Don’t Hesitate to Approach Your Bank to Negotiate

Real estate experts advise sellers who think they are headed toward foreclosure to get in touch with their lender. It is in these seller’s best interest to come to some sort of agreement with the lender, be it forbearance or an agreement that in some way lets you get more time to pay.

When you are afraid of losing your property, you may start to see the bank as a predator who wants to come in a rob you of your home. But what you have to remember is that banks are not real estate companies. A bank’s primary concern is money, not property. Financial institutions want to make sure that the money they lend is repaid. In these hard economic times, banks have a higher number of homes because of so many foreclosures. For this reason, a bank may be more willing to work out a deal with you. The bank may not want to have yet another home that it must find a way to sell.

You do not have to approach your lender alone, however. Get the assistance of a qualified real estate professional. If you are in Maryland and need help, send an e-mail John Day.

Trump Helps McMahon Avoid Foreclosure

A little while back I reported that Ed McMahon was one of the celebrity faces connected to the foreclosure crisis. And now I am happy to report that Ed McMahon will most likely be able to keep his home.

Donald Trump has stepped in to save the day. But he is not paying for McMahon's home outright. Instead, Trump has agrees to buy McMahon's home and lease it back to him. Although the impending deal has yet to be completely finalized, the fact that the two parties are talking about it in the press means that it is very likely to go through.

At one time, the home's estimated value was $7 million; it was recently listed for a $4.6 million price tag.

Many people out there do not have the celebrity cache to attract the attention of Donald Trump, but that does not mean you have to lose your home. Seek the advice of a qualified real estate professional. If you are facing foreclosure in Anne Arundel County, Calvert County, Charles County, or Prince George's County call John Day at 410-507-2909--he and his team are happy to help.

Condo Foreclosure

When the owner of a condominium can no longer make mortgage payments, that property can go into foreclosure just as any other property can. For condos and other properties tied to an association, one owner's loss can have a big effect on others. This is not to say that a block or neighborhood remains unaffected by foreclosure, far from it. But when a condo unit goes into foreclosure, the rest of the unit owners lose money immediately in the form of condo fees and the ability to collect special assessments.

If you live in a condo and find that a unit owner is headed towards foreclosure, be aware that the association does not automatically get ownership of the foreclosed unit. The condo association still has to come to some kind of agreement with the bank who lent the unit owner the money to purchase the condo. More often than not, the bank will be willing to accept the deed to the property to avoid going through with the foreclosure process. So the condo no longer belongs to the unit owner; the property is now in the hands of the bank until it is sold to another owner.

If you decided to buy a bank-owned condo, you should investigate whether the former owner still owed the condo association in assessments and fees.

The Save the Dream of Homeownership Event

NACA is the Neighborhood Assistance Corporation of America and the group behind the Save the Dream of Homeownership Event. It is a non-profit, HUD certified organization that assists homeowners who are at risk of losing their homes. They work with lenders and loan services to get them to lower interest rates so that at-risk homeowners can stay in their homes. Sometimes they can also negotiate a reduction in mortgage debt as well.

Starting this Saturday, July 19, 2008, you can meet with NACA advisors at a 5 day event that will be held in Washington DC and the Capital Hilton Hotel. There is no charge to meet with someone from NACA and staff will be on hand from 9am to 9pm for each of the 5 days.

NACA started in 1988 and since then has worked to make homeownership possible for many. They are committed to helping cities build strong, stable neighborhoods. NACA is also a strong advocate against predatory lending, a practice that not only harms individuals, but communities as well.

To learn more about NACA and about the Save the Dream of Homeownership Event, visit www.naca.com.

Feds Catch Up With $10M Mortgage Fraud Ring

Last week I read about how federal agents in Maryland arrested a group of people in a $10 million (or maybe more) foreclosure fraud ring. One government official referred to it as the worst mortgage fraud scam in Maryland history.

The Metropolitan Money Store promised to help people saved their homes from foreclosure, but instead they cheated people out of their homes and pocketed the profit. They allegedly told hopeful homeowners that they would find someone to buy their properties so these financially strapped homeowners could get their credit in order.

What they really did was take out overpriced mortgages on the homes. They allowed the homes to go into foreclosure by not paying on the inflated second mortgages, after they had gained money from the equity that remained in the home.

If you are afraid that you cannot pay your mortgage, seek the help of a trusted real estate professional. Someone who can help you talk to you lender, rather than taking out a second mortgage when the first mortgage is already in jeopardy.

