With the number of foreclosures on the rise, it is inevitable to know of at least one person who has received a NOD (notice of default) and is in serious risk of foreclosure. I know of at least 2, one of which is less than 5 days from the courthouse steps. With guidelines tightening up, we have sometimes taken on the hat of grievance consular rather than lender/Realtor. My clients are first and foremost friends. After hearing all the obstacles and trials they have been through, even taken a few classes on it, here are a few nuggets to pass along to them. They are basic, but you would be amazed how many people don't know their options.
The first one is real important...THEY DON"T WANT YOUR HOUSE!!!!. Re-assure them that in this market, the last thing the bank wants is your home. They need to actually talk to the lender and see what they can work out. This takes time and numerous phone calls on hold, but sometimes it may be as little as 1 payment.
Have them talk to a Realtor who understands a short sale. Yes they loose the home, and they may still have a balance, but it will be much less damaging than a foreclosure. Refer back to option 1.
If none of this is working, bankruptcy (13) can prevent a foreclosure up to the time it is on the courthouse steps being sold. I have heard that if you have $1 million or more in assets, this is null, but anything is worth a try. Still damaging, but still better than a foreclosure. It is not an all inclusive list, but it's hope. For a family with children, sometimes that is all you need.
Finally, give them the knowledge that was given to Joe Dirt. Home is where you make it. Family is the most important thing, and at the end whatever kind of day you have had, don't forget that. They may be the only thing between you and permanent insanity.
Hi Karl,
Lots of Homeowners are losing their homes when they don't have to. As you mentioned, there are many who don't know their options. One of the biggest problems happens when they call the mortgage company. They wind up talking with a "collections person" rather than the person who handles the mitigation process. The collection person has one job, he gets paid to collect money, not negotiate to the benefit of both parties in order to keep the homeowner in the home. If lenders ever get smart enough to realize the error occurring in this process, things may change a bit, but it is doubtful that will ever happen.
Sadly, many Realtors and Loan Officers don't really know how to handle these homeowners, and like you suggested, the homeowner is put in touch with someone to help with a Short Sale. Exit strategies are implemented when the first strategy should be to help them keep the home.
This is where we can help. We qualify the homeowner, making sure they can maintain a payment schedule. (Many people wind up in this situation due to a temporary hardship). If they can, we take an application and turn it over to our specialists at our corporate offices. They are the experts at handling the mitigation process with lenders. When we take a client on board, we have a 98% success rate.
Why is this so important? If a homeowner loses their home, with a foreclosure or bankruptcy on their record, it will quite some time before they will be buying again. This hurts the Real Estate Industry greatly as this is one less person that can buy a home. It has been predicted that as many as 10 million may lose their homes over the next 3-5 years. Removing that many people from the marketplace can only serve to damage the market. If we can help keep them in their homes, everyone benefits. If that many homes are lost, everyone loses.
Our services benefit you in another way...you can refer homeowners to us and get a referral fee ($100-$300), or you can join us and add our services to your business. For about an hour of your time, you can make from $350-$2000. This is the ultimate win-win situation...we help homeowners save their home, and we get paid well to do it.