7 Tips for Avoiding Foreclosure

Are you having problems meeting your mortgage payment?

Are the current market conditions affecting you're your financial peace of mind? If so, you are not alone.

This is a serious problem in our area and throughout the country. Please, don't believe for a second that this is only happening in areas with lesser home values. There are folks who by most standards would seem wealthy that are having difficulty making their payments. A person may earn $200,000 per year, but be spending $225,000. Is that person better or worse off than a person making $40,000 per year who spends $50,000? The epidemic of spending more than we make cuts across all social and economic lines. If the truth be told, the majority of Americans spend more than they make.

Did you know that there are government programs that may assist you? There are federal and state programs that have been implemented to help homeowners that are struggling. For example, NJ has put aside $30 million dollars to help distressed homeowners through their Homeownership Preservation Refinance program. There are also federal programs that you may qualify for.

Did you know that you might be able to modify your current mortgage and lower the payments? Banks don't want you to stop paying them. With the current market conditions, banks and mortgage companies don't want to take your home away from you and then have to sell it themselves.

Did you know that you can sell your home if you have no equity or even negative equity? Typically you would have to bring the difference to the closing table. There are options where you can sell your home and have no out of pocket expenses, no attorneys fees, no brokerage fees, no transfer taxes and no outstanding taxes. These types of transactions are happening every day.

Did you know that you can sell your home when you owe more than it is worth and be able to save your credit score and retain your finances? With the right person managing your transaction, this is entirely possible.

We have instituted a new program entitled "Save the Homeowner." As a community service we are offering free consultations. Owning a home is the American Dream. Unfortunately for some, it has become the American Nightmare. We want to help people make their current situation better. We believe that if a person wants to stay in their home that we should do everything possible to help them.

It is very important to us as Realtors to keep people in their homes. Foreclosures are bad for any neighborhood. Just think what a home with boarded up windows would do the property values in your neighborhood. For every bank owned property in your neighborhood, you can take another $10,000 of value off your property. This topic is a personal passion of mine. People tend to make poor decisions when they do not have all the information that they need. My goal is to help educate people. Knowledge is power and you have the power to fix your situation.

Tips for Avoiding Foreclosure

1. Don't pretend there is no problem. The longer you wait, the less leverage you have.
2. Do something as soon as you get past the first step
3. Open mail from your lender. They are trying to contact you. Yes, they want to get paid, but they may also want to help.
4. Know your rights. Get your loan documents together. Read what you signed, understand what the mortgage holder can and can't do.
5. Understand your options. Do some internet research. Call someone to explain Loss Mitigation options to you.
6. Work on a budget. The banks want you to be able to pay. If you have had some hardship, they may understand and help you out. You will eventually need to prove to them that you can make payments (or that you can't). Regardless you will need to know what your financial situation is. Writing down income and expenses is the first place to start.
7. Avoid Foreclosure Scams. There are many for-profit companies that will contact you. Do Not sign over the title to your property. Some scams tell you that the company will buy your house and sell it back to you. Typically people are left with no home and are taken advantage of.

Get Educated. Get Empowered.

For more information on this or any other topic, call Sal Poliandro, Realtor, Marketing Advisor, Short Sale Specialist

ePRO, SRES at 201-259-2187, or visit our website: www.SalAndDawn.com

Sal can be reached by snail mail at RE/MAX Properties 73 East Allendale Road Saddle River, NJ 07458