What Do You Really Know...When You are in Foreclosure  
by John Occhi REALTOR  
Realtor Consultant to Foreclosure Investors  

The more I talk with homeowners facing foreclosure the more I know that there is a huge amount of misinformation being circulated (which is the entire reason for my blog - to set the record straight).

Homeowners who are falling behind in their payments are constantly feeling the pressure and stress of a pending doom - known in our society as FORECLOSURE.  The problem is that most of the ‘information' being circulated is coming from people who really haven't got a clue but have nothing but the best intentions.  You know who I am talking about...your brother-in-law, a neighbor, or even a co-worker.  Everyone thinks they are an expert.

Please don't let these experts ruin any chance you have of either saving your property or allowing you to bow out gracefully.

I should caution before I go on...not all of the advise you will receive are from well-wishers.  Once you find yourself in the foreclosure process the action is part of the public record and you will attract all sorts of investors and people with a whole lot of different agendas to either your mailbox or your door-step.  Many of these agendas are very self-serving and some are unscrupulous and some will even be illegal - so please be careful

(SIDEBAR:  As a REALTOR, I too have an agenda.  If you cannot keep your home I want to allow you to bow out as gracefully as possible by allowing me to sell your home and negotiate a SHORT SALE with your lenders.  First I will help you explore your options for keeping the home - it can happen...keep reading.)

MYTH:  The Bank wants to take my home back so they can sell it for a profit.
TRUTH:  The bank wants to loan money - not sell property.  For a bank, the collateral on their loan is not considered an asset, but rather a liability on their balance sheet.  The foreclosure process takes up valuable time when their loan is not performing and so they are not making money on their money.  They would rather cut their losses and put their money back to work for them.

MYTH:  The Bank is refusing to take my payments - There are no other alternatives!
TRUTH:   Once again, the Bank wants your money - money is the only product the bank really has...yes they package it in a variety of different ways - but money and your interest is the lifeline of any lender.  If you are not having success negotiating with the bank, then perhaps a professional Loss Mitigation professional may be able to help with a number of different alternatives - depending on your personal situation.

MYTH:  I received my NOTICE OF DEFAULT (NOD) today, so I guess I better find a place to live.
TRUTH:  In California, once the NOD is served, you have a minimum of 90 days before the Notice of Sale is posted and then another minimum 21 days before the auction takes place.  If you are still in the property after the auction, then you have to be evicted from the process and the new owner has to go through the standard Unlawful Detainer litigation process which can take another 2, 3, 4 months or more.

SIDEBAR:  These dates are only accurate for CALIFORNIA - some states may take longer and other states can move very quickly - so please do not rely on this information outside of California as a FACT, but as a guideline.

MYTH:  Once in Foreclosure it is impossible for me to refinance
TRUTH:  This is anything from the truth if you have equity in your home, referred to as Loan to Value (LTV).  If your current mortgage is only 75% of the fair market value then your LTV would be 75%.  There are many lenders out there who will refinance you - however be warned that the terms they will offer are typically going to be less desirable then the ones you currently have.  The advantage is you can buy some time so you can make plans to bow out gracefully on a more relaxed time schedule.  This type of loan may be considered "HARD MONEY" and is often less forgiving when payments are missed.

MYTH:  I can stop the foreclosure by filing bankruptcy
TRUTH:  First consult with a bankruptcy attorney, I am not an attorney and can not give legal advice.  I can say that the bankruptcy laws recently changed and it is much more difficult to maneuver through at a much higher cost and ultimately many homeowners who file for bankruptcy never make it out the other end with their homes.

I hope this answers some of the questions that homeowners ask themselves on a daily basis when they find themselves in trouble with their mortgage.  They need to be able to stop the foreclosure process when they call out, :Save my Home!".  They can if they just keep a level head and work diligently towards the goal.  The end outcome may not be the ultimate plan they have in mind, but at least they should be able to sell and move in dignity.

If you are a homeowner facing foreclosure and want a sympathetic ear to hear your situation, please call me - perhaps as a REALTOR, I can offer a different perspective than what you have heard from so many others.

If you are a bona-fine legitimate investor looking to invest, please contact me and lets see if I can't find you the right opportunity.

Wishing you nothing but the best,

God Bless,

John Occhi, Hemet CA REALTOR 
Loss Mitigation Consultant