con't BEATING THE FORECLOSURE BLUES

Q: How Do I Know if I Qualify for Any of These Alternatives?

Your lender will determine if you qualify for any of the alternatives.

Q: Should I Be Aware of Anything Else?

Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Equity skimming. In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

'SELL YOUR HOME IN 7 DAYS'…'WE BUY YOUR HOME FOR CASH'… You've seen those signs everywhere. These signs represent real estate investors who are looking to purchase your home at below the market value and turn around and sell it for a quick profit. Now, there's absolutely nothing wrong with this solution, the only drawback is that you are not getting all of your profits if you sell your home at below the market value.

Phony counseling agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale.

Q: Are There Any Precautions I Can Take?

Here are several precautions that should help you avoid being "taken" by a scam artist:

1. Don't sign any papers you don't fully understand.
2. Make sure you get all "promises" in writing.
3. Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
4. Check with a REALTOR®, a lawyer or your mortgage company before entering into any deal involving your home.

Q: What Are the Main Points I Should Remember?

1. Don't lose your home and damage your credit history.
2. Call or write your mortgage lender immediately and be honest about your financial situation.
3. Stay in your home to make sure you qualify for assistance.
4. Cooperate with the counselor or lender trying to help you.
5. Explore every alternative to keep your home.
6. Beware of scams!
7. Do not sign anything you don't understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.

Act now! Delaying can't help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

Nobody wants to lose their home. However, in some situations, it is better to free yourself from your mortgage and other homeownership obligations, rent for a while to re-establish yourself financially, and purchase again.

From a financial perspective, you may be in a better position in the long-term. You can avoid having a foreclosure on your credit report (which could prevent you from buying a home for another three to seven years), and depending on your estimated profit, you might have enough cash to pay-off other debt, save money, and maintain a good credit rating.

Feel free to contact me for a confidential consultation. Your financial information is private, and it will stay that way. I will show you what the homes are selling for in your neighborhood, and give you a written estimate of your proceeds should you decide to sell.

You might be able to walk away with profit and a foreclosure free credit report. With this information, you can make your decision as to how you would like to proceed.