You can always feel free to e-mail me with your mortgage concerns: john.day@longandfoster.com.

The Latest Celebrity Face of the Foreclosure Crisis

I was saddened to hear that Ed McMahon is the latest celebrity face of the foreclosure crisis. McMahon is 85 and you may remember him for his appearances on the Johnny Carson show and his time hosting "Star Search." McMahon is recovering from injuries and this hampered his ability to earn money pitching various products.

The good thing is that McMahon and his wife have taken a proactive approach to the situation. They have been in talks with their lender. This is the smart thing to do, rather than trying to take out additional loans or lines of credit.

If you are facing a similar situation because of illness or injury, be sure to get the advice of a professional. You should definitely get in contact with your lender, but don't do it all on your own. The advice of someone who is not emotionally or financially tied to your home can be invaluable. You can always contact me at 410-507-2909.

You can also seek the counsel of a HUD-approved expert. Go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 1-800-569-4287 to learn more about HUD-approved counselors.

A Foreclosed Home May Require Some Rehabilitation

Earlier, I wrote about the possibility that the disgruntled former owners of a foreclosed home may vandalize the property. Well, there are other dangers, ones that are not necessarily done on purpose or with intent to harm.

Since they are left empty with no one to perform maintenance, foreclosed homes can get into rough shape. The grass can grow long and wild. And now people are discovering that foreclosed homes are also very attractive to insects. Homes with pools or flower pots or other receptacles fir water are especially prone to become insect breeding grounds.

Also, homeowners who have to abandon their homes after foreclosure tend to leave the homes empty. This makes it an even more inviting space for insects and animals.

I mention this not to scare you, but to prepare you. If you go to look at foreclosed properties, be careful. If you decide to purchase one, you must factor in the rehabilitation that may be necessary to make the property livable again. Consult with experts to make sure that you are doing all you need to do to make the property safe.

What is Forbearance?

One of the ways to avoid foreclosure is to enter into forbearance.

If you agree to enter into forbearance, you will have to pay larger monthly payments in order to make up for the payments you missed. A typical payment under forbearance would be one and a half times the former monthly mortgage.

You will also have to make a large payment at the onset of the forbearance agreement. It is a down payment of sorts, a way of showing the lender that you are committed to keeping the property.

Forbearance does not last forever. It is a way for you to get caught up on payments and reassure the lender that the loan will be paid off. Usually, a lender will require that you make up for missing payments within 12-18 months.

For some who are already having trouble making payments, this method may not be a solution, but it has worked in certain situations. If you ran into some financial trouble, but have managed to pull yourself out of it, then forbearance may allow you to avoid foreclosure and stay in your home.

Touring Foreclosed Properties

Listening to the radio, I heard an ad for foreclosure listings. The ad promised to give you a list of great properties in your area that you could purchase at bargain prices. In other ads, I've heard them even give you examples of very low mortgage payments for houses that sound like palaces.
If you are thinking about buying a foreclosed home, these lists are one way to look for a property, but they may not be the best way.

If you want to learn about a number of foreclosed homes, consider taking a bus tour. That's right, a bus tour. If you haven't heard already, realtors are teaming up to give tours of foreclosed properties to prospective buyers. When you take one of these tours, you are not left to decipher a list of properties; instead you are actually seeing the properties themselves. And you have the added advantage to being shown around by real estate experts who can answer your questions and provide some guidance about buying a foreclosed property.

If that isn't enough, you also have the advantage of having someone else do the driving.

Foreclosure Affects the Famous, Too

If you haven’t heard, various media outlets are reporting that baseball player Jose Canseco has lost his home to foreclosure. He was quoted as saying that it didn’t make “financial sense” to keep his home, a home he most likely purchased when he was still making a baseball player’s salary. He also said that for him, foreclosure was not difficult to deal with on an emotional level.

Mr. Canseco is certainly not obligated to be a role model of any kind for the American public, so he cannot be chastised for what appear to be rather nonchalant comments about a very serious situation.

If it doesn’t make financial sense to keep your home, other arrangements can be made before it goes into foreclosure. You can talk to your lender and seek the advice of real estate professionals. You can attempt to make an arrangement to stay in your home or you can take measures, such as a short sale, to sell the property.

It is good that Mr. Canseco does not feel emotionally torn about losing his home to foreclosure, but many people cannot say the same thing. This is why it is so important to take action to prevent foreclosure because it can be very stressful.

Foreclosure Fraud, part 2

In my last post, I wrote about one method of foreclosure fraud, and now I will discuss another.

