Did you know that it costs the bank an average of $40,000 to foreclose on a single home?
So, if a bank has a note for $300,000 and the house is now worth $240,000, it will actually cost the bank $100,000 to foreclose on the home. Knowing that, banks will - sometimes - help a distressed homeowner.
The reason I say sometimes is because the are simply not equipped to deal with the startlingly high numbers of houses that are upside down and homeowners with exploding adjustable rate mortgages.
So, if you are aggressive in the early steps of foreclosure, you have a better chance of getting the best deal with the bank.
Steps of Foreclosure Prevention
1. Call your lender - right now! Early communication with the bank is the best offensive tactic you can take.
2. Don't call the collections department - they don't know what to do with you. Call the loss mitigation department - they're trained to handle distressed homeowner's situation, and, what is more, they have the authority to make you a deal.
3. Have all of your financial information ready for your lender. You see, banks want all of their money - if they can get it. So you're going to have to show them that you really can't pay the amount owed and they'll get more money by working with you than against you. Have all of your documentation ready.
4. Be aware of all of the options you have when working with the bank.
5. Know where to turn if the bank won't or can't help.
6. Know what will happen if you can't cure the debt. This means knowing what a foreclosure proceeding looks like. The Foreclosure Survival Guide gives you your best options for walking away from your home if your bank won't work with you and you can't get outside assistance.
The Foreclosure Survival Guide is a new, hot off the press resource for distressed homeowners. Inside, you'll find tips for surviving the various steps of foreclosure and coming out ahead. Best of all, it's Free! To get your complimentary copy, go to http://www.foreclosure-survival-guide.com.
Article Source: http://EzineArticles.com/?expert=Stacy_Fox
This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
