Expert Guides on How to Avoid Foreclosure and Save Your Home

It is no longer news that because of the economics meltdown in the recent times, many more Americans than ever before are finding it difficult to pay the home loan notes they signed several years ago, or recently for some. Due to the boom in the housing seller’s market a few years back which gave buyers an ever-increasing confidence in buying real estate as an investment. For the fact that they watched the price of houses skyrocket and felt that their home’s value would never fall and would only be on the increase. Now reverse is the case, many of those same people are looking for advice/ways on how to avoid home foreclosure.

In addition to the exorbitant prices many homeowners paid for their houses during the real estate boom that the nation underwent about five years ago or so, the ‘market value” of their homes was pretty exorbitant also. Many of those homeowners decided to cash in on the value of their homes by taking out second mortgages or lines of equity based on the high values associated with real estate at the time. Now, some of them are looking for advice about how to avoid home foreclosure. But there will always be a way out, and here comes the question…

How can I avoid home foreclosure? Below I have given you 10 solid things to do to avoid foreclosure.

Number one
Do not default in your monthly amortization, even if it mean s doing without other things, like forfeiting going to lunch frequently you can resort to eating rice and beans for the main time till you have settle all your debts.

Number two
Whenever you defaulted in your payment do not reject the lender’s calls or letters, if you do its only worsen the situation and push your lender to begin foreclosure.

Number three
Seek professional advice, there are groups and companies whose duty is to help you evaluate your situation, they can even represent you, some are NGO (Non Profit Organization) while some are profit oriented.

Number four
Understand the language of your original home loan and any subsequent loans you took out on your home. Some mortgages have helpful information about how to avoid home foreclosure attached to, or included in, the mortgage.

Number five
Meet a good housing counselor at HUD (Housing and Urban Development).

Number six
Make your mortgage payment a priority by paying your mortgage amortization first before any other payments like that of credit card.

Number seven
Increase your income. You or any member of your family can get a second job, if you are the type that always buy clothes and other things on impulse it is time to reconsider your way and reduce your expenses.

Number eight
Look into loss mitigation. HUD can help you with this, as can other experienced professionals.

Number nine
Go for loan modification, let me say, most of the lenders don’t like foreclosure on a property they prefer loan modification, I have dealt extensively on loan modification you can check my site archives for how to write an effective letter for loan modification

Number ten
If all the above steps did not work out you can try putting up your house for sale at least to save the situation

If you diligently follow the above ten expert tips on “how to avoid home foreclosure and save your home” you will surely prevent your precious home from foreclosure.

Real Estate Letters: One Person Will Read Your Marketing Message, So Avoid Writing to a Crowd

How many times have you gotten a letter from a real estate agent that was addressed to “Dear Homeowner?”

If you get many real estate letters, you’ve probably seen several like that.

Then, to make matters worse, the letter will go on to use phrases such as “people like you” or “all of you who…” or even “you guys who…”

All of those phrases clearly show that the person who wrote doesn’t know you – and wasn’t writing to you specifically. He or she was writing to a crowd.

But there’s no crowd opening your mail. There’s only you, even though you might hand the letter over to someone else in your household.

Marketing tests show that this kind of letter gets a lower response than a letter written to an individual, so why do so many real estate agents keep right on writing them? Probably because they can’t quite wrap their minds around the fact that even though they’re sending 1,000 letters, each of those letters is going to one individual.

The first step in writing a good real estate letter is to know who will receive that letter, and to tailor it to them and their concerns. That means you cannot send the same letter to first time buyers that you’ll send to clients who are selling to move into a retirement home!

Segregate your lists so that you can send the right message to each list. The more you segregate, the better you can become at writing a “you focused” letter that resonates with the individual who reads it.

Put those names into a good contact management system, so that when you’re ready to send a mailing you can click a few buttons and get letters that say “Dear Mr. Simpson” instead of “Dear Homeowner.”

Does it take a little longer? Of course it does. But there’s not much point in doing any marketing at all unless it’s going to have the desired effect. So make the extra effort.

Now, choose the first category of consumers and think about them. Choose one of them that you know the best and think about their concerns and worries. Think about their daily lives and consider their hopes and dreams.

What do they hope to gain by purchasing a home – or selling a home?

And then… How are you going to help bring about a better situation in their lives?

Next, write a letter that shows how you can help them. Let them know that you understand their position. Tell them specific things you will do for them – whether it begins with providing information they need, preparing a market analysis, or conducting a comprehensive search for homes that fit their specific needs.

If you offer special services, such as home staging or keeping a close watch on new construction while they’re out of town, tell them about it.

Think about what you can do for them and forget all about what their home purchase or sale can do for your bank account.

Zig Ziglar said “If you help enough people get what they want, you’ll get everything you want.”

So just focus on getting them what they want. Then your bank account will grow as a natural consequence.

How to Write a Proper Hardship Letter

Right now many people are faced with the situation of foreclosure. Over 11 million homes have been foreclosed on in the past 2 years and it is estimated another 13 million will be foreclosed in the near future. Losing a home is not fun, especially when you and your family finally have the dream home that you all have been looking for. There is nothing like getting kicked out of your home and being forced into moving with your relatives or a small apartment. The good news is that you can actually get help from your lender or another bank by writing what is called a hardship letter along with an application for a loan modification. Writing a hardship letter is not complicated however, there are some things that you need to know in order for it to bring you the best results.

The first thing that you want to keep embedded in your mind is keep your hardship letter short and to the point. When you submit your hardship letter to the bank, the person who reads it has a thousand other letters to review besides yours. Keep your letter at about a page and no more than 2 pages. You will want to spill your tears out to the bank but remember the longer the letter, the more likely they will put it at the bottom of the pile.

When you start your hardship letter you want to state the changes that have taken place in your life. Talk about what happened that is different from when you first received your loan. Your hardship may be divorce or the renters backed out on you. Your situation may be that the homes that are in your geographical area are dramatically lower in value than what it was when you started paying on it. Whatever the case may be state that at the beginning of your letter. Believe it or not, banks actually want to get wrongful loans off the books. Truthfully, the lender, the loan officers, and the borrower are all equally at fault for certain loans. This holds mostly true to adjustable rate loans. It’s really easy to push a 3% interest and pump a borrower up into thinking that they can buy an investor home on interest only. The problem is when the interest goes up, the borrower is in trouble which in turn loses money for the lender.

So remember state your case and be short and sweet with your hardship letter. Don’t forget to thank the lender at the end of your letter for at least taking the time to hear your situation. And the last golden rule, never copy and paste another person’s hardship letter from the Internet or anywhere else. Let the bank know that your situation is unique and you sincerely need a helping hand.

Although a proper hardship letter is a good step toward achieving your home loan modified, there are more steps and pitfalls that homeowners can fall in to. Homeowners need to learn the subject in and out, know the vocabulary that shows you know what you are talking about so that the lender will not take advantage of you again.

The best solution is getting a do it yourself loan modification kit. One such kit is 60 Minute Loan Modification. It include a professional hardship letter outline that will catch your lenders attention, it also includes conversation between homeowners and representatives, so that you can hear what to say and more importantly what not to say. The kit will teach you all the needed vocabulary, and most importantly the kit was created by a person who modified five of his home loans, and numerous loans of his clients. Many people used this kit with success, and overall it’s a great product.