Contact the Lender

Don’t wait for the foreclosure letter to come. Call the lender the moment you know that trouble is on the horizon. Lenders are deeply invested in their clients. Foreclosing on a house is very expensive and no one wants to do it. Because of this, most lenders have payment plans and options in place to help you out.

The majority of lenders give you a grace period. This enables you to skip between one and six payments. Interest will add up, so your payments may be larger when you start paying again. However, you will be given time to get back on your feet and get rid of the payments.

Prioritize Mortgage

Most people have a number of debts. You may have credit card bills, loan payments and other debts to worry about. Paying these debts is important, but not nearly as important as paying your mortgage. Contact the other lenders and tell them what is going on.

Then, start prioritizing the mortgage. Put all the money you can towards this debt. This should help pay off the mortgage if money is still coming in.

Restructure Loan

This is best if you are now making much less or if you lost your job. Restructuring the loan gives you more time to pay it off and it lowers the monthly payments. This will cost more in the long run due to higher interest rates. However, you will be given an opportunity to pay down the mortgage and keep your house.

Home Equity Loan

This can give you a boost of money if your credit is good. A home equity loan can give you money you need to pay off current loan payments. But, make sure you don’t spend all the money at once.

Make a budget and hoard the money. Keeping the money will be smart if you cannot get a job or get back on your feet as quickly as you thought you could.

Refinance

This can be very risky. However, if done correctly, refinancing can protect your home by lowering your payments. Be sure to research current financing rates before doing this. If you refinance at a time when loans are high, then you may end up paying more. This can be costly, but it can also severely decrease your monthly mortgage payments.

Sell Assets

Selling your assets can bring in money and it can reduce your costs. For example, you can sell an extra car that is rarely used. The money from the car can go towards the mortgage, and this reduces fuel and insurance costs.

This is usually temporary, so don’t rely on it. Don’t sell anything that you absolutely need.

Bankruptcy

Talk with a bankruptcy lawyer before seriously considering this. Bankruptcy will sharply decrease your credit score. Some people that go through bankruptcy will not be able to keep their houses. A bankruptcy lawyer can discuss your situation and he or she will be able to recommend the best course if you decide to file for bankruptcy.

Conclusion

Worrying about foreclose can be very difficult and stressful for most people. The most important thing is to stay calm and not crack under that pressure. Take a good look at your financial state and determine your options.

Usually the best thing you can do is talk to the lender. Lenders don’t want to foreclose because it is expensive. They will do anything possible to keep the loan alive. There are also many things you can do to decrease your payments and get a small boost of money. Keep all of this in mind and you should be able to pull through this difficult time without losing your house.

Author Bio

Tom Demers writes on a variety of technical securities for Bit9, including windows domain controller.

Mortgage modification

Mortgage modification involves alteration of the terms and conditions of a mortgage so that it becomes more affordable. It can be made more affordable by lowering the principal amount/interest rate, extending the term of the loan etc. It aims to decrease your difficulty in making payments. This process can help you to eliminate debt which in turn can save your house. Given below are few tips for mortgage modification.

• Talk to your lender – In order to discuss about mortgage modification, it is better that to talk to your lender over the phone or pay him a visit to have a face to face conversation. Do not try to request for a modification by sending an email or a snail mail. This will slower down the process and may keep you waiting for days. Further, keep in touch with your lender after the application process, in order to know about the status of your application.

• Keep your documents ready – When applying for mortgage modification, you need to submit few documents. It includes pay stubs, tax returns as well as other documents that your lender may demand. Keep them handy and organized. Additionally, you may need to provide a “hardship letter” in which you’d have to provide explanations regarding your financial difficulties.

• Keep your patience intact – The process of mortgage modification can take some time which can leave you feeling frustrated. Do not loose patience in such a situation. If your application is accepted, it may take around 1-3 months or even more for the modification process to be effective.

Mortgage refinance

Mortgage refinance is another process by which you can eliminate debt and avoid foreclosure. It involves substituting of an existing loan with a new one which contains more favorable terms and conditions. A handful of tips regarding mortgage refinance are given below :

• Understand what will be beneficial for you – Before going for a mortgage refinance, you should research well and find out what type of loan will be beneficial for you. For example: you can choose a fixed-rate loan or an adjustable-rate loan, depending on how long you will stay in your house. A loan with a fixed-rate of interest is usually favorable if you’re planning to stay in the house for a long time. While on the other hand, a loan with an adjustable rate of interest can be more beneficial if you do not wish to stay in the house for a long period.

• Compare deals – In order to get the best deal on mortgage refinance, you should compare deals offered by different lenders.

• Lock the rate – Once you find a good enough mortgage refinance deal, make sure you lock the deal. That way, you’ll have more chances of obtaining the same rate even if the rates fluctuate in the future.

Both the processes of mortgage modification and mortgage refinance can be quite tedious and frustrating. However, if you see no alternative way to pay off your mortgage debt, you can choose either of these two means to eliminate debt and save your house from foreclosure.

#1 Shop Around - Any mortgage refinance company that you talk to is going to want to sign you up on the spot.  But don't do that.  Take the time to shop around.  Evaluate your options.  You will be glad that you did.

#2 Always Read All The Paperwork - Always, always, always read every word of the paperwork that you are signing.  It doesn't matter what mortgage refinance officials may "promise" you - what matters is what it says in the paperwork.  So make certain to always read every single word so that you know what you are agreeing to.

#3 Get Professional Advice - This point goes right along with the previous point.  For many Americans, mortgage refinancing documents can be completely and totally confusing.  So, you might want to enlist the help of a professional to look over your mortgage refinance paperwork before agreeing to anything.  It almost always pays to get the help of someone who actually knows what they are doing.

#4 Keep An Eye On Interest Rates - The best time to refinance your home is when interest rates are super low.  So keep an eye on what interest rates are doing.  Right now interest rates are super low, but they will not stay that way forever.

#5 Get A Fixed Rate If Possible - You never, ever, ever want to get an adjustable rate on your home mortgage if you can avoid it.  When you are searching for the best mortgage refinance rates, you will also want to search for a rate that is fixed.

#6 Check Out The Reputation Of The Lender Before Signing Anything - This is very, very important.  All mortgage lenders are not created equal.  Before agreeing to anything or signing anything, be certain to investigate the reputation of the people you are dealing with.

The truth is that the lowest mortgage refinance rate is not everything.  You will be really sorry later if you jumped at a rate that was a little lower but you are now dealing with a bunch of scoundrels.  You want to deal with a firm that is solid and reputable.