When you are facing foreclosure, you need to know that there are people who are preying on you. They find out who is likely to lose their home and they call these people offering “assistance.” Really, all they have in mind is making money off of the misfortune of others.

They dazzle distressed homeowners with promises that they will keep the home from going into foreclosure. They get homeowners to sign papers that say will save the homeowner from losing their home. These papers actually have a person selling their home to the foreclosure prevention company for a low price. The company then often will lease the home back to the homeowner at an exorbitant rent. Sometimes they will also give you the option to buy your home back from them—at a very high price, one that is much higher than the reduced price they bought it for.

Some people manage to make the high rent and stay in their home, but others cannot afford the high rent and lose their homes.

This doesn't have to happen to you. If you are facing foreclosure, contact your lender or a reputable real estate agent. Click on the title of this post to go to my website where you can contact me and learn more about foreclosure and short sales.

Foreclosure Fraud, part 1

Some of you may have heard this before, but it bears repeating: if you find yourself facing foreclosure, try to work something out with your own lender. It is tempting to think that someone more knowledgeable will swoop in and save the day and you’ll just need to sign a few papers. More often than not, those who show up to help are not in it to help you keep your home.

There are many different versions of foreclosure fraud being perpetrated against struggling homeowners, but they fall into two basic categories. The first one is one in which a company offers to negotiate on your behalf.

They step in as if they are a knight in shining armor and when a person is under the type of stress that a homeowner facing foreclosure is facing, it all sounds really good. Who wouldn’t want someone to step in a make everything better? In these instances, the “heroes” don’t help anyone but themselves. They charge an expensive, upfront fee and then fly away with a homeowner’s money. Victims of this type of fraud are left to still fend off foreclosure with much less money than they initially had.

Come back on Monday for another look at foreclosure fraud.

What is a Process Server?

Last week, I wrote about a foreclosure case that I saw in the news—a family was thoroughly demoralized and embarrassed after a process server stood outsides of their home screaming that there were going into foreclosure.

It occurred to me that many of you who have been fortunate enough not to have to go through the foreclosure process or other legal procedures might not know what a process server is. A process server is a person who has been given the task of making a personal delivery of legal papers. They do not only act in foreclosure cases, but in other legal proceeding, such as divorces.

Their job is to make sure the party in question receives the papers they need to get, but their work does not include harassing homeowners or anyone else. Yes, it is better if they can get the papers delivered sooner rather than later, so many of them need to be persistent. However, as I have already indicated, this does not give them license to be rude or uncivil.

Don't Fight Foreclosure On Your Own

Last night I saw a news segment about a family who fought foreclosure. According to the report at one point the process server stood outside of their home screaming that they were in foreclosure. This attempt to shame the family into giving in was shameless.
Please know that no matter how much you owe, you do not have to sit by and allow this type of harassment.

In this case the family says that at closing they were presented with a package that was very different from the one they were promised, but they felt pressured to sign.

The case went to court and a judge ruled in their favor, although the lender plans to fight this ruling.

The smartest thing this family did was to seek professional advice; they didn’t try to deal with the lender on their own. No matter how smart you are or how much you know about real estate, this is something you should not handle on your own. When a person is facing the loss of their home, that person is vulnerable in so many ways. You may think you are acting in your own best interest, unaware that you are not seeing the complete picture.

Prepare for the Unexpected When Buying at Auction

A few years ago the movie House of Sand and Fog, based on the book of the same name, riveted moviegoers with the story of the domino effect of tragic events following one woman’s eviction from her home.

If you are familiar with the story, you know just what I mean when I say tragic. If you don’t know the story, trust me, things take a turn for the worse.

When you decide to buy a house at auction, as one character does in the book, things to don't have to get quite so dramatic. But you should be aware that people are not always happy to leave their home. Sometimes properties that are up for auction have been neglected, or even worse, purposefully damaged.

Buyers who are looking to buy a property that is up for auction should know that the possibility of paying a low price doesn’t mean that they won’t have other related expenses. You should budget for unexpected expenses if you are looking to purchase any property, be it a auction or through conventional sale

What is a Notice of Default?

A Notice of Default is a declaration that someone has not made timely payments. In the case of mortgage lenders, a lender can put an official notice in the public record to state that payments have not been made.

The laws differ from state to state, but usually there is a number of days that a lender must wait before they can file a Notice of Default. Once the lender has let this time period pass, they can file the notice and then must wait for another specified period of time. It is during the waiting period after a Notice of Default has been issued that a borrower can make up for missed payments. If a borrower can do this, then they will be able to keep their home and the loan will no longer be in default.

