Homeowners facing the loss of their homes due to a financial hardship often rely primarily on getting a new line of credit to stop foreclosure. In effect, they are trying to solve a debt problem by taking on more debt, refinancing their mortgage or taking out a personal loan or car title loan to get the funds to pay back the arrears. There are a number of loan products that they may even be able to qualify for, if the foreclosure process has not gone too far, but homeowners should carefully examine their options for foreclosure loans, to make sure they are getting into an affordable payment and not simply postponing the inevitable.

The first obstacle that homeowners facing a financial crisis will have to overcome is a low credit score. Although their credit may be reasonably healthy in the beginning stages of the hardship, once they begin missing mortgage payments, their credit score will drop dramatically and it will be very difficult to obtain any kind of loan, mortgage or otherwise. This will force them to rely on alternate sources of funding, such as private real estate investors, subprime lenders specializing in bailouts, or hard money lenders, that may not offer terms in favor of the homeowners. The qualification guidelines will be drastically more difficult to meet, and costs for these types of mortgages may seem very expensive.

Additionally, the current foreclosure crisis in the real estate market has caused many lenders to go out of business, and many more to tighten their lending guidelines. One hundred percent, stated income, interest only loans are simply no longer available, and homeowners who obtained loans such as these may have very little equity to work with. Hard money lenders, while not hit quite as hard as subprime lenders, are also experiencing decreases in the value of their mortgage holdings, due to the softening market. And decreases in home values are sucking the wealth out of communities, as local homeowners turn into renters, and large corporate banks end up owning vast portions of cities, unable to sell them to a market that no longer exists. These current events will continue to make qualifying for a refinance to prevent foreclosure very difficult.

However, the most difficult qualification to meet for any loan to stop foreclosure will be the equity requirement. With banks that specialize in these kinds of loans, the house will usually have to have 70% loan to value as a minimum. Some start even lower, at 60-65%; this makes a vast number of foreclosure victims immediately unqualified to obtain financing. The bank, because they are aware of a great danger of having to foreclose on the house again, wants to know that they will have their loan paid back through the proceeds of the sheriff sale, and such low loan to value properties have a better chance of meeting this aim. There is also a better chance they will be able to sell the property on the open market for very little but still make a profit, if they have to foreclose on the loan and end up owning the house after foreclosure.

Furthermore, interest rates from foreclosure bailout lenders or hard money lenders can be relatively high. Depending on which lenders are chosen and what their individual guidelines are, payments can be in the range of 11-15% on the low end, and up to 18-20% at the highest point. These loans are designed for homeowners who experienced a temporary financial setback but are now able to afford a higher mortgage payment in exchange for the chance to establish an on-time payment history again and save their home. If the homeowners have not repaired their financial situation and established good spending habits, these qualifications will ensure they can not find a solution to foreclosure by going this route, and other options to prevent foreclosure will have to be considered.

Private investor options are often the most flexible in terms of payments and equity considerations. The homeowners will not have to give up their ownership rights to the home in all circumstances, if they use a land contract option, or they may have the right to purchase back their property after a certain period of time under a leaseback agreement. Also, investors are often more willing to work directly with the foreclosure victims, because they are more concerned with the equity in the house and its potential future profit and monthly cash flow, and they can negotiate with the foreclosing bank for a short sale to generate even more equity. But these considerations also work in the homeowners’ interests, because more equity in the property will require a smaller mortgage, which will be accompanied by lower payments. This can give the foreclosure victims a little bit of extra cash every month that they can use to save for a rainy day or pay off other debts.

Other loan programs, such as payday loans or car title loans, are often the most predatory of all plans a homeowner can take to save their home. In nearly all cases, relying on such loans during a financial hardship is almost a guarantee for future financial problems, and will result in the foreclosure victims becoming even further behind on monthly expenses. Although there is a place and time that these loans can help homeowners out of a tight situation, they should be avoided when there is a serious financial hardship that does not have an end in sight. And they should be considered as a last resort to make a payment, rather than a short term solution that can be relied upon numerous times to keep a property out of foreclosure.

Homeowners have numerous options when looking at loans to save a home from foreclosure, but the qualifications for many of these loans will be difficult (if not impossible) to meet. Due to the drawbacks and difficulties with these loans, using debt to solve a debt problem should be one part of the plan to stop foreclosure, but it should not be the only part. Other options need to be considered in addition to credit, especially working with the lender, selling the home, and filing bankruptcy to avoid foreclosure. The problem of losing a home can be solved in various ways, but every situation requires a unique perspective and several backups in order to be successful. Loans of any kind are just one part of the equation in homeowners helping themselves to understand what can be done to solve their current problem and ensure they have a long term plan to prevent going into foreclosure ever again.