Hopefully you will find these tips helpful.  When it comes to refinancing your home, you want to be as careful as possible.  This is a big step and you want to take the time to do things right.

So just how bad are things getting out there?  Check out some of the foreclosure horror stories that we have compiled below.

1) Dealing with mortgage lenders has become so frustrating that some people are on the verge of just giving up....

I am self-employed, have been all my life and have owned a home for 30 years. When I started my Loan Modification process in August of 09 I WAS NOT behind on any payments. I sent full documentation, over 150 pages, with the things they needed to verify my income. I am now 2 payments behind and I am getting nowhere. They keep flipping me between Loss Mitigation and Imminent Default, back and fourth month end month out. I made a habit of calling every week, then every two weeks just to be sure all was moving forward. From the middle of November I was told my file was with the underwriter and it would only be 30-60 days. I began automatically updating my income verification, verification that I still resided at the property and an updated 4506-T every month. In the middle of April a rep finally told me I was not in the loan modification process. In fact, that I had been denied on March 2. Keep in mind, I'm talking to these people every 2 weeks. She did a financial interview and sent me a new packet so that I could start all over, resubmitting all the documentation yet again. She told me she was my Account Manager. I completed the packet, called with a question (2 weeks later - over a week to receive the packet and another few days to complete it and gather all my documents again) and learned that my "Account Manager" was on maternity leave and I now didn't have an account manager. Also, I was told that I had received the incorrect packet...it was the old version rather than the updated version. She asked me to fax four or five pieces of information in the hopes it would, quote, "jump start my file back into the process" and said she we send me another packet. That was mid April. Here we sit, 2-1/2 months later, I have still not received anything in writing about my rejection. And, though I've now had people tell me on three separate occasions that I would receive a new packet, it has yet to show up on my door step. I asked several times why my application was denied and the answer I finally got last week was that it was because I was DELIQUENT in my payments. Call me crazy but I thought that was the whole point??!! I almost hired a third party but am so hesitant to take that step. Every time I get on the phone with them it takes an hour out of my day and I am usually so upset I find it difficult to work, so I just don't call. I'm going to sit back and regroup and decide what I need to do next.

2) One man in Ohio named Terry Hoskins actually bulldozed his own home rather than let the bank foreclose it....

"The average homeowner that can't afford an attorney or can fight as long as we have, they don't stand a chance," he said.

Hoskins said he'd gotten a $170,000 offer from someone to pay off the house, but the bank refused, saying they could get more from selling it in foreclosure.

Hoskins told News 5's Courtis Fuller that he issued the bank an ultimatum.

"I'll tear it down before I let you take it," Hoskins told them.

And that's exactly what Hoskins did.

3) A man in Michigan actually died during a standoff with police over his eviction from a foreclosed home....

Mark D. Fussner died May 22 after an hours-long shoot-out with police following the bailiff’s unsuccessful attempt to evict the 44-year-old homeowner. Two 24th District Court officers had come to Fussner’s home on Anne Street, in the working-class downriver Detroit suburb of Allen Park, to carry out a writ of eviction after foreclosure.

4) One very frustrated Ohio homeowner who was served with a foreclosure notice from his lender decided to drive his SUV into his home.  Obviously this caused a considerable amount of damage....

30-year-old Steve Doak told deputies he was recently served with foreclosure papers and wanted to destroy the house rather than turn it over to the bank. The sheriff’s office says Doak drove the vehicle into fencing and then into the rear of the house...

5) A lot of times mortgage horror stories are 100 percent the fault of the lending institutions as in this case....

At the ripe old age of 40, my husband and I bought our first home one year ago. Having heard so many horror stories prior to our purchase, we were very surprised at the ease in which every thing went during our application and closure. We had to take out a second mortgage with our financial institution, however, to pay for incidentals at closing. We ended up with two loans, one (the smaller of the two) was automatic withdrawal and the other was a mail-in payment.

After six months, I was horror-stricken when I received a certified letter stating my home and land would be put up for auction in the near future for my failure to pay three months of house payments! After pulling myself off of the floor, I managed to calm myself down long enough to call our esteemed bank. A nice young lady laughed and said, yes, our payment had not been received for three months, but the problem was with the bank. They had "inadvertently" applied our major mortgage payments to the second mortgage AFTER SIX MONTHS OF PAYING IT CORRECTLY! I was livid! The best part? The young lady indicated that it happens all the time and it was just a little glitch ... and it was usually funny (how it turned out) Funny!?! I practically had to call 911 when I got that notice! This happened five months ago and my credit is screwed up. The bank's (explanation) is "It's just a little glitch."

6) Apparently some banks actually want you to default so that they can foreclose your house....

They paid the taxes on another house with a vaguely similar address (but much higher tax rate)and sent me a new payment book with my monthly amount roughly doubled to make up for the mysterious increase in tax payments. After the problem was identified, they promised to fix it, but never did, despite repeated calls from myself. Letters went unanswered.

Next thing I know, the tax people in my town are telling me that my taxes haven't been paid and my property is delinquent. After that, Chase labels my account as past due and begins to assess late fees and threaten foreclosure. I call Chase and am automatically routed to collection people who do nothing but scream abusively at me to pay my bill.

Virtually no attorney will touch the case because they all want to keep getting business from a large financial corporation. Out of desperation, I finally contact the New York Banking Commission. Over the course of months, Chase - very, very grudgingly - corrects most of their errors. They never stop being nasty, and begin to imply that they might sue me anytime I refuse to accept their initial offer.

This process took approximately four years to complete. I eventually was forced to default on the property for a number of reasons, some of which were unrelated to Chase. At this point, I discovered that they actually WANT you to default on FHA insured properties, apparently because they make out rather well, or so my realtor claims. In any case, it was the first time they were actually very pleasant and cheerful on the phone. Go figure.

7) One man in Las Vegas says that the entire system is broken....

