How to Protect you and your Family from the Effects of Foreclosure

Okay, the mortgage on your house has become unbearable. It really doesn't matter why. The fact is that your lender is only interested in one thing: getting their money back for their loan. So if you aren't able to pay it back, they will call over and over and harass you until you pay them or until they foreclose and evict you and your family.

Neither one of those options are pleasant.

So here's what to do:

First, contact someone who is credible in the foreclosure prevention industry. This make require you to make a few phone calls because some people are not going to be a good fit for you. You'll want to establish a level of trust with them so you can FEEL better about the process from the beginning.

Why do I say contact them first?

Because no one offers "How to Avoid Foreclosure Training," right? I mean, when you sat down to sign your mortgage docs, did anyone tell you, "Sir/Ma'am, if things start to get difficult, here are your options."

I think not.

So you'll want to contact a professional who knows the industry, knows the intimidating tactics that banks, lenders and attorneys use to manipulate you, so you can be protected.

Here is an overview of what options you have:

1. Do nothing- this is a good option if the foreclosure doesn't bother you and you aren't concerned about losing your home to an auction and possibly being evicted.

2. Refinance- if you have equity in your home, and your credit rating is good, you may be able to refinance. Of course, you'll need at least 20% of equity in your home and refinancing will cause your mortgage payment to go up. If the payment goes up, that only makes it more difficult to pay, right?

3. Deed In Lieu- this is basically when you give your home away to the lender, without the foreclosure. Why would a lender want to do this? Well, the foreclosure process costs thousands and thousands of dollars. If you are willing to simply give them the deed to your home, you save them a lot of money. Good deal for them, not so good for you.

4. Bankruptcy- okay, the MYTH about bankruptcy revealed- Bankruptcy will NOT stop a foreclosure. Here's the deal: a bankruptcy will STALL a foreclosure by postponing the auction temporarily. But, after you file the BK, the lender will file a "motion of stay" with your state and be granted permission to continue with the foreclosure. So, in essence, you file, bankruptcy, stall the auction, and then get foreclosed on anyway. Again, good deal for the bankruptcy attorney, not so good for you.
Note: there are some situations when filing a bankruptcy may make sense, in order to buy you some time. However, it does make the process of finally ending the foreclosure a LOT more difficult. Consult your foreclosure prevention specialist to find out for sure.

5. Sell with a Realtor- this may work, if you have enough equity in your home and enough time to find a buyer. Here are a couple things to keep in mind:
first, you'll have to pay 6% of the sale price of the home to your realtor. Again, if you have the equity to spare, this might be okay.
The other thing to keep in mind is this: it is taking a really long time for houses to sell in this soft real estate market. If you are working with a deadline of a foreclosure date, this could only add more stress as the date approaches with no buyer in sight.

6. Utilize a foreclosure prevention company to put an end to the situation now- this option works well if you want the stress to be over and to get on with your life. If you want a fresh start and want a professional in your corner to handle the negotiations with your lender, the attorneys and even possible buyers. You can even get out of the loan if you owe more than the house is worth.

This is called a short sale and allows you to sell your house, get out from under the loan, and move on without having to pay thousands and thousands of dollars to make up the difference.

What do you want to do to end this unfortunate situation for you and your family right now?

Do you have more questions?

Would life be better if you were out from underneath your mortgage payment?

There are literally millions of homeowners who are facing the threat of foreclosure. Some of them we will help. Some will do nothing. Some will get help elsewhere. In any case, you now know that you don't have to do nothing.

You do have options.

You can protect you and your family.