The ForeclosureFish.com website provides homeowners with information and resources they can use to put together a plan to avoid foreclosure on their own. The site offers basic explanations of various methods to save a home, including foreclosure loans, filing bankruptcy, and short sales, among many others. Foreclosure victims are encouraged to read through hundreds of pages of articles, blog entries, and reference materials in order to understand how foreclosure works and what options they have to keep or unload their homes. Visit the ForeclosureFish.com website today to download a free foreclosure e-book that explains how the foreclosure process works and what can be done to stop it: http://www.foreclosurefish.com

The list of various methods to stop foreclosure that is presented in this article is a nearly comprehensive accounting of the most common ways homeowners can use to save their homes, either by staying in them and avoiding foreclosure, or by getting out of a bad situation with as much of their financial lives intact as possible. There are really no magical ways to end the foreclosure process — but there are enough tools that homeowners have available, that they can choose from a number of options to help them out of their hardship situations.

1. Save up and get current on the mortgage by paying back the payments that have missed, plus the interest, late fees, attorney fees, etc. Foreclosure victims should be aware that there are often thousands of dollars of extra charges that are added once a homeowner start missing payments and especially if the lender hires a law firm to pursue the foreclosure.

2. Work with the lender to put together a repayment plan, which would require the homeowners to put down part of the amount that they are behind now and pay back the rest over a period of months, along with the current monthly payment. Usually, repayment plans can be worked out through the lender’s loss mitigation department, and will result in the foreclosure victims paying almost twice as much per month as the regular mortgage payment. This is to help get caught up on the payments that have been missed while the homeowners are paying their original monthly obligation.

3. Work with the lender to modify the terms of the loan to state that the missed payments are spread out over the life of the loan or put on the back end of the loan. This is called a mortgage modification or loan modification. Some lenders will not do this because they do not hold the paper to be able to modify it. This is especially true for mortgage servicing companies, who only service their loans and collect payments, but who do not own the loans.

4. Refinance — find a hard money lender or traditional lender that will consider foreclosure refinance loans. Qualifications include lots of equity and lots of income, since interest rates for foreclosure loans are typically over 10%. Foreclosure refinance loans can be difficult to qualify for and may result in higher monthly payments, but they are a good way for homeowners to get a fresh start with a new note and new lender.

5. If the homeowners have an FHA loan, they may be able to qualify for a one-time loan from the FHA that will bring the loan current and is placed as a lien on the property that would have to paid back if the property is sold or refinanced. This is called a partial claim. The foreclosure victims would have to contact the FHA directly for this one time payout to get caught back up on the mortgage.

6. Sell to a private investor or friend/family member and lease/rent the property back from them. This option clears off the foreclosed loan on the property and uses someone elses good credit to get a new loan and may allow the foreclosure victims to stay in the property. Investors can also work out short sales on properties, although they usually do this in the hope of flipping the property by reselling it quickly at a profit.

7. Bankruptcy will stop the foreclosure process, but is usually an expensive alternative to setting up a repayment plan (described above as Option #2). Attorney fees, trustee fees, court costs, and high monthly payments cause numerous homeowners to fail their bankruptcies. Bankruptcy should usually only be considered if the homeowners desperately want to prevent foreclosure and if they have a significant amount of disposable income they can dedicate towards the bankruptcy payments.

8. Short sales are a good option for homeowners who owe more on the property than it is currently worth. A short sale means the bank accepts less than what they are actually owed, and would allow you to get out of the loan, at least. The bank would not be able to come after the homeowners for the rest of the loan amount, since, by accepting a lower amount, they forgive the rest of the debt owed on the mortgage.

9. Sell outright if the property is worth enough and if there is a willing and able buyer. List the house as a For Sale By Owner (FSBO) of through a local real estate broker. In some cases, it is the right decision just to unload the house to stop foreclosure and focus on repairing the credit situation until there is a more opportune time to purchase a new, more affordable home, possibly in a few years.

10. If 1-9 do not work, the homeowners can offer the bank a deed in lieu of foreclosure, which means they would be voluntarily giving the property back to the bank, with the bank agreeing that the property is payment in full of the loan. This is not much better than a foreclosure, and the homeowners have to leave the property anyway, but it will prevent the sheriff sale and eviction process. The bank will not be able to ask for any extra money or sue the former owners for a deficiency judgment, because they accept the property itself as satisfaction of the loan.