I bought my house in late 2007 for $400K at 6.5% fix. I put 25% down ($100K). With the current market, I didn't only lost all my equity but due to foreclosures in the area, my house is only worth about $250K and I owe $299. I retired from the military and currently unemploy. Between my pension, spouse's income, and others, we are barely getting by or having to use our saving to cover any shortfalls. I called Countrywide in January to see if they have anything that will help responsible people like me who are still current on payment. It was like talking to a wall. All the solutions she mentioned only benefit CW and not me. Later, I spoke to the HOPE credit counselor, we did the budget and she send the file to Countrywide. February, I send a certified letter with my budget breakdown to CW asking them to help me. Today 10 Feb 09, I called CW to discuss more about my issue. We had to go over my budget again. I asked her to pull out the letter I sent but she said she still has to do it verbally. At first her math showed I have positive income so I don't qualify. I told her the math is not right. We tried again and now it showed I'm negative and still don't qualify. So I asked her what is the number for me to qualify? she said because I'm already on fix 6.5% interest, I don't qualify. So basically, no matter if I'm positive or negative, I don't qualify period. She just wasted my time. She mentioned doing a short sale, in which I replied why not help me and modify my mortgage? They will likely loose less money helping me then taking a short sale. She said that's the only solution the company can offer. To sum it up, if you are responsible and doing your best not to add to the foreclosure problem - THERE IS NO PROGRAM TO HELP YOU BUT ONLY PROGRAMS THAT ENCOURAGE YOU TO DUMP THE PROPERTY.

The truth is that the mortgage lending system is broken, and the U.S. housing industry is falling apart because of it.

So do you have a foreclosure horror story to share?  If so, please feel free to leave a comment....

When Barack Obama first took office, he promised that he was going to get help to homeowners that were struggling with their mortgages.  He promised that a program would be set up that would enable large numbers of homeowners to receive long-term mortgage modifications.

So how is that working out?

Well, it turns out that only 168,708 homeowners have received long-term mortgage modifications under Barack Obama's plan as of the end of February.

This represents less than 3 percent of the 6 million borrowers who are currently more than 60 days behind on their mortgages.

What kind of foreclosure help is that?

Not that the mortgage modifications are helping much.

The number of homeowners who defaulted on their mortgages even after receiving better terms through Barack Obama's modification program nearly doubled in March.

So even those who have been helped are defaulting like crazy.

And unfortunately, the foreclosure situation in the United States continues to get worse.

According to RealtyTrac, foreclosure filings were reported on 367,056 properties in March, an increase of nearly 19 percent from February, an increase of nearly 8 percent from March 2009 and the highest monthly total since RealtyTrac began issuing its report in January 2005.

Foreclosures continue to surge and there is no apparent end in sight.

So is there any good news?

Well, no.

Interest rates have already gone up, and most experts forecast that they will continue to increase throughout the rest of 2010 and into 2011.

So that means payments on adjustable rate mortgages will continue to go up and even more homeowners will default.

In fact, a massive "second wave" of adjustable rate mortgages is scheduled to reset between now and 2012, and that means that there is likely to be another huge explosion of foreclosures.

Which is bad news for almost everyone - except for those who make their living off of foreclosures.

Let's hope the number of home foreclosures start to go down.

Let's hope there is some good news ahead for the housing industry.

But at this point I would not count on it.

It wasn't as if 2008 was not bad enough for foreclosures.  In 2008, foreclosure filings set a record with a total of 3.2 million.  But now 2009 is going to shatter that record.

"We are a long way from a recovery," John Quigley, economics professor at the University of California, Berkeley, said during a recent interview. "You can’t start to see improvement in the housing market until after unemployment peaks."

So which areas of the U.S. are being hit the hardest by this foreclosure crisis?

Well, California and Florida are total nightmares, but Nevada is being hit the worst.  In November, Nevada had the highest foreclosure rate in the United States for the 35th consecutive month.  The real estate market there defies description.  Some real estate developments are virtual ghost towns with foreclosure signs up all over the place.

If you have a foreclosure story that you would like to share, we would love to hear from you.  You can share your story by filling out the comments section below....

Here is a series of events that unfold:

You know that you are unlikely going to miss your mortgage. The first thing you should do is call your lender. You are in the best situation if you can call before it happens. Don't put it off, or be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Just like any bill if you call and be up front and honest that you cannot make your payment, they will work with you as as the customer feel a responsibility about making your financial obligations and commitments.

If you feel embarrassed to call your lender, Call a Hud Counselling Agency who can call your lender with you.

1. Timeline 1- You didn't call, and you missed the mortgage payment.

If you didn't call the bank, and the bank hasn't phoned you, PHONE THEM.

- Lenders may not contact you until you've skipped a second payment.

-The bank phones repeatedly.

Do not ignore the banks phone calls, this only makes matters worse.

You have several options at this point:

- Review all the options with your lender regarding repayment plans. Lenders might agree to work out a repayment plan that is affordable for you. This is called forbearance. You can also spread out the missed payment over a longer term. For example, if your payment is, say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up.

- Check your refinance options- If you have equity in your home, your credit rating is relatively intact and your lender hasn't yet filed a notice of default, you may be able to get another loan with more affordable payments.

Timeline 2 - A Late Notice is sent by the Bank

Time Line 3: Bank attempts in writing and by phone to contact customer and resolve situation.

>

Time Line 4: 90 days pass and no arrangements have been made, so the Bank issues a notice of default.

The notice of default "is a big threshold," "Once you get into that state, it's a whole different world. Your options are fewer."  Anthony Hsieh, president of LendingTree.com

Often times the bank will demand a payment under the "note in full", based on the "acceleration clause".   Most mortgage notes contain formal language which says that if you fail to pay the bank with monthly payments as promised they can accelerate the note, which they are legally entitled for the full balance of the loan.  Once this happens you legally owe the full balance along with back interest, plus late charges, plus legal fees all at once. You will find from this stage on the bank will not accept monthly payments. They will instead demand much more to reinstate the loan.  Once your note has been accelerated you should already have contacted an attorney who is an expert in dealing with these matters.

Here is what happens in the second stage of foreclosure- Formal Legal Foreclosure Process

Time Line 5:  Bank sends by sheriff or by certified mail Notice of Intent to Foreclose.

Time Line 6: Bank begins action in the court system to foreclose.

Time Line 7: Legal notices as required by law begin to be published in local papers.
Time Line 8- No payment or settlement arrangements are made with the lender.

Time Line 9- Notice and waiting periods expire.

Time Line 10- Court holds hearing regarding banks claim.
Court issues order allowing bank to foreclose. (Beware, one foreclosure firm will begin 2 and 6 at the same time shortening the process.)

Time Line 11 - Legal notice of actual foreclosure sale and advertisements published in local papers.
No payment arrangements or settlements reached with the bank.

Time Line 12- House sold at auction to highest bidder.

Time Line 13 If the final outcome falls to eviction, be sure to not wait until the last minute to move.  Moving itself can be time consuming, so be sure to leave yourself enough time to pack and relocate your items.