Once a Notice of Default has been issued, some people refer to this a pre-foreclosure.
Nothing with the word “foreclosure” in it is cheerful, but the “pre” means that there is a chance that foreclosure can be prevented.

If you have gotten such a notice and are foreclosure you may feel defeated, but this is not the time for inaction. Work with your lender to come up with a solution and stay in your home.

Don't Wait for a Gov't Bailout

Earlier today I listened to President Bush discuss the housing situation as he addressed the nation (and the world). He did not feel that a widespread bailout was the answer to stemming the tide of foreclosures. To him, government intervention on that scale would hurt rather than help.

Whether you agree or not, the message is clear: if you are worried about foreclosure, you cannot count on the government stepping in to save you. Yes, the government is looking at how it can assist homeowners and deciding which course of action is best, but you cannot wait on them.

It is in your best interest to contact your lender or a trustworthy real estate agent now if you feel you are in danger of losing your home. They can help you decided what is the best way to proceed.

If you have been ignoring mail pertaining to your property, please open it. There is likely important information in your mail. If you have been notified of changes in your mortgage rates or been given information that affects the ownership of your home, then your lender has done their part. It is up to you to take action.

Foreclosure Prevention Companies are For Profit

If you read this blog regularly, or even if you just turn on the news or peruse the internet, you know that homeowners who are facing the threat of foreclosure are urged to get help as soon as possible.

Not only are you urged to seek help in such cases, you are also urged to be cautious about the help you seek. When things look grim, it is easy to get taken in or to go for the first thing that looks like it will bring relief.

There are companies out there that say they can prevent foreclosure, and some of them can, but you have to know that they are not doing this for free. They may charge you a fee that can be as much as 2-3 month’s mortgage payments for their services. For someone who is already in financial trouble, this is just adding insult to injury. These businesses are indeed working on your behalf and it is not wrong for them to expect payment. It is just that you don’t need the added expenses if you are trying to keep your house.

You can get the information you need by contacting your lender or a HUD-approved housing counselor. Lenders and HUD-approved counselors also want to see you keep your house, but they are not going to charge you for the assistance they provide.

Go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call 1-800-569-4287 to learn more about HUD-approved counselors.

Foreclosure Is Not the Only Option

If you are in a financial crunch, you may think that foreclosure is your only option. After all, everywhere you look, this is what people are saying—if you can’t afford your house and don’t pay, foreclosure is what happens.

If you cannot afford your home loan, get advice from trustworthy people in the real estate industry. Don’t rely on what you hear on the news or act on advice from family and friends who are not subject matter experts. The news has a story to tell in a small amount of time and can’t speak to your particular situation. Your family and friends may mean well, but they probably cannot lay out all of your options.

Sadly, if you can no longer afford your house, you may not be able to keep it, but that doesn’t mean that foreclosure is the only option. There are ways to keep things from going that route, such as:

Short sale: This is when someone sells a property at a price that is less than what they own on the mortgage.

Deed-in-lieu of foreclosure: This is when a mortgage debt is completely cancelled after a borrower transfers their property’s title to the mortgage company.

Loan assumption: This is when someone else takes over payments on a property to make the loan current.

Steer Clear of Foreclosure

Did you ever have someone tell you that you can drive a car even when the gas gauge is on “E” because “E” doesn’t really mean that there is absolutely no gas in the car? Have you ever gotten a call from one of those people because they attempted to coast on “E” and found that their car manufacturer was unaware of this rule?

Well, many homeowners are acting as if they can coast on “E” and not lose their homes. Sadly this is not the case. Nevertheless, a Freddie Mac study showed that 20% of the people surveyed didn’t think they’d lose their homes if they missed three or more mortgage payments. Just as some people will tell you that a car doesn’t register that it is on “E” because there are hidden reserves, some homeowners think thought that it would take a while for a lender to notice and act upon missed payments.

While many lenders certainly want to avoid foreclosures, this does not mean that they can ignore non-payment. If you are in danger of missing payments, contact your lender as soon as possible. Don’t wait until it is too late. There are steps you can take to avoid foreclosure if you don’t ignore the problem. I'll get into some of the options in more detail next week.

When it comes to your home loan, you are in the driver’s seat so take control and steer the course to avoid foreclosure.

