The Foreclosure Crisis is Real

The mortgage and foreclosure crisis is affecting more Americans than ever before in history. A record high of 12 percent of U.S. homeowners with a mortgage are currently behind on their payments or in foreclosure. The stress and stigma of foreclosure, once limited to homeowners with special hardships, now affects millions of borrowers with good credit as the housing crisis spreads. And according to the Mortgage Bankers Association, this latest wave of foreclosures is expected to last through the end of 2010.

There are many reasons that a homeowner can fall behind on their mortgage payments and eventually find themselves in the midst of the foreclosure process:

Death in the family
Difficult and costly divorce
Job loss or a change in jobs
Sudden or ongoing health problems expensive medical bills

Whatever your specific circumstances, you don't need to suffer the stress and financial hazard that foreclosure brings.

We can help you stop foreclosure

You don't have to become just one more statistic in the foreclosure trend. Maybe you're not facing foreclosure right now, but find yourself in a new financial situation that has you worried about making your mortgage payments on time. Or you've fallen behind on your payments by a month or two or even more. Even if you've already received a notice of foreclosure from your lender, there are options available to help relieve the pressure you feel and give you the financial breathing room you need.

We specialize in the two most effective options for stopping foreclosure: loan modification and short sales. Please fill out the form on the right for a free no obligation consultation to find out more about the possiblity of a short sale.

Foreclosure really can be stopped

The foreclosure process varies from state to state, but generally speaking a foreclosure is a series of specific legal processes that occur in phases over a period of weeks and months, one after another, until the final phase in which the lender repossess the property and sells it on the open market or at public auction. During each phase, there are real options available to stop foreclosure.

Foreclosure Phase I

The first phase begins with a late or missed mortgage payment. If the homeowner has spoken with the mortgage lender to explain a recent financial hardship or other special circumstance, the mortgage lender may be prepared to work with the borrower to make up the late payments without triggering the foreclosure process. However, even homeowners who enjoy a good relationship with their lenders will certainly see the foreclosure process triggered if they fall behind on too many payments. In today’s exploding foreclosure environment, the legal departments of many mortgage companies waste little time starting the foreclosure process.

Many homeowners realize that selling their home during this initial phase of foreclosure is to their advantage. By doing so they can avoid both foreclosure as well as the potentially harmful addition of a foreclosure to their credit history.

Foreclosure Phase II

The second phase is where late charges, fees, and penalties are tacked on to the monthly payment or payments that are already past due. During this phase a lawyer or official trustee will take over the case and should contact the homeowner in an effort to get the mortgage payments current. But too many homeowners become hesitant or even afraid to talk to their mortgage lenders during this phase because they think there is no hope once the foreclosure process has begun.

The truth is, lenders don't want to foreclose. They are in the money lending business, not the real estate or landlord business. They know that it will be nearly impossible to get all of their investment back by repossessing and selling your home, and that they are most likely to lose money by doing so. They would much rather the homeowner work with a company like ours which can offer solutions for the lender to avoid huge losses on it's investment and help the homeowner stay in their home or be able to purchase another home.

Foreclosure Phase III

Although foreclosure laws vary from state to state, a homeowner who has not resolved the situation with the lender by now (usually by getting all payments, fees and penalties paid up to date) can expect to be foreclosed on within a short period of time, usually within on month.

Foreclosure Phase IV

At this point, a legal representative overseeing the foreclosure process on behalf of the lender will start posting public notices in newspapers or at the courthouse.

Foreclosure Phase V

In the last and final phase the property is sold at an auction to the highest bidder or on the open real estate market. If still living in the home, the former owner who defaulted on their mortgage will be given notice to vacate the premises, and if they don’t move the Sheriff may intervene to evict them.