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Raleigh short sale experts have been helping families in the Raleigh area of North Carolina Avoid and Stop foreclosure. We specialize in Short Sales and Foreclosure Prevention.  Please enjoy this article written by James Foxx.

Buyers Find Pre-Foreclosure Homes Rising As Delinquency Rates Surge

By: James Foxx

A report by U.S. bank regulators showed that they find pre-foreclosure homes to have risen in numbers in various areas of the U.S. during the 2010 third quarter. The increase is expected to continue until the first few months of 2011 as the number of delinquent borrowers also increases in the country.

In California, San Jose foreclosures and foreclosed property totals in other metro areas of the state jumped during the July-September 2010 period. Statewide, foreclosed properties numbered 382,000 during the quarter, representing a 31.2% surge compared with the previous quarter and a 3.7% increase from the same 2009 period.

The state also recorded the highest number of applications for mortgage modifications during the quarter in focus. Owners of California foreclosures who sought mortgage modification totaled 50,407 for the period, with over 17,000 applications filed under the Home Affordable Modification initiative of the federal government. Meanwhile, almost 33,000 borrowers in the state sought modification under other programs.

California accounted for 21.6% of all modification applications in the U.S. for the July-September period, giving the area the number one spot among all 50 states in terms of the number of loan modification applicants. Buyers also find pre-foreclosure homes and foreclosed properties increasing further in the state during the quarter.

Nationwide, completed foreclosures totaled 187,000 for July-September, representing a 14.7% increase compared with the April-June 2010 quarter. Compared with the 2009 third quarter, the number of foreclosed properties nationwide rose by 57.5%. Along with a rise in foreclosed property totals, the number of borrowers who are behind in their loan payments for a period of 30 to 59 days also increased, with figures rising by 4.3% compared with the 2010 second quarter.

Despite a rise in foreclosure and in the number of delinquent borrowers, some positive statistics did emerge during the period in focus. For one, nationwide delinquency rates among borrowers behind in payments for at least two months declined by 6.4% compared with the previous quarter.

For another, home retention activities also increased during the period, with mortgage servicers reporting that more than 470,000 retention actions were implemented. Analysts are hoping that this will find pre-foreclosure homes and foreclosed properties declining in the coming months, particularly when national foreclosed property totals have already reached 1.2 million in the third quarter.

Raleigh Short Sale Experts, help families avoid or stop foreclosure in the Triangle area of North Carolina. For all your short sales need please give us a call. 

This is a great article written By: Tamara E. Holmes for Bankrate.com.

If you can no longer make your mortgage payments and your home is now worth less than you owe on it, foreclosure may not be your only option.

A short sale, in real-estate terms, is the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner’s debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process.

While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label.

Short sale: Win-win-win situation
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here’s how:

The seller gets out of the mortgage liability without facing bankruptcy.

The buyer gets the home at a reduced price.

The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.

While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.
“The lender benefits by not having to go through the protracted process of foreclosing on the borrower and then having to put the property on the market and go through the whole marketing process,” says Stuart Wilson, a real-estate agent with Paragon Real Estate in San Francisco.

A market saturated with foreclosures can cost lenders billions — and as much as $50,000 per foreclosure — according to a study by the congressional Joint Economic Committee.

A buyer’s dream
For a buyer, a short sale is a boon since he or she is getting a property at a reduced price. However, the process of waiting for a lender to decide whether to agree to a short sale can make a lengthy home-buying process longer and more arduous.

Wilson, who has represented both buyers and sellers in short-sale deals, advises working with an agent who’s familiar with short sales.

He also suggests that buyers looking to negotiate a short-sale deal come armed with enough documentation to convince the lender that settling for the lower price is the best option.

“You’d better be armed with recent comparables that show unequivocally that the lender’s price is out of line,” says Wilson. “You can’t do this with a cover letter or a conversation. It will need to be done with the kind of documentation that an appraiser would come up with.

“When you go into a short sale, you have an institutional lender, and it is an anonymous entity,” Wilson continues. “You don’t get a chance to talk to these people, you don’t know what their guidelines are, you don’t know what their time frames are, and you don’t know if your contract will be approved in six weeks or six months. It’s a real crapshoot.”

Lenders are most concerned with the financial situations of the seller when they ultimately make their decisions. If a seller can handle the mortgage payment, there’s no motivation for the lender to let the seller out of the mortgage at a lower price.

