There are better options than foreclosure
Sometimes it breaks my heart to hear stories about homeowners who are so mis-informed about this whole foreclosure phenomenon, they simply give up and decide they will let the banks foreclose on them without even exploring the possibility of alternative solutions like a short sale. With all of the discussions of foreclosures and short sales and loan modification, etc….. in the news media, it shocks me that so many homeowners believe that if they were turned down for a loan modification, their only other alternative is a foreclosure. Not realizing, banks don’t want to foreclose either.
These home owners are so emotionally drained and have beaten themselves up so much about being in their current situation, they almost seem to want to punish themselves.
I had such a meeting with clients yesterday. This lovely couple was so emotionally drained, they simply resigned themselves to the notion that foreclosure was the only avenue available to them. They were not even going to explore short sale as an option. The wife had heard of me through mutual friends and decided to call me just to get some facts to see if there were less invasive methods available to their family. I explained to them that unemployment and negative monthly expenditure are viable causes for hardship and the fact their loans were still original purchase money made them ideal candidates for a short sale. Besides, they had a nice home, which would not be too difficult to sell.
We would try to lessen the impact on their credit and give them a chance to qualify for a Fannie Mae loan in 2 years; and more importantly, give them a better chance in future employment by not having FORECLOSURE show up on their credit reports and possibly get them disqualified as candidates for employment since more and more employers are now doing credit checks as a part of background checks.
After hearing my plan for their home and how to deal with the lenders, I could see the stress leave and smiles appear on their faces. They thanked me repeatedly for stopping them from falling into the foreclosure trap and giving them a chance at a better method and for returning dignity back to them.
A day like yesterday is a perfect day for me, because I know I am helping people and making a difference in their lives.
Foreclosure is not a viable option. There are better ways both for the borrowers and the lenders.
