| Millions of people are struggling to pay their | | | | default. I have seen a number of people repair |
| mortgage. The huge amount of inventory on the | | | | their credit if the credit doesn't have a foreclosure |
| market, rising unemployment rates, and declining | | | | or bankruptcy on it. You can too. |
| house prices are creating a mess for the average | | | | Maybe you need a friend to help you prevent |
| home owner to sell their property. What do they | | | | foreclosure. |
| do? Go into foreclosure? What does one do to | | | | There are steps that need to be taken and |
| prevent foreclosure? There are a number of | | | | maybe some hand holding will get you through |
| options available to the seller to prevent | | | | this horrible nightmare. |
| foreclosure, but most may not work. It is best to | | | | Here are some ideas on what to do, even if you |
| get educated on the options and figure out what | | | | want to sell your house and try to get above |
| works best for the homeowner. | | | | ground again. |
| The first step to preventing foreclosure is to not | | | | |
| give up. So many of the sellers that I talk with | | | | 1. Contact your lender immediately. Explain the |
| are so emotionally drained that they do not want | | | | situation to them. They may be willing to do a |
| to deal with anything else that may put more | | | | forbearance. This means that with an agreement |
| pressure or stress on them or their family. Most | | | | with your mortgage lender, you maybe be able to |
| sellers will admit that by the time their house is in | | | | pay some of your regular mortgage payment, or |
| foreclosure, they have already been struggling | | | | no payment at all for a certain amount of time. |
| with debt for a very long time. The savings | | | | At the end of that period, you have to make |
| account is gone. The checking account is gone. | | | | regular payments along with additional monies to |
| The credit cards are maxed out. Eventually, | | | | pay off the past due amount. This buys you time |
| payments cease on one of the above. | | | | to figure out how to make this work before |
| The homeowner is desperate. If they have good | | | | losing your home. |
| friends or families that aren't being burdened by | | | | 2. Repayment Plan- Your mortgage company |
| the current economic crisis, they borrow money | | | | may allow you to catch up by scheduling certain |
| not having any idea how to pay them back. They | | | | payments for the overdue months. |
| lie away at night not knowing how to resolve this | | | | 3. Mortgages owned by Fannie Mae, have a plan |
| problem. They are scared. Their whole sense of | | | | where you may be able to get an unsecured |
| self is robbed from them. They feel like a failure | | | | personal loan to help you get current with your |
| and experience all sorts of emotions, but mostly | | | | house payments. But, how will you pay it back? |
| depression or anger. | | | | 4. Try to sell your house by listing it. You do not |
| They are ready to give up and go into | | | | have to pay a commission if the agent doesn't sell |
| foreclosure, just so the problem will go away. | | | | it. If you sell it, you had better had it in writing |
| They know their credit is already ruined, so what | | | | that the agent doesn't get a commission if you |
| does a foreclosure matter? It matters a lot. Can | | | | sell it. I would advise pricing it as cheaply as |
| you think back to a time when you were so | | | | possible to get it sold quickly. |
| angry about a situation, and instead of walking | | | | 5. Short Sale-If you are not able to sell it for |
| away, you just let the person have it. You | | | | what is owed on it, since the prices have |
| probably said things you would not have normally | | | | dropped, you may be able to get the back to |
| said, had you been in a better mindset. It is a | | | | agree to accept a certain amount that is lower |
| fact...as emotion goes up, intelligent goes way | | | | than what you owe on it. Do not list it at a price |
| down. The same rings true for a homeowner that | | | | lower than your house debt, if you have not |
| is struggling. They are in such a bad position, that | | | | gotten a lender to agree to this price, in writing. |
| they cannot think clearly. The only thing they | | | | You must disclose this information in your listing. |
| want is for their situation to just go away. The | | | | 6. Sell your house and move into something more |
| financial problems begin to take a toll on | | | | affordable. I know it is going to be hard to move |
| relationships, and the seller begins to feel all alone. | | | | on, but if peace of mind is what you want, stop |
| Why wouldn't they give up? How easy would it | | | | struggling with this debt. Try to eliminate it and |
| be to walk away? | | | | rebuild your life. This is much easier than it sounds, |
| I understand why this method seems so | | | | but what choice do you have? If you get |
| attractive, but I caution our distressed | | | | foreclosed on, you will be forced to do it. Do it |
| homeowner. Right now your credit may not seem | | | | now, on your terms. |
| valuable. Your relationships, health and peace of | | | | 7. If all else fails, you can sell the property to an |
| mind really want you to go into foreclosure, | | | | investor. The advantage is they can normally |
| forget preventing foreclosure, and still struggling. | | | | close fast, accept the property as-is, and give |
| But, what happens down the road, once you are | | | | you a fair price. But, do not wait until the last |
| in a better spot? It is impossible for you to think | | | | minute to contact them. Give yourself as much |
| intelligently when you are struggling. I ask you to | | | | time as possible. |
| have faith, and take the action today to prevent | | | | 8. Accept the truth. Sellers are not getting more |
| the foreclosure. You may ask why...I will tell you | | | | than their house is worth. Try to price it as low |
| why. | | | | as you can, and let it go. You will feel better later, |
| One day when this storm passes, you may | | | | once this monkey is off of your back. It may not |
| regret letting your house go into foreclosure. A | | | | seem like you have choices, but you do. It won't |
| foreclosure on your record looks a lot worse than | | | | be easy taking new steps, but it will help you |
| late payments or non-payments on other items. | | | | change the direction of your life. |
| Credit card debt, auto debt, and medical bills and a | | | | Prevent foreclosure, do not give up. One day, |
| host of other types can be negotiated for a | | | | when the dust settles and you have income again, |
| fraction of what is owed on them. Creditors know | | | | you may regret letting it go into foreclosure. |
| that usually the house payment is the last to | | | | Good luck to you! |