Mortgage & Refinancing Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

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
* They are unaware of options
* bankruptcy Attorneys contact them when the foreclosure is posted
* Investors do not display empathy

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
* Sale by assumption
* Foreclosure Presale
* Compromise Sale
* Shortpayoff
* Deed in Lieu
* Workouts
* Forbearance
* Modifications
* Assignment
* Sale/Leaseback or Deedback
* Hard Bargaining
* Injunctions
* bankruptcy

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?
* Is he waiting for a bailout?
* Will he go bankrupt?

Find out the facts.

* Review the loan and mortgage documents.
* Verify the loan amount, monthly payments, interest rates, taxes, etc.
* Review the insurance policies as well.
* Get all the pertinent information you can.
* Ask the owner if there are any other liens or judgments he may be aware of.

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
Office - (775) 535-1341 or (417) 862-3164
Toll-Free: 1-877-225-5928 & enter 417862-3164
Fax - (775) 307-6541
Email: john@jmichaelrei.com
Web Site: http://www.jmichaelrei.com/


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


The Express Tribune

Mortgage refinance firm to loan home buyers Rs9 billion - The ...
The Express Tribune
KARACHI: Pakistan Mortgage Refinance Company, set up by the State Bank of Pakistan (SBP) with the support of the World Bank, would provide housing ...
Housing to get boost with cheaper financing - Newspaper - DAWN ...DAWN.com

all 6 news articles »


Sustainable Business Forum

4 Ways a Mortgage Refinance Will Help You
Sustainable Business Forum
Could it be that opting for a mortgage refinance would allow you to lock in a more competitive rate and better terms? There is an excellent chance that you could obtain a lower interest rate. In fact, the rate you can get now may allow you to shorten ...



Union County top-5 in mortgage refinance savings
The Enquirer-Journal
Union County recently ranked fifth out of 100 counties in North Carolina in a study about mortgage refinancing by SmartAsset, an online financial technology company. SmartAsset's study -- which gathered information for 12 months starting in the summer ...



Business Recorder (press release) (blog)

Deputy Governor SBP inaugurated office of Pakistan Mortgage Refinance Company
Business Recorder (press release) (blog)
KARACHI: Pakistan Mortgage Refinance Company's office was formally inaugurated here by Jameel Ahmad, Deputy Governor, State Bank of Pakistan (SBP), says an announcement here on Monday. Speaking on the occasion, Jameel Ahmad said that PMRC ...



Best Bank In 'Towne' For A Flat Yield Curve
Seeking Alpha
Towne Bank has great non-interest earning potential to weather this period of low yields. Non-interest income is up 25% YTD, despite a worsening mortgage refinance market. In addition, Towne Bank's core banking operation is top of its class, which ...



Bankrate.com

4 ways to get the best mortgage refinance rate
Bankrate.com
If you can shave at least one-half of 1 percentage point off your current mortgage rate, it can be worth your while to trade in your existing home loan for a new one. Here are some tips for getting the very best refinance rate.

and more »


11 Ways to Get the Lowest Mortgage Refinance Rate - NerdWallet
NerdWallet (blog)
In the hunt for the lowest mortgage refinance rate, there are some things you can control and some you can't. Here are 11 things you can do.

and more »


WBIR-TV

wbir.com | Home equity loans set to soar along with home prices
WBIR-TV
Ever since the epic housing crash of the last decade, homeowners have been incredibly conservative with their housing debt. Home prices rose, at first slowly ...

and more »


P.M. News

Lagos, NMRC, Developer sign MOU to deliver 20000 housing units
P.M. News
The Lagos State Government, the Nigeria Mortgage Refinance Company (NMRC) and developers on Monday signed a Memorandum of Understanding, MOU towards the construction and delivery of 20,000 housing units in Lagos. The MOU, signed by the ...



Rising Home Values Can Boost Your Mortgage Refinance ...
NerdWallet (blog)
If rising interest rates have you worried about undertaking a mortgage refinance, there's something else to consider: increasing property values.

and more »

Google News

home | site map
© 2006 TIGER MEDIA