According to Sr VP Scott Thompson of MRS addressing the National Association of Realtors from Washington DC, in 50% of all foreclosure - the homeowner had NO contact with their lender. Of the remaining 50% that DID talk to their lender, 55-60% were never made aware of all their options to avoid a foreclosure.

     *  New legislation from the Federal level to assist lenders work with defaulted homeowners. The government has provided monetary incentive to the lender AND the homeowner to work on a solution besides foreclosure. Example: May 2009 - Foreclosure Alternative Program
     *  Each state has different laws for what recourse the lender has in recovering the foreclosure amount or shortage amount on the sale of the property.
     *  There are a minimum of 6 options a defaulted homeowner has in a default loan situation. Here are the most viable: 
          1. Forebearance
          2. Loan modification
          3. Short sale
          4. Deed in lieu of foreclosure
          5. Foreclsoure
          6. Do nothing/walk away from home

In June of 2008, Fannie Mae gave guidelines for the impact of foreclosure to the homeowner in regards to getting a future loan. According to Fannie Mae, foreclosed homeowners CAN NOT get a loan for 5 years. Additionally, in year 6 & 7 after the foreclosure - homeowners need: 
          1. FICA score of 685 minimum
          2. Minimum of 10% down

DO NOT LET YOUR HOUSE BE FORECLOSED ON. YOU HAVE OPTIONS! If you know someone behind on their home loan, please e-mail this link to them. The Obama Administration is working with the National Association of Realtors in putting real legislation in place to make options easier at the lender & loan servicer level.
 
If I can help answer specific question on the above - call or e-mail me today!

Billy Waddell
Loss Mitigation & BPO Certified e-Pro Realtor
817-896-0768 (CELL) MailTo:Billy@BillyWaddell.com
New Century Realty Group, Jimmy Valentino-Broker