11. If 1-10 do not work, as a last resort, the homeowners can just move out and walk away and forget about the property. This is definitely not recommended if they care about their credit in any way and plan to borrow money for several years, but foreclosure should teach them not to rely on banks and lenders to bail them out with borrowed money when they face a hardship. or are short on cash. Many homeowners simply walk away because the foreclosure situation is so intimidating, but, as listed above, there are numerous options that are better than just giving up on the property.

Those are the most common options that can be used to stop foreclosure. There are a few others (suing the bank, bringing various complaints to regulatory agencies, etc.), but they involve much more cost and legal involvement and may not end up stopping the foreclosure process in the end. To learn more about any of these options, though, please consider searching through various resources online that offer foreclosure information. Every homeowner’s specific situation is very different and deserves a high level of review and analysis before any one solution or combination of alternatives to foreclosure are decided upon.

The ForeclosureFish.com website has been designed to help homeowners receive relevant foreclosure information and mortgage help. Various online resources are given to foreclosure victims in the hopes of educating them enough to be able to stop foreclosure on their own and avoid being taken advantage of. These resources include a free foreclosure e-book, daily updated foreclosure blog, and numerous reference materials. Homeowners who are interested in further help can receive a complimentary review of their situation by the company, as well as a detailed proposal analyzing the homeowners’ chances of success for various options, such as loans to stop foreclosure, loss mitigation, or private real estate investment. The site also puts foreclosure victims in touch with mortgage and real estate professionals who can help them examine various options they may have available to save their homes. Their site is available online at the URL below: http://www.foreclosurefish.com/

One of the solutions to foreclosure that we discuss much less often than others is obtaining an equity loan to pay off the arrears and reinstate the mortgage. This is because it is one of the more difficult options to qualify for, possibly more difficult than a standard foreclosure refinance. However, for homeowners in the right situation, a second loan taken out of their equity can allow them to get current on their payments again and end the pain of foreclosure. Although it is certainly not suitable for every foreclosure victim, and should not be relied upon as the the only option to save the home, it is a solution that should be considered by every homeowner facing foreclosure.

The reason most lenders refuse to loan to homeowners in foreclosure is because of the pending judgment. The bank often files a lis pendens with the county courthouse, which shows up against the property. This indicates to other prospective lenders that a lawsuit is ongoing against the owners of the property, and there has been no resolution to the court proceedings yet. Many traditional lenders do not want to loan money on a property when there is such a danger of not being paid back. If the lawsuit ends up in a judgment against the homeowners for more than the home is worth, and the house is sold at a county sheriff sale, a second mortgage would more than likely end up with little or nothing. They will not loan the homeowners $50,000 and expect to be paid back only $5,000 or nothing at all.

In fact, it is most likely that a second mortgage company will refuse to give an equity loan for exactly this reason. They have no reasonable expectation of the total amount of the eventual judgment, so they can not be entirely sure how much equity the homeowners have to begin with. This makes it difficult to provide an equity loan when the amount of equity is in question. With the pending foreclosure, there is also very little reason for the lender to expect their loan to be paid back over time. Second mortgages often lose all or nearly all of their loan amounts once the property is sold at the foreclosure auction. This is due to the fact that few properties sell at auction for anywhere close to their current market value.

One potential use for an equity loan is if the property is behind in payments but the homeowners are not yet in foreclosure. In this case, while the first mortgage company will be adding in late fees and interest, the amount of equity in the property is relatively easy to estimate. There may not be attorneys involved or a lengthy court process at this point, so the homeowners can use some of their equity to secure another loan and pay back the amount they are behind. The further behind they become, however, the more difficult it will be to qualify for the equity loan, as more of the equity will be eaten up by missed payments and extra fees. But homeowners should attempt to qualify for this solution before it is too late and the option is no longer available.

When homeowners are working on a repayment plan to get the mortgage back on track and avoid foreclosure, an equity loan can allow them to quickly pay back the arrears and begin working on other goals. This is especially useful if the mortgage company is no longer reporting the loan as being in foreclosure on the homeowners’ credit reports. Of course, if the workout program is still showing as a foreclosure, then this may be more difficult. The family may be current on the payments for the plan, but the bank does not take the property out of foreclosure until the end of the term when all arrears, fees, and interest is paid back in full. But if this is not the case, it may be well worth attempting to pull out some equity to pay off the plan, get the payments more manageable, and put some extra cash in the bank to use as an emergency fund in case of a future financial hardship.

