Pre-Foreclosure Red Herrings

In the home mortgage foreclosure world, red herrings can divert you from following viable home saving methods. Home mortgage foreclosure can be stopped by you alone, if you don’t get distracted.

Commit to it and success is yours. Let all the diversions, scams, and time-wasters fall on deaf ears. With that said, here are the three main ways you’ll be tempted which will NOT stop your home mortgage foreclosure.

Pre-Foreclosure Red Herrings: con-man real estate “investors”, bankruptcy, and foreclosure service companies or foreclosure “rescue” companies.

Con-Man Real Estate Investors

Every con-man “investing” in foreclosures was taught the same techniques. The “investor” contacts you in what is referred to as the pre-foreclosure stage. The stage before or after the notice of default filing, but before the sheriff sale.

The investor says he will take care of everything (meaning your back payments). As you sign millions of pieces of paper, one happens to be the deed to your house. Another one is a rental agreement.

Your new landlord then proceeds to increase your “rent” until you can’t pay it and then he evicts you. Remember, you signed the deed over to them so as the owner kicking you out is a simple matter called eviction not a complicated one like home mortgage foreclosure. While all of this is happening (their goal is to kick you out ASAP), the investor may or may not have cleaned up your back payments.

This “new owner” needs to get someone else into your house collecting a down payment which is used to clean up your back payments or possibley just skip town with it and you still get foreclosed on.

Another technique is when the “investor” insists you move out right from the beginning. Then, they advertise your house for rent to own or lease purchase. Again, their goal is to get a down payment from some unsuspecting person instead of just renting to them.

Rarely to these “investors” clean up your back payments. You are still responsible for the payments as long as the mortgage is still in place. If they don’t get anyone in the house who can cover your back payments, you will still be foreclosed on since these con men never clean up back payments with their own money.

If they rent or rent-to-own the home to another but took the down payment money for themselves, you still get foreclosed on but now with someone else living in your home. (How do you explain that one to the people who just had the sheriff show up to kick them out but they signed a lease agreement with a guy who didn’t really own the house AND is nowhere to be found????)

Bankruptcy

Some people think they can file bankruptcy to stop foreclosure. It never stops foreclosure. It just postpones it.

As soon as the bankruptcy is seen by a judge, he orders the house be removed from the proceedings since bankruptcy relief is only for unsecured debt like credit cards and, the foreclosure proceedings will continue.

Foreclosure Service or Rescue Companies

There are all kinds of companies popping up these days telling people they can negotiate with your lender to stop foreclosure. They are foreclosure services where the only service they perform is either nothing or something you can do yourself.

Here’s what they do. They ask you for money to do something you can do for free. Some of these foreclosure service companies charge up to $1500 to make a phone call to your lender. They don’t negotiate on your behalf and end up wasting valuable time you can’t afford to waste. They make it sound like they have some inside track to your lender but it’s not true.

You can work with your lender yourself. And get results.

Lenders are willing to work with you on a short sale, forbearance, and other loss mitigation techniques. You just need to know how. Don’t give anyone money or sign your house away to an investor.

You can stop home mortgage foreclosure yourself…

We even wrote a book to walk you through just how to negotiate with your lender.

Click the link and get his book ….it will teach you everything you need to know about how to stop home mortgage foreclosure with just a few phone calls! -
Stop Your Foreclosure Now!™

Good Luck!

Author: Rob K. Blake
Published December 17, 2007
Modified March 31, 2008