The 5 Mistakes Homeowners Make When Stopping Foreclosure.

The 5 Mistakes Homeowners Make When Stopping Foreclosure.
As of May 1st 2008, tens of thousands of homeowners are
facing foreclosure. The reason so many homeowners are
facing foreclosure is varied: loss of job, medical
problems, adjustable rate mortgage (ARMs) doubling their
monthly mortgage payments. Most homeowners have never faced
this problem before and they are receiving bad advice from
friends and family on what to do next. This whole process
seems so overwhelming that they make many mistakes and just
quit fighting for their home, and when you stop fighting
for you home you can't stop foreclosure and devastating
your credit. Are you one of these homeowners? These 5
mistakes and how to overcome them will allow you to either
stop the foreclosure or at least save your credit rating.

1. DOING NOTHING. This is the biggest mistake. If you don't
start fixing the problem, you won't determine a solution
that works in your favor. Many homeowners facing
foreclosure are paralyzed in fear of the calls from the
collection department and just let the foreclosure process
take over, giving up their homes without a fight. You need
to study up on your options, make a plan and follow it up.
There are many options for you which will make life easier
in the long run if you do some research yourself and then
approach a professional to assist them in stopping a
foreclosure.

2. TALK TO LOSS MITIGATION, NOT JUST COLLECTIONS
DEPARTMENT. Talking only to the Debt Collectors of the
mortgage company is another common mistake. The collections
call you received from the bank are from operators trained
in collections only and departments are not in
communication with each other. They will ask you things
like "Can you borrow money from somewhere else?" Guess
what? No, you are already stretched to the last penny, so
no, there are no more options! The collectors are only
looking at bringing your loan current. If you borrow more
to make a payment you can't afford you'll only end up that
owing more people money you cannot pay back. You need to
tell the collectors that you need the number to Loss
Mitigation Department, they might be hesitant, but keep
politely insisting for the number to Loss Mitigation.

3. NOT RESEARCHING CHOICES BESIDES A FORECLOSURE. DO NOT
leave your foreclosure process or workout completely in
somebody else hands. There comes a point you might hire a
professional to help you with the process. It might be an
attorney, real estate agent or some other type
professional. This is where your research and study is
very important. That real estate agent might tell you they
handle short sales, but if you researched and asked the
agent a few key questions you will know right away. So
research and study, the effort could save you tens of
thousands of dollars and up to 300 points on your credit
score.

4. DO NOT MOVE FROM YOUR PROPERTY WHEN FACING FORECLOSURE.
There are so many houses in foreclosures right now that the
mortgage companies cannot keep up with them. The mortgage
companies are not landlords, they know how to give out
loans, but they are not land owners. When you leave your
home the yard overgrows, a sure sign to vandals that the
house is empty or if a water pipe burst who going to stop
the water. Staying in the house until a solution is found
could save you thousands of dollars in monthly mortgage
payments. If you are not paying the mortgage you are at
least being a caretaker of the property. Sometimes the
process of foreclosure could take 12 months saving you
$18,000 at $1500 a month payments. In fact one of the
first questions two questions mortgage companies ask you
almost immediately are: do you plan to keep the property?
Are you living in the property?

5. THINKING YOUR HOME IS WORTH WHAT YOU PAID FOR IT.
Because your mortgage company paid for the assessment, it
undoubtedly came in as worth the asking price or above.
But that is not an indication the home is worth what you
paid for it two years ago or four years ago. Guess what?
The Mortgage lenders and the subprime folks are part of the
reason we are in this mess right now. They overinflated
the market, handed out money like candy and promised you
that a home is your best investment and never goes down.
WRONG. We had this same problem back in the early 1980's,
which is why some of these current protection methods for
home owners are in place now. Take the hit on the value and
save your credit so that you can buy an affordable a house
in a year or so versus seven years from now when filing
bankruptcy or paying 2 to 5 interest points higher after
going through foreclosure.

In conclusion, Act now, research the foreclosure process,
spends a few dollars on books and materials that will coach
you on how to stop foreclosure, know your rights. Then
make a plan. Do you save your home or look at a short
sale? Then put your plan in action. Just taking these
steps alone will relieve some of the stress your feeling
right now. The process will take time, but then the hard
part of stopping foreclosure is finished in a day or two,
then it's a waiting game for the bank to process it and
keep track of the process.

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MJ Jensen has studied Real Estate from the Homeowners
perspective for over 20 years. Most recently due to the
nature of the Mortgage crisis, he has turned his focus to
techniques to keep homeowners out of Foreclosure. Go here
for more tips
http://www.stopbankforeclosurestips.com/free_report
You can visit his blog at
http://www.stopbankforeclosurestips.com/blog