Will The Foreclosure Rate Continue...

This seems to be the million dollar question. With the staggering economy and our country coming to an end of a presidential term, I don't see anything in site that leads me to believe that the foreclosure rate will slow down.

Many analysts have already said that the current state of this foreclosure market is at an all time high. The unfortunate part is that everyone is aware of this with the exception of homeowners facing foreclosure, or people behind in their mortgage payments.

Several of the real estate companies that frequently refer business to us are saying many people that come to them to sell their homes are doing it at the last minute or days away from a foreclosure sale. Often times they are unable to get their homes sold in time or worse yet, get the foreclosure sale stopped.

For someone facing foreclosure, this can be a very overwhelming and scary event. Many people are reluctant, afraid or hesitant about contacting their mortgage company.

Here are a few key things you should know about foreclosure, to prevent yourself from becoming the next victim;

1. Because of a 30 year high in the foreclosure rate, lenders are more motivated now to workout and negotiate payment agreements with a delinquent homeowner, even if they are facing foreclosure than ever before. When you hear of large mortgage companies like
Countrywide, which is the biggest lender in the company having financial problems, it let's you know that the smaller guys are probably having worse problems.

These companies are more than aware how high the foreclosure rate is because they've made these loans. There incentive is that if you're not paying on your mortgage, they're not making money. This is another reason why so many sub-prime lenders have gone under, and more will continue.

2. Even if your mortgage company says no to a workout agreement, it only means no today. Periodically doing our negotiations with mortgage companies, we are told no to our reinstatement proposal. By modifying the amount of money you can pay towards reinstatement, length of repaying the delinquent amount, or a combination of both
can in many times them agreeing to a workout proposal. Remember, they are more motivated in these times then in previous.

3. Really important to remember, is that the lender does not necessarily call all the shots. This is a negotiation and they are willing to listen to feasible options towards reinstating a delinquent loan.

The bottom line is that the foreclosure rate will continue to rise, especially if mortgage companies are unwilling to negotiate delinquent payments.

In closing, our position that foreclosure can be prevented through proper planning and financial literacy. If you're currently behind in your mortgage there are multiple solutions to keeping your home, beyond filing bankruptcy or selling your home.

A careful well thought out and executed plan is what's going to make the difference to success and failure in this current market.

Robert Brown
Keep My Home Today
www.keepmyhometoday.com

P.S. Want to hear what proper planning and financial literacy can do for you? Then check out the testimonial page at www.keepmyhometoday.com, turn up your speakers and listen to my interview with Ramona Dixon.