EQUITY RECOUPMENT PROGRAM
The market has changed. From 2000 to 2006, anyone that came into our office seeking bankruptcy help but owning real estate, generally was advised not to file for bankruptcy protection. This was because they almost always had too much equity in their property and would lose it should they file. So instead, a refinance was in order, money was then pulled out, and the personal debt was traded for a higher mortgage. However, this only worked in an appreciating real estate market where money was still available for loans.
Times are much different now. For the past several years, money is no longer available by lenders for a refinances. Many lenders themselves now have filed for Bankruptcy. Interest rates have increased. Many people have exploding option adjustable rate mortgages where payments nearly double after 2 to 5 years. Home values overall continue to depreciate despite the small blips, and it is now the “Perfect Storm” for real estate bankruptcies.
Nowadays, more than 70% of our bankruptcy clients have real estate and many of them are letting their homes go. In most cases its not their fault! They are victims of the housing bubble and predatory lending. Many of these loans were Illegal! So generally the best option for the homeowner is either a short sale, loan modification, lien strip, or equity recoupment program.
A surrender is usually the last alternative for someone that really wants to keep their home and first alternative to someone that doesn’t want their home. This is primarily because the home that might be costing $4000 per month (first mortgage, second mortgage, HOA, taxes, insurance, etc) can easily be rented for $2000. Its a no brainer. Why keep a home when you can rent the same home in your neighborhood paying 1/2 the money, which has little if no equity, which has an interest rate that is only going up, and which is generally a maintenance and upkeep money pit?
The Equity Recoupment program allows our clients to recoup what they may have lost as a result of predatory lending and the current mortgage crisis. Strategically, by using a combination of Bankruptcy, State, and Federal consumer protection laws, Doan Law Firm has developed and pioneered a program that allows homeowners to legally remain in their home for 8-18 months or even years after ending mortgage payments! Though it may sound to good to be true, the program is rooted in both California and Federal consumer protection statutes, and often in response to illegal shortcuts lenders take in the foreclosure process.
Many homeowners are not aware of the vast state and federal laws that have been created over the last 20 years to address the very issues we are facing today with widespread foreclosures and predatory lending. For example if your monthly payment is $3,000 per month, in 8 months you will recoup $24,000, and in 18 months that is $56,000. Your recoupment will continue to grow the longer we are able to keep you in your home. Of course during that time, the lender is prohibited from having any communications with you and they may only communicate with Doan Law Firm. This is all totally legal and the lenders know this!
Moreover, our after bankruptcy credit repair program then prepares our clients for the purchase of a new home once the market changes. Bankruptcy attorney Michael Doan is also a Mortgage Broker and works hand in hand with the Shafran Group and iMortgage to put them back in a new home in the future.
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PURSUANT TO THE NEW LAWS, WE MUST DISCLOSE THAT WE ARE A DESIGNATED DEBT RELIEF AGENCY UNDER 11 U.S.C. ß528. WE HAVE SUCCESSFULLY ASSISTED TENS OF THOUSANDS OF SOUTHERN CALIFORNIANS IN FILING BANKRUPTCY, DISCHARGING BILLIONS OF DOLLARS, AND WILL CONTINUE TO DO SO UNDER THE LAWS.