - Partial Interest Bankruptcy

3. Predatory Lending -“The industry-based professional practice of using a borrower’s ignorance of lending practices against them for profit.” Examples of Predatory Lending include: - Mortgage Fraud – Occurs when a borrower lies on the loan application or provides phony bank statements or pay stubs. - Subprime Loans

4. Possible Solutions to Stop Foreclosure: - Short Sale – A negotiated agreement between borrower and lender where the lender agrees to a full payoff of the loan for an amount less than owed. - Deed In Lieu of Foreclosure – Occurs when the borrower signs an agreement which transfers the title of the property to the lender. - Loan Modification – Changing one or more terms of the loan to make it more affordable for the borrower.

5. Types of Foreclosure: Judicial Foreclosure – - Foreclosure initiated when the lender files a complaint with the court in the county where the property is located, homeowner - Homeowner is served with a copy of the complaint and a date to appear in court - In court, Judge will hear from both sides and make a ruling on the case Non-Judicial Foreclosure – - Authorization of the lender to proceed with recovering property from a defaulting homeowner without going to court - Non-Judicial Foreclosures vary based on each state’s laws Texas Foreclosures – - Lenders can utilize Judicial or Non-Judicial Foreclosures

6. Who Can Foreclose? - The lender has the right to foreclose. What Happens After the Foreclosure Sale? - The borrower must vacate the premises. Is it Possible to Stall or Stop Foreclosure? - Yes, if you bring your loan payments current. - Yes, if you renegotiate a loan modification program or forbearance with the lender. - Yes, if you negotiate to trade property for the payments with the lender. - Yes, if you declare bankruptcy

7. Legal Challenges to Foreclosure: - Ownership of the Loan - Truth-In-Lending Violations - RESPA Violations - Unconscionability - Servicing Errors - Breach of Contract

8. From Foreclosure Sale to Eviction: - Formulate a plan - Carry out your plan - Redemption

9. Foreclosure Options: - Forbearance – Allows you to bring your mortgage payments current in a short period of time, typically within six months to one year. - Loan Modification – Changing the loan terms to make payments more affordable for the borrower. - Deed-In-Lieu – Allows the borrower to surrender the property to the lender without filing bankruptcy. - Short Sale – The lender will receive less than what is owed as a full payoff of the mortgage. - Temporary Indulgence – Grace period of 60 to 90 days to bring mortgage payments current. - Recasting – Recalculations of remaining interest and principal payments based on a new amortization schedule. - Filing Bankruptcy – Affords homeowners the benefit of being able to implement and carry out a plan to avoid foreclosure.

10. Types of Bankruptcy: - Chapter 7 Bankruptcy – Allows debtor to liquidate most unsecured debt. - Chapter 13 Bankruptcy – Debt consolidation plan that allows debtor to restructure debt and pay back in 3 to 5 years. - Debtor must have enough income to cover all monthly expenses and pay into a Chapter 13 plan.

11. Why Choose Allmand & Lee? - Commitment: Allmand & Lee is committed to helping families in financial crises. - Experience: Allmand & Lee handle thousands of bankruptcy cases each year. - Focus: Allmand & Lee focus on consumer bankruptcy to help families avoid financial disaster. Allmand & Lee Can Help You Find Solid Ground - Allmand & Lee is a partner, educating you and advocating for you!

12. Contact Allmand & Lee Today! - For more information on how Allmand & Lee can help resolve your financial issues call: 214-884-4176