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Foreclosure Prevention Tips # 1 through # 5 (Part 1 of a 4 Part Series)

By Paul David Hiebing

Real Estate Agent with Grampp Realty: Real Estate in the Quad-Cities Iowa : # S40848000

April 17, 2007 02:46 PM

Foreclosure Prevention Tips # 1 through # 5 (Part 1 of a 4 Part Series)

Part # 1 of a 4 Part Series.

http://activerain.com/groups/foreclosure

PLEASE NOTE: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney.

Foreclosure Prevention and Assitance Tips, How to Avoid Foreclosure:

Tip # 1) Don't abandon the property. From the time you first receive notice of mortgage default from you lender, the foreclosure process can take up to one year (and often times, even longer) before you will be physically removed from your home. It is imperative for you to maintain your home as your primary residence in order to delay the foreclosure process. Most banks and mortgage lenders will not even consider your application for assistance if you abandon the property.

Tip # 2) Don't ignore correspondence and other notices sent to you by your mortgage lender or the legal representatives (attorneys) of the lender. These notices often contain pertinent information such as response deadlines, court dates and places, etc. If you ignore these notices, or fail to respond to them, you may lose valuable rights to defend yourself in court.

Tip # 3) Don't make partial mortgage payments to your mortgage lender, unless you have received specific written approval from your lender to do so. Once you are in default (Over 60 Days Past Due on you loan) partial payments will be applied to interest/penalties only, or put into a special "suspense account". These partial payments will not reduce your principal balance. You should only make partial payments if you have made prior arrangements for a "mortgage loan work-out program", and make absolute certain that you have all of the details about these payment arrangements in writing.

Tip # 4) Don't believe the promises of "Foreclosure Counselors" or "Loss Mitigation Specialists" that work for your mortgage lender and claim to be "looking-out for your best interest". Their job is to gather information from you that will expedite the foreclosure process for their employer. Always make sure that all promises made to you from these counselors/specialists are given to you in writing.

Tip # 5) Don't fall victim to the various consumer scams that promise to "settle your mortgage debt for pennies on the dollar", But, require that you pay an up front fee (often in the thousands of dollars) to "represent you" in negotiating with the lender. These scams often prove useless, and can even result in you losing your home faster than the standard foreclosure process. Legitimate REALTORS who know the foreclosure process are compensated by a sales commission, paid only at closing, from the proceeds of sale. There should never be an "up-front fee" (charged to you) to conduct a "Loan Work-Out" or "Pre-Foreclosure Short-Sale".

Paul David Hiebing, REALTOR®, "The Quad-Cities Premier First-Time Homebuyer's Specialist"

HUD Approved Foreclosure Counselor. Do Not Lose Your Home to Foreclosure! Call me for the help you need!

"Call Paul" TODAY @ (563) 508-1649 For All Of The Details!!!

Licensed REALTOR® in the State of Iowa since 2000.

Licensed REALTOR®-Broker in the State of Illinois Since 2001.

Grampp Realty of Bettendorf, Iowa
2500 18th Street
Bettendorf, Iowa 52722

Website: http://activerain.com/pauldavidh0426

Office Phone:(563) 359-4401 Ext # 264
Cell Phone: (563) 508-1649
Office Fax: (563) 359-4405

Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney.

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Provadus Home Loans

Provadus Home Loans - Marietta, GA

Technology bringing you home.

Great Info, I hope people understand the major issues with a loan going into foreclosure. Now, if the loan is 120 days in default, it is considered in foreclosure. Great Blog.

Apr 17, 2007 02:56 PM

Michelle Way

AVALAR Pro Realty - Jackson, MS

ABR, GRI, WCR

Please understand that lenders don't want your clients home as a service to get buyers. Go to your local newspaper. Call the people that are going in foreclosure. See if you can send them some helpful hints. I have received listing and sales this way.