Seek Help, Don't Wait for It to Find You

A woman in Virginia was swindled out of her home by a man who claimed to have been sent by God. He showed up on her doorstep to pray with her and said that he’d save her home from foreclosure. He instructed the woman to sign some papers and not knowing any better, she signed. This scam artist cheated her out of her home and reaped the benefits of this deception.

Stories like this are very upsetting. There are always people who are willing to find a way to make a profit from a bad situation. In some cases like this, the swindler is telling a partial truth. There are people who have unknowingly signed papers that did actually prevent their homes from going into foreclosure…these papers have also made some renters in their own homes and they end up paying exorbitant rent to the scam artists who now own the house. Other people sign documents they don’t understand and end up losing their homes altogether.

If you are in trouble or threatened by foreclosure, please seek the help of someone reputable. If someone knocks on your door, it is likely that they are done some digging and scouted you out, believing you to be at risk. You are much better off if you go out and get help.

You can always contact me at 410-507-2909.

Tips for Buying a Foreclosed Property

In all the conversations about the looming wave of foreclosures, there is one group of people who are not as much worried as they are hopeful: potential buyers.

Some of you out there are not profiteers or scam artists, just hardworking people who are sorry for others’ misfortune, but optimistic that you now may be able to afford the home you want.

If you are careful and do your homework, you may be able to get that home. But don’t just swoop in and grab a foreclosed property because the price is lowered.

Some foreclosed homes have been vacant for a while, so you need to know that you may have to spend some money to get the house into the condition you want.

Some disgruntled homeowners have stripped houses of appliances or damaged them because of their anger and frustration.
It may be tempting to just take your chances, but it is safer to get a professional inspection. You need to know what kind of problems or damage a home may have before you agree to make an offer.

And please don’t buy a foreclosed property without a title search. You should also get a title insurance policy. If there are liens on the property, you don’t want to be stuck with them later.

You can visit the Foreclosure section of my website to see properties that are for sale.

Strict Foreclosure

It may seem odd to see foreclosure preceded by the word “strict.” For those who have experienced it, the addition of the word strict may seem redundant. But strict foreclosure means that a homeowner has limited prospects for recovering their home. With non-judicial foreclosure, a homeowner has more opportunity to prevent their home from being taken away.

With a strict foreclosure, there is no sale. The house title transfers back to the lender. The lender can then employ a real estate agent to sell the house and the money from the sale is applied to debt still owed by the homeowner.

However, as we know homes don’t always sell for what they are worth (or what we think they are worth). In the case of strict foreclosure, if the sale does not bring in enough money to cover the debt, them the homeowner who defaulted is still responsible for the difference.

Foreclosure is to be avoided at all costs. Of the three kinds of foreclosure that I have described, this is the kind that you really do not want. With a judicial foreclosure, there is a lawsuit involved. A non-judicial foreclosure does not involve a lawsuit and a homeowner can find a way to pay what is owed or work out an agreement with the lender.

If you are facing foreclosure, call me at 410-507-2909 or write to me at john.day@longandfoster.com

You can also click on the title of this post and be directed to foreclosure information on my website.

Non-judicial Foreclosure

I discussed judicial foreclosure last week, so now I want to look at non-judicial foreclosure. As you can imagine, there is no lawsuit in a non-judicial foreclosure.

First the lender needs to put out a notice that the mortgage is in default, as well as a notice that the property will be sold.

All is not lost, however. A homeowner can save the property from being sold by paying the lender what they owe or by settling with the lender. If the homeowner and lender can reach some kind of agreement about payment terms and the lender agrees not to continue with the sale of the property, then foreclosure can be avoided.

There are various possibilities for agreement. A homeowner and lender can outline a repayment plan. A lender may agree to allow the homeowner to delay payments for a time.

Yes, foreclosures are occurring at an alarming rate, but you do not have to be part of that statistic. Do what you can to avoid foreclosure. If you are currently facing it, do what you can to work with your lender. You don’t have to face it alone, either. Don’t be afraid to seek expert help.

I am available if you have questions about foreclosure. Call 410-507-2909 or e-mail me at john.day@longandfoster.com.

You can also click on the title of this post to view foreclosure information on my website.

Judicial Foreclosure

Did you know that there is more than on kind of foreclosure?
For the next few days, I’ll be looking at the different kinds of foreclosure, so you can be better informed about the process.