Equity loans can be a fairly quick and relatively painless solution to foreclosure, which means they are difficult to qualify for and cease to be a solution at all the further into the foreclosure process a home falls. However, for homeowners who have just missed a couple of payments and are not yet being sued by the lender, or are working on a forbearance agreement or other arrangement with the bank to get the payments back on track, an equity loan can allow them to get current on the loan once more and put together a more substantial savings plan. Although there may be more hurdles to jump over to qualify for this solution to stop foreclosure, it should not be discounted or forgotten about when homeowners are putting together a plan to save their homes.

The ForeclosureFish.com website helps homeowners save their homes from foreclosure by providing relevant information and resources. Hundreds of blog entries, articles, and reference materials are offered on the site to explain the basics of the foreclosure process and how it can be stopped. Various methods of avoiding foreclosure are discussed, including equity loans, bankruptcy, short sales, and many others. Visit the site today to begin learning how to save a home from foreclosure and start the process of financial recovery: http://www.foreclosurefish.com/

Stop foreclosure loan facts and fiction revealed. Irrespective of what anyone may have told you getting a stop foreclosure is fairly easily achievable. There are many lenders ready to provide you with a foreclosure loan irrespective of your credit history or even your historical mortgage loan record. Keep reading to learn about your options.

The Truth About Foreclosure Loans Revealed

Most mortgage loan companies have a set of basic minimum guidelines that set out what needs to be place for you to qualify for a stop foreclosure loan. For instance, there are lenders who are more understanding of a wide variety of situations. Some of them are so willing to help that no one is turned down simply on the basis of your credit, income, or equity.

If You Are Unsuccessful Here’s What To Do

If you are unsuccessful with such organizations its probably because your case has been thoroughly reviewed and you simply does not qualify for their help. What Do lenders Look For When You Apply For A Stop Foreclosure Loan? If you apply for a stop foreclosure loan, here are the 3 key things that most lenders will be looking for

• Credit
• Loan to value
• Income

Your credit is probably still acceptable if you’re less than two months behind. More than two months behind? You may need more regular income and equity in your home in order to qualify for a stop foreclosure loan. Regardless Of Your Mortgage Credit History, You Could Still Qualify For A Foreclosure LoanLet’s imagine for a moment that you don’t meet the stated requirements for this kind of loan, lots of times exceptions are made to the stated rules. Therefore, the one thing you can do today, probably the best thing you can do right now, is establish whether you can refinance your home out of foreclosure today.

Private foreclosure lenders and lenders that typically fall into the “non-traditional foreclosure lenders” group and also private foreclosure lenders are more lenient with any stated guidelines and will often time lend you up to over 80% of the value of your home. You should never rule out the possibility of a stop foreclosure loan to stop foreclosure on your home. Don’t make the classic mistake of discovering too late that you could’ve refinanced your home.

Let A Foreclosure Loan Be One of Your Options

Don’t rule a stop foreclosure loan out until and unless you’ve fully investigated and researched all your available options.

Learn more about a stop foreclosure loan when you download and read a free report from the Stop Foreclosure Handbook website available from http://www.stopforeclosurehandbook.com – Would you like to discover how to stop foreclosure legally in 9 days or less? How about discovering more about another option they don’t want you to know about? The truth about the dreaded $26,897 phone call is also revealed along with the top three solutions for how to keep your home and keep your credit.

http://www.StopForeclosureHandbook.com helps people facing foreclosure. ‘Bayo Akinola-Odusola is the founder and recognized business and personal development consultant who helps businesses and individuals improve their conditions. He is also a seasoned Niche Information Marketer and founder of a number of online businesses dedicated to business and personal improvement

One of the most common misperceptions about foreclosure victims is that many of them simply allow their homes to go into foreclosure, as if it is a conscious decision made by the homeowners. However, this is not the case in nearly every instance, as homeowners will try every method they are aware of to save their homes; even to the point of running out of options long before they have run out of time. This is usually due to the fact that homeowners are vastly uneducated about various ways to stop foreclosure, and do not know of alternate methods that may allow them to keep their homes. Most people let their homes go into foreclosure simply because they do not have any other options to prevent losing it, not because they decide to let the home go, ruin their credit, and face financial difficulties for years to come.

Most homeowners face a financial hardship, like losing a job or unexpected medical problems, and get behind on their mortgage and other debt payments. They just can not get back on track once they have recovered from the crisis, even though finding a way to prevent foreclosure is often their most important goal. Once a loan gets further and further behind, though, lenders will not be willing to work with the homeowners to put together a repayment plan, and they may demand that the entire loan be paid in full. This is the beginning of the foreclosure process, and homeowners will quickly run out of time and options to avoid foreclosure.

