As an active REALTOR® in the Hemet San Jacinto, CA real estate marketplace, I am repeatedly asked specific questions about today's real estate market - especially in today's economy. In an effort to provide more information to my community, I am publishing this Top 5 in Real Estate Social Networking Systemsm "e-Article," in which I provide useful real estate information to my real estate networks. If you find the enclosed information beneficial to your family and friends, I encourage you to forward it to your "social network" as well.
Avoid Foreclosure - Options to Pursue, Scams to Avoid
If you are behind-or soon will be-on your mortgage payments due to a change in job status or other financial dilemma, you are not alone. The number of foreclosure filings nationwide rose 81% between 2007 and 2008 to 2.3 million, according to RealtyTrac (www.realtytrac.com). And with interest rates ready to reset on the next wave of questionable mortgages, foreclosure numbers are expected to rise even higher.
But don't despair! There are options worth pursuing for those facing possible foreclosure. Many banks, for example, offer loan modifications or other programs that will give you a little more breathing room.
Counselors certified by the Department of Housing and Urban Development (HUD) can help you explore available options at no charge. Options may include:
Forbearance. A forbearance is a temporary suspension of payments sometimes offered if a borrower has lost a job but has a new one starting soon - or because medical bills or another crisis situation has caused a temporary cash shortage.
Repayment plan. Repayment plans offer a scheduled blueprint for making up missed payments over time.
Loan modification. A loan modification is a change in loan terms for a limited time, as when a subprime interest rate has jumped considerably.
While there is no guarantee these options will be available in your particular situation, they are definitely worth exploring. You can find a counselor free of charge at www.hud.gov/keepyourhome.
Meanwhile, homeowners with financial difficulties should be aware of a growing "cottage industry" of rescue scam artists and fraud. Be wary of anyone who appears at your door-or at your church or neighborhood club-who offers a so-called plan to make your troubles disappear.
Steer clear of anyone, says the Federal Trade Commission, who:
- Guarantees to stop the foreclosure process
- Collects upfront fees
- Asks to be paid by wire or cashier's check
- Tells you not to contact your lender or lawyer
- Wants you to make mortgage payments directly to him/her
- Suggests you sign over or "share" your property deed or title
- Proposes a lease-and-buyback arrangement
- Offers to fill out paperwork for you
- Pressures you to sign documents you do not fully understand
To find out whether any of these resolution options are the best choice for you, consult a lawyer who specializes in real estate, debt relief and foreclosure. As a member of the Top 5 in Real Estate Network®, I can provide you with materials that outline further alternatives to foreclosure; e-mail me for more information. Please also feel free to forward this article to family, friends and colleagues who might benefit from this important foreclosure information.
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