Dear Home Owner,


If your property has been recently filed in the local court system for foreclosure, you have a limited amount of time to correct the problem. If you're reading this information, you're on the right track. You need the right information and you need it now.

First, it's very important for you to know that we do not charge home owners for our help. We are not after your property and we're not investors. Since 1989 we've successfully helped home owners and have no reason to give you any misinformation. Everything stated in this letter is based only on the facts.

Now your home is in pre-foreclosure, what can you really do?

There are two obvious things you can do when faced with foreclosure. You can either put all your energy into saving your home or sell it.

1) If my home was in pre-foreclosure and I wanted to save it, the first thing I would do is try to work things out with my mortgage company.

The mortgage company representative will either tell you they'll help or not. If they say they can't help, at least you know where you stand and you can start looking for other options. If they say they will help they should mail you a workout packet, which includes a financial worksheet. You may get offered a forbearance agreement or a deferment.

With the forbearance agreement the total you owe in back payments, penalties and legal fees is typically spread out over 6 to 12 months. The deferment is where the total amount you owe is tacked on to the back of the loan, giving you a fresh start.

Unfortunately, forbearance agreements are the least attractive of the two and much more likely to be offered. Deferments are rarely offered. Forbearance agreements place considerable financial strain on the home owner. Some people that are offered a forbearance agreement are forced to take a second part time job so they're able to pay the higher monthly payment. For example, if your regular monthly mortgage payment is $900.00 the forbearance agreement may add another $200.00 to $600.00 monthly to your payment.

The financial worksheet is included in the workout packet because your mortgage company wants to know if you can afford the increased monthly payment. Most people cannot afford the increased monthly payment and are turned down.

CAUTION: If you receive information from someone offering to help you negotiate with your mortgage companies for a charge, keep your money! You can get just as good or bad a result with your mortgage company on your own.

2) Another thing that can be done is to consult an attorney that can file Chapter 13 Bankruptcy. The attorney should also be very knowledgeable of foreclosure. To file bankruptcy for the purpose of credit card debt is not as serious when a home owner is trying to keep their home from foreclosing.

Chapter 13 Bankruptcy will stop the mortgage company from foreclosing, but you could still lose your property. If even one mortgage payment is made late your mortgage company can lift the mortgage out of bankruptcy protection and start the foreclosure process over. Some attorneys fail to provide this very important information upfront and are more focused on making money. If this were to happen the home owner would not only lose their property, but would have a bankruptcy and foreclosure on their credit for many years.

3) Some people try to save their home by refinancing. This not only rarely works, but also the process wastes valuable time for the home owner. Smooth talking loan consultants promise home owners the world and seldom deliver what they promise. Once a mortgage slips into pre-foreclosure the lending parameters completely change making any possibility of refinancing the property very difficult. The only way to refinance a property in pre-foreclosure is if the property has considerable equity. Usually the equity amount needed is 35 percent. So if a property was worth $100,000.00 the home owner could owe a maximum of $65,000.00. This is the only way another mortgage company would buy out a mortgage, which they consider a high-risk loan.

4) The last option would be to have an investor bring the mortgage current, then have the investor lease or owner finance the property back to you. This option will only work if the property has enough equity to be attractive to an investor. The big disadvantage is that the home owner buys their property back from the investor at full market value and loses all their equity. In addition, the investor will probably raise the monthly payment to the home owner to make additional profit. If a home owner is desperate enough to keep their property and has enough equity to satisfy an investor this option will work.

The positives and negatives of selling your property:

1) Some people consider selling their property through a real estate agent. First of all, the realtor the home owner selects should be very experienced in pre-foreclosure sales. Often people will make the mistake of hiring a best friend or relative who has no experience.

Regardless of who the agent is realtors are very expensive. The typical realtor's commission is from 6 to 7 percent of the property's total selling price. This commission is split between the listing and selling agent. In addition, another 3 percent could be lost to cover the loan closing costs of the buyer who acquires the property. This could be between 6 and up to 10 percent deducted from the total selling price that comes directly from your equity. Based on a $100,000.00 home, this would equal $6,000.00 to $10,000.00. If you have little or no equity in your home, your realtor will have to arrange a short sale with your mortgage company to cover these costs.

Many people in pre-foreclosure have very little or no equity in their property and won't have a single dollar once their property sells. Those people that do have equity would rather keep their equity and not lose a large portion of it just for selling. As you can see, the realtor makes money either way.

2) Some people sell their home to an investor for a fast sale. In order to do this the property would need enough equity to be attractive to the investor. As previously mentioned in #4 above, the home owner would have to be in a very desperate position to deal with an investor or be misled. Unfortunately, some investors are very dishonest and find an unsuspecting home owner who isn't aware of the true market value of their property. The investor knows the true resale value of the property and offers the unsuspecting home owner a low-ball offer, which the home owner feels is a fair offer. This doesn't happen very often, but when it does an elderly person is usually the victim.

There is a better option:

If you aren't getting anywhere with your mortgage company, would rather avoid bankruptcy or feel it would be best to sell your property, you have a much better option.

You can save your credit, pull your property out of pre-foreclosure and sell your property for $5,000.00 to $15,000.00 additional cash regardless of your equity position. This money can be used as a down payment on another home. You'll get a clean start and retain 100 percent of your equity while not paying any realtor commissions. You can turn a stressful negative situation into a positive one at no cost.

Click the button below and call us today. You're going to like what you hear.

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