How to prevent foreclosure!
First of all, when sellers/ homeowners call you in distress he/she missed more the three (3) months payment on their home mortgage, they are wondering what to do! As real estate professionals what should you do for the sellers/homeowners! Most of the time the seller agent wants to do a short sale! Because they are looking to get commission, instead of thinking about helping the sellers/homeowners situation! They are thinking about themselves first! That what is giving as real estate professional a bad image with some sellers/homeowners! In this situation the short sale should be the last resort!
First advise you should give the Sellers/homeowners in this situation. The first step is to contact the Colorado foreclosure prevention hotline: at 1(877) 601 HOPE or nation wide at 1(800) 995 HOPE
http://www.dola.state.co.us/cdh/foreclosure.htm
Because the Foreclosure Hotline connects Borrowers/ Sellers with non-profit Housing counselors, who can provide information to the distressed homeowners and gives them options on how to avoid foreclosure. Also the counselors can act as facilitators for communication between the homeowners and the lenders/ mortgage note holders.
Second option the homeowners have is to contact: the national association of consumer advocates:
This web help is for consumer resources, they are attorneys who understand foreclosure and many other legal issues, and maybe the Sellers /homeowners will be able to qualify for their help for free. That will be great for the sellers/ homeowners.
Third option is for the sellers/homeowners to call their lenders/ lien holders and demand a copy of the actual note on their property! Because most of the time the lenders/lien holders packages their loan and sell them to another lenders, most of the time the lenders/ lien holders can not find the cope of the note. This way the sellers/homeowners will some time to decide what to do next!
If all else fails! Then a short sale or foreclosure is in order! You should as a real estate professional ask the sellers/homeowners to consult their tax attorney or their CPA regarding the short sale or the foreclosure ramification!
Sometime foreclosure is better then short sale and vice versa! Please let the sellers/homeowners and the tax professional decide which is better for them!
In the end if you help your sellers/homeowners through this steps! They are going to do a short sale! Definitely they will call you first! Because you tried to help them sort thing out!
This is just FYI only!
Thanks.
Adam
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