DO search the Internet for coupons with moving and storage companies.  When the sheriff comes out physically, he is there to change the locks and evict the homeowners.  Once that happens, your family and yourself will be physically removed from the house with all your belongings by the curb. It is much better to be out of the house , and have your items in a safe location.

One of the main problems as you know are these adjustable rate mortgages that are pushing people out of their homes. I have noticed quite a bit of documentaries of people are loosing their homes from the simple fact that their mortgage has been shuffled around so much, the bank forgot to inform the homeowner who to make the payment to.   Homeowners were making payments as per usual, unknowingly defaulting because of miscommunication.

Many of the sub market loans prey upon people who didn't read the fine print in these shaky loans. Brokerages pushed these loans because the loan officers received a bonus on some loans and not on others. I came across a video that documented a woman having a 7% loan that skyrocketed to 20%!! Yes that was her home loan, not her credit card. Another reason people are loosing their homes is because the majority of the public bought a home they couldn't realistically afford. Still, people opted for the bigger homes than one they could afford using the excuse that a simple sale down the road could get them out of the mess. The fact is right now, people are loosing their jobs as the economy is on a downward spiral, as medical problems become the norm, while their interest rates increase. Homeowners become stationary as they cannot sell as the market is flooded with foreclosures at low prices.

Any investor involved in real estate would advise to put extra consideration into your mortgage rate and application, ensuring that it doesn't contain outrageous and unfair loopholes. You can do this by increasing your FICO credit score in the reporting period of 6 months, as well as buying within your means.

Many documentaries have mentioned that *many* people have lost their homes through the home equity teaser loans that were widely advertised. The loans were so low, people rolled existing debt, bought vehicles, or improved their home with the easy money. These easy- home equity loans were adjustable, and as the rates increased, their payments were no longer affordable. A home that was paid off was put into jeopardy , and sadly was lost. People assume that times will always be great. Most people assume that we could never go through a "great depression like the 20's and 30's.   It is very sad to see a couple who has slaved away to pay off their mortgage over the years, face financial difficulties due to a job loss, suddenly facing the reality of losing their home because their home equity line was secured by their home.  The silly thing is, that if a person could get a home equity loan, they could have applied for a credit card, or some other loan that was not secure.  The problem again is lack of research before making an important decision. I still feel that anyone who uses their home or car title as collateral for a loan is really really silly. Why would anyone gamble with their family home? There are so many loan offers out there if only some time is set aside to do the research.  So if you have loans that are secured with your home as collateral, I would suggest you give that a second look.

This easy credit has caused a lot of problems, but it looks like we are far from over. With the decline of morals, and with easy money, many of these companies have acted immorally, and people all around the world have had their own shopping spree. I would hate to also add, that our country has unsustainable debt. China is no longer wanting to piggy back ride the USA anymore, adding an additional layer of insecurity. The New World Order's plans of a new currency will make the dollar even more useless than it already is causing most of the population to accept what ever rate they give the dollar. This country and many countries have far more problems that they are willing to admit. Don't assume we will have rosy times ahead.  It is anything but.  Some day it will come crashing down.  There is just way to many examples that I can give where United States is going to fall to her knees.

I would highly recommend the two articles below:

The Greatest Scam of All Time by Martin D. Weiss, Ph.D.

Adding Up the Government’s Total Bailout Tab- New York Times

This is the EUR/USD chart. You can see how the dollar has really fallen over the last number of years. You can see that in 2001 the dollar really dropped in value compared to the EURO

As you can see 2010 and 2012 will be a bigger wave of foreclosed homes. I try not to think of the unemployment numbers for those years, which cannot be calculated in advance.

Where do you find Free Bank Owned properties?

-Countrywide, Bank of America, Chase Mortgage, and U S Bank list their foreclosures on their websites.

- MLS has a list of foreclosures in each town and city

-Asset Management Companies are hired to handle foreclosures on the lender's behalf. Some of these companies are Premiere Asset Services, HomeEq Servicing, Keystone Asset Management.

- Government agencies are also a great source for Foreclosured homes. Agencies such as HUD (Housing Urban Development), Fannie Mae, Department of the Treasury ( Homes seized by the Internal Revenue Service), SBA (Small Business Association)

- Auction Houses hold huge auctions selling as many as 100 homes or more in a single day. A few are - Real Estate Disposition Corporation, J. P. King, United Country Auction Services, Williams & Willaims,Bid4Assets

- Internet Foreclosure Companies, there are hundreds of internet based companies who charge an arm and a leg for the information. There are two that are among the best, Foreclosure.com , Realty Trac

Top Mistake #1 You took the loan the bank suggested.- One of the biggest mistakes most people make.  Do your research. Chances are, the loan officer might be getting a bonus for pushing one loan over another. Shop around for your Loan.  Bank mortgage packages change week to week.  Keep in mind that shorter-term mortgages will cost more per month since you're paying off your loan faster.   Monthly mortgage payments on a 15-year fixed loan typically run 25 percent higher than the 30-year option, said Keith Gumbinger, vice president at HSH Associates. Read the fine print, to be sure you can add extra money to the principle without being penalized. Do your research on prepayment penalties on mortgages.

Top Mistake 2 Assuming foreclosures are great deals- Our site is all about foreclosures, and sometimes they are not such great deals.   The key is to do your homework, as every situation is different.   Home values have slipped significantly, and you don't want to buy an auctioned house for a remaining balance that doesn't reflect market prices.  If the house was purchased at the peak of the market, you will be buying a home over valued.    Again, every situation is different, research will be your key weapon.   In some cases you cannot have a walk though, or a home inspection. How great of a deal is it, if you have to spend another 100K in upgrades to make it pass the code requirements?

Top Mistake 3 Don't even think about buying another home before your current home is sold. Silly, silly, silly folks!   You risk putting yourself in two foreclosure situations. Given today's market, there are numbers of discounted homes on the market as a result of home foreclosure that it makes selling even harder than ever. You can always rent while your belongings are in storage short term before buying your new home.

Top Mistake 4 You didn't include monthly savings in your budget. Experts say your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Common mistakes are not writing in your retirement savings,  entertainment, or your kids' education. People often do away with entertainment, which is an unrealistic mistake.

Top Mistake 5 You didn't include rising taxes. Have you checked the current GVT debt balance these days? It seems like people have forgotten the last (couple) bailouts and how they will effect us eventually.   Big news folks, crap is going to hit the fan very soon.   The Gvt can no longer stay a float, this confirmed with China who no longer wanting to buy our debt. The current Social Security system for the baby boomers has been spent, leaving 50% of the (78 million Baby Boomers) stranded, as they are relying on the GVT assistance which is no longer there. Remember if you are the younger generation, count on future taxes being high.