Apr 17, 2007 03:42 PM

Paul David Hiebing

Grampp Realty: Real Estate in the Quad-Cities - Bettendorf, IA

Quad-City REALTOR®, @ Grampp, Realty of The Q.C.

GO TO: http://activerain.com/groups/foreclosure for all four parts in the series.

Apr 18, 2007 01:18 PM

For more information on how to avoid foreclosure of FHA Insured Loans, go to the official website of the U.S. Department Of Housing And Urban Development (HUD):

http://www.hud.gov/foreclosure/index.cfm

Apr 22, 2007 04:25 PM

David L. Britt

Platinum Realty, LLC - Olathe, KS

MBA

Paul, thank you for sharing this information and great advice.

May 10, 2007 04:47 PM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Great information. Do you have all these posts as an attachment that you can email? Thank you.

Jun 20, 2007 11:27 PM

Steven Shewell

Primary Residential Mortgage, Inc. - Ephrata, PA

The Mortgage Maverick

Foreclosure is a tremendously upsetting thing for a family who has struggled to purchase the home, only to lose it later. All of their hard work and money have gone for nothing.

Unfortunately, with the sub-prime loans resetting in massive amounts over the next two years, I am afraid that the foreclosures will increase in the next few months.

I wish it weren't this way, but the reality tells me different...

Jun 21, 2007 01:08 AM

Gita,

All four parts of this series are available at the following Active Rain Group:

You can either e-mail the group link to someone, or feel free to cut and paste the four parts to a Microsoft Word or Works file.... It will be a big one.....

All I ask is that you include a credit to me "Information provided by Paul David Hiebing, REALTOR", and include the following provision:

"PLEASE NOTE: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney."

Since we are not attorneys and can not give legal advice....

Thanks,

Paul H.

Jun 21, 2007 01:19 AM

Mike Mueller

Tech and Social Media Consultant - Walnut Creek, CA

Great post Paul -

Can I repost this in The Foreclosure Report?

I sent you an email as well.

Jul 19, 2007 06:27 AM

Alex Greb

Portland Homes For Sale - Portland, OR

Good to know thanks.

May 21, 2008 08:06 PM

Kathy Torline

ERA Herman Group Real Estate - Colorado Springs, CO

Colorado Springs Real Estate Blog 719-287-1049

Great information -- very helpful. I have several short sales I'm involved with; and I'm amazed on how often they ignore correspondence they receive from their bank.

Jan 26, 2009 10:27 PM

Philip Johnson

WF Roseland LLC - Wilmington, NC

85% of mortgage documents contain major Truth in Lending Act, RESPA, and Predatory Lending and Real Estate/Mortgage Fraud violations. Mistakes such as these can compel lenders to take immediate action to stop an impending foreclosure. Visit http://www.advocateforyourhome.net for affordable forensic loan audits. Our professionals will conduct a thorough review of your loan documentation to locate whatever problems exist.

Mar 13, 2009 06:12 AM

Debra Kukulski, Broker Associate

RE/MAX Suburban - Cary, IL

SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

Paul, this is very good information and it is great that you are pointing out what distressed homeowners should avoid when they are facing foreclosure.

Mar 31, 2009 02:31 AM

Joanne Johnson

West County, MO

In many cases, it is the same people who really didn't understand what they were getting into when they signed up for those teaser loans who end up in default. It isn't surprising that many ignore the letters from their mortgage company. Fear is a great paralyzer and to be homeless is a frightening prospect. We really need to educate ourselves as realtors to understand the short sale and foreclosure processes so we can help clients navigate these waters & avoid, as much as possible, the prospect of foreclosure

Apr 19, 2009 08:41 AM

Margaret C. Taylor

Century 21 New Millennium MD - Mechanicsville, MD

St Marys/Calvert/Charles MD Real Estate Agent

Thank you Paul. People are just trying to survive but don't know the right tools. You are giving them the tools they need.

Jan 15, 2010 01:51 PM

Foreclosure Prevention Tips # 1 through # 5 (Part 1 of a 4 Part Series)

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