You've had more than your
share of difficulties in the last few months. You've lost a loved one or been
through a difficult divorce. You've lost a job or had to change jobs. You've
lost your health and have medical expenses stacking up. Maybe you're struggling
with increased utility prices or fuel expenses or an adjustable rate mortgage
(ARM) that is unbearable. Perhaps, your property tax bill has gone through the


Unfortunately, while you're
worrying about stopping foreclosure of your home, you're bombarded with letters,
postcards, phone calls and strangers driving by and knocking on your door.


These foreclosure investors
specialize in chasing homeowners just like you who are close to losing their
homes. They're interested in buying your home and profiting from it because they
believe you must sell the home.


Should you sell to an
investor to avoid being foreclosed on?


Maybe, but certainly not as
your first option. And only after you exhausted other foreclosure prevention
means such as rearranging your loan.


Rearrange Your Loan To Stop


Once you missed a few
payments, your credit report will reflect them, and your credit score will drop
dramatically. This low credit score will likely prevent you from being able to
get a new loan to refinance your current loan in default.


Every mortgage lender in
the country has a Loss Mitigation department established with the sole purpose
of reducing lender's losses on loans. They work to put homeowners who fell
behind on payments on a repayment plan to bring your loan out of default. The
best thing about Loss Mitigation alternative is, unlike a new loan, it doesn't
require a credit approval.


If You Do Get a Workout
Plan, Beware of the Challenges


Loss Mitigation departments
are lightly staffed. One of the biggest problems with workout plans is caused by
employee overload. At time of high default rates, like we're experiencing now,
the employees have too many files to work on. And they have a limited time to
process each case. The result is, the lender offers you a 'canned' repayment
plan that has too short of a 'catch up' time and too large of monthly payment
increase that is not realistic for your budget to sustain.


Because you're between a
rock and a hard place you're tempted to take it to keep your home from being
foreclosed on. In reality, you just set yourself up for a failure. A few months
down the stretch, you'll be back in foreclosure again.


How to Hire Foreclosure
Workout Professionals


One of the simplest, yet
little known ways to get a lot better outcome through the Loss Mitigation
process is to hire an experienced professional to do the work for you. These are
companies that have experience of negotiating literally thousands of workout
cases for owners in default. Some have established working relationships with
the Loss Mitigation departments of many mortgage lenders nationwide.


They'll review your
finances with you to come up with a realistic repayment plan that'll give you a
lot more time and keep your payments at a comfortable level to assure your
successful completion of the plan. They have insider's information about variety
of programs a given lender may have. In some cases, they may be able to
negotiate an interest reduction to lower your loan payments.


You may think, in you
current circumstances, hiring a company like this could be prohibitively
expensive. Not so. Most charge a reasonable flat fee equal to a single monthly
mortgage payment. You'll easily get your money back through a negotiated for you
deferral of the next loan payment.


How to Cut Your Losses if
Loss Mitigation is Not in Your Plans


If Loss Mitigation isn't in
your plans, then it's time to sell your home so you don't have a foreclosure
record on your credit. If you have a lot of time before the foreclosure sale,
then list your home for sale with a real estate agent. This way you will get
more for your property. If you're out of time, now you may have to turn to
investment companies that can buy quickly. Just make sure you're dealing with a
company that has means and track record to perform and close the purchase fast.



About the Author


Leading national
foreclosure prevention expert Alex Gurevich has contributed to helping thousands
of homeowners just like you save their homes and avoid foreclosure with a 97%
success rate. For a referral to a reputable Loss Mitigation professional or an
investment company that can buy your home and put you in control of your
finances fast, visit