“A lot of lenders aren’t even going to consider a short sale unless it seems like (the homeowner) is in financial distress,” says Natalie Lohrenz, director of counseling for Consumer Credit Counseling Service of Orange County in Santa Ana, Calif.

Also, if the home has a second mortgage with another institution, a short sale is less likely to be approved, since that second institution would have to agree to forfeit all or part of the money it’s owed.

Last gasp only
While getting a lender to agree to a short sale may seem like an answer to the prayers of a homeowner who wants to unload a house, it’s not a good move if you’re merely looking to find a new place. It’s generally a last-ditch effort when the only other option is foreclosure.

Should you go for a short sale? It depends on how deep a financial hole you’re in and how likely it is you’ll be able to overcome those financial difficulties.

“If they’re just having a short-term problem — short-term disability or maternity leave or layoffs, but they have good prospects to find something soon and they can weather the storm and hold on to the profit through that — obviously they wouldn’t want to think about a short sale,” says Lohrenz.

“But if the choice is foreclosure or short sale, generally a short sale is going to be a better idea.”

Before you think about asking your lender to consider a short sale, it would be a good idea to get your paperwork lined up.

Be ready to show the lender you are serious about your situation. Get together a hardship letter (an honest explanation of your financial situation and how it occurred), pay stubs, bank statements, tax returns, an appraisal and documentation of your debts.

3 critical safeguards
If you’re considering a short sale, experts advise you to take the following steps to meet potential negative consequences head-on.

1. Get it in writing. Make sure the lender agrees in writing that the short sale will absolve all debts.

“If they owe $300,000 on the house and the short sale is for $280,000, is there any possible way that the lender’s going to come after them for the $20,000?” Lohrenz says. “Most lenders will put that in the agreement that they’re not going to come after the deficiency.”

2. Protect your credit rating. Ask the lender how it will report the short sale on your credit report.

“Most of the time, a short sale shows simply that a debt is satisfied,” says Lohrenz. “But theoretically, a short sale could reflect on the credit report as ‘settled for less than the full balance.’” Such a designation is a negative mark on your credit report, though it wouldn’t hurt your credit as much as a foreclosure would.

3. Get professional tax advice. Short sales often have tax repercussions, since lenders can claim the forgiven debt as income that they provided you.

That means if you agreed to a short sale for $50,000 less than what you owed the lender, the lender could issue you a 1099 for $50,000, which you would have to pay taxes on.

But there are two “outs,” says Lohrenz. “If you meet the IRS’ definition of insolvency at the time the debt was forgiven, then you generally don’t have to pay taxes on it.”

Or, if your home loan is a nonrecourse loan, you’re also likely to escape this tax. With a recourse loan, whoever signed the note is personally liable for the debt, and in a short sale, the debtor would have to pay tax on the difference. A nonrecourse debt is one secured by the loan collateral — such as the house itself — and the debtor would not have to pay tax on the sale shortfall.

The most common case is that mortgages secured by the property — especially for buyers who made a 20% or more down payment — is a nonrecourse loan. But it is absolutely critical you consult a tax attorney before you make such a move to ensure that you don’t dig a deeper financial hole as a result of the tax situation.

This story was reported and written by Tamara E. Holmes for Bankrate.com.

If you desperately want to sell your home fast, it can be a major burden to watch the house sit on the market month after month. Here are some expert tips on how to sell your home fast.

1. Fixer-Up: If there are any small repairs that need to be made, it’s better to fix them before putting your home on the market. If a potential buyer opens a door and hears a rusty squeak, she can assume that it’s a sign of other likely issues of neglect within the house.

2. Inspection: Professional inspections can give you a better idea of any problems with the house that might ward off prospective buyers. If there are none, you can emphasize that when people come a-looking. This usually costs $400 or so, but it’s well worth it.

3. Rid the clutter: Bric-a-brac, tchochkes, stuff – it all needs to go. Don’t be a rat packer and save your garbage when you move, get rid of it altogether. Not only will it help you sell your house, but it will encourage a minimalist take on your new home’s aesthetic. And if you can’t part with a lot of it, put it in storage until after you sell your renovated house.

4. Depersonalize: There are lots of ways to make your home seem like a great option for potential buyers, but one of the best is to remove photos of you and your family and any other specific furniture or articles that define your taste. That also means repainting the walls if you’ve chosen a garish color for your kitchen.

5. Clean: Make sure your place is spic-n-span. Dirt makes everyone wary of who lived in the home before they did. In fact, it’s against human nature to live in squalor. So make sure you’re cleaning very well.