Top Mistake 6. You forgot to look into future plans- Way Too often we see college students or single women looking to buy 1 bedroom condo in a declining market. How misinformed can you be?  It will not work out too well when kids are on the way, and you are trying to sell in a declining market. If you are not married, don't write it off that you will never get married, because chances are just two years down the road, you will be saying your vows, and loosing money on that condo. We are on a down trend, do your homework, ...........it is not the 90's anymore where you are making 50K in 2 years time on your property)

Top Mistake #7- You forgot to do an inspection- Big Woops! You should never buy a home without having it inspected. Have you ever run across termites?  Underground heating oil storage tanks also should be inspected, and disclosed by the seller. Home inspections can run $300 to $600 and usually include a check of a home's heating and air condition systems, plumbing and electrical works, roof, walls, foundation/structure, drainage, the garage and basement. Double check termite, radon, asbestos, mold and lead inspections, as they typically are not included.

Top Mistake #8 Submitting a pre-qualification letter instead of a superior preapproval Letter- A preapproval letter will state that you have been submitted to underwriting and have been approved, where as a prequalification letter simply says the mortgage broker has received a loan application from the borrower. Be armed ready to go, having the bargaining power in your corner.

Top Mistake #9 Using the "low ball offer" as your only strategy. Be prepared with all the facts essential to negotiating the best possible deal, other than the regular "you just want the house for a lower price" type deal that everyone submits.

Top Mistake #10 Did you go back to the neighborhood at night? If you are spending primo bucks, be well informed of what that  neighborhood looks like at all times of the day. You want to know as much about the neighborhood as possible before are committed to that purchase. Does the streets fill up with cars with no extra space at night? Does the street look a bit too dark for your liking?

Top Mistake #11 You didn't investigate the previous title holders. Title reports are free and identify past ownership issues of your property such as tax liens, undisclosed owners, easements, leases and such that could affect your ownership. ALSO it will give you very clear indication of real-estate flippers who jacked the prices up.

Top Mistake #12 Failing to understand the obligations set out in the "offer to purchase". Take time to read the contract. Don't let your real estate agent push you to hurry. Read though it carefully, and ask questions. Don't feel like you are stupid fool who doesn't understand. Often times contracts even have lawyers go cross eyed. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract, or loosing your deposit.

Top Mistake #13 Not checking into the builder's reputation. Talk to three or four people who live in the builder's homes and see what they have to say. Go knock on those doors. We thought our 10 yr condo would be in great condition when we moved in, only to know the electrical wiring and plumbing is bolted down properly,........ good thing we are just renting! If one particular builder built all the houses in a neighborhood, talk to the residents. It's also a great way to meet YOUR potential neighbors. (I am sure everyone has seen the movie Lakeview Terrace with Samuel L Jackson)

Top Mistake #14 Handing over a loan approval letter for more than your offer price. Let just reveal all of our cards, .....why not! Buyers will suddenly not want to knock any money off of the house, when you reveal that you "could" pay the amount they are asking.

Top Top Mistake #15 - Buying an appliance on your credit card after submitting your loan application. Purchasing anything large enough through your bank account that will change your loan application even to the slightest degree throwing off your credit ratios, will cause an underwriter to deny it. You could forfeit your earnest money deposit in addition to losing the home. DO NOT buy anything on credit or with a credit card once you have completed a loan application such as a car, washers or dryers, fridges, or lawn equipment, electronics or computers, or even furniture.

Top Mistake #16 Not Having your poker face on, when the sellers agent is around. Blowing your deal only takes but a few glances at your face to see if you fallen head over heals for a house.

Top Mistake #17 Forgetting to budget for property taxes- They should be factored into any home-buying budget.

Primo Top Mistake #18 NOT Knowing your credit report before buying a home. Get a free annual copy of your credit report as soon as you decide on buying a home. 80 percent of reports contain some type of error and 25% of those mistakes are serious enough to worsen your score, potentially disqualifying you for a competitive interest rate. It is essential to take advantage of an annual check up to eliminate any errors, as well as protect against identity theft.

Top Mistake #19 Picking the wrong town, or wrong area. Get school data online at homefair.com; you'll find test scores and college acceptance rates. Don’t buy a nice house on a not-so-nice block, or in a not so nice town. Buy with intentions that when you sell, you are dealing with all positives than negatives. Don't buy in a town that feels deserted. Go for a walk on the weekend, how does it look? What are the pitfalls, or opportunities for leisure activities?

Primo Top Mistake #20 You forgot to budget for closing costs. Woops. (We need 30,000 just to make this deal go through, dad) Closing costs can run you about 2 to 5 percent of the home's purchase price. Closing costs cover but not limit to origination (points) on a loan, escrow fees, title and homeowners insurance, legal costs, property taxes, fees to record your need deed and notary fees.

Top Mistake #21 What is the potential resale of this home? How well will that potential home do when you decide to sell it? Put yourself in the seat of perspective buyers down the road.

Top Mistake #22 You didn't investigate your real-estate agent. Will they pressure you after you have looked at dozens of homes? Go to the table with your research done, and don't let anyone walk all over you.  Interview a couple references to see if the agent is a good match for you. There are excellent real estate agents that will bend over backwards for you, and not so good ones as well.

Top Mistake #23 Don't be afraid to make an offer that's well below the asking price. Have a couple of homes that you are considering to use as bargaining chips. This can push a seller to reconsider your offer because it may not be available tomorrow.

Top Mistake #24. You just bought the most expensive home on the block. Your neighbors lower home values will effect yours. While expensive upgrades may fair well, when it comes time to selling, it won't matter. Your selling price is dependant upon what is comparable in your neighborhood.

Top Mistake #25 Signing a contract with contingencies is a no-no. One common contingency mistake is when the sale is dependent on the seller finding a new home first. Tell the seller they can rent, or walk away from it. Don't even think about risking your interest rate or passing up other potential homes while waiting for someone you cannot even control to make up their minds.   It be months down the road before they decide to close.

Top Mistake #26 You don't know if you are getting a deal on your home. Compare the cost of that potential home with similar homes in an area. You can do this easily on Google and confirm your findings with your realtor by their Comparable Market Analysis.  Be sure you are educating yourself.