Then, with the financial hardship and late payments, their credit scores begin dropping rapidly. They are unable to refinance to stop foreclosure, and they may not have enough income to put together a repayment plan with the lender. The mortgage company at this point may not even offer loan modifications or forbearance agreements, because the homeowners are so far behind that their current income situation would not allow them to qualify for the workout program. These are the two most common ways that homeowners attempt to save their homes, by refinancing and working with the lender, and if neither offers a viable solution, the foreclosure victims may feel they have no other option beside selling.

However, selling the property presents its own problems. With the real estate market the way it is in many parts of the country, a large number of homeowners find that they owe more on the home that it is worth. So they can not even sell the home without a short sale, which can cause tax liabilities. Especially if homeowners are unaware of how a short sale works or if it even is an option, they may simply give up after the house has sat on the market for some months with no prospects.

The homeowners, as a very last ditch effort, can try to buy the property back at the sheriff sale, but most counties require the winning bid amount to be paid within 24 hours to one week after the auction. Most homeowners facing foreclosure do not have the cash to pay for a house, and if they did, they would most likely just pay it to reinstate their current loan, rather than pay cash for their house at the sheriff sale. Buying it back is possible, but not very practical, even if they could get it at a good discount due to the drop in property values.

Most foreclosure victims only “allow” the foreclosure to happen because they feel they have no other options. It’s not a decision like deciding to go to the mall for the day, or take a trip to Six Flags with the kids, and this decision is often based on false of incomplete foreclosure information. Homeowners have more options than they realize to prevent foreclosure, which is why it is important to get the most relevant foreclosure advice possible, and examine which options, besides refinancing, putting together a bank workout plan, or selling the property, would result in them being able to keep their homes and begin repairing their damaged credit.

The ForeclosureFish.com website educates homeowners on what options they have to save their homes and prevent foreclosure. With hundreds of pages of information, foreclosure victims can learn about every method used to save a home, including qualifying for a loan to stop foreclosure, short sales, and bankruptcy, among many others. Visit ForeclosureFish.com online today to browse through hundreds of articles, blog entries, or download a free foreclosure e-book explaining the basics of how foreclosure works and how to stop it: http://www.foreclosurefish.com/

Do you have creditors calling your home on a daily basis? If so, you may be facing the reality of losing your home to foreclosure and feel that the battle is over. You can still do something about it if you act right now. It may seem like a dark and nasty situation you are in, but there are people just like you facing the same thing. You may be able to apply of a foreclosure loan and get back on track.

A Detail of the Foreclosure Loan Explained

Most lending institutions and banks will offer foreclosure loan options to those who qualify. If you are losing your home you just might be one of them who is lucky enough to secure a foreclosure loan. A foreclosure loan is given by certain investors who are willing to work with distressed properties.

What Are The Workings Of a Foreclosure Loan?

Basically, there are many versions to this, but here is one scenario. The banks will have names of private groups of investors that look for distressed properties. These lenders are willing to pay off the old loan and re-issue you a new loan at a special tem and rate. Each foreclosure plan situation is a little different based on many factors. Perhaps you can get a foreclosure loan for an extended period of time to lower your payments to the pint you can afford.

So, Where Does One Start?

Try starting with the main source – your local banks will often have list of people who make foreclosure loans to help people out of a bad situation. You might also find help by contacting your local city counsel to see if they are aware of local investors who buy distressed property. A foreclosure loan program may not be the answer, but it is a great way to go if you find one.

One more possible option for securing a foreclosure loan would be to check around in local papers or ask friends who might have had struggles financially too. The qualifications are a little different on each case. You may be closer to qualifying than you think. Each loan may be structured differently to help you keep your home form falling into foreclosure. You will never know unless you do some checking into the option before letting it all go.

If you need more foreclosure help then quickly head over to http://foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Foreclosure Loan.

If you have received a notice of default you need to act quickly to save your home from foreclosure. Foreclosures are all too common in today’s world. Many people bought into the adjustable reduce interest rates to purchase homes a few years ago and are now finding it impossible to make their payments. This article will look at some way to save your home with a foreclosure home loan.

There are several foreclosure home loan options you can take. Before you get too far into your foreclosure loan research you need to make sure that you want to save your home from foreclosure. The best way to determine if obtaining a foreclosure home loan to stop foreclosure is best would be to calculate the difference between what you can rent and what your payment would be to stay in the home.