6. Short Sale Help: If you have a loan that is worth more than your home, short sale help is a consideration. If you want to sell your home fast, it might be worth it to contact your lender and say that it is very difficult to come up with the remaining amount of money. If they are willing to accept less than the amount that the loan is for, this will be a short sale. Your lender may consider a short sale before you find a buyer, and then even if you follow the above steps and find a buyer, you may not be guaranteed the sale. That’s why it’s a good idea to think about selling your home before you need to, so that you have time to prepare for the sale properly.

If you follow these steps you will see a sale in no time. All it takes is knowing how much you want to sell your home for, and not being too desperate to get it sold.

Raleigh Short Sale Expert believes if you can no longer make your mortgage payments and your home is now worth less than you owe on it, foreclosure may not be your only option.

A short sale, in real-estate terms, is the sale of a house for less than what the owner still owes on the mortgage. If the lender agrees to a short sale, the rest of the homeowner’s debt typically is forgiven. Lenders sometimes agree to the procedure in order to take a small loss and avoid the lengthy and costly foreclosure process.

While there are some significant negative consequences to a short sale, an ever-increasing number of properties are being advertised with that label.

Short sale: Win-win-win situation
The beauty of short sales is that they can be a win-win-win situation for seller, buyer and lender. Here’s how:

The seller gets out of the mortgage liability without facing bankruptcy.

The buyer gets the home at a reduced price.

The lender agrees to a loss it considers minimal without going through a foreclosure and being saddled with an unsalable property.

While it may seem surprising that lenders would agree to accept less than what they are owed, they benefit from the process, too.

“The lender benefits by not having to go through the protracted process of foreclosing on the borrower and then having to put the property on the market and go through the whole marketing process,

A market saturated with foreclosures can cost lenders billions — and as much as $50,000 per foreclosure — according to a study by the congressional Joint Economic Committee

A buyer’s dream
For a buyer, a short sale is a boon since he or she is getting a property at a reduced price. However, the process of waiting for a lender to decide whether to agree to a short sale can make a lengthy home-buying process longer and more arduous.

Working with someone who’s familiar with short sales is the key.

He also suggests that buyers looking to negotiate a short-sale deal come armed with enough documentation to convince the lender that settling for the lower price is the best option.

Lenders are most concerned with the financial situations of the seller when they ultimately make their decisions. If a seller can handle the mortgage payment, there’s no motivation for the lender to let the seller out of the mortgage at a lower price.

“A lot of lenders aren’t even going to consider a short sale unless it seems like (the homeowner) is in financial distress,” says Natalie Lohrenz, director of counseling for Consumer Credit Counseling Service of Orange County in Santa Ana, Calif.

Also, if the home has a second mortgage with another institution, a short sale is less likely to be approved, since that second institution would have to agree to forfeit all or part of the money it’s owed.

Last gasp only
While getting a lender to agree to a short sale may seem like an answer to the prayers of a homeowner who wants to unload a house, it’s not a good move if you’re merely looking to find a new place. It’s generally a last-ditch effort when the only other option is foreclosure.

Should you go for a short sale? It depends on how deep a financial hole you’re in and how likely it is you’ll be able to overcome those financial difficulties.

“If they’re just having a short-term problem — short-term disability or maternity leave or layoffs, but they have good prospects to find something soon and they can weather the storm and hold on to the profit through that — obviously they wouldn’t want to think about a short sale,” says Lohrenz.

“But if the choice is foreclosure or short sale, generally a short sale is going to be a better idea.”

Before you think about asking your lender to consider a short sale, it would be a good idea to get your paperwork lined up.

Be ready to show the lender you are serious about your situation. Get together a hardship letter (an honest explanation of your financial situation and how it occurred), pay stubs, bank statements, tax returns, an appraisal and documentation of your debts.

Charging that the ongoing foreclosure fraud epidemic is the work of precisely the same unrepentant bank officers whose fraudulent mortgage schemes crashed the financial system in the first place, two leading critics of the financial industry are calling on the FDIC to put some of the nation’s biggest banks into receivership — starting with the Bank of America — and make them clean house.