Primo Top Mistake #27- You saw no value in trying to increase your credit score before buying a home. Most people do not really realize how important their credit score is in determining what type of loan they will be slotted in. Too many times people think they will go out looking for a home three months before they have to move. Sure, that is possible, but don't expect to find the deals as you would by fully investigating the market by some hard digging. This type of person is a realtors dream. Great AND fast commission. Today's buyer doesn't take the time to investigate the market or foreclosures in their area. Most figure that today's market prices are good enough for them. Often times the buyer is so excited about making that purchase that they go out there and purchase without taking their time and rushing the process. Take advantage of checking it yearly for free, as well as knowing your FICO score in advance to shopping for a home. IF you really are a smart buyer you would improve your score 6 months before looking for a home.

Top Mistake #28- Forgetting the walk through all together. You do want to plan doing the final walk-through five days before closing, not the day before. This gives the homeowner time to fix anything with enough time to spare.

Primo Top Mistake #29-"I can always sell it down the road" Not in today's market. .......Nope, not in tomorrows market either. Consider your purchase ready for long term use. It is a big mistake buying a home with the fall back idea of selling it as your Plan B.

Top Mistake #30 - Buy a fixer-upper if you don't know how to fix it up. A small kitchen renovation can cost $25,000-$40,000. A bathroom renovation can cost $15,000-$25,000. Painting a house costs between $7,000-10,000. With all the fix ups, they add up.

Top Mistake #31- People do not consider planned communities and all the restrictions they hold.

Top Mistake #32- People also do not add the total obligation of what their home really costs them over the 30 year total debt payment of interest to their homes.

Top Mistake #33- An overlooked revenue source many people over look is the potential rental space on the property that can bring in extra income to pay off the mortgage.  In a market where the employment rate is always down, these types of properties will be in higher demand.  Possibly you can factor in an amount of renovation costs to create a set up as additional rental income.

Top Mistake # 34- It seems like anyone can afford a 300K home by today's bank standards, but can you really afford those monthly payments? Most people do not take the time to draw up a budget. Rarely do people draw up a plan for retirement savings, and investments. Most people will go off the amount of money the bank presents them to spend on a home. People always push the envelope of money they are allowed to spend, allowing NO room for emergencies. Give yourself PLENTY of financial room to move around. The biggest mistake is not allowing any room for social activities, because it will come out of the budget like it or not. Be realistic about your budget, and don't put yourself in a tight box.

Primo Top Mistake 28#- Disregarding the Condo Fees. People do not fully weigh in the added costs of condo fees. In some cases the condo fees are 25% of your mortgage payment.

Top Mistake #36???- Not Reviewing This List

Here is a break down of How a FICO score is assessed.

1. Your payment history accounts for 35% of a FICO score.
Late payments, bankruptcies, and other negative items can hurt your credit score. Make your payments on time to improve your credit score.

2. How much you owe accounts for 30% of a FICO score.
FICO scores look at the amounts you owe on all your accounts, the number of accounts with balances, and how much of your available credit you are using. The more you owe compared to your credit limit, the lower your score will be.

3. The length of your credit history accounts for 15% of a FICO score.  A longer credit history will increase your score. However, you can get a high score with a short credit history, it will show responsible credit management.

4. New credit accounts for 10% of a FICO score.
Recently applied for or new credit accounts will weigh against the rest of your credit history. If you need a loan, do your rate shopping within a focused period of time, such as 30 days, to avoid lowering your FICO score.

5. Other factors account for about 10% of a FICO score.
Minor factors include several credit types on your credit report – credit cards, installment loans such as a mortgage or auto loan, and personal lines of credit – is normal for people with longer credit histories and can add slightly to their scores.

Smart tips on increasing your FICO Score.

- Make a decision to make an effort to improving your credit score even if you have stains on your past credit.   From now on, get pay your bills on time.  If you can pay your bills on time, month after month, your score will improve.  Older credit problems count for less, so poor credit performance won't haunt you forever.

- -Be aware that paying off a collection account will not remove it from your credit report.  It will stay on your report for seven years.

- -Keep balances low on credit cards and other “revolving credit”.  Limit the percentage of available credit you use to no more than 30%, even if you pay off your balance each month.   Excessive spending will ding your score.  A person making a great income, but has a $500 gas credit card that is almost maxed out, causes damage their credit score, even on small credit cards such as the example.

- - Don't close unused credit cards as a short-term strategy to raise your score.    Closing your accounts hurts your score as it affects your available credit.   Keep old accounts open to ensure a long credit history.  The FICO Score is looking for credit cards that were high and show a history of current and up to date payments.

- -Don't apply for lots of credit cards at once, as a credit inquiry can deduct five points from your credit score.   However, multiple checks made when you're shopping for a mortgage will count as only one.

- - If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.  New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information

- - Checking your own credit score will not won't affect your score, as long as you order your credit report directly from the credit reporting agency.

- -Closing an account doesn't make it disappear off your credit report.  A closed account will still show up on your credit report.

- - Apply for credit once you are in college.  Lenders make it very easy for a college student to get a credit card, than a working individual out of highschool-  Simple fact.  If you can establish a good history at a young age, you will be further along than most people who have no credit history, finding themselves convincing the bank to give them a credit card.

- -Opening new accounts effects your score negatively, simply by applying, and having that new account for as long as a year afterward.

-Don't discredit the simple bank account.   Having a checking or savings bank account can be a sign of being stable.

- If you are trying to improve your damaged credit score, you may consider having your name added to a credit card as a joint account holder or by getting someone to co-sign a loan for you.  If your father adds you to his credit card, for example, his history with that account can be imported to your credit bureau file, giving you an instant credit record.   If he has a great account history, his file will reflect on you.  Likewise, if a parent opens up a credit card for their daughter or son, and the child misses payments, that reflection will be held on the child's credit file and the parents file.  Both parties become responsible for debt on the card, and it's difficult to get your name removed from the account.   This is often not reccomended, as it adds stress on the family.

- -Transferring credit card balances can effect your score.  If you choose to transfer your balance keep in mind that formula likes to see a wide gap between your balances and your limits. Transferring a balance from a high-limit card to a lower-limit card makes it look like you're closer to maxing out that second card, and the scores can react negatively.

- -Settling debts, is one way of reducing your credit score, as strange as it may seem.  You would think that a person would be rewarded by paying off debt, but instead you are penalized.  Banks look at a steady customer who uses their credit cards as better customers than those who pay with cash.  Try to increase your credit score if you are buying a home or car, and afterwards it is always recommended to get out of debt.

- -It is also said that library fines, parking tickets or other penalties unrelated to credit can affect your score.

-Buyers show up at the auction and find out the price of the auctioned home is quite a bit more than the market value. Banks often want the remainder of the home to pay off the loan amount.

