Special Report:

9 WAYS TO STOP FORECLOSURE
THE BANKS WON’T TELL YOU ABOUT

Here is your opportunity to take control of your financial future. Before we discuss the 9 ways to stop foreclosure, let’s review some very important points to keep in mind.

It’s unfortunate and yet often a fact of life.  Bad luck and hard financial times happen to ALL of us at some time or another. Personal changes and unexpected situations for which you have no control occur are often negative factors in your financial health. All too often, the word FORECLOSURE is thrown at you and most people don’t know what to do next.

Believe it or not, most people stick their heads in the sand and HOPE the situation goes away. But it won’t, leaving you potentially with no home, no cash and no credit.

Lets get started…

Special Tips

Smart Tip

Whenever we mention something we believe to be a crucial or vital positive step to your success, we have marked it with this Smart Tip Icon. When you see this icon, take the time to review the tip beside it and then…take action and put this advice to work.

IMPORTANT DISCLAIMER:

We have compiled this report as a consumer service. However, it is provided strictly as a courtesy and general information, and you should always seek out of the advice of an appropriate and competent professional. It is essential that you ensure you are fully protected at all times. We strongly encourage you to seek professional assistance, and not to rely solely on any information included in this document.

The 4 Barriers You Need to Consider

When we see people go into foreclosure and lose their home, it is usually because they have failed to recognized one of these 4 major problems in dealing with foreclosure.

A Foreclosure Will Not Go Away.

Hoping and praying that some good fortune will come along, but not doing anything to improve the situation, is only going to make a foreclosure worse in the long run. When a property initially goes into foreclosure, there are many options available. However, as the process continues, many of the options disappear and homeowners are left with no choice but to lose their home, and their equity, to the bank. To take advantage of as many alternatives as possible, it is essential to act quickly to solve the problem.

Smart Tip

”It is a good idea to have an attorney review the foreclosure file immediately before making any decisions about how to handle your foreclosure. Call your lawyer immediately!”

It’s Time To Face Facts About Your Banker.

Financial difficulty is understandably an emotionally draining experience. However, the fact remains that the bank will take your home as quickly as the law allows. The banks are in business to lend money and make money. They do not make money by giving you a “break” or allowing you extra time to pay. It’s nothing personal – just business.

If you are not making your payments, they have no interest in helping you. They want their money, and will take every step within their rights to recover their losses…including taking your house if necessary. In addition, your credit rating will be damaged significantly, and it may be many years before you can get credit again.

Even if you already have credit problems, foreclosure will make your credit much worse. If you don’t take immediate action, no company will have the confidence in you to lend you money. If you act now, your credit may be saved. The fact is a foreclosure is one of the most serious infractions that can appear on your credit report. Don’t say “My credit is already bad” and think that it cannot get worse. It can, and it will.

Your lender is rewarded on the performance of their loans. They are in the risk avoidance business. If any history of non-payment exists, it will be extremely difficult to get any future loans.

Smart Tip

”As hard as it may be, it is in your best interest to call your bank and talk with them immediately. Open up the lines of communication if you have not done so. Ignoring your lender will only make it easier and provide them more reason to work harder at putting more pressure on you!”

Act Logically, Not Emotionally.

Questions like, “My credit is bad…can I refinance?”, “My lender has started the foreclosure process…am I too late?” and “I can’t afford my current payment…is there any way I can lower it?” and so on create anger, frustration and denial. However, it is essential that you think logically, and consider all your options with the right information.

Smart Tip

”Homeowners whose emotions dictate their decisions make the biggest mistakes. Act logically when considering your actions! Talk with people you trust and who have the knowledge you need to deal with the problem. It is very difficult to stop foreclosure by yourself.”

Time Is Your Worst Enemy.

With each day that passes, you move closer to losing your home. Time is working against you right now, and every day that passes. By acting quickly to solve your financial crisis, you give yourself many different options. But the longer you wait, the fewer options you have … until you are left with no options, no home, and no money.

Smart Tip

”We can only guarantee you one thing – if you do not take any action, we guarantee you will lose your home. Procrastination is not wise at this stage … action is!”

SO LET’S GET STARTED

Now, let’s consider where you are right now. Answer the following questions based on your current financial situation. Remember, no one will see your answers, so be honest when answering in order to fix your financial crisis and solve your foreclosure problem.

STOP FORECLOSURE CHECKLIST

(1) Is my credit good enough to refinance?	Yes	No
(2) Do I know anyone I can quickly borrow money from?	Yes	No
(3) Do I have assets that I can sell quickly?	Yes	No
(4) Do I have a lot equity in my home? (i.e.: more than $20K)	Yes	No

It is important to consider your answers very carefully. If you answered “Yes” to one or more of the questions, you may have more options to consider.

