Five Things A Homeowner Should Never Do If They Fall Behind on their Mortgage Payment!

1. Absolutely Do not sell the home at a huge discount

Unless the actual foreclosure sale is less than 45 days away, the homeowner has time to explore options. Advise them to take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, its probably because the deal they are proposing is very favorable " to them. If the homeowner has equity in their home, it belongs to them. They should be encouraged to talk with a Realtor to see if they can get their equity back to them.


2. Do not authorize a prospective buyer to deal directly with the mortgage company

The buyer has one goal and one goal only, and that is to negotiate a low, probably very low price direct with the lender. The buyer will ask the lender to accept a discounted payoff. The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy the property. It could leave the homeowner with very little time to resolve the situation and avoid foreclosure. Further, the homeowner has no control over the information that goes to their lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for the homeowner to resolve their loan situation later. Explain to the homeowner: Using a Realtor professional is the homeowners best bet, surly before signing a contract. It costs them nothing " the lender pays the fees. Someone should be looking out for the homeowner.

3. Do Not Pay Upfront Fees to anyone!

Homeowners do not need to pay professional service or consulting fees to get the help they need to resolve their delinquent loan


4. Do Not do Nothing

A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Dont let it happen " the damage to the homeowners credit will follow them for years to come.

5. Do Not ever deed your property to a third party without absolute confirmation your loan has been paid off

If the homeowner deeds their property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways. What the new owner might not do is make your mortgage payments. Just because the homeowner no longer own the property does not mean they are no longer responsible for the mortgage loan obligations. The lender made the loan to them. And until it is paid off they will be primarily responsible for the mortgage obligation. If the homeowner gives up control of the property and the new owner does not pay on the loan, the damage to their credit could be catastrophic.

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