Posted by: Catherine | November 19, 2007

What NOT to do during foreclosure – Part One

If you find you are getting behind in your mortgage there are some important “Don’ts” associated with the pre-foreclosure process. If your situation is temporary, talk to your lender. They often want to avoid a costly foreclosure as much as you do. If not, and you have a genuine hardship, keep reading:

  1. Do not deed your home to someone else without assuring the loan is paid off and out of your name.  Merely transferring the deed to your property does not relieve you of your obligations to the bank.
  2. Do not do nothing.  This is about the worst thing you can do though it may be your first reaction when things start to get overwhelming.  The truth is you may have many options available to you, but you must explore them.  Get a professional real estate agent to help you explore options such as the sale of your home, a short sale, or just to get some cheerleading and guidance toward working out a catch up agreement with your lender(s).  Know your rights, know your options.
  3. Do not ignore the notices from your lender.  These notices provide important information about ways to resolve any delinquency issues, plus vital timeframes you need to know.  They also provide important contacts and phone numbers that may prove useful to you or your real estate professional in structuring an amicable resolution.  Open your mail. Keep the lines of communication open with your lender.
  4. Do not fall for a scam.  Beware of “we pay cash for homes” type advertising. Beware of people offering to “buy” your house and then let you stay as a renter.  There are a lot of scams out there now, but remember the rule “if it sounds too good to be true, it probably is.”  There is no quick fix.  Be wary of ANY investors approaching you to help you out of your problem. 

It is easy to become paralyzed or to “give up” if you feel that foreclosure is your only option, but at least seek the counsel of a professional real estate agent with experience in the pre-foreclosure and/or short sale process.  A consultation is FREE (don’t let anyone charge you) and it is worth your time to explore your options.

Catherine Myers
Alain Pinel Realtors

Terry Osburn
Alain Pinel Realtors

Your Contra Costa Short Sale specialists.  Serving Walnut Creek, Concord, 
Pleasant Hill, Martinez, Clayton, Antioch, Brentwood, Pittsburg, Oakley, 
Bay Point. . .

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