 |
 |
 |
           |
 |
 |
 |
|
 |
 |
|
|
|
 |
Stopping Foreclosures
If you as an investor understand the process, you will be able to help more people! Foreclosure is tuff on folks it's all about losing! Your customer loses their home and the lender loses money! If you can get your focus going in the right direction, you can create a Win - Win scenario for all involved. Writer and philosopher Johann Wolfgang von Goethe said, "Kindness is the golden chain by which society is bound together." You need to act fast as an investor when dealing with people in foreclosure and one of the most difficult areas of this process is getting the property owner to act. The longer they wait to act, the less time you will have. When people face financial distress they feel powerless and confused, many in foreclosure spend too much precious time denying their predicament until the last minute when only the most extreme of remedies remain available. Keep in mind that you will need to avoid to long of a foreclosure delay as the cost will mount up and may just drive you out of profit range. It is vital that you help your customer to respond to any legal notice or document and assemble a delay strategy(s) immediately. Many property owners facing foreclosure end up declaring bankruptcy as a solution to their foreclosure problem because: * They see no way out Many believe that bankruptcy will stop their foreclosure and everything will be ok. Many attorneys do not tell property owners that bankruptcy will only drive up the foreclosure cost. Simply put foreclosure solutions are not well understood. Over ninety percent of bankruptcy attorneys don't handle alternative workout programs such as: * Straight Sale Therefore, even though the attorneys may come across as knowledgeable and educated, their final advice on how to save a home is to tell people to declare bankruptcy. Bankruptcy can be the right solution for some homeowners who are trying to save their home. However, it is far from the number one choice. In fact, it should be the last resort. In talking to a bankruptcy attorney, one is led to believe that bankruptcy is the best and only choice. Your major strategy as an investor is "buying time". If your customer goes straight to bankruptcy, all other options that could have bought time have been bypassed and are no longer available. Having done that, if there are any problems making the Chapter 13 payments, there are very few options left. In addition, it may have been possible to get a work out solution approved instead that solved the situation without bankruptcy. This would also be a much better solution as far as saving credit. Most people don't realize how damaging a bankruptcy or foreclosure is to their credit until it's too late. It is something that can follow a person for a very long time. You will find that in most cases, people will contact you at what I call the too late stage, because their back is up against a wall and the auction is the next day or even the same day. In these cases, you as an investor have the option to bring the loan current and take control of the property or assist your customer in filing a bankruptcy to stop the sale. This is done only to buy time, and the homeowner doesn't actually follow through with their court appointments and filings and lets the bankruptcy "fall off calendar" (it never actually goes through). Many of your customers will be in denial that they are about to loose their home, they will tell you it's all worked out, they are not in foreclosure, they did not know and the list goes on. It's your job to get them to face the facts and how you can help them as an investor. Now how do you deal with them, how to approach them and how to talk to them during this most difficult time? My first step in the communication process is to send a letter to let them know I'm available to help. The homeowner is probably being bombarded with letters, calls from attorneys and bill collectors, and has creditors showing up at his door. The only way to contact the homeowner is by telephone, mail or in person, and chances are you will have a difficult time getting in touch with him. Start with mailings. Indicate in your letter that you are a private investor looking for property in that part of town. Let the property owner know that you may be able to help him with his financial problems. Demonstrating an understanding, the homeowner's dilemma will help your efforts. Indicate in your letter that you may be able to stop the foreclosure, save his credit rating and provide cash for use in paying his bills and/or for relocating. Be professional and gracious in your correspondence. Invite the homeowner to call you at his convenience. If you are going to make an offer on the property, you must have the loan, ownership, and debt or lien information. You must also assess the condition of the property and the property owner. Combined with the market value and the default amount, you have all the ingredients necessary to formulate your offer. If you feel comfortable with it, you can visit the property in person. You may be confronted by an angry homeowner. Be polite and leave if you are asked to. Never, under any circumstance, snoop around, inspect or generally trespass unlawfully on somebody's property. Use common sense and dress appropriately when meeting with the homeowner, something casual but not sloppy. Do not drive up in an expensive vehicle, as the homeowner will see you just like they see the lender as someone who is taking advantage of them! Be sympathetic. * Does the homeowner need cash? Find out the facts. * Review the loan and mortgage documents. I look at investing as a mechanic - the more tools you have the more you can do - The more investing tools you have in your investors tool box the more people you can help. "You will never do anything in this world without courage. It is the greatest quality of the mind next to honor." By Aristotle, Greek Philosopher John Michael