-Many of these homes are not available for inspection prior to purchase. A buyer could be buying a home from the severe case of structural damage, and water damage, to minor cosmetic imperfections.

- Often times, a low priced foreclosure is priced to compensate because the house needs quite a bit of work to bring it up to code.

- A successful bidder is responsible for evicting occupants which can be legal battles costing time and money. Eviction poses problems as tenants often retaliate causing damage to the property. Many buyers find paying or bribe the occupants to leave is a better solution.

- Foreclosed Homeowners find themselves angry and heartbroken as they lose many years of equity to the bank or the next homeowner. They often trash the home before they leave, because they feel their years of hard work in improvements is now placed in another persons hands. They may destroy the house by flooding the home by turning on all the water faucets and plugging the drains as they leave. Others smash out walls, then pull out the copper pipes and wiring to sell as scrap metal. The most common situation found is the appliances and kitchen cabinets are taken or sold off before they leave.

Courthouse Auctions:

Attending A Bank Auction

•Consider selling the Home- Sell it yourself, or hire a real estate agent.  Be sure to get a complete time line of what that hired help will do, because your time is very limited.  If you plan on working for yourself, consider getting family involved to help you advertise.  There is plenty of free advertising out there such as craigslist and other websites, the biggest tip is to post every day!  You need to keep on top of getting the word out there that you are selling your property.  Be sure to get a full plan of the marketing agenda of the hired help, as again....  your time is very limited at the 90 day point.  Forsalebyowner is able to list your home on the MLS where in the past you needed a realtor.  Check out my post here.

•Consider a Short Sale- If your home is worth less than the amount you owe, you might be a candidate for a short sale.  This is called a pre-foreclosure redeemed.  A lender needs to give permission of a short sale before it occurs, because in essence, they are being asked to accept less than the loan amount.

•Sign a Deed-in-Lieu of Foreclosure
This is called deeding the home back to the lender. The homeowner gives the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action. Deeds-in-lieu of foreclosure affect credit the same as a foreclosure.

You can see a blown up version of the following chart here

Why did the public not know his real intentions before casting their vote?  How did others see this happen in advance?

One answer- Obama's wife has connections to theCouncil of Foreign Relations committee, which has very clear intentions and agendas for this country and every other country around the world.

Simply the bankers have gained control and power over *almost* every country, not just the United States.  They hold the money which controls the country.  We let an outside agency print our money.  In fact, the average person thinks the Federal Reserve is part of the government, which it is not.  This issue is very complex, but you can get a grasp of the severity by simply going to You Tube and search the key term "NWO- New World Order" OR "Federal Reserve" and educate yourself on this topic.

During the presidential election, American voters did not rally around Ron Paul, because most were not educated about the "round table" that controls our country, the propaganda that influences the people.  Instead, the establishments  (NWO's guy) John McCain won the Republican nomination. But the events of the past 12 months have made thing one thing abundantly clear: It looks like Ron Paul was right after all.

America's financial system is totally collapsing, dozens of banks and insurance companies have failed this year, General Motors is essentially bankrupt, the U.S. government is running up a record budget deficit, the borders are wide open, hatred for the United States is at an all-time high around the world and most importantly - the individual liberties of ordinary Americans have been eroded as never before.

“You cannot borrow and borrow and borrow and print money to pay for this without repercussions, and the repercussions will be higher prices in the grocery store,” Rand Paul said.

Ron Paul warned America about all of these things, but Americans chose not to listen.

Let's take a look at some of the reasons why Ron Paul was right...

1) Ron Paul said that if we continued to run our economy on runaway government spending, endless amounts of debt and the insanity of letting the Federal Reserve control our currency then eventually the United States economy would crash.

Did that not happen?

But neither party is seeking to end this orgy of debt. Instead both parties pushed the "Wall Street bailout" and both parties seem determined to spend even more money.

Unfortunately, Ron Paul is one of the only members of Congress that is willing tell the truth.

Check out this very short 3 minute video where he tells it like it is:

The reality is that the vast majority of U.S Senators and congressmen refuse to confront the Federal Reserve. Ron Paul is one of the only members of Congress that will openly confront Fed officials.

In the video posted below, Congressman Ron Paul openly confronts Federal Reserve chairman Ben Bernanke about globalist plans to replace the dollar with a new global reserve currency:

2) Ron Paul said that the United States cannot police the world. If we bomb countries into oblivion, invade them and torture everyone in sight then people around the world are going to hate America.

But neither party is seeking to end the wars. Instead Obama is promising to send tens of thousands more troops to Afghanistan and he has talked about how we may need to send troops into Pakistan and Sudan.

3) Ron Paul said that if we passed the "Patriot Act" and these other fascist police state pieces of legislation that we would lose our individual liberties.

But neither party is taking any action to repeal the Patriot Act. In fact, Obama seems quite content with continuing the police state policies of the Bush administration.

"The basis of conservatism is a desire for less government interference or less centralized authority or more individual freedom and this is a pretty general description also of what libertarianism is."

-Ronald Reagan (1975)

When will people start listening to Ron Paul?

Ron Paul recently appeared on FOX News with Neil Cavuto to discuss the latest bailout package.

The following are a few key quotes from that interview:

"When companies get too big and make mistakes they should fail."

"We’re propping up all the bad mistakes."

"Governments can’t make the correct decisions. They aren’t smart enough."

"This whole idea that Washington are genuises… that they can do central economic planning. In this country we don’t call it socialism we call it interventionism and a planned economy."

Below is the video of that interview:

But is anyone listening?

No.

Obama and his advisers seem determined to take us even further down the road of big government, big spending, bailouts and socialism.

Ron Paul that would embraced a platform of smaller government, less taxation, abolishing the Federal Reserve, returning our individual freedoms and liberties and protecting our nation's borders and sovereignty.

Do things have to get even worse before America will listen to Ron Paul?

Posted below is an excerpt from a recent edition of Congressman Ron Paul's "weekly straight talk":

"We will face more tough economic problems during this new administration. In fact, the worst is yet to come. A vast amount of problematic mortgages have not begun to reset their variable interest rates and go into default. We already have unprecedented deficits, spending is out of control, and more big industries are coming to government with their hands out. My hope is that this administration will handle this economic crisis better than the interventionists and big government spenders of the 1930’s, the bureaucrats that prolonged the Depression. I hope that new government programs and spiderwebs of red tape do not pop up to interfere with American productivity, and that we can quickly get our financial footing again. We have to understand that an economic correction needs to take place and the only way out of the coming recession is to go through it. Efforts to avoid it can only prolong it. I hope we can somehow find our way back to sound money and reject corporate cronyism".

