While driving around your community, you may have seen signs posted on telephone poles that offer "foreclosure help." These seemingly generous offers to help financially troubled homeowners who are in danger of losing their homes to foreclosure are actually scams. Typically, the "help" comes in the form of an offer to buy the home for a reduced price from the homeowner. The scammer offers to pay off the homeowner's existing debt and to rent the home back to the homeowner until they can afford to buy the home back. The scam comes after the owner signs the paperwork and the offer to rent the home to them abruptly disappears, leaving the scammer with an inexpensive house and the homeowner without a house or a place to live. Fortunately, the current booming real estate market has made it possible for financially troubled homeowners to avoid foreclosure on their home and the scammers.
Foreclosure usually occurs after a homeowner fails to make his or her mortgage payments for a period of several consecutive months. Lenders are often willing to accommodate minor financial troubles from their borrowers, but sometimes, they have no choice but to evict the homeowner and sell the home. This is usually done at a public auction, as lenders place more importance on getting money back quickly than in getting the highest price the property can yield. While the national foreclosure rate has been fairly steady, it has been increasing in several states, notably Texas and Florida. While losing a home due to lack of payment is generally financially catastrophic for homeowners, the current market has offered many financially troubled homeowners a simple way out ? they can sell the home.
The price of homes nationwide has skyrocketed in the last few years, and in many markets, values have doubled or ever tripled. Many homeowners now have huge amounts of equity in their homes and that equity often exceeds the amount owed on the primary mortgage. That may be little consolation to a homeowner who has just lost his or her job, but the homeowner now has another option besides watching the bank sell the home from under their feet. The homeowner can now sell the home, pay off the mortgage and often pocket some cash at the same time. In most markets, this can be accomplished rather quickly, before foreclosure proceedings take place. The debtor will no longer have a place to live, but the debt will be repaid, and he or she will often have quite a bit of cash left over. This is certainly a better option than either dealing with a scammer or losing the home to foreclosure.
Anyone with financial troubles that prevents them from making their house payments should consult with their lender first. Lenders aren't really interested in removing people from their homes unless it's absolutely necessary. Still, it is comforting to know that the current market may provide a somewhat more attractive alternative that may actually yield some cash.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation and credit counseling information and HomeEquityHelp.net, a site devoted to information on mortgages and home equity loans.
Many Christians feel uncomfortable with the notion of being in... Read More
For many, the word 'budget' immediately sends shivers down the... Read More
Debt is not much fun and when faced with it,... Read More
Getting Behind Getting behind on your debts owed can be... Read More
Many consumers that are bogged down in debt frequently turn... Read More
Having something tangible to strive towards can work wonders for... Read More
If you are considering bankruptcy as a solution to your... Read More
Planning To Achieve Debt EliminationOnce you have started the process... Read More
Most American consumers are living too close to the edge.... Read More
If you have multiple debts, you may well be wishing... Read More
Who are these people anyway? They viciously harass you and... Read More
Filing bankruptcy is not fun! It is a last resort... Read More
If you are determined to pay credit card debt off... Read More
As a single mother, lets admit it, times get tough.... Read More
There are two main roads to improving your personal finances:... Read More
Can a debt consolidation loan eliminate your credit card debt?... Read More
Living with debt is never a good idea if you... Read More
Credit counseling is a viable option for those who are... Read More
Reducing debt usually isn't a high priority for people until... Read More
To be out of credit card debt is your dream... Read More
Most Americans are aware of the sweeping changes in U.S.... Read More
At some time or another during our lives most of... Read More
1) Use your AssetsIf you have assets with some significant... Read More
Last April, President Bush enthusiastically signed into law the oddly-named... Read More
Bankruptcy is one of the most difficult things a person... Read More
I'm not sure where it originated, but I've heard it... Read More
The main reason for getting out of debt today, is... Read More
After October 17, 2005, a lot of people are going... Read More
Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More
No, that's not a misprint. Even though falling interest rates... Read More
Lots of people take a large ammount of loans and... Read More
Bills, creditors, debt collectors. Are you yearning for the days... Read More
Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More
Here is a useful guide to bankruptcy. It should be... Read More
If you've ever earned enough money to put some aside,... Read More
On October 17, 2005 President Bush's sweeping bankruptcy reform law... Read More
How do I lower my debts?There are several ways of... Read More
Filing bankruptcy is a common practice among the U.S. Over... Read More
Many Christians feel uncomfortable with the notion of being in... Read More
Personal bankruptcy is a legal way to give people with... Read More
The overwhelming task of eliminating your debts can often seem... Read More
(Money You Don't Have to Pay Back) 1. One way... Read More
Feeling stressed by the amount of debts you have? Three... Read More
Step 1. The purpose of this first step is to... Read More
Credit counseling is a viable option for those who are... Read More
In this era where we are bombarded daily with commercials... Read More
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law,... Read More
In March 2005, the U.S. financial services industry succeeded in... Read More
There is a law all smart people break.Parkinson's law.Parkinson's law... Read More
This method is simple, but requires some discipline.First, you have... Read More
Do you have stacks of unpaid bills?Are you in debt?Are... Read More
The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More
Debt settlement involves negotiating with a creditor or creditors to... Read More
There are many debt relief programs out there both off... Read More
Anyone considering Bankruptcy may have experienced fear after reading an... Read More
When you hear the word "debt", whats the first thought... Read More
Debt is not much fun and when faced with it,... Read More
This May, the Department of Trade and Industry in the... Read More
Most American consumers are living too close to the edge.... Read More
Bankruptcy and Credit - What Happens After Your Debts Are... Read More
Can you stop debt collectors ? . . .You better... Read More
Happy Independence Day from The Money Motivator!If you don't celebrate... Read More
With medical collections costing doctors millions upon millions of dollars... Read More
Bills, creditors, debt collectors. Are you yearning for the days... Read More
Debt negotiation and settlement can give you a drastic reduction... Read More
Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More
Debt Relief |