Stop Foreclosure

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Foreclosures are occurring today at a record pace. The collapse of the housing bubble is not only causing turmoil with the credit big wigs on Wall Street - but is also starting to effect families on Elm Street. The situation is a trying time for families facing foreclosure and could be a boom time for investors seeking to capitalize on a unique point in our nation's history.

At the Stop Foreclosure MD wiki you will find helpful information whether you are trying to stop foreclosure or looking to invest in foreclosures.

Facing Foreclosure

Are You Over Your Head?

You didn't plan for this. You listened to the experts -- Stretch out and get a home just beyond your affordability - the boom will continue - these prices will keep going up - you can refinance your home at any time. You weren't wrong for listening, besides your wife fell in love with the kitchen the first time she saw it. Your kids were happy that they wouldn't have to share a room any more. And then it happened - bills got a little out of control, you missed out on a raise or got caught in a headcount reduction.

It's OK!

Don't fret. You have plenty of options. I'm sure you know this already - right after you received that Lis Penden from the bank, the letters, postcards, and calls began. Everyday there is something new in the mailbox or on your answering machine. They say they are there to help - and they are right - but what should YOU do?

Time is (NOT) On Your Side

Although lenders will typically report any and all late mortgage payments to the credit bureaus, you typically have between 3-12 months of missed payments before they will actually start the foreclosure process. This process begins with a notice of default or lis penden. It's is up to you to take action before the notice of default arrives. If you know you are going to have trouble making your payments - call your mortgage lender ASAP! Over communication is the key here.

D-Day aka NoD Day

Once the notice of default arrives - everything changes. You have fewer options at this point - but you do have some options. The major difference at this point is that your are now on the clock. You typically have 90 days from receiving the notice of default to make up the payments before you get the dreaded notice of sale. The notice of sale actually sets the sale date of your home which can within 15-30 days of you receiving it.

What Should YOU Do?

Remember - you are not alone. You are not the first to go thorough this situation and you will not be the last. Now that mortgage banks are seeing an increased number of defaults they are more than willing to set up a program to help keep you in your home. Ask your lender about:

  • Temporarily reducing or waiving payments
  • Setting up a short term repayment plan so you can catch up
  • Adding the deficit to your balance and increase your payments over the life of the mortgage or extend the mortgage a few months
  • Refinancing into a new loan with more favorable terms

If you agree to any of the above terms - make sure you are able to make the payments! You don't want to work out a great deal and then find yourself back in this mess again.

Final Options

When negotiations to get your mortgage back on track have failed - there are only a few options remaining:

  • Get help from credit counselors
  • Sell your home
  • Negotiate a short sale
  • Proceed with the foreclosure

Do you need help? Don't wait - read "book" to get answers to your burning questions and help Stop Foreclosure on your home today!

Investing in Foreclosures

This is the best time to be involved in foreclosure investing. Everyday in the news we here of the mortgage banks reporting record defaults among their borrowers. The time is ripe for investors with cash to come in and help homeowners not completely ruin their credit with a foreclosure.

Foreclosure Investing - A Skill to Learn

Foreclosure investors are not born - they are made. Finding deals and closing them is not rocket science - but it's not a cake walk either. The key to every business is deal flow - you need to be in the right place to get information on what deals are out there and how to contact homeowners who are facing foreclosure.

Luckily for you - the system makes it easy for you. Mortgage banks must submit a notice of default as a matter of public record. These records are then published in local newspapers and subsequently picked up by many of the "foreclosure listings" on the internet.

The key to success in this (as in all) type of investing - is to consistently find properties that you can purchase for less than market value - and then sell those properties for a profit.

Locating Distressed Properties

My favorite Foreclosure listing service is RealtyTrac. RealtyTrac provides listings for 650,000 foreclosure properties. Find your next home today. They have lisitngs for all fifty states and you can search for free.

Contacting Homeowners

Remember that this is a horrible time for a homeowner. Chances are they saved up for a long time and sacrificed a lot to get into their home. They hate the fact that the bank may take it away and may hate even more that some investor is coming to take advantage of the situation. You need to remember what you are offering to the homeowner:

  1. Saving their equity
  2. Saving their credit history
  3. Saving them from the pressure and embarrassment that they have been dealing with

It's best to filter the homeowners who really want to talk and find solutions to their problems. You can best accomplish this through a mail campaign. Only use telephone calls as a follow up to your mailings - you wouldn't want some stranger calling your phone in this situation, right?

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Get more training on Contacting Homeowners to Stop Foreclosure. Jeffery Ringold puts foreclosure training togetherin a nice inexpensive package.

Put Your Team Together

You can't do this business alone - you need help to handle the things you don't know how to do. Your team should have a(n)

  • Attorney
  • Home Inspection service
  • Title Search company
  • Contractors
    • Structural
    • Electrical
    • Heating, and HVAC
    • Plumbing

Need help locating the right members of your team? Jeffery Ringold has the answers to all of your questions.

After You Own the Property

Congrats! You now own a property you purchased for much less than market value - if you did everything right! What's next? Well, that depends on your exit strategy. You did think of an exit strategy, right? You can do 3 things with real estate:

  1. Live in it
  2. Rent it
  3. Sell it

Each exit strategy requires different preparation; learn exactly how to cash in on your foreclosure from Jeffery Ringold.