Real Estate Profits

FORECLOSURE AND NOTICE OF DEFAULT INFORMATION

If you miss a couple of loan payments you can expect your lender to contact you to see what’s going on. At
this point you should talk to them and try to work out some sort of payment plan to catch up the payments. If
you don’t respond or take some sort of action and miss another payment there is a good chance the lender
will have the trustee file a Notice of Default (NOD). If you want to save your home DO NOT continue to
ignore the lender. You still have time to work something out, just remember the lender does not want your
property, they just want to earn the interest from the money they loaned you. Some of the plans for catching
up your payments and having the lender stop action against you are as follows:

Loan Forbearance-With this plan the lender may delay or reduce your payments for a short period of time
to allow you time to possibly gather up some money. At the end of the time you will be expected to put a plan
in place to make regular payments and bring the loan current.

Loan Modification or Restructuring-This plan is usually put into place after forbearance if the lender has
allowed it. You may be able to refinance the debt or extend the time to pay off the loan. This will lower the
payments, hopefully making the payments more affordable.

Repayment Plan-If your financial situation has stabilized and you believe you can now make your payments
the lender will likely help you with this plan. Usually they will ask for part of the delinquent amount up front
and then they will let you pay the balance over a period of time. As with any of these plans the lender is
likely to require proof of why you couldn’t make your payments and proof that you can now make them.

Partial Claim-This is only for FHA loans. It allows you to get a one time payment from the FHA Insurance to
bring your loan current. If you have a FHA loan talk to your lender.

The lender probably will help you if you let them. Don’t be afraid to ask them what can they do for you.

Beware of Scams and “Promises”

If you have a NOD filed on you all of sudden you’ll start getting solicitations of all kinds from everywhere.
Unfortunately many of these will be trying to take advantage of your financial difficulty. There are a lot of
scams taking place and you have understand exactly what someone is offering before you act. Your best
bet is to talk to an attorney or your lender before you sign anything. Also watch for the phony counseling
agencies that offer for a fee, things that you can do for free.

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