William K. Black, a former regulator and white-collar crime expert who cracked down on massive fraud during the savings and loan scandal of the 1980s, and his fellow economics professor at the University of Missouri-Kansas City, L. Randall Wray, say it’s time to “foreclose on the foreclosure fraudsters”. (HuffPo File)William K. Black, a former regulator and white-collar crime expert who cracked down on massive fraud during the savings and loan scandal of the 1980s, and his fellow economics professor at the University of Missouri-Kansas City, L. Randall Wray, write in the Huffington Post that it’s time to “foreclose on the foreclosure fraudsters”. They write:

The lenders, officers, and professional that directed, participated in, and profited from the fraudulent loans and securities should be prevented from causing further damage to the victims of their frauds, through fraudulent foreclosures.
They argue that, far from being a coincidence, massive foreclosure fraud “is the necessary outcome of the epidemic of mortgage fraud that began early this decade.” The reason for that:

The banks that are foreclosing on fraudulently originated mortgages frequently cannot produce legitimate documents… Now, only fraud will let them take the homes. Many of the required documents do not exist, and those that do exist would provide proof of the fraud that was involved in loan origination, securitization, and marketing. This in turn would allow investors to force the banks to buy-back the fraudulent securities. In other words, to keep the investors at bay the foreclosing banks must manufacture fake documents…. Foreclosure fraud is the only thing standing between the banks and Armageddon.”
So the only solution, then, is new management. “We should remove the senior leadership of the banks and replace them with experienced bankers with a reputation for integrity and competence, i.e., the honest officers that quit or were fired because they refused to engage in fraud,” Black and Wray write.

They suggest starting with Bank of America, which they call “a ‘vector’ spreading the mortgage fraud epidemic throughout much of the Western world.”

Looming large among Bank of America’s sins is its purchase of mortgage giant Countrywide Financial long after it became clear that the company had engaged in massive fraud.

Even the extremely slow-to-anger New York Fed, which bought billions of securitized mortgages that Bank of America improperly represented as fully documented and conforming to underwriting standards, is now demanding that it buy some of them back.

But far from expressing remorse, Bank of America is going on the offensive, announcing it will end its three-week-old freeze on foreclosures in 23 states on Monday, much earlier than expected.

Bank of America officials are claiming they didn’t find evidence of unwarranted foreclosures and are vowing to “defend the interests of Bank of America shareholders,” and hire more lawyers, the New York Times reported. “It’s loan by loan, and we have the resources to deploy in that kind of review,” said the bank’s chief executive.

Black and Wray write that Bank of America “is sufficiently large and powerful that its receivership will send the credible signal that America is restoring the rule of law and that even the most elite frauds will be held accountable. ”

They note that about a thousand receivers were appointed during the S&L and banking crises of the 1980s and early 1990s under Presidents Reagan and Bush. “Contrary to the scare mongering about ‘nationalizing’ banks, receivers are used to returning failed banks to private ownership,” they write.

The new managers would “direct the business operations, find the true facts about the bank’s operations, senior managers, and financial condition, recognize the real losses, and make the appropriate referrals to the FBI and the SEC so that the frauds can be investigated and prosecuted,” they write. “The receiver is also a well-proven device for splitting up banks that are too large and incoherent by selling units of the business to different bidders who most value the operations.”

On Wednesday, administration spokesmen declined to endorse any dramatic federal action. They declared that they had found no “systemic” threat to the financial system from the foreclosure problems, spoke of “mistakes” and “errors” rather than pervasive fraud and said the banks and servicers now need to “fix” their “processes.”

They “cannot even bring themselves to use the ‘f’ word — fraud,” Black and Wray write. “They substitute euphemisms designed to trivialize elite criminality.”

The central problem appears to be that Obama Administration continues to see the mortgage and foreclosure crises primarily through the eyes of the banks — not through the eyes of the regular people who became their victims, or even the taxpayers who bailed out the very fat-cat bankers who are now back to their tricks.

Black and Wray write:

This nation’s most elite bankers originated and packaged fraudulent nonprime loans that destroyed wealth — and working class families’ savings — at a prodigious rate never seen before in the history of white-collar crime. They created the worst bubble in financial history, echo epidemics of fraud among elite professionals, loan brokers, and loan servicers, and would (if left to their own devices) have caused the Second Great Depression.
The two professors call for “[n]othing short of removing all senior officers who directed, committed, or acquiesced in fraud.”

Please check out www.SoldEZ.org  if you are located in the Triangle Area of NC or call 919-661-3459.

NEW YORK (CNNMoney.com) — Is this the break that millions of people have been hoping for?

Evidence continues to mount that major banks flouted their own foreclosure procedures — and possibly the law — when repossessing homes from owners who fell behind on payments.

