Homeowners in the Dark

America has a problem. Plainly put, America has a foreclosure problem. Staggering foreclosure rates have severely affected the American economy. Across the country, millions of homeowners have lost their homes due to this devastating crisis. Families are broken up, lives have been altered, and homes are left deserted. America has a big problem.

While the blame for the crisis may be a subject of much debate and conjecture, the important issue that all Americans must focus on is the solution to the problem. In the opinion of this writer, the most vital issue regarding the foreclosure crisis is the education of the homeowner of what they should do. For this once in a life time event, most homeowners facing foreclosure have little knowledge about foreclosure. Homeowner’s have little time to educate homeowners about the sometimes complicated foreclosure process (www.lewisstates.com).

Many homeowners have no idea that contacting the people at the mortgage company that they can actually obtain help. Also, they are left in the dark about possible repayment options and timetables. The saddest truth about foreclosure is that many homeowners could have saved their homes from the process had they been more prepared.

The following is a quick overview that homeowners can use to get helpful information about foreclosure proceedings.

TIMETABLE

30 days – The homeowner is not considered late on the mortgage until they are 30 days past due. At this point the mortgage company will attempt collection calls to cure the deficiency.
60 days –The 60 day mark is when a homeowner is considered to “default” on the mortgage. The mortgage company may offer some more random collection calls and possibly send a letter or two. Remember, they are not obligated to do anything in most states.
90 day – The 90 day mark is the beginning of a very serious time. The Mortgage company will normally send the homeowner a letter that demands that the full amount due be paid or the foreclosure process will begin. Often, the foreclosure process and notification are a simultaneous event, thus the homeowner could be in foreclosure but not know it. Collection efforts by the mortgage company will continue even while the foreclosure process progresses.
Over 90 days – Once the loan is in foreclosure, the mortgage company can schedule an auction date at a time as required by law (www.lewisstates.com). The homeowner has some time to redeem or vacate the premises after the home is auctioned off to the highest bidder, the alternative is being escorted off the premises by local law enforcement.

OPTIONS

Refinance – Unfortunately, the vast majority of homeowners facing foreclosure are not able to refinance their homes. The pending foreclosure has obviously negatively affected the credit of the homeowner that will scare away any mortgage companies interested in refinancing the loan.
File Bankruptcy – In the opinion of a study conducted in Georgia, Bankruptcy should only be considered as the last option possible. Bankruptcy will stays on the homeowners credit for at least seven years and sometimes longer. One study indicated that 70% of homeowners who file bankruptcy to save their homes failed during the first 12 months.
Negotiate –It is possible to negotiate with your mortgage company. Sadly, due to the current volumn of foreclosures, this option has become almost impossible to hurdle without professional assistance or advice. In order for a homeowner to negotiate with the mortgage company, the homeowner must have a working knowledge of foreclosure and real estate proceedings and be able to provide the mortgage company a completed 20 to 40 page workout package containing all the elements necessary for the mortgage company to consider their unique situation.
Get Help – Many times this is the only option that is open to the homeowner. Homeowners must beware of foreclosure predators but be willing to search for help for their problems. Homeowners should not hire anyone who guarantees to specific result. Homeowners should ensure that the company is a member of the Better Business Bureau and Dun and Bradstreet. It is helpful if the company has a Reliability Partnership with the Better Business Bureau and has not got any unresolved complaints against them.

Knowing what the mortgage company is looking for and then how to communicate with them is only part of the battle. Once the communicate process has opened up then a homeowner has to know what to say when someone says “no” to their plan. If you are experiencing problems such as these, perhaps the best solution is to hire some advice or counseling on how to proceed.

About the Author: Jacob Cukjati is a knowledgeable foreclosure professional with Lewis Mortgage Foreclosure Assistance Foundation. He is dedicated to providing a valuable resource for homeowners facing foreclosure. You may contact him at his office (251) 923-0235 or e-mail him at jacobcarro@gmail.com

About the Company: Lewis Mortgage Foreclosure Assistance Foundation is non-profit organization based in Lillian, Alabama. They have a team of foreclosure professionals that are dedicated to helping homeowners save their homes. You may contact them at 866-645-8551.