Foreclosure! A Dreaded Term

...‘All those years ago, that torture victim kept moving his lips, trying to articulate an explanation, muttering the same words over and over. "It was a mistake," he repeated, and in the next few days I pieced together his sad and foolish tale.’

(From article c.c. “The Torture Debate” by Ariel Dorfman, a Chilean American writer and professor at Duke University)
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I’ve contacted numerous people who were experiencing everything from the beginning stages of foreclosure, to owners about to loose their homes to auction. The one reaction they had in common, was a lack of willingness to address the problem. They either where not aware of the possibilities, or were not willing to address the most appropriate step outlined. Sad, but true, they dreaded the subject; they dreaded that it was about themselves and it was about to become a reality.
And the reality is, THEY LIVED IN FEAR.

After offering the following information as a solution to consumers for their mortgage problems, there was very little reply. - rk

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Foreclosure Options - There are eight actions you can take when a home is in foreclosure:

1- Reinstatement: Make up payments and any incidental charges.
2- Redemption: Pay off loan in full.
3- Deed in Lieu of Foreclosure: Turn ownership of property over to bank to avoid
trauma of foreclosure.
4- Legal Delay: If owner can prove amount in default is inaccurate.
5- File Bankruptcy: Not a permanent cure, but can temporarily halt the foreclosure process.
6- Renegotiate with Lender: Generally the current months payment plus a portion of the past due amount. Lender does not want property back.
7- Sell Property: If there is no other choice, selling property is the smartest move,
even at a bargain price. This will avoid losing entire equity and damaging credit at the same time.
8- Do Nothing: This will result in the loss of hard-earned equity and damaged credit, and the lack of ability to purchase another home in the foreseeable future.

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For those who are able to take advantage of someones misfortune, possibly coming to their aid, the following are simple procedures.

How to Buy a Foreclosure
On RealtyTrac, you can select by county, city, or zip code.
You can also choose by status:
1- Select Pre-Foreclosure for Default Notices, or Lis Pendens
2- Select Auction for Trustee Sales, or Foreclosure Sales.
3- Select Bank Owned for REOs (foreclosures).

...and then,

= Find the best neighborhood for investing in foreclosures.
= Get an ojective neighborhood profile.
= Find neighborhoods that appreciate the most.
= Find neighborhoods that combine educated neighbors, safety from crime, excellent public schools, and a high proportion of larger, owner-occupied single-family detached homes in the price range and location you are seeking.

Foreclosures are rare in more affluent areas such as the South Bay.