How to Avoid Foreclosure Blunders

By cfreedom in Blogroll, Uncategorized, foreclosure, mortgage help, real estate

Dec

When homeowners find themselves faced with a Foreclosure, mistakes are made that can cost them precious time. During a Foreclosure, time is the most valuable asset. If a homeowner acts in time they can prevent or stop their Foreclosure. In a recent article written by Tami Luhby, a reporter for Newsday, Tami wrote:

“Some people worry the bank will immediately foreclose, while others think their lender won’t notice, experts said. Many don’t want to admit to themselves–or others–that they can’t handle their bills. In fact, this is the worst thing a distressed homeowner can do. Not only are you increasing the risk of Foreclosure, but you could wind up owing thousands of dollars in interest, penalties and legal fees, experts said.”

The best thing to do is explore your options. Homeowners that are facing Foreclosure typically fall into two general classifications. Either the homeowner is looking to stay in the home and is ready to negotiate with the lender for a solution or the homeowner is looking to sell. Now, in either category a homeowner needs to find a professional or Foreclosure specialist that can assist them.

Obviously if a homeowner is looking to sell they need to get the house sold as quickly as possible. My recommendation has always been that they should consult a real estate agent or an investor and explore their options for the home that is in some stage of Foreclosure or preforeclosure. There are many different ways to approach the selling of this home depending on a few variables such as time, financial position, state and equity. Depending on where the home is in the Foreclosure stage, the options may be limited. However there are still options. In addition, you want to have someone that is working for you and not just his or her personal gain on the deal.

Now, for a homeowner that is facing Foreclosure and wants to stay in their home it is very important that, once again, they act as quickly as possible. Most homeowners, depending of course on the exact situation, don’t need to have money saved up to simply become proactive and seek help. The first key is to explore what options are available to the homeowner given their exact situation.

Many people debate about what options should be utilized. Obviously an investor is going to tell you that your best option is to sell. A private lender is going to tell you that a Foreclosure bail out type loan may be your only option. An attorney will tell you that bankruptcy is your best option.

Keep in mind that from their perspective those are the best options. Not only does it get you out of the Foreclosure, but also it pays them handsomely as well. This is what I want to point out. If you file a bankruptcy it will remain on your credit for 7 to 10 years, and it will negatively affect all aspects of your life. Take heed when considering each option and weigh the consequences as well as the benefits. Depending on your financial situation a Foreclosure bail out loan could be an option.

In past experiences, working in the Foreclosure industry, there have been homeowners that only qualified for a Foreclosure bail out type loan. In these circumstances, it was their only option aside from losing their home. With our company, we will not approve you for loss mitigation or any other option unless the finances are stable enough to support the payment.

Another option is negotiating directly with a lender when dealing with a Foreclosure. Now certainly, as many will tell you, homeowners can negotiate themselves. However, I can also tell you, from professional experience in this industry, that the lender, most times, won’t offer a homeowner as feasible a deal as they will someone who negotiates for a living and someone who knows all the programs available for a homeowner and deals with these particular lenders on a daily basis.

Whether to attempt this yourself or put your home in the hands of professionals is a point you will hear argued a lot and mostly by people in the fields I have listed above. Let me point out the most obvious problems with negotiating with the lender yourself.

Problem 1: Most lenders use scare tactics when making contact with the homeowner. Usually, when in Foreclosure, the first person the homeowner hears from is the lender’s collection department or a collection agency. This seemingly pushy and unsympathetic individual on the end of the other line is earning commissions for how much they collect upfront. They are not interested in your personal situation; they are interested in how big their paycheck will be.

Problem 2: If you do get passed this person and in the hands of someone who can work with you more liberally, they are still not concerned with your personal situation. Keep in mind that Foreclosure is a common occurrence these days. The person you are talking to at this point in the game has seen hundreds of cases just like yours and has developed a lack of empathy and understanding.

Problem 3: The most important factor is the homeowners experience in negotiating. Let me ask a simple question. Would you rather negotiate to save your home yourself, without any prior experience in this situation, or would you feel more comfortable putting your future and your most valuable asset in the hands of someone who is a trained professional and has an impressive track record.

With the right professional working for the homeowner, these professionals are using a combination of the individual’s hardship, financial situation and their experience in the field of foreclosures. In addition to choosing someone who has extensive experience in the Foreclosure industry, a homeowner also wants someone that has a variety of options for them should they not qualify for loss mitigation.

Bottom line, the homeowner would do themselves a great justice by finding a company that will truly work for them and their best options given their financial position and situation. If you find a company please do yourself a service and check with the BBB by going to http://www.bbb.org/. You can search by company name and then do an additional search using google or yahoo. Some of these companies popping up are forming multiple companies to escape their tarnished BBB record and/or history. Do your research before making a decision but act fast for your sake. Foreclosure can be a scarey thing but you don’t have to go it alone.

Now in all fairness I do work with a Foreclosure prevention company as an Independent Certified loss mitigation Consultant. Not only does this company have a high ethical standard and squeaky-clean record but also their support and compassion are second to none, both for the homeowner and the loss mitigation Consultants in the field. If you are facing a Foreclosure situation please visit us today at http://www.cfreedomforeclosure.com/ and take advantage of our free no obligation application to find out if you qualify. We are here to help! One of our consultants will call you within 24 hours.

If you are interested in starting an exciting career in the Foreclosure industry than you have found the right company. All you need is a strong desire to help homeowners and the will to succeed. We are looking for qualified individuals that don’t mind working nationwide from home to help stop the Foreclosure epidemic and ultimately save “The American Dream”. You can certainly do your due diligence and research on our company as well. If you are interested please visit my website at http://www.cfreedom.net/ and I will contact you within 24 hours. Mostly remember to explore all your options. If someone tells you that you have only one option than I would question their motives.

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