The principle of gaining the trust of the homeowner threatened with foreclosure is a deal-maker. If they trust you, they are more likely to accept your offer. Besides that, if you have earned their trust by explaining their options to them, then if they choose to let the home go to auction where it will likely end up on a foreclosure auctions report (and you win it) they are much more likely to vacate the property without a fight.

1. Work with their Current Lender

Forbearance: An agreement between the lender and the borrower that reinstates the delinquent loan because the homeowner will put up an initial lump sum of the total delinquency and pay the rest over a period of time.

Loan Modification: A change in any of the terms of the original note. This includes decreasing the interest rate, re-amortizing the remaining balance, extending the term of the note.

2. Work with a New Lender

Refinance: Where a new lender loan the borrower monies to pay off existing debt. This option is generally open to borrowers that face a temporary setback in their financial situation and can prove that they can afford the new mortgage payment. Most financial institutions will not loan to people unless they have the above mentioned criteria and at least 20% equity in the residence.

Junior Mortgage: Where a new lender will offer a second loan or junior lien in order to make up any back payments, late fees and other charges necessary to reinstate the loan. Rates are typically 12%-18% and terms are 5 to 10 years.

3. File Bankruptcy

Bankruptcy is a way for people who owe more money than they can pay right now, to either work out a plan to repay the secure creditors over time in Chapter 13 filings, or wipe out (discharge) most of their bill in a Chapter 7 filing. While the debtor is working out a plan, or the trustee is gathering the available assets to sell, the Bankruptcy Code provides that creditors must stop all collection efforts against the debtor. What happens to your bills, debts and house will be controlled by the Bankruptcy Code and the Federal Rules of Bankruptcy(the owner will NO longer have control over any of their assets). Bankruptcy will have a serious impact on the credit lives for the next 10 years.

4. Sell Their Home

List with a Realtor on the MLS (Multiple Listing Service)- Due to the short foreclosure period in Texas, listing their home with an real estate broker and being able to close within 21 days is a very unrealistic task due to the new buyers financing. The process of lenders approving the buyers credit, appraising the house, completing underwriting, reviewing title, getting a new survey, getting payoff demands and drawing documents--can take 3-4 weeks to complete (assuming no problems pop up). Just because the property is under contract and scheduled to close will NOT stop the auction.

Sell to an Investor- Selling their house to an investor who offers " cash at closing"; no new loan contingencies; no repairs to be made (AS IS); fast escrow; a for sure sale providing a fresh start with reputation and integrity intact would be their best option. Although the investor's price is less, the investor can salvage the seller's credit, bring loans current, rebuild seller's credit by paying the sellers debt on time every month. This is a much BETTER solution than doing nothing and losing everything at the foreclosure auction.

5.Giving Up and Letting it Go:

Deed-in-Lieu: Borrower voluntary conveys the title (property) back to lender in lieu of the lender foreclosing. Most lenders would rather go through with the auction and clean title by extinguishing inferior liens.

Let it Go to Auction: Obviously, nothing good can come from this, the owner loses their home with no money, credit problems, hard to find new housing due to past history and the lender can sue for any deficiency.

Posted by Bob Hollands on December 13, 2008 at 12:00 AM

About Bob Hollands
Bob Hollands is affliated with Prudential East Bay Real Estate, which is located in Bristol, RI. For further assistance please use the contact information located on the right.




As of 05/24/12 the Bob Hollands RePage is ranked at 8,492 with 320 points.

Real Estate Market Research Start your real estate market research with the U.S. Census information about a town. You want to invest in a town that is growing, especially if you are investing in income properties. It's getting easier to do this now, with all the information available online. Just go to the official U.S. Census site at www.census.gov. If you call the chamber of commerce, or the local department of economic development, they may have a packet of statisics they can send you too, showing population figures, employment mix, and more. These are a couple of the statistical tools and information that can help, but one of the easiest and most useful research tools, is talking. Real Estate Market Research - Choosing a City Talking is a great way to research a town. I once called the Chamber of Commerce of Deming, New Mexico. In the course of our conversation, the chairman casually commented that the city was using up the water faster than the aquifer was being replenished. I also learned that they had no back-up plan. That was enough to cross Deming off our list. When you want to know more about a town, use the phone. Use any excuse to call anyone from a real estate agent to a random resident. Ask questions about crime, whether the local government welcomes new businesses, what the climate is like. Are houses sitting for sale for a long time, or do they go fast? Where are the good and bad areas? What are the good and bad things about the town? Prior to moving to Tucson, Arizona, part of our real estate market research was to call people in potential towns to see if they owned a snow shovel. If they did, we crossed the town off the list. Two different places can both get 25 inches of snow per year, but in one it stays all winter, and in another it melts before noon. Our snow shovel question told us the truth behind the statistics. That was just a personal thing with us, of course, but talking to people can tell you much that is more directly related to investing. In fact, a good local bar can be a great place to do your research once you are in a town. Patrons will tell you what big employers are about to move in or out of the town, how fast homes are selling, whether there are gangs, and much more. Ask which areas are improving, and which are getting worse. Listen for stories about noisy or animal-infested areas. This kind of information is important, but hard to get from the raw data. Of course, people do sometimes exaggerate, so try to verify what you hear. Still, talking to people of can be a great way to do real estate market research. Posted by Bob Hollands on December 13, 2008 at 12:00 AM About Bob Hollands Bob Hollands is affliated with Prudential East Bay Real Estate, which is located in Bristol, RI. For further assistance please use the contact information located on the right. As of 05/24/12 the Bob Hollands RePage is ranked at 9,096 with 275 points.

Local Information for Bristol, RI

Latitude: 41.6842 -- Longitude: -71.268669

Other Area Cities:   Bristol, RI  Barrington, RI  Tiverton, RI  Warren, RI 

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Bristol is a town in Rhode Island and the county seat of Bristol County. Bristol, a deep water seaport, is named after Bristol, England. Bristol gained national fame despite its small size as a result of having the oldest, continuous Independence Day celebrations in the United States, earning Bristol its nickname, "America's most patriotic town". Bristol's diverse heritage is influenced by a strong Portuguese-American presence, mostly Azorean, and Italian-American. Major industries include boat building (and related marine industries), manufacturing and tourism. The town's school system is united with neighboring Warren, Rhode Island. -- Source: Wikipedia.com

Rhode Island 2000 Census Population Profile Map

	Bristol	Rhode Island	United States
Population	22,469	1,048,319	281,421,906
Median age	38.2	36.7	35.3
Median age for Male	36.8	35.4	34
Median age for Female	39.4	38	36.5
Households	8,314	408,424	105,480,101
Household population	20,376	1,009,503	273,643,273
Average household size	2.45	2.47	2.59
Families	5,650	265,398	71,787,347
Average family size	2.99	3.07	3.14
Housing units	8,705	439,837	115,904,641
Occupied units	8,314	408,424	105,480,101
Vacant units	391	31,413	10,424,540

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