If the American people will just wake up then perhaps the movement that Ron Paul has begun can give us hope for the future:

JUST REMEMBER, Ron Paul got his money from the American People, the most money from the actual United States troops and Military, where as the others were contributions from corporate sponsors.  *

The New York statutory definition is this: "the whole residue, or so much thereof as the court may determine to be just and equitable, of the debt remaining unsatisfied, after a sale of the mortgaged property and the application of the proceeds, pursuant to the directions contained in such judgment, the amount thereof to be determined by the court as herein provided.

The plaintiff's attorney (in other words, the bank's lawyer) must make a motion to receive such a deficiency judgment. Otherwise, the amount gained from the sale shall be deemed the full amount owed, and the plaintiff has no right to collect the additional debt. However, if the parties (mortgagor and mortgagee) have already agreed in their mortgage or promissory note, then the debtor could be liable for the full amount.

A debtor who has a deficiency judgment should see an attorney for possible remedies, including bankruptcy, an exemption from creditors, an appeal, or a motion. As with all legal research sources on-line, Internet users should take caution before applying such advice to your own case, and perhaps should consult an attorney, barrister, or solicitor. Taken from Wikipedia.com

First and foremost a short sale must be approved by the mortgage lender.  Most banks do consider taking a short sale than a foreclosure as they figure any money is better than no money.  They do lose money in the process, so keep that in mind.  They do need to see a hardship letter (see the video below) that does explain why the homeower cannot pay their mortgage.  A lender will listen to a homeowner who has had a dealth in the family, medical situations, or a job loss than a homeowner who doesn't have an exuse for not paying their mortgage.    Banks also want to see effort being made on the homeowners part,  that they are trying their best to resolve the situation.  Banks are not in the business of giving away money.

Please Review the video below entitled "Top 5 Reasons Why Short Sales Crash"

Reasons Why Short Sales Crash

1.  The bank is often provided with incomplete informatiom.

A. Financial Information
B. Hardship Letter
C. 2 Years Income Taxes
D. Last 2 Bank Statements
E. Last 2 pay Stubs
F. Listing Agreement
G. Preliminary Settlement Statement

2.  The Buyer is Not Comitted.

A.  They get antsy after a few weeks and bail
B.  Their price is unrealistic.  "take it or I am walking"
C.  Their exit strategy is not planned
D.  They are not qualified

3.  The bank loses your packet

A.  They sold the loan
B.  They changed servicers
C.  They just lost it

4. The Broker Price Opionion is too High:

A. The PBO agent was not realistic
B. The bank had an agenda
C. Current Market value was based on sold listings vs active listings.

5. You run out of time

A. An additional encumbrance was found
B. The lender allowed the property to go to sale
C. The first and second lien holders cannot reach an aggreement

How does a short sale work?

A short sale is when a mortgage lender agrees to accept less money than the amount owed by a defaulting borrower.

Short Sales are often the prime deal to many investors out there looking to flip real estate for a profit.  Many are under the assumption that short sales are a wholesale deals, and granted, ....they are in some cases, but not by any means bargain basement deals.   Many flippers have the perspective of using short sales a way of gathering up properties for the next major boom, which is flawed thinking.  The economy is going to get much worse before we see profits again.  Just to say, these are the days to proceed with caution.

In order for a short sale to be approved, the bank is going to want to know if the homeowner has tried to sell the home at the price of the remaining loan balance.  The bank is going to ask for comparable listings in the current  home prices on the market in their neighbourhood, as well as the most current prices of the homes which have sold in the same neighbourhood.  You can find comparable tools on the  forsalebyowner.com site.

From the investors perspective,  short sales are one of the ways they can "create equity" out of thin air.  Short sales require no upfront money, making them a low-risk buy for real estate flippers.   The biggest draw back from the investors perspective, is "jumping though the hoops" with the  account representives at the bank.

They have to do the work of finding out what each particular bank wants in  documentation, as all banks have a variation of policies.  The biggest challenge is and most difficult,  is establishing a relationship with someone at the bank's Loss Mitigation department.  Many successful real estate flippers who have made a great relationship with one person in the loss mitigation department in several banks find their accounts processed quicker.

Many loss mitigation representives are underpaid, over worked, and frankly get pissed off when investors phone up and want bargain deals for property.  The mitigation department knows that the investors are making thousands of dollars for little work (in their eyes) while the represntives are knee deep in paper work and having a hard time paying their own personal bills.  Flippers are now finding themselves kissing up to every whim, because the representatives have a lot of control to approve or deny their application.   Many investors typically sell the property right after the sale, and or also make money “in the middle” by facilitating the ultimate sale of the property to a third party.  It is uncommon to find a individual looking to buy a short sale property as their long term family home.  Often times it takes extra patience and persistence  from investors to have a successful short sale.

With the down swing of the real estate market and the dramatic rise in foreclosures , banks are eager to unload properties more than ever before.  Thousands more loans are scheduled to reset over the next couple  years as foreclosures are to reach record highs in 2010 and 2012.  Short sales will become even more popular than ever in the next several years.

Please feel free to leave your comments and insights about Short Sales below.

Thank you!

About a year later the trend on tv improvement programs was home staging.  "Get your degree in home staging"  Even today, educational companies are jumping on the band wagon ready to sell basic courses to cash in from people in need of a stable carreer.  In todays market there is no such thing, folks.   Today we see the home improvement networks shifting from "improving your property", to "improve a rental property", as the majority of the public can no longer own a home but are forced to rent.  "Realestate Intervention" on HGTV, is an excellent example of the crisis happening on every street in America, offering advice to homeowners who are paralized making a decision to reduce their listing price in a real estate market that is in a sharp decline.

Todays home improvement shows are those of : "rent my space", "improve your rental" "drop your asking price".......you have to wonder what is coming next.  (There were many people involved on A&E's Flipping show, and we do not intend to label anyone a fraud, (or suggest that)- Our intentions are to show that investing in homes was at one time safe, and any person should proceed with caution in a down turned market)

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Include with the attached form a copy of one item in EACH of the categories below in order to enable them to verify your identification and address.

The item you submit from the "Identity" category MUST contain your Social Security Number

Identity
Social Security card
Pay stub with Social Security Number
W2 form

The item you submit from the "Address" category MUST contain your current home mailing address.

Address
Driver's license
Rental or lease agreement/house deed
Pay stub with address
Utility bill (gas, electric, water, cable, residential telephone bills)