A judicial foreclosure is one that involves the court system. If a homeowner defaults on a mortgage, then the lender can bring a lawsuit against the homeowner. If the homeowner does not respond to the lawsuit, the lender wins the case. If the homeowner does respond, then there is a hearing. If the judgment is in the lender’s favor, then the home goes to auction, where it will be sold to the highest bidder. The highest bidder becomes owner of the property once the court has confirmed the sale.

There is a judicial foreclosure when there is no power of sale clause in the trust/mortgage deed. The inclusion of a power of sale clause means that the lender can foreclose on the property without a lawsuit.

If you have questions about foreclosure, either because you are afraid of it, it has happened to you or you are interested in buying a foreclosed property, visit my website. You can also feel free to contact me at any time. Call 410-507-2909 or e-mail me at john.day@longandfoster.com.

Check back on Monday for more information on foreclosure.

What Is Foreclosure?

That word gets thrown around a lot, but do you know what it means?

It is when someone who has borrowed money from the bank to pay for a property missed payments. When payments are missed then the institution that lent the money for the purchase of the property can decide to foreclose the home. Missing payments means the mortgage is in default.

In plain English, if you miss payments, the bank can take your home. The bank can take possession of the property or sell it. In most cases, a bank opts to sell.

You should know that many banks can declare that you are in default after three missed mortgage payments.

Foreclosure is an unfortunate situation, but it can be avoided. If you think your financial situation has been altered to the point where you cannot make payments on your home, please consider selling before the mortgage is in default. There is no shame in selling your home under these circumstances. It is better to sell it yourself than to have the bank come in, foreclose on the property and sell it themselves.

When you need special help, I have the experience to sell or help you buy a foreclosure, bank owned property, or short sale without headaches. Many properties of this nature can be purchased at below market prices even in with current market trends.

Click on the title of this post to go to my website and learn more.

Looming Foreclosure, can it be stopped?

Foreclosure is the buzzword of 2007. It's in the newspapers, on TV, blogs, websites and everywhere you look. There are many more properties hitting the auction block on the courthouse steps all over this country than there have been in the past. There are some very hard cases and many families will find themselves on the streets.

Many banks say they have "Loss Mitigation" or "Work Out" departments to help borrowers keep their homes. Personally, I think many are so busy that they push one stack of papers onto the next and nothing gets resolved.

Recently I have tried to work with three such departments at three different lenders and have found the process frustrating. In those cases, the bank was unwilling to listen and work out the problems with the owner. I even presented a contract to a major bank, that would have netted the bank, just a few dollars short of being paid in full. They declined to work with us and let the house go to auction.

Today that house is owned by the bank and sits empty, it's not been re marketed and the family has lost their home. If they had taken an offer I presented them, the bank would have gotten their money and I could have helped the family prevent a foreclosure from showing up on their credit history.

Today, I met with another family who feels that foreclosure will be inevitable, unless the bank is willing to work with them. I am going to report the progress or lack thereof during the upcoming weeks and months on this Blog. This client is not behind in their loan today but have informed the lender that they are unable to continue paying and certainly won't be able to pay once the adjustable rate mortgage increases next year. So far the bank has not listened to them. Next week, I will call the lender and start on a long journey of trying to save a home for a friend or produce a buyer for the home to save the family from foreclosure or bankruptcy.

If you are facing problems paying your mortgage there are things you can do to help yourself before things get out of hand.

Communicate with your lender. Let the lender know that you are having problems, ask them to help you with alternatives. Ask the lender if there is a way to reduce the payment without penalty. Ask them for suggestions that may help you reduce costs in other areas of your life so you can pay them. I assure you of one thing, the problem will not resolve itself.

Invite a professional who has experience with quick sales, foreclosures and situations like yours and get advice. Be careful, there are many, many people that say they want to help but are not trustworthy.

Research is important. Contact a legitimate credit counseling agency and ask for help. Be honest about all your finances, don't agree to pay them a fee until you fully understand what you get and what they promise to produce.

Involve trustworthy professionals to assist you. Your options are many. There are short sales, re-financing options, sale in lieu of foreclosure, restructuring of debt and bankruptcy.

Don't give up, fight to keep your house and understand your options and don't delay. Many people wait too long before talking with the lender to resolve the issues.
If the lender who holds the loans with my current client is unwilling to work with us, I am going to suggest to my client that we involve the media. We are going to be proactive and try to find a solution. If the lender is unwilling to communicate with us or work with us to solve a problem, the lender will read about itself in the media and hopefully you will follow this with me.

Please email me if you have had an unsuccessful experience with a lender regarding your home. I would love to listen to the story. As always, feel free to contact me regarding real estate questions.