Friday, June 20, 2008

7 Tips If You Know Anyone Facing Foreclosure

Jacob Benaroya, president and managing partner of Biltmore Capital Group, which purchases distressed loans from a wide array of lending companies, offers these seven tips for home owners facing foreclosure.

Don’t hide. Open the mail; answer the phone. Respond.

Be proactive. Contact the bank or lending institution and discuss your financial situation.

Know your mortgage rights. Review loan documents so you know what your lender may do if you can't make payments.

Avoid foreclosure prevention companies. Don’t pay money for foreclosure advice..
Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. They’ll help you understand the law and your options, organize your finances and represent you in negotiations with your lender if assistance is required.

Prioritize spending. After health care, keeping your home should be your first priority. Review your finances and see what spending can be cut in order to make your mortgage payment. Look for optional expenses - cable TV, memberships, entertainment - that can be eliminated. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

Use other assets. Do you have assets such as a second car, jewelry, a whole life insurance policy-that can be sold to help reinstate the loan? Can anyone in the household bring in additional income?

Source: Biltmore Capital Group

MY TAKE: I hope you never know anyone who needs this advice, but if you do this is some solid information. I have done a lot of work on the front range and have seen many people lose their home to foreclosure. Sometimes it can be prevented and sometimes it can't, but every option should be explored. Again, I hope you never need it, but here it is anyway.

Kevin Wade
Cherry Creek Mortgage Company
970-243-7800 Office
970-201-2310 Cell