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Another Reason NOT to do it YOURSELF: Hire a Pro to Help you Fight Foreclosure

Via Regina P. Brown Real Estate on the California Coast:

After months, sometimes up to ONE YEAR of trying to negotiate their loan with their lender (to make their payments more affordable), some homeowners are giving up.

CNN's article "Folks losing homes dial 1-800; no one answers" at http://www.cnn.com/2009/LIVING/04/15/foreclosure.phones/index.html

WAIT!  You have options.  Don't just throw in the towel and walk away.

Yes, it's emotionally nerve-racking!  Yes it can be draining and depressing. But YES, your family's home is worth fighting for!!

That's why I recommend hiring an attorney and other professionals who specializes in real estate law and has extensive experience in negotiating with lenders.  Here's some new things I found out:

• Your attorney can order an appraisal of your house, at LIQUIDATION value (which is lower than market value), and use the liquidation value for negotiating with your lender! 
  
• If your lender wants you to pay for "cost of recovery" or send you a 1099 at the end of the year, your ATTORNEY can negotiate on your behalf so they don't do EITHER!
  
• You can file a 982 "Insolvency form" to make your IRS 1099-C form DISAPPEAR if you do get a 1099-C (cancellation of debt) from your lender -- consult your ACCOUNTANT for more info.
  
• Large corporate Banks and Lenders don't respect home owners and don't like dealing with them.
  
• If you move out of your house, it may cause your homeowner insurance policy to lapse.  That means YOU are responsible for vandalism to the house and the City may send YOU a bill.
  
• You can use your expenses from the HUD-1 (of a Short Sale) as tax write-offs (consult your accountant)
  
• It's ILLEGAL for the bank to negotiate your Realtor®'s commission (legally it's called contractual interference) on your Short Sale
  
• Countrywide MIS-CALCULATED many mortgage loan adjustments between 2002 - 2007 (their software had an error)
  
• Most homeowners will NOT qualify for the Obama mortgage plan, especially in California
  
• A great attorney can get a foreclosure overturned, even after the fact!
  
• If your mortgage loan is insured with Fannie Mae or Freddie Mac, you must negotiate with them and NOT your mortgage lender!
  
• Loan modification companies have a very low success rate of getting homeowners affordable payments (I don't use them and they may soon be outlawed anyway)
  
• Only 2% of loan modifications were able to get the principal amount reduced
  
• HOPE for Homeowners program is a miserable failure (we already know this, don't we!)
  
• Your Realtor , selling your home as a Short Sale, can hire an experienced negotiator to get your lender to agree to your terms

The above tips are from Ron Quintero, author of "From Bankruptcy to Prosperity" and the "Short Sale Playbook".

My RECOMMENDATION:  Put your home in the hands of professionals you trust.  Don't try to do it yourself.  Sleep better at night with an experienced PRO on your side!

Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"
Author of forthcoming book, "Virtual Office Guide for Business Professionals:  Work & Profit from Home"
Join my NEW group for professionals who work from their home office at http://activerain.com/groups/virtualoffice

Text copyright © 2008 R.P. Brown, All Rights Reserved