I'm Not a Traditional Sales Person. . .

When I say "traditional", a good word picture is "Taxi Driver" - have you ever been in a cab? Then you know it has its own unique experience. Usually you go for the ride, pay, get out and you never see the cab driver again.

I'm a By Referral Only consultant who is more like a limousine service. That means that while most service providers, like taxi drivers, spend 80 to 90 perfect of their time looking for new clients, I spend most of my time working with clients who were referred to me.

What can I do if I am behind on my mortgage?

1. SHORT SALE:     This means that you sell your home for less than you owe. Because of the changes that have taken place in our local real estate market, it is not uncommon for people to be over leveraged on their homes and owe a substantial amount more to the bank than the home is worth. The foreclosure process can cost the bank as much as $80,00 to $100,000.  With such a substantial cost the bank is most often willing to work with you yo get your home sold for less than owed.  It is fairly a fairly extensive process and generally takes up to 60 to 90 days to get through and avoid foreclosure. All the cost associated with selling the home are paid by the bank. This includes real estate comissions and title fees. 

2. LOAN MODIFICATION:    This process is similiar to a short sale.  The bank and the government have many programs that are out there to modify the current terms of the loan and allow you to keep your home. Generally you need to be behind on the mortgage for htem to consider looking at modifying the loan. There are many modification companies out there, so be very cautious ot who you choose. You can negotiate a modification on your own, however working with a third party the success rate of actually modifying the terms of the loan are much higher. Many people are concerned about their credit and how it will be affected. If you are not behind on your payments it is unlikely to affect your credit, generally it will look like a refinance.  If you are behind , a modification will not remove the derogatory reportings, but can reduce you monthly payments.

3. Here are 10 tips to AVOID FORECLOSURE:

      1. Do Not Ignore the Problem: The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.

     2. Contact your lender as soon as you realize that you have a problem: Lenders do not want your house.  They have options to help borrowers through difficult financial times.

     3. Open and respond to all mail from your lender: The first notices you receive will offer good information about foreclosure prevention options. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

     4. Know your mortgage rights: Find your loan documents and read them so you know what your lender may do if you can not make your payments. Learn about the foreclosure laws and time frames in your state (as every state is different) by contacting the State Government Housing Office.

     5. Understand foreclosure prevention options: Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet. 

     6. Contact a HUD-approved housing counselor: The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and you options, organize your finances and represent you in negotiations with your lender if you need this assistance.

     7. Prioritize your spending: After health care, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses like cable TV, memberships, entertainment, etc. that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

     8. Use your assets: Do you have assets like a second car, jewelery, a whole life insurance policy, etc. that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

     9. Avoid foreclosure prevention companies: You do not need to pay fees for foreclosure prevention help. Use that money to pay the mortgage instead.  Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two to three months mortgage payment) for information and services your lender could provide.

     10. Don't lose your house to foreclosure recovery scams: If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home.  Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney or a trusted real estate professional.