And that begs the question: Can owners who were wrongfully evicted take their home back? What if a new owner has already bought the place and moved in?

That’s the messy scenario that lawyers, banks and hordes of ex-homeowners are facing, after revelations that loan servicer employees might have signed off on documents without a proper review, a process dubbed “robo-signing.”

Experts say that very few homeowners will ever get their houses back. The possible exception: The handful of people who were wrongfully swept up by the mortgage tsunami, despite the fact that they were current on their payments.

But getting a judge to unwind a foreclosure is tough.

“The law imposes a very heavy burden on those seeking to attack final court judgments,” says Robert Lawless, a professor at the University of Illinois College of Law.

Housing mess: You can’t stay if you don’t pay

If a court does rule a foreclosure invalid, either because the lender didn’t have the paperwork in order or because the mortgage was not actually in default, a home’s title will revert to the original owner, even if the property has since been purchased by a third party.

So where does that leave the original homeowners? It’s difficult to say, because this is truly uncharted territory, and because foreclosures are subject to state laws, which vary widely.

But one thing is clear: If the original homeowner doesn’t have the cash to catch up on the mortgage, the lender will restart the foreclosure process and, with the paperwork in order this time, repossess the house.

“The bottom line is that for the vast majority of these cases it’s just going to delay the inevitable,” said George Craft, a Texas based real estate attorney.

0:00 /4:27Foreclosure attorney fights back

The new owner should be able to stay in the house while the second foreclosure works through the courts because by this point, the original homeowner has probably found a new place to live.

Even someone who was wrongly evicted has probably found a new home and would prefer to take a cash settlement rather than try to reclaim their house. Most of these homeowners will almost certainly sue their lender, which is of course exposed to a tremendous amount of liability.

“Monetary damages will be the way people are compensated, because it’s much easier for courts to monitor and institute,” according to Andrew Raines, a California lawyer who specializes in real estate.

In the rare case that a foreclosure victim does want a house back after a third party has moved in, the new buyers will be compensated by title insurance.

Almost all lenders require mortgage applicants to purchase title insurance, which is designed to guard against gaps in the title record due to human error. If a title reverts to the original homeowner, title insurance should cover any financial loss incurred if the new owner is ordered to vacate the house.

Of course, that might not be the end of it — there will probably be a flood of lawsuits bouncing between victims, title insurers and lenders that will further jam up a system that’s already backlogged.

“One of the best and worst parts of our judicial system,” said Lawless, “is that anyone has access to the courts to assert their grievance against another.”

Bankruptcy Buying Home – How to rebuild you credit

The good news of having a bankruptcy record on your credit report does not mean you can’t buy a home. Believe me or not but people who have gone through bankruptcy have been able to encouraged themselves to build credit by taking on debt again.

But the bad news is that the debt will be closely scrutinized and may come in smaller amounts and high interest rates. This usually happens because when you experience bankruptcy you are now tagged as high-risk borrowers.

But these negative thoughts rather facts should not dishearten those with deprived credit account from investigating their home loan options. The conscientious use of credit is the only way up from a bankruptcy filing.

Bankruptcy can provide liberation to people in terrible financial straits by releasing them from the obligation to repay their debts.

It’s a drastic move for anyone because a bankruptcy will stay on a person’s credit rating for up to 10 years, effectively acting like a warning flag to anyone considering lending that person money or a line of credit.

In order to mitigate the risk of providing that person a loan, the lender will charge higher interest rates than they normally would. For instance, an auto loan that might ordinarily carry six percent interest could come with an interest rate of eight percent or higher.

But, as time passes and small loans and credit card balances are paid off on time, the bankruptcy filing becomes less and less significant to a lender.

Establishing good credit after bankruptcy is essential. The following will help recent bankruptcy filers regain their financial strength:

Pay bills on time. This is the single best thing bankruptcy filers can do to build up their credit rating.

Acquire and use a secured or unsecured credit card. Just don’t charge any more than you can afford to pay off each month.

Read your credit report. Errors are possible, and keeping tabs on your progress will help you stay focused on the goal of rebuilding after bankruptcy.

Mortgage companies would want someone with a reassurance that is on safe and responsible track. Many lenders prefer to see three things when considering loaning money to someone following a bankruptcy.

First thing is a long stretch preferably two years or more of on-time bill payments. This may be hard due to the case of reliable income. Likewise, with a steady work history and a down payment, even a small one, it would not be impossible for someone just coming out of bankruptcy to secure 100-percent coverage on a home loan.

