In any given real estate market there is always a certain percentage of homeowners who suffer financial difficulties, start missing mortgage payments and head      towards foreclosure.  The reasons for this are many, but most recently, the majority of these are due to  variable rate and exotic mortgage programs that are resetting into higher payments.  In many cases these resets yield monthly mortgage payments that are so high that they are unsustainalble by the homeowner resulting in default in a very short period of time.  Default is defined as missing just one payment.  Properties in default are referred to as distressed properties.

   Homeowners in this situation should understand that they are not alone.  Stories about this mortgage crisis dominate the news media.  Default is a serious problem that should not be ignored.  These problems can be mitigated and the resultant damage to your credit rating minimized, but it does take immediate professional assistance by an expert trained to negotiate for you with your lender.

    Default can lead to foreclosure which is the worst case scenerio.  If the situation cannot be remedied by a refinance or recast of the payments, the best approach is to structure a plan of action to negotiate a short sale before it goes into foreclosure.  Short sale is the best thing possible; foreclosure is the worst thing possible.

   For more information go to the Avoid Foreclosure Hotline . 

  If you have any questions, please call me for a confidential consultation with NO COST OR OBLIGATION at (440) 974-7444.

                                                      David Crockett, CDPE (Certified Distressed Property Expert)