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.

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.

Copyright © 2007 Creative Freedom, Inc. You may reprint this article providing that this copyright notice and resource links all remain intact.

With over 1 million foreclosures this year the forecast for next year’s Foreclosure epidemic is dismal to say the least. 

In a recent article, written by Jamie Smith Hopkins of the Baltimore Sun, he reports that ”The Center for Responsible Lending, a nonprofit critic of predatory lending, predicts that 19 percent of subprime loans made to Americans in the past two years for primary residences will eventually end in Foreclosure and home loss, affecting 2.2 million households.”

Let’s talk about what kickstarted our Foreclosure spiral to begin with. 

• Job Loss Across America 

With more and more U.S. jobs being outsourced to other countries our economy is slowly feeling the pinch.  Americans are losing jobs left and right having to take pay cuts or stand in unemployment lines.  We are seeing an increasing need for both parents to work outside the home.  In addition, many americans are having to accept lower salaries and pay because of the surplus in available workers.  Whether in the professional field, service field or a laborer many are suffering. 

• ARM Loans

Another reason for the sudden rise in foreclosures was the popularity of the ARM loans. Now with interest rates rising this past year homeowners are experiencing increasing mortgage payments by as much as 50% each month.  Even if the homeowner’s income is staying the same, which is not the case across the board, homeowners are finding it difficult to make that monthly mortgage payment.  Once a homeowner has fallen behind it can be very difficult to pick up the pieces and move on.  It is possible that rates may rise as high as they were in the 80’s when we saw double digit interest rates.

• Predatory Lending

Another problem that is adding to the Foreclosure problem in America is predatory lending.  With the ever increasing popularity of interest only loans and stated income loans homeowners are finding themselves in a financial situation that they were not properly prepared for.  In addition, many loan officers were falsifying documents to get loans approved.  Americans that wouldn’t otherwise have qualified, are being approved for loan types that their income just can’t support.

Where does this leave America?  In a Foreclosure nightmare!  To add to the American peoples heartache of facing Foreclosure we are seeing more and more scams and wrong doings on the part of some real estate and mortgage professionals.  Some investors are approaching homeowners that are facing a Foreclosure and leading them to believe that they don’t have any other option but to sell.  Most times this is not the case.  Homeowners have options and can find an ethical and reputable loss mitigation or Foreclosure Prevention company to help them in this time of frustration and financial trouble.  Foreclosure is a scary time.  The last thing Americans need is to be taken advantage of by fellow Americans. 

The best thing a homeowner can do when facing a Foreclosure or preforeclosure situation is to do their homework.  Remember, you had a professional help buy your home.  Find a professional to save your home.  Do your research first and check around.  You can find someone through a friend, check with the better business bureau and check for complaints on the internet from other homeowners.  Make sure you have exhausted all your options before letting go of your “American Dream”.  We work hard to buy our homes and give our families something to be proud of.  Work hard to keep it.  Foreclosure doesn’t have to be so scary and you don’t have to go it alone.  Find someone that can help.

With the number of foreclosures estimated to be in the 2 million range for 2007 it’s time for homeowners to educate themselves on their options.  Determine who will benefit more from a transaction dealing with your Foreclosure.  If an investor wants to buy your home but you are able to resume your payments and have a little saved up towards your arrearages THINK twice.  It is very possible you would qualify for loss mitigation where a company will negotiate with your lender directly on your behalf.  You deserve to have someone fighting for what’s best for you!