If you answered “No” to all of these questions, don’t worry! There are still options that may work for you… but you need to get started immediately!

9 WAYS TO STOP FORECLOSURE

REMEMBER – This information cannot help you if you do not put it to use!

1. Refinance with another bank.

The first option you may have is to go to another bank and get a new mortgage that pays off the existing one. Unfortunately, once in foreclosure, many banks will not want to lend money to pay off a mortgage in arrears because of an inability to meet current mortgage obligations. This option requires very strong credit and significant equity in the home and is more realistic if it is taken before a foreclosure is filed. Once the foreclosure is underway, other mortgage companies can see the legal proceedings on the property’s title, which may deter them from refinancing with you.

We highly recommend you seek a mortgage specialist. A good mortgage broker has direct contact with many lenders and provided your credit hasn’t been entirely destroyed, may very well be able to get started over again.

Should you qualify for refinancing, keep in mind the following key elements:

· The interest rate – is it reasonable and fair, given what is going on in the market?

· The term – are you going to lock in a rate, or should you choose a variable rate?

· The payment schedule – what suits your budget and financial abilities best?

All of this may sound complicated, but don’t worry! Once you have someone willing to take the time to explain it to you, it’s quite simple. By evaluating what you can afford BEFORE you re-finance, you can reduce the chances of winding up in foreclosure again.

In many instances, re-structuring your payments can reduce your monthly payments. Adding as little as $20 to your payment will also pay down your mortgage faster. However, refinancing to a greater interest rate can greatly reduce your ability to keep up with your monthly financial obligations. Once again, consider the short and long term consequences of every aspect of your refinancing decisions.

Smart Tip

”Never, ever pay any kind of upfront charge or application fee for a mortgage or home loan application! Legitimate lenders do not charge fees to tell you whether they can help you.”

2. Borrow from friends or family.

If you can borrow money quickly, you can use the money to pay off the arrears on your loan. This can be a good alternative because you won’t have to endure all the credit checks and policies of the banks. While it can be somewhat embarrassing to ask someone close to you for money, it is often the fastest way to resolve foreclosure in the short term. Often, a homeowner that has gone into foreclosure has already borrowed money from friends and family and therefore it may not be possible to borrow again.

Remember that you will have to pay the money back to the person in the future! One of the most common reasons that family relationships and friendships break down is because of money. It’s heart breaking to see someone that not only has financial stresses to deal with, but also has to deal with the trauma of arguing or fighting with friends and family.

Smart Tip

”If you decide to borrow money from friends or family, make sure you have everything written down so that there are no questions in the future – be specific about how much is borrowed, when it is to be paid back, how it is to be paid, etc. If you do not have a promissory note that you can use to document your loan, we can send you a free Promissory Note to use so that all the details are recorded up front.”

3. Renegotiate with your current bank

As mentioned previously…it is crucial to maintain the line of communication with your lender during the foreclosure process. Hiding information or avoiding the telephone sends the wrong message to your bank and in some cases can actually make things worse.

This step must be taken early in the foreclosure process for the bank to even consider renegotiating a mortgage in arrears. Our experience is, once a bank files a foreclosure, it is unlikely (although not impossible) that they will be interested in renegotiating with the homeowner. Most banks do take a few steps to work with you to get the loan paid, and filing a foreclosure is a last resort. Once filed, banks often will let the foreclosure process play itself out. Their position is that the you have already proven you will not make their payments, so the bank will either get their money, or the house.

Keep in mind that renegotiating with your current bank is similar to refinancing with another financial institution and you need to be aware of the interest rate, term and payment schedule.

Smart Tip

”It can be very intimidating trying to negotiate with a bank by yourself. It’s normal to feel like you’re in a position of disadvantage – they know everything about you, and it can be awkward or embarrassing. We strongly recommend that if you intend to try and renegotiate that you seek professional assistance to help you.”

4. Get a second or third mortgage on the property.

This can be an expensive way to stop foreclosure, but it may work for you depending on how much equity you have. There are several secondary lenders that will provide second or third mortgages based on the equity in your home. Keep in mind though that they normally charge much higher interest rates (sometimes as high as 14-25%), add on extra fees and charges, and are very inflexible in their terms simply because their risk is much higher being the second lender on title.

We recommend that you be very cautious in going this direction, as we see many homes in foreclosure with high interest second and third mortgages. Often times, this may solve the problem in the short term, but creates a bigger one in the long term – if you can’t handle your current payments, how can you manage even higher ones?