Check with Banks

If you know that you want to stay in your home and stop foreclosure then you can find a loan. Many banks will have a list of investors who might be willing to give you a foreclosure home loan on your property in order to save it from foreclosure. You may also find private investors online and in your local newspaper who will give you a foreclosure home loan.

Working with Investors

The best way to structure a foreclosure home loan with an investor would be to structure a lease buy back option. The investor will earn interest for a period of time while you work on building equity to buy the home back. Some of the down payment may be able to come by way of labor or repairs into the home.

Don’t Wait Until the Last Minute

Finding a foreclosure home loan can be time consuming. If you find yourself coming up short on your bills each month and fear that foreclosure may become inevitable you may want o start your research early to make a wise decision. The biggest mistake most people make is to wait until the last minute and then they are very limited in their options.

If you need more foreclosure help then quickly head over to http://foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Foreclosure Home Loan.

On a typically sunny day in Southern California, I drove down a tree lined street in what was once a bustling middle class suburb. I passed the park on the corner which was my signal to turn right. The park was unusually quiet which lent an eerie feel to the neighborhood. I slowed the car to make the turn and immediately noticed the difference. “For Sale” signs and Foreclosure notices seemed to stand in salute against the backdrop of manicured lawns and colonial homes. The signs seemed to scream what headlines had already declared – there is a crisis in the American real estate market.

Across the country, the rate of foreclosures has dramatically increased. Analysts and industry professionals have all weighed in with their expert opinion often attributing the crisis to the natural law of “market corrections” and uncertain economic times. However, the one admission that no one seems willing to make is that we are in this mess because of greed and ignorance.

Professionals in the industry share one common goal and that is to make money. It was not enough to sell homes to consumers who could qualify for a mortgage and were financially prepared to own a home. Those sales had already been made. So the industry “relaxed” its lending standards to expand home ownership to a broader market. The plan, on the surface, worked beautifully for many years. The industry appeared to be helping the less fortunate fulfill their starry eyed dreams of home ownership. In return for their good will, risky borrowers fueled the growth of the sub-prime mortgage industry from $150 billion in 2000 to $650 billion in 2005.

Caught up in this modern day gold rush were the “everyman” workers seeking a better future with a real estate license. Folks who had waited tables, flipped burgers and washed cars for a living last year were now selling homes worth more than their previous annual salary. Many of these people that were selling “the dream” did not own a home themselves and were unequipped to educate buyers on making the smartest purchase. Sadly this is also true of many loan offices. Buying a home is the single largest investment most will ever make yet many took that journey with “professionals” who did not have a clue what it was about.

Ah, but consumers are not completely off the hook for their role in this crisis. Greed not only drove the industry to find more borrowers but it also drove consumers to accept loan terms and mortgage notes which were unreasonable. Greed and need intersected turning the American dream into the American nightmare. Even Barbie has a dream house and every American wants their 40 acres and a mule. No one talked about the responsibility of having that plot of land. Buyers did not read the fine print on their loan packages nor did they fully take in that the grass in suburbia also needs to be watered to stay green. Greed and ignorance are never a good combination and that is clearly evident in today’s market.

The fervent sales pitches did not include an education on the ups and downs of home ownership. Rewards were presented and risks were barely mentioned. Deals were quickly closing with handshakes and smiles as though life would always be this good. The good feelings spilled over into the traditional market as well. Homeowners traded up from “starter” homes into more expensive mortgages often taking advantage of the many creative financing terms, such as the adjustable rate mortgage, or interest only loan.

The industry and consumers could have benefited from a bit of pessimism. We could have used a Paul Revere shouting in our ears that good times don’t always roll. As we now know, the bad times seemed to roll in with an unhinged fury – the dot com bubble burst, the 9/11 terrorist attacks brought the economy to a standstill, interests rate rose, we went to War, interests rates rose again, we were pounded by devastating hurricanes in the Gulf region, the economy worsened, unemployment increased and on and on it goes. Not to mention the normal ups and downs of life such as being laid off, a plumbing problem or a roof that needs to be repaired.

No one can with any degree of certainty predict the future. Real estate professionals must help potential homeowners do a comprehensive assessment which includes how they would handle their mortgage if their financial situation changed. Professionals can no longer sell adjustable rates mortgages (ARMs) with abandon on the basis of interest rates remaining low. Many borrowers are now in foreclosure as a result of ARMs. Agents must educate themselves so that they can educate borrowers. This is not happening today. On the flip side, borrowers must READ first and ask questions before they sign on the dotted line. It really does take two to tango and finger pointing is not going to solve the problem.

