The American Nightmare - New Book brought to you by NAHREP

The American Nightmare is a new book written by veteran housing counselors Sylvia Alvarez and Walter Walker Jr. that offers distressed homeowners tips and strategies to prevent, survive and overcome foreclosure.

The purpose of the book is to inform homeowners about their options, show them what actions to take and the possible ways they can avoid foreclosure simply by understanding the process.

The book, which is sponsored by the National Association of Hispanic Real Estate Professionals and Freddie Mac, will be distributed at nonprofit counseling events and is available for purchase for $14.95 at www.NAHREP.org.

Researchers estimate that as many as HALF of all borrowers who go into foreclosure never took action soon enough. We're only half way through this crisis. Homeowners must learn what their options are and take advantage of the resources available to them.

Homeowners that are behind on their mortgage payments should consult a HUD certified housing counselor immediately to get advice. Don't procrastinate!

Background Facts

Latinos are expected to lose between $76 billion and $98 billion in personal wealth during the foreclosure crisis (United for a Fair Economy)

About one in 12 mortgages made to Latinos in 2005 and 2006 will end up in foreclosure. (Center for Responsible Lending)

Nationally 3.3 million mortgages may default in 2007, 2008 and more than 2 million homeowners may lose their home (Moody's Economy)

Latinos fail to seek help with foreclosure due to denial, fear, shame, language barriers and lack of information (Neighborworks America)

CONSUMER TIPS

Options If You Are In Default

•1. Contact the Lender/Servicer first and make a good faith effort to resolve the problem.

•2. Before you call the lender, go over your current bills and tally up your income.

•3. Prioritize what needs to be paid, and when.

•4. Eliminate any excess, and reduce your expenses so that you are in a position to show the Lender/Servicer you have taken stock of your situation and are making a good faith effort to reduce spending.

•5. Be ready to share a plan with your lender on how you plan to make good on your promise to repay.

Don't Become a Victim of Predators!

Beware of schemes that promise to save you from foreclosure. Your mortgage default is public record. Predators have devised creative schemes to get bulk cash out of distressed homeowners!

•1. Never sign documents without fully comprehending what is contained in them.

•2. Avoid any offer to sell your home with an option to buy it back. Selling your home means giving up your rights as a homeowner.

•3. Beware of advertised offers to save your home from foreclosure or personal solicitations that promise to help you avoid it.

•4. Never ever send an application or processing fee to a lender or servicer that advertises "Bad credit, no credit, no problem" and directs you to a toll free number or a call for help.

•5. Don't do business with firms soliciting loans via door-to-door sales or even mass mailings.