HELP! I'm Facing Foreclosure!
By Jaclyn Erwin, ABR, Realtor
Charlotte NC Real Estate
Today, more than ever, many families are faced with financial hardships beyond their control. From escalating gas prices, increasing grocery costs, to sky-rocketing healthcare expenses, managing the family budget to meet the basic needs has become the number one challenge with many households. Toss in a job loss, unexpected medical condition, or a significant increase in mortgage payment into the situation pool and you have a crisis!
The overall results of such conditions are horrific-with an enormous surge in homeowners facing the perils of foreclosure. Anyone who has been keeping up with the real estate market is fully aware of the foreclosure dilemma, which, by the way is affecting everyone in every price range! Yes, there are areas in the country that are still thriving, but the overall result of the foreclosure epidemic is real everywhere. There are buyers who are finding it very difficult to obtain a decent loan and sellers who want to sell their home for a nice price, but are faced with the high number of foreclosures within their neighborhood. Faithful renters are losing their place of residence overnight because the landlord failed to pay the mortgage and notify them of the situation. Let's not forget about the mortgage companies that have closed their doors as a result, or those that are cutting jobs and selling their assets as quickly as possible to improve their stock portfolio.
As a Pre-Foreclosure Specialist, I've witnessed a surge in the number of homeowners seeking help to avoid foreclosure. At the same time, I've also observed a high number of scams, so-called companies & non licensed individuals taking advantage of these homeowners. I can't express enough how many times my office have received calls from victimized homeowners who were tricked by scams resulting in the loss of their home---often times having the deed to their home signed right underneath their radar---over to the company/individual who was so called trying to "help" in the first place. Folk's this is real & it's scary. There are people on every corner in every city trying to scam their way into acquiring homes! Sadly, more and more homeowners are falling victim to these predators.
So, what do you do if you are a homeowner facing foreclosure?
Well, the first thing to do is to make contact with your mortgage company. Explain to them your situation and ask if there are any alternative programs they have available to help you keep your home. Many mortgage companies have such programs and will mail you the paperwork to get started. However, you must "ask." Moreover, if you have a FHA-secured loan, there are definitely programs established to help you keep your home. This initial contact with the mortgage company is a very important step. Keep a detailed written record of who you spoke with, the time/date, department, and the details of the conversation. I would also follow up with a certified written letter explaining your situation in writing and your request for assistance. This way you have documentation that the letter was received and the mortgage company is aware of your condition.
You don't know how many times I've counseled clients facing foreclosure who have avoided this step entirely. Sometimes it's because of fear, but very often it's because of pride. Trust me, when your number one financial asset and family livelihood is threatened, pride is simply not an option. Wait too long and you will not qualify for the programs that were available to help you keep your home. As hard as it may seem, "Mortgage Companies Do Not Want Your Home." They don't. It's too time consuming and highly expensive-especially to have it just sitting and not making money in their portfolio. In fact, the law prohibits mortgage companies from selling off properties themselves. They must hire a Real Estate Professional who specializes in real estate owned properties (REOs) to sell the home for them.
Secondly, I would contact a Realtor® who specializes in helping homeowners through Pre-Foreclosure Counseling and Short Sales. This is especially necessary as you want to assure yourself and your family that you are working with someone who is licensed--- a real estate professional who knows about the pre-foreclosure process, can provide the best consultation, has documented experience with short sales, documentation and referral database of clients saved from both foreclosure and selling their home and has a record of completed short sale transactions. Seeking this information is essential as saving your home from foreclosure is a time-based process. Simply put: You can not waste time.
To help you obtain this specific information, you should interview the Realtor® by asking the following questions:
•1. Are you aware of any programs offered by my mortgage company that will enable me to both save my home from foreclosure and allow me to keep my home?
•2. How long have you specialized in Pre-Foreclosure Counseling/Short Sales?
•3. This year, how many documented pre-foreclosure clients have you represented?
•4. I would like to have 2-3 referrals from clients you have helped to successfully sale their home via the short sale process, can you provide them?
•5. How many short sale listings have you taken this year?
•6. Out of the short sale listings taken, how many were approved for a short sale and sold this year?
•7. Home many current short sales are in "Pending" status-awaiting the banks' final approval?
•8. What is the average time frame for short sale approval?
•9. What experience do you have working with my mortgage company?
•10. What procedures can I expect throughout to successfully help complete this process?
•11. What penalties would I face, financially if I sold my home via the short sale route?
•12. How are you/your company compensated from the successful sale of my home?
•13. How will a short sale vs. a foreclosure affect my credit history and opportunity to purchase a home in the future?
•14. What systems do you have in place to help expedite the short sale process?
Without a doubt, undergoing the process of pre-foreclosure is a very stressful, daunting experience. That's all the reason why to remain focus, educate yourself as much as possible and seek assistance. Don't ignore the letters in the mail, the phone calls. It will not make the situation go away. Instead, do whatever you can to grasp control of the situation to help you overcome foreclosure.
To obtain more information regarding the Pre-foreclosure & Short Sale process or to schedule a FREE consultation, contact Jaclyn Erwin, ABR. TeamJaclyn of Wilkinson & Associates (704) 293-4275 or http://www.teamjaclyn.com/
Jaclyn Erwin, ABR, Realtor
Charlotte NC Real Estate
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