If you are one of the over seven million homeowners in default in the United States today and haven't done anything about it, I have one thing to say to you.
Relax.
One, you are not alone.
Two, it's not necessarily your fault. There are a lot of reasons people found themselves owning a property they couldn't afford all of a sudden. We'll save the finger pointing for a tar and feathering party at the bank.
Three, nothing bad is going to happen to you tomorrow, or any time soon, if you decide to fight foreclosure. Sleep well tonite.
According to the Mortgage Bankers Association, over 7 million U.S. homeowners are currently in default. Unfortunately, many are in the final stages of the pre-foreclosure process and now have limited options to avoid bank repossession. On the flip side, based on current credit bureau reports, there are over 1.5 million homeowners nationwide whose default status is new enough that it has not yet been labeled as public record. These homeowners are still in the early stages of pre foreclosure and, if they decide to take action early on in the process, have a much greater chance of avoiding foreclosure and bank repossession.
RealtyTrac.com predicts there will be over 1.2 million homes repossessed by banks in 2011, calling it "the peak" of our nation's foreclosure crisis. The projection is a 20 percent increase from previous repossession rates reported in 2010. Some experts attribute the crisis to unemployment, property depreciation, or general economic hardship; but perhaps none of these factors are as important as a Freddie Mac survey that reported "6 in 10 homeowners in pre foreclosure aren't even aware of the programs and services available to help them prevent foreclosure." This video explains some of the basic information homeowners need to know to understand the programs and procedures in saving your home in the face of foreclosure. I also urge real estate professionals who are qualified and experienced in stopping foreclosure actions to reach out to distressed homeowners, knowing it is highly unlikely they will seek out assistance on their own.
Freddie Mac reports more than half of homeowners who lose their homes to foreclosure never answer their lenders' phone calls or letters. Instead, homeowners feel embarrassed about being in default, don't believe their lender can help, and erroneously assume that contacting their lender will cause them to lose their home more quickly.
Many lenders now have excellent programs in place to assist home-owners in trouble. Wells Fargo for one has just implemented an excellent Fast Track program to help owners whose loans are in their portfolio to work out the best option possible to avoid foreclosure.
Most owners are unaware of the many options available to avoid foreclosure. Most are daunted by the mound of paperwork that comes with ever increasing intensity as payments are missed and the slippery slope to the inevitable gets steeper. By talking to someone who is aware of the many options available and can help them develop a plan for the future, suddenly life becomes more bearable. As a Certified Distressed Property Expert, I can help. Contact me today, let's start the conversation. I guarantee you will sleep easier tonight!
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