Foreclosure Avoidance Facts

1. By the time the federal government organizes a”bad bank” to negotiate with defaulted homeowners thousands, if not millions, of foreclosures will have taken place.  Many private banks are willing to talk now. They do not want more foreclosures. Call your bank now, if you are in trouble, and see if they will lower your interest rates, extend the term of your loan, or consider a principal reduction.
2. Most homeowners facing foreclosure have never called a REALTOR® or their bank.  REALTORS® give advice.  If a consumer does a short sale all REALTOR® commissions are paid by the seller’s lender who approves the balance owing. In some cases the balance owing may be forgiven.  Find an agent familiar with short sales and foreclosures for advice.  Also contact an accountant (CPA) or tax expert.  The IRS may be of help. Talk to an attorney specializing in bankruptcy.  He can explain Chapter 13 and/or Chapter 7 Bankruptcy so that you know your options.
3. In most cases, getting a loan is not a “bail out” for a defaulted adjustable loan.  FHA Secure or a streamlined FHA refinance may work.  Call a lender who is FHA approved, not your local bank, to find out if this a solution.  Most loans require equity of at least 3%  and sufficient income to repay the loan.   If someone offers you a loan that sounds too good to be true it probably is. Avoid  the scams.
4. Investors with lots of cash are buying up homes on the courthouse steps. These properties are then fixed up and become rentals. The investors may also flip them for quick profit.  That’s fine, it is business.
5. Some scam artists attempt to get control of properties on a Quit Claim Deed or an All Inclusive Deed of Trust without formally assuming your loan.  This is not legal in California.
6. Foreclosure and bankruptcy are the worst things a homeowner can do to his credit.
7. Short Sales may effect credit less adversely than a foreclosure or bankruptcy will.
8. Legal advise should come from a Lawyer.  Tax information should come from a CPA.  Advise on short sales and pricing should come from a REALTOR®
   
9. Confronting the situation and talking to a lawyer, a CPA, and/or REALTOR® gives homeowners a chance to reach the best possible outcome for their  situation.
10. Lots of individuals are trying to cash in on the misfortune of others. Don’t give organizations on TV or radio money to solve problems not suggested by a professional.  Do what you can yourself with direct communication to credit card companies and banks.  Don’t wait, call now. 
11. There are no easy fixes for real estate and other financial problems.
12. Only an experienced REALTOR®  or appraiser should estimate the value of your home.
13. Current foreclosures are primarily a result of Alt-A loans adjusting and/or  the recession.  Now foreclosures are happening in better neighborhoods including:  Fair Oaks, Folsom,  Granite Bay, Roseville, Rocklin, El Dorado Hills,  Mid-Town Sacramento, East Sacramento and the Pocket area.

Solutions for 2009 and Beyond:

I will provide homeowners a complimentary book entitled, “Foreclosure Solutions- A Homeowners Handbook.  Alternatives, Solutions, & Education.”

Topics in the book include:

• Do’s and Dont’s, Basic Advice you need to know.
• Keeping Your Home, Six Strategies to Save Your Home.
• Foreclosure Avoidance, Four Strategies to Avoid Foreclosure.
• Consequences of Foreclosure.
• Deficiencies per IRS.
• Using Services of a Pro