Mistakes People Make When Facing Foreclosure

By
Services for Real Estate Pros with SidCo Property Solutions

Top 5: Mistakes People Make When Facing Foreclosure

5.  Don't Open the Mail from the mortgage or home owner's insurance company.  Big Mistake!  Ignoring the situation will not make it go away.  No communication from you gives the mortgage company no reason to try to work with you.

4.  Lie to the mortgage company about your payment.  If you lie to your banker about anything related to your mortgage payments, you could face fines and/or jail time - and you really don't want that.  Trust us!

3.  Try to sell the property on your own.  Another potentially huge mistake!  If you are in a pre-foreclosure or foreclosure situation, and you want to try to sell the house to get out of debt, going For Sale By Owner is definitely not a good move.  It takes much longer to sell this way and you will likely miss lots of vital information when drawing up the paperwork.  Not to mention that you've probably got a small window of opportunity to get the property sold before the foreclosure actually takes place.

2.  Get advice from family members, friends, or co-workers.  Unless the person you are soliciting advice from is a banker or mortgage lender, this could cause you more problems in the long run.  Family and friends always mean well but they are advising you from emotions, not facts.  In order to get out of your mortgage situation, you need facts from a reputable company.

1.  Just let the foreclosure happen.  This is probably the most unwise solution of all.  There are several options available to you, many which will allow you to keep your home - and your credit - in good standing.


Are you in a foreclosure or pre-foreclosure situation in Louisville or anywhere else? We want you to know that there are options available.  You don't have to lose your home.  Your credit score doesn't have to suffer.  We're here to help, offering real solutions for people in real situations.

~Kristopher Wissing
  SidCo Property Solutions - www.sidcollc.com

  Helping people get back on track - one family at a time!

Comments (4)

David Hubbard
Premier Denver Homes - Highlands Ranch, CO

Good advise! I have seen the negative effects of a few of these mistakes...

Oct 27, 2008 10:41 AM
Sandy Blanton
Pensacola Real Estate - Team Sandy Blanton Realty, Inc. - Pensacola, FL
Pensacola Real Estate- #1 in 07null- 09null

Good advice Kris... I read recently about the percentage of people that go to foreclosure without even trying to stop it....I could be wrong, but I think it is 80%. The best thing a homeowner can do is contact an Agent with experience with short sales.

Oct 29, 2008 12:06 PM
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

A lot of people just don't want to bother or they feel the hopelessness of it all.

Nov 04, 2008 08:13 AM
Kris Wissing
SidCo Property Solutions - Louisville, KY
SidCo Property Solutions

David - The negative effects are never pretty, are they? Luckily, they are all things that can be avoided, right?

Sandy - That's a really high number!  Sad to know that many people just accept it without knowing they can do something about it, isn't it?

Gene - The ones that don't want to bother with it are in an entirely different category. They are doing irreparable damage to their credit but it is their own fault. The ones that feel the hopelessness are the ones that need to know there IS a solution to get them out of it.  Thanks for stopping by!

Nov 22, 2008 06:41 AM