Smart Tip

“Think very, very carefully before going into more debt. We have a saying that is very true – if you find yourself in a hole, the first thing you have to do is STOP DIGGING! Borrowing more money may solve the problem temporarily, but you should seek professional advice to confirm this is the best alternative for your situation. Don’t dig a deeper hole!”

5. Sell some other assets to get the cash.

A very simple way to try and get your mortgage back in good standing is to sell whatever other assets you might have to free up some cash. If you have vehicles, furniture, collectibles, or other items that you can sell quickly, it might be the easiest way to get out of foreclosure.

Smart Tip

“Be realistic about the value of items you might consider selling, and also remember that you do not have a lot of time to wait for the right buyer to come along who will pay top dollar. Most household items such as furniture, electronics and fixtures will only attract 10-15% of the original price of the item when it is resold. Focus on larger items such as vehicles, boats, RVs and other major items that will generate a reasonable amount of cash that can actually solve your problem.”

6. List the property with a Realtor.

If you have decided that selling your home is the best alternative for you right now, you may decide to list the home for sale with a Realtor. One advantage of this is you then have many agents trying to sell your home quickly for you (through the MLS). If you do not have enough equity in the property to cover their commissions, most Realtors will not be interested in listing it. If you price it properly, it is possible to get it sold within 20-30 days. This option is usually the most convenient because you do not have to show the property yourself, deal with the paperwork or contracts, or do the marketing. It is likely that you will get a higher price selling through a real estate agent, though you will have to pay a selling commission. We often ask people, “would you rather sell it quickly and pay someone to help you do that, or have the bank come and take the property and leave you with nothing?”

Smart Tip

“Don’t be penny wise and pound foolish – some people refuse to pay a commission to have their house sold .. but end up losing it and getting absolutely nothing in the end. With the emotional pressure and stress you’re already dealing with, listing your home with a Realtor can be the least stressful and emotional method of selling it. Sometimes, it’s just easier to pay a professional to get the job done quickly.”

7. Sell the property yourself.

If you feel that you have the knowledge and skill to sell the property yourself, you can try advertising and showing it yourself. This will save you some commissions, but now you are responsible for all the steps involved in the process.

If you have experience selling, this may be a good option for you. However, given the time constraints and emotional stress you are experiencing, it may be difficult to represent your property well to prospective buyers. You will need to be familiar with preparing the home for sale, developing a marketing plan, and completing all the paperwork and contracts involved in selling the home.

In addition, the costs to market, and advertise a successful property can quickly add up. Whether you decide to sell your home yourself will depend, in part, on your market and whether you have the experience of buying and selling homes yourself.

8. Declare bankruptcy.

While this is an option, you must seek the advice of professional bankruptcy experts or financial planners. Filing for bankruptcy may appeal to those who simply want to get rid of the problem quickly, but it has many long-term implications.

However, you must understand that in most cases, filing a bankruptcy will not stop the foreclosure process – it will only delay it. Sometimes, filing a bankruptcy to stop a foreclosure is like cutting your hand off because your fingernail cracked. There are usually much better ways to deal with foreclosure than bankruptcy. Keep in mind, if you declare bankruptcy, it can have a significant impact on your ability to get credit, your employment potential and your self esteem for many years to come. About the only thing worse to appear on your credit report other than a foreclosure is a bankruptcy.

9. Work with an investor that does Short Sales

As investors we can purchase the property from you after we negotiate an appropriate discount on the loan with the bank(s), which frees you from those mortgage obligations. We would need your authorization to discuss your loan with the bank as well as information about the property and your financial situation related to the foreclosure. We would include this information in our short sale package presented to the bank.

Why would a bank accept less than the amount owed on the mortgage? Banks are not in the business of owning property and since most homes that go to auction are not sold, the bank takes ownership and then has to list the property for sale. It can be a long process and in the end they may expect to receive less than the discounted amount that we offer.

And finally, there is one last option that we will mention, since it is an option you have. But it WILL NOT stop foreclosure, and we absolutely guarantee you will lose your home if you choose it …..

10. Do nothing.

A foreclosure will not go away, will not solve itself, and the bank will eventually take your home and you will be evicted. Doing nothing is always the worst solution possible. We highly encourage you to investigate the other options outlined above.

THANK YOU for having the courage to read this Report. We genuinely hope that it gives you some valuable assistance. We are here to help, any time you need it.

Above all else, please take action. It’s not a hopeless situation unless you let it become one! Good luck in solving your problem, whatever you choose to do.

Again, I would be pleased to help you. Simply call me (Philleen) at 818-557-8593.