How to STOP the Foreclosure

Before we go any further, you have a very important decision to make. Foreclosure is a very serious situation that is no doubt affecting your sanity and stress level today, and can affect your credit for years to come. People get into foreclosure for many reasons, but they all fall into one of two categories.

1. A Temporary Setback – such as a health of financial crisis that will soon pass. Your income will soon be restored to previous levels and you will soon be able to make your payments again. You just need a little help getting through the crisis.
2. A Life Change – such as job loss, extended unemployment, permanent health problems, divorce or other family problems, changes in the market etc., that have resulted in you no longer being able to realistically afford your home.

Please, take some time and seriously and realistically consider which one of these scenarios describes your situation.  This is a important decision and you must be realistic. If your situation is a life change, would you be better selling this house and finding more affordable arrangements until you get back on your feet? If so, sell the house!  If you know (not hope, know) your financial situation will soon be back to normal, then using one of the techniques in this manual to keep your house is probably your best bet.
If the foreclosure process reaches the date of the sale in a non-judicial state, or past the date of the court hearing at which the judge orders the sale in a judicial state, the foreclosure will appear on your credit report. Once the foreclosure appears, it will affect your credit for the next seven years.  Obviously, we want to avoid that from happening, and now is the time to act.
 In some states you have more time than others.  Examine the documents you’ve received from the lender or their attorneys, or get a trusted friend or relative to help you if you are having a hard time understanding them. If you don’t understand the timeline, be sure to ask as many questions as needed when you call them to negotiate – which we will be doing in Chapter 6.

What Lies Ahead?
Let’s start with a preview of the rest of the book.  Generally, each section is set up with the most desirable option to the least desirable outcome.
In Chapter 5, we’ll cover the numerous scams that are out there. Sadly, many disreputable people focus on people who are down on their luck. You probably have seen advertisements or received mailings for many programs that seem too good to be true. In this chapter you’ll find out which ones to avoid like the plague!
 In Section Two, we discuss ways to avoid the foreclosure and KEEP your home.  These methods are listed in order of preference – we will start with discussing negotiations with your lender and conclude by discussing bankruptcy, which may not be nearly as bad as you think it is!
 In Chapter 6, you will learn HOW to negotiate with your lender. If you’re not speaking with the right person and department, you’re wasting your time, so I’ll tell you how to bypass all the non-decision makers and get you directly to the person who can help you.  In many cases there are programs and options that the lender will NOT offer you, unless you ask.  I’ll go into detail on these different options that may be available to you, including:
? Reinstatement / Paying the Delinquency
? Repayment Agreements
? Forbearance Agreements
? Payment Assistance Programs
? Re-amortization / Loan Modifications
? Refunding

To wrap the chapter up, I’ll give you the name of several companies that will represent you and negotiate with your lender on your behalf – that’s right, if you can’t or don’t want to do the negotiations with your lender, these companies will do it for you!
In Chapter 7, we’ll discuss Re-financing your home and avoiding the foreclosure.  You may even be able to get a better loan with a lower payment that what you have now!  I’ll show you how to contact the lenders that are chomping at the bit to compete over your business.
In Chapter 8, I’ll reveal several other sources of money from private sources that can help you stop the foreclosure and get back on your feet.  Some of these are right under your nose!
In Chapter 9, you will learn how to use your retirement plan to stop your foreclosure, without paying a cent of income tax or penalties!  You may also be surprised to learn that you can borrow from your retirement, even if you are currently out of a job and cannot access your former employers plan.
In Chapter 10, I’ll spill the beans on the “B” word - Bankruptcy.  We’ll discuss the different types of bankruptcy, how it works, and then I’ll tell you how to USE the bankruptcy process to not only keep your house but IMPROVE your credit.  (You read that correctly – you can IMPROVE your credit by filing Bankruptcy, if you do it right!) 
In Chapter 11 I’ll discuss Seller Lease Back arrangements, whereby you sell your house to an investor and they lease it back to you, often with an option to repurchase it from them at a later date.  We’ll talk about the pros and cons of such a deal.
Section Three discusses how to stop the foreclosure by selling your home.  You may not want to sell your home, but if you are going to lose the house to foreclosure, then selling is a better option.  A sale will keep the foreclosure off your credit record and perhaps allow you to recover some of the equity you have in your house, if any.
In Chapter 12, I’ll discuss selling with the help of a good real estate agent. In some cases this is the best option for you, but in others it might not be possible for you to work with an agent.  I’ll explain why, how to deal with an agent, and what to expect when working with them.
In Chapter 13, I write about selling your home yourself, how to get your house ready for a sale, how to show it and attract buyers, and what all may be necessary to get the deal closed quickly.
In Chapter 14, I’ll reveal how you can sell your house in just a few days to a real estate investor.  The terms will likely not be as good as a private sale, but if you are ready to get it over with, or you’re out of time and the foreclosure is looming, and investor is your best friend.  We’ll discuss the importance of working with an established, professional investor, and I’ll explain the different programs they will likely offer you and what they mean to you.
 

If you are unable to sell your house and foreclosure is imminent, a “Deed in Lieu” may be a good option.  We’ll discuss these in Chapter 15.
Section Four begins with Chapter 16 and a discussion of what happens if you do nothing and the foreclosure goes through.  I’ll reveal what the process is for you to move out, how long you’ll have, and why this is a terrible idea.
Chapter 17 will leave you with some positive thoughts to move forward.