subject: Real Estate Investors CPR: 8 Effective Strategies for Avoiding Foreclosure [print this page] Author: Dar Holdsworth Author: Dar Holdsworth
As a real estate investor, youre constantly on the lookout for motivated sellers so you can acquire solid investment properties at steep discounts. Youve gotten pretty good at picking a motivated seller out of a crowd and you may even have a basic understanding of some foreclosure-avoidance strategies. However, when the person sitting on the hot-seat is you it can be very easy to get overwhelmed by your financial situation and forget what can be done in order to avoid foreclosure. Contact Your Lender Today You have a much better idea of your situation than your lender does. Dont wait until youre several months behind on mortgage payments to pick up the phone. At the first sign of missing a pending mortgage payment, call your lender and let them know whats going on. Theyll appreciate your candor and theyll be much easier to work with when you make the first call. It will also keep you in the drivers seat, because your lender will realize that youre a serious investor who truly wants to keep their property. This honesty can pay huge dividends because your lender will be much more likely to help you work through your financial difficulties. It could also delay further legal action on their part, which could buy you precious time to get caught up. Dont Ignore Notices Whatever you do, dont bury your head in the sand and pretend this problem doesnt exist. Take ownership of your real estate investing career by immediately reading all notices from your lender. Keep a file folder on your desk with a log of all paperwork received from your lender. Also document all telephone contact with your lender, including who initiated the call, with whom you spoke, and what was discussed. Know Your Rights Read your loan documents carefully. You may have read them when you signed on the dotted line, but read them again. They explain in detail what your lender may do if youre unable to make your payments. Its also important that you refresh your memory about all applicable foreclosure laws in the state in which you live. www.mortgagelaw.org is a valuable compendium of information which explains the law and timetables of which you need to be aware. Knowledge is power and youll need to muster all the power you can. Know and Understand all Available Options While its important that you discuss your situation with your lender, you should also seek qualified outside help. Your lender will have foreclosure-avoidance strategies that they can explain in greater detail, but many of their strategies will protect their interests before yours. You can also receive free or low-cost loan counseling from HUD by visiting www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm Slash All Unnecessary Expenses As a real estate investor you understand the importance of knowing and tracking all expenses. If youre facing the possibility of foreclosure you need to take a close look at all of your expenses personal and business and eliminate all unnecessary items from your budget. Items that could very easily be eliminated include extra cell phones, cable or satellite television, eating out, etc. Go through all budget items line by line and cut the fat with the ruthless heart of a shrewd real estate investor. Remember, your survival could be on the line. Explore Utilizing Your Assets What assets do you have that could generate fast cash? You may have a second vehicle, collectibles, extra furniture, or other items that you could get rid of. Clean out your garage and sell anything that you dont need. Also look at your investments, although some may have tax implications. Weigh the pros and the cons and do what you think is right after speaking with your accountant or tax advisor. Avoid the Sharks At all costs, avoid the sharks. Everyone you encounter doesnt have your best interests at heart and some are sharply dressed con artists looking to swindle you out of your equity. True real estate investors are professionals who try to create win-win solutions, but when times get tough fast-talking criminals masquerading as real estate investors come out from underneath the rocks where they live and do their best to defraud as many hapless victims as possible. So be careful. Protect Your Primary Residence While youre a real estate investor and you want to do everything possible to protect your investments, remember that your primary residence shouldnt be a pawn in a financial game of chess. Dont jeopardize your home, regardless of how tempting it might be to do so. You dont want to lose your investment to foreclosure, but it would be much better to let that happen than risk finding yourself living out of a cardboard box. You and your family deserve better. About the Author:
Charrissa Cawley has a long standing reputation for excellence as a gifted speaker, real estate trainer and wealth coach. Her strength lies in training entrepreneurs in the areas of real estate, investing and financial literacy. Her passion is bridging the gap between learning and doing. She has helped thousands of entrepreneurs all over the world seeking financial growth by equipping them with the tools, resources and specialized knowledge to succeed. Charrissa offers accurate and proven strategies to investors of all different levels and is the founder of www.reiconferences.com, one of the fastest growing real estate investment training organizations in the US in addition to www.rewexclub.com , the top rated Real Estate Investor Community on the web today.