The mortgage industry must also realize that everyone is not your target market. Successful businesses thrive by targeting an “ideal client” in a niche. Attempting to make mortgages work for the world could only result in disaster. The industry must define a clear target market and develop products for that market.

The industry must also help some borrowers delay buying a home until they are ready. We can’t stress financial education enough. New Cadillac Escalades, Mercedes, and Range Rovers aren’t mandatory for the new garage. What about a savings plan so that you’re prepared for home repairs and other emergencies? New homeowners should first get acquainted with their new investment and take it for a spin before they invest in spinning rims on a hunk of metal that they cannot call home.

In fact, home ownership is not for everyone. Owning a home is a privilege not a right. Not everyone is prepared to handle the financial and emotional responsibilities that come with owning a home and some folk should just be turned away. If there was a test required for home ownership, many would have failed miserably. Oh my bad, there is a test and it’s the “qualifying for a mortgage” test. Yet lenders bent the rules so the slow students could pass.

In the short term, fewer houses may sell and fewer loans may be written but in the long term buyers and sellers of the dream will both benefit. Real estate professionals who accept accountability will find that they will have not only good business but more of it. After all the foundation of sales and marketing is meeting the buyers needs rather than pitching your features and benefits. Real estate professionals who accept their role as educator are likely to receive a greater response from consumers. Professionals must be willing to partner with their clients even if that means selling them a smaller mortgage or encouraging them to delay their buying decision until their financial house is in order.

The industry must also demand more from its professionals. Not everyone who can pass a test is qualified to work in the industry. If you sell a customer a suit that doesn’t fit they can return it, but selling a customer a bad mortgage is not something they can return. We should not take so lightly that a home is not simply a sale, but the place where folks lay their head at night. A bad deal can literally put someone on the street.

In turn, consumers must demand more of the real estate industry. Borrowers do not have to become lending experts but should be prepared to ask the right questions. A borrower should know their credit score and understand where that places them in the traditional market. All loan options should be thoroughly investigated including the fine print. If offered a teaser rate or other adjustable product, you should fully understand when that rate ends and how that will impact your monthly payment. Do not accept an adjustable mortgage on the basis that you can refinance later, as this may not always be possible. Many borrowers bought into this assumption only to find that when home prices fell and interest rates rose they were unable to qualify for a mortgage large enough to cover the old balance or could not afford the prepayment penalties frequently associated with sub-prime mortgages.

We will never eliminate foreclosures or missed mortgage payments but when consumers and the industry work together we can certainly help many avoid a fate that has become all too common.

Stay tuned, the foreclosure issue is heating up and will be one to look out for in the future. Stay informed and don’t forget to listen to Butch Grimes, on KTYM 1460am at 6:00pm every Monday night. He can also be reached at 323-750-3690 ext 236 or e-mailed at info@wetalkrealestate.com.

Copyright © 2005 Butch Grimes, We Talk Real Estate” , All Rights Reserved

WE TALK REAL ESTATE WITH BUTCH GRIMES® is a registered service mark of “We Talk Real Estate”. The articles, logos and Designs are trademarks or service marks of “We Talk Real Estate” and may not be copied, used or displayed without the prior written consent of Butch Grimes.

Butch Grimes is a nationally known Real Estate Expert who is often called upon by national and international companies for guidance on achieving success in the ever-evolving minority emerging markets. He has also testified before the California Legislature on issues of mortgage insurance, unfair lending practices and other issues impacting underserved communities. He has received commendations throughout California and nationwide for his contributions to the real estate industry and local community. Grimes shares his considerable knowledge during a weekly radio show, “We Talk Real Estate with Butch Grimes” on KTYM 1460 AM in Los Angeles. The landmark show is the first live talk radio show dedicated to addressing real estate questions and concerns of inner city communities. His monthly column, “The Real Estate Insider,” appears in state and local newspapers. To learn more about Grimes, visit http://www.WeTalkRealEstate.com

Homeowners run into sad realities once they discover their home is in pre-foreclosure or foreclosure. Amazingly, Loss Mitigation can help stop foreclosure, perhaps up to 100% of a homes value.

Foreclosure begins when something really bad happens – loss of employment, the passing of a family member, illness, catastrophe, divorce, drug problem, separation, family crisis, gambling, etc. The results are heartbreaking and often add up to the loss of a home. A family is on the street and family members start to blame each other. Meanwhile, lenders place borrowers in the hands of their collection departments and they are relentless, calling at all hours, both at home and at work. Some sub-prime lenders even call neighbors. A few “A” lenders may be helpful and offer to review your file to see if a program can help.

