Tuesday 28 January 2014

Happy New Debt Free Year!

Happy New Debt Free Year!


by Darrin DeRoches
January 2 - 8, 2014
The New Year is upon us and most people are carrying debt.  Debt is part of everyone’s daily life but how we choose to deal with it could make a huge difference in the coming year.  When it comes to real estate, debt can cause you to lose your house or even stop you from ever owning a home. Depending on whom you work with and how you deal with it, you can come out ahead of debt in 2014.

    There is a new company that just started in our area whose main goal is to help you with your debt and real estate.  Hundreds if not thousands of people lose their homes to the bank and debtors every year because they do not know who to call or how to handle the situation.  Debtors force homeowners into foreclosure or power of sales but you can take control of the situation and actually come out ahead. Let me use a recent client as an example.

    The client was days away from losing his home, being put out on the streets, and owing thousands of dollars to the bank, credit card companies and debtors. Luckily he called the right person who stopped all of the phones calls and threats and not only saved him thousands of dollars, but he walked out ahead ten grand.  The bank was about to power of sale his home when this company stepped in, negotiated with the bank and his debtors and took control of the situation.  This company is not a “buy homes for cash” or “second or third mortgages”.  They are a group who is comprised of a mortgage broker, real estate broker, trustee and debt counselor.  Individually they can help you with a part of the problem but together they can solve the problem.

    The client owed more money than his home was worth and he could not keep up with his mortgage payments, credit card payments and everything else.  The debt counselor contacted all parties involved and put together a consumer proposal which enabled him to pay off the debt once the mortgage broker was able to secure a line of credit on his home.  The trustee went over the whole scenario and concluded that this can go forward once the real estate broker sold the property.  The home was sold for above market price, the debts were then paid and the homeowner walked away with ten thousand dollars in his pocket.

    Sixty days prior to this, he was looking to hand in his key to the bank, sleep on a buddy’s couch, still owe tens of thousands of dollars to his debtors, and have no credit and a bleak future.  Working with the right group made everyone happy from the bank, debtors, and credit card companies and most important, the homeowner.  If you or someone you know has a similar situation, give us a call or email and we can connect you with this group who will not only save you from what seems like an impossible situation, they will set you up for a great future – debt free!  Happy New “debt free” Year! V

    Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.