Foreclosure help in Preble County OH; avoiding sharks.

I wanted to write today about a problem I see more and more people facing in Preble County Ohio, and that is foreclosure.

I think it's safe to admit that times are tough, even in our safe and sheltered rural area. With rising gas and food prices, layoffs, increasing unemployment rates and more, not to mention the predatory lenders who ran so rampant a few years back, it's no wonder I talk to people everyday that are facing foreclosure or are having difficulties of one sort or another keeping up with their mortgages.

So what do you do if you are facing hardship or possible foreclosure on your Preble County home? Who can you talk to? Well, let's take this one step at a time. The first part of this is a little advice on who not to talk to.

THE SHARKS OF PREBLE COUNTY

If you haven't seen the ads in local papers like the Register Herald, you will soon. I wish I could just name them, but in the interest of being fair, I can't. What you will see in the ads are words like such; "Facing Foreclosure? Behind on your mortgage? We buy houses! We can help! Solutions!"

I'd like to break this down for you to its simplest form. Here's the promise; these investors (I prefer sharks) promise to help sell your home. They offer to negotiate with your mortgage holder on your behalf. They offer to do a "short sale" on your home, meaning a sale in which the home sells for typically less than what is actually owed for the property. The promise to you is rescue from the lenders, someone to buy your home NOW, and maybe even getting the same equity out of it that you would using a Realtor.

Sound too good to be true? IT IS.

Here's the rub....

These are INVESTORS. An investor, and please do not misinterpret this as a slam against them, but they do not have YOUR best interests at heart. "Investors have one goal; PROFIT." "Investors want equity. The only way an investor can get your property with any equity in it is to purchase it on a short sale." Real world meaning: They will make a profit off of YOUR misfortune. They will sell the house at a discounted rate via short sale, have someone in their own pocket buy it at the same discounted rate if not lower, and turn around and sell it again at fair market value. That's right...the sharks have just made a tidy profit off of YOUR HARDSHIP. Don't let them!

The reason you are facing foreclosure is because you probably haven't talked to your lender. I'm not talking about the pests that call everyday asking when your payment will come in, I'm talking about the actual lender. Lenders WANT to help you! "You can initiate the short sale yourself, even though that investor will tell you they need to control the deal - DON"T LET THEM! It's YOUR house, YOUR credit and YOUR future."

The second part of this scheme is that the investors coming to your "aid" will be asking you to sign a quit claim deed. Real world meaning: They will own the deed to YOUR HOME. "Once you sign the quit claim deed it doesn't matter what the investor told you or promised you, the house is now theirs. If they tell you to get the hell out you have no choice but to leave. They can throw you out and put a renter in there anytime. Just because they were nice before doesn't mean anything now." So now they own the deed to what used to be YOUR HOME. But guess what? That late mortgage payment and the foreclosure from the lender is STILL YOUR PROBLEM. Scary huh....

And if you take a look at your mortgage agreement, be it with Countrywide, CitiFinancial, National City, just to name a few, you might take note of a clause in there called an "Acceleration Clause". In the simplest terms, it means that if you, the homeowner, signs the deed over to another person or entity, you are violating the terms of your mortgage agreement. "Now the lender doesn't even have to give due process before proceeding with the foreclosure." Ouch!

"There are some very kind looking, friendly acting, smiling investors out there who would LOVE to have you sign over your home to them. They will promise to bring your loan current and get the heat off your back..." Please do not let someone pressure you when you are in a difficult situation. The sharks will tell you you're over-reacting. The sharks will make all kinds of deals. And it WILL sound wonderful, especially after months of stress and harassing phone calls. Don't take the bait.

Do some research on your own about this type of scam. It's easy enough to find on the web. Here are some good search terms that will lead you to plenty of solid, FACTUAL info:

Theft by quit claim, grand theft home, foreclosure rescue scams,

equity sharking, home equity theft protection,

and the Department of Housing and Development (HUD) has great tips for avoiding foreclosure.

Stay tuned for part 2 of my blog on steps you can take to protect yourself from sharks in Preble County Ohio, and even ways to protect yourself if you do decide to use their "services".

Kelley Weimer, a house "SOLD" name!

Country Mile Realtors

www.buypreblecounty.com / www.preblecountyhouses.com

*Certain sections of this blog have been taken, with permission, from Ken Cook's blog titled "Never Deed (Quit Claim) Your Property to avoid Foreclosure, Ever." These sections are noted by italics and quotations. Thanks Ken!

**Disclaimer: This is my personal blog. I am not nor will ever be an attorney. For legal answers on your housing issues, please consult your attorney. Thanks!