Unfortunately, for the most part, homeowners are unaware of the guidelines for these unfamiliar programs and tell lenders what they think they want to hear.

“Typically, we discover that the banks ‘policies’ differ from what the law allows for. Since most people are new to the foreclosure process they can not make their best case. It appears that banks take advantage of the fact that most homeowners are unaware of the process.”

Since foreclosures are legal issues printed in local newspapers, homeowners will typically find some interesting folks drawn to their ‘foreclosure opportunity’.

Fifty or more attorneys write to say bankruptcy is the only way to save their home. Forget that bankruptcies commonly fail, as homeowners are required to pay all creditors, all those old IRS taxes, medical bills and credit cards long-forgotten.

Homeowners need to understand that their credit will be damaged for the next 10 years since both a foreclosure and a bankruptcy will appear on them.

Home owners need trustworthy professionals. Most homeowners are able to solve their financial troubles in a short time. They frequently can handle their bills but are $10,000 to $30,000 behind on their home loan and their lender won’t take partial payments. Often times, they have saved some money from the nonpayment but still are losing their home. We find that if the hardship that caused the mortgage delinquency has been resolved and with a professionally designed plan of action, it is very possible for us to stop foreclosure.

So how can you stop the 1,000,000+ home foreclosures this year? One at a time…

The answer for the majority of home owners is simple. “When people injure their foot they go to a foot specialist, when they are faced with legal matters they retain an attorney and they see a dentist for teeth care. The clear choice when confronted with a home foreclosure is to leverage the years of experience that a professional Loss Mitigation Specialist has”. Not to mention the fact that this is the least stressful and most cost effective option. In fact, a good specialist will not charge for the first consultation, this will allow a homeowner the opportunity to see if they are candidates for the program. There are several options for a homeowner in foreclosure and a Loss Mitigation Specialist will uncover their best choice. Their vast understanding and skill set typically help home owners out of foreclosure 98% off the time. Perhaps some homeowners have enough equity to do a foreclosure bail out loan. Others may need the services of a real estate company that can work to sell a home in a timely manner to avoid foreclosure. Most homeowners are in a position to set up a professionally designed plan to stop the current foreclosure process.

Lenders may offer a solution directly to a home owner but it is designed with the banks best interest in mind and frequently requires borrowers to meet impossible underwriting guidelines. Typically they approve plans that are outside a home owner’s budget. “The trick is to force the lender to approve a plan that is in the best interest of the home owner and their ability to pay their mortgage”.

The goal is to come out of the foreclosure as fast as possible and within a short time refinance with a “B/C” loan and this will improve your credit. Lenders can lend from 80 to 90 percent of a homes value once the foreclosure has been resolved. Within a year, home owners often discover they are qualified for an “A” loan once their credit has improved.

Scott Pasinski is president of Home Retention Specialists. He specializes in Loss Mitigation plans with a home owner’s lender and his firm handles both residential and commercial properties. Firm associates are former bankers, bank examiners, retired U.S. Department of Housing and Urban Development commissioners and Realtors executives. You can reach them by phone at (888) 894-4637.

If you are on the verge of losing your home to foreclosure there are some options you can take if you act now. It may seem rather gloomy if you are facing the possibility of having the bank foreclose on your home, but it may not be too late. A foreclosure loan could be the perfect answer in a difficult time.

Foreclosure Loan Explained

Banks and lending institutions throughout the country have special foreclosure loan programs specifically designed to help people from losing their homes and/or property. A foreclosure loan program is instituted through additional funds from certain companies that are willing to work with certain people.

How Does It Work?

Basically, the short answer is… These companies pay off your old loan and then give you a new loan. The new foreclosure loan stretches out your payments over a longer period of time. By extending your foreclosure loan period it allows you to make payments in an amount you can afford. Each plan will be catered to your specific needs.

Where Do I Start?

You can start your search for a possible foreclosure loan by contacting a bank or loan institution in your area. You may also be able to get information from your local city chamber of commerce. These loans are not available to everyone, but it is worth checking into if you are faced with this situation.

One more option for finding the right foreclosure loan is to talk with others who have obtained a foreclosure loan. Qualifications will be different for every situation. Most people will assume that they do not qualify for any type of loan, but you just might be surprised. If this option does not work maybe you can negotiate on your current loan.

If you need more Forclosure Help then quickly head over to www.foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and Foreclosure Loan information.