A down payment is the second thing and a steady income coming in on third. Well this isn’t much as hard as the first one since. Some lenders will be willing to provide a loan sooner than two years if there is evidence of responsible bill payment on a car or secured credit card plus reliable income.

Just keep in mind that after experiencing bankruptcy buying home is no longer impossible
There are many reasons a person chooses to file bankruptcy. The loss of a job, unexpected medical bills, and overwhelming credit card debt are just a few of the factors that can lead to filing bankruptcy.

The mortgage lending industry has created special loan packages and terms for those who have filed bankruptcy in the past.

Lenders have little to lose in approving a home loan after bankruptcy. With your home serving as collateral for the loan, the lender can feel confident in approving you for a home loan, often soon after your bankruptcy has been discharged.

In summary, cash will solve this problem, for sure. However long it takes to gather that cash is how long it will take to get the house.

Start thinking about how you can make money in your spare time, selling on line at eBay, doing freelance work, or starting your own business.

You can increase your chances by coming into the deal with a lender with as much cash as possible. The more money you can use as a down payment, the less risk for the bank. There is a level where they’ll lend you the money because the loan is secured by the house and the house is worth more than the mortgage.

If your house is in foreclosure, or soon to be, this article is for you. Foreclosure has become a reality for many homeowners in Raleigh, NC. When the bank doesn’t get paid, they may elect to foreclose on the house and auction it off to try and minimize their losses.

There are many reasons why a house may go into foreclosure. It could be anything from corporate downsizing or divorce to climbing interest rates combined with drops in the real estate market. Regardless of why your house is headed to foreclosure, what’s done is done, and now it’s time for you to get your real estate problem solved. In this report we are going to review some of the options you have that may save your home from foreclosure.

1. Why should I try to stop the foreclosure?

It may sound nice to just let the house go to auction and be done with it. Just letting it go to auction could deeply damage your credit and could prevent you from getting financing for a future home, transportation, credit card, or even a cell phone. In fact, if you don’t have decent credit, the electric company won’t even turn on your electricity without a deposit. A foreclosure could stay on your credit for up to seven years.

2. Take responsibility and decide to do something. The decision to do nothing is still a decision.

Human nature will try to convince you that you are the victim, and that you have been wronged, and that it’s all someone else’s fault that this has happened. Whether it’s your fault or not, something needs to be done and you are the only person to do it. If you decide to do nothing, that is still a decision. It’s up to you.

3. Choose your advice carefully.

Everyone will have advice for you. Make sure that you take advice from those who understand the how the foreclosure process works. Among many things, some people may tell you to declare bankruptcy while others  may tell you to list your house with a Realtor. You wouldn’t follow your plumber’s advice on how to tune up your car would you? Take advice from professionals who can help.

4. The lender doesn’t want your house, they want payments.

As you receive notices in the mail from the lender telling you about how you need to pay them…or else, call them and let them know that you are trying to work things out. They probably don’t want your house. Banks are not in the business of selling houses; they are in the business of lending money. When they have to foreclose on a house, they lose money, and banks aren’t in the business of losing money.

5. Prioritize your spending.

It might be a good idea to cancel the HDTV and the TiVo subscriptions to make your mortgage payment. That entertainment center on layaway isn’t going to do you much good when the sheriff puts your stuff on the curb. Prioritize your spending so you can make your mortgage payments.

6. Bankruptcy will only postpone the inevitable.

Declaring bankruptcy probably will not solve your foreclosure problem. It may postpone the auction until the judge releases the house from the bankruptcy. When all is said and done, you could end up with a foreclosure and a bankruptcy on your credit report. There may be occasions when declaring bankruptcy could help, but don’t go file for bankruptcy because the taxi driver told you to.

7. Selling the house may be a quick and easy way to solve the problem

When the house is sold, the bank is paid off, and you don’t have to worry about making payments any more. Real estate investors or companies that specialize in buying real estate may be able to give you a quick sale and solve your problem for you. Professional house buyers can often pay cash and buy your house quickly.

In summary, take action. There’s no use crying over spilled milk. Analyze your situation, pool your resources, seek qualified advice, and do what it takes to prevent the foreclosure. There will be a time when it’s too late to do anything. Your best option may be to simply sell the house. Now that you have the knowledge, it’s up to you.

The content of this article is for information purposes only with no warranties expressed or implied and should not be taken as legal advice.

For additional information, visit http://www.SoldEZ.org