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Should You Get a Home Inspection? It's very important, and in my opinion, mandatory to have a home inspection done before you close on a house. The inspection helps with giving you an objective evaluation of any problems with the home before you move in. Bad Credit Home Loans - Dealing With Bad Credit Mortgage Companies Online Dealing with mortgage companies online can enable you to get a home loan even with bad credit. Bank associates' skepticism and talk around are avoided when you apply online with a mortgage broker. Before You Buy Before you start looking for a home, figure out what you can realistically afford to pay per month. Check out the market in the area you want to buy. Refinancing Your Home - How and Why? Chances are you may need a little extra money to get some work done around the home or perhaps your current interest rate is 7.5% and the prime interest rate is 6. Key an Eye on Your Mortgage Payments In previous decades, when a borrower missed a payment on a mortgage, the lender would often consider them one month behind until they eventually caught up. Most lenders would impose a late fee and other interest or penalties, tacking them onto the back end of the loan as long as the lender stayed current with the rest of their payments. Thought Fixed Rate Will Give You a Respite from the Perils of Variable Rates! Think Again Slight increases in the interest rates raise your hackles. Tension grips your mind as to how you are going to make the extra payment. Shopping for a Mortgage, Avoid Three Common Mistakes Buying a home or refinancing one is perhaps the largest financial transaction you will ever make in your life, so you want to be sure to avoid any mistakes that may cost you in the long run.When you are deciding on a mortgage, you certainly don't want to make your decision by flipping a coin. Council Right to Buy Mortgage - Helping Everyone Have a Home of "We will help every Council Tenant to become Home Owners" With these historic words Margaret Thatcher initiated an equally historic concept of council right to buy scheme. However, the groundwork for this scheme had been laid much before in the 70s under the reigns of the labour government. Kingsland Saint Marys & Kings Bay Real Estate - VA Mortgage Information For Home Buyers A VA guaranteed mortgage is the usually the best way for active or inactive veterans to purchase a home. The VA mortgage allows the buyer to purchase a home with absolutley no out of pocket expenses!There are closing costs associated with the purchase of a home. What Is The Best Deal For A Mortgage? Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home.For most of us, our house is the single most important and expensive purchase we ever make!We invest a lot of time and effort into finding the perfect property in the best location and with as many of the features from our wish list as possible, yet, when it comes to finding the best deal for a mortgage, we take what is offered rather than researching and securing the best mortgage for our situation. Mortgage Debt Elimination in 5 to 7 years! Mortgage Debt Elimination shows that most home loan debts will be secured. Secured debts usually are tied to an asset, like your house for a mortgage. Types Of Home Equity Loans There are two broad types of home equity loans:Term loans: Home equity loans of a fixed nature are also called second mortgages. For example, if you have bought a home for $10,000, and made a down payment of $1,000, and taken a mortgage for the rest and have managed to repay another $2,000, then you can apply for a home equity loan of $3,000. Making Sense of Mortgage Speak Applying for a home loan can be overwhelming. You will need to contend with mountains of papers, contracts, documents; and do lots of planning and coordination. What You Dont Know About The Real Estate Process, Some Inside Secrets Some people in the real estate industry have a terrible reputation. Why, because they deserve it. Home Mortgage Lenders - How to Find A Good Mortgage Broker Online Mortgage lenders have set up shop online, but they aren't all reputable mortgage brokers. To find a good mortgage lender you need to compare rates and research to find reputable companies. Is an ARM Right For You? Let's start by taking a look at 7 key elements of an adjustable rate mortgage:1) ARM defined: While a fixed rate loan is constant and never changes throughout the life of the loan, an adjustable rate mortgage changes periodically. The interest rate of an ARM goes up and down based on whatever external index it is tied to. Finding the Best Homeowner Loans for Your Money Looking for the best homeowner loans can be stressful, especially when there are so many different lender options to choose from.Banks, finance companies, and online services all claim to offer the best homeowner loans? which one should you choose?The answer can depend upon what you're wanting out of a loan, what past business relationship you have with the lender in question, and the amount of equity that you have in your house to use as collateral for the loan. How to Find a Good Online Homeowner Loan A quickly growing trend in lending is the online homeowner loan. This loan uses the equity that you have in your home to secure the loan amount, and features both a convenient way to apply and check on your loan as well as faster decision times and lower interest rates than many loans offered by more "traditional" lenders such as banks and finance companies. Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing Refinancing can be a very simple process. You fill out a few applications, take the best offer and you're done. Mortgage After Bankruptcy Most people probably assume that obtaining a mortgage to purchase a home, refinance or to consolidate debt after a bankruptcy is out of the question. In fact, many people are able to obtain these mortgage services, even 1 day after a bankruptcy discharge in some cases.
|
 |