Tweet

Pre-foreclosure and You: Making Lemonade out of Lemons

Guest post by: Bud Gragg

Article Overview: Even when you know you're going to come out of the other end OK, being in pre-foreclosure and then moving on to foreclosure can be tough. You're walking away from the money you've already put into your house, after all, as well as walking away from an investment that's gone bad.

Pre-foreclosure and You: Making Lemonade out of Lemons

Even when you know you're going to come out of the other end OK, being in pre-foreclosure and then moving on to foreclosure can be tough. You're walking away from the money you've already put into your house, after all, as well as walking away from an investment that's gone bad.

Kristin and I have been through this, and we believe that information is the best antidote to troubling times. (Well, information and a sense of humor!) Information is power. If you're looking at foreclosing on your house, you're going to want all the power you can get.

So what is pre-foreclosure? This is the precious period of time between when you decide to stop paying your mortgage and when you get the first notice that your lender is going to proceed against you to take your house back.

This is a powerful time—a time when you begin having options you didn't have before. But you've got to plan carefully for your future when you're in pre-foreclosure so you can be ready for the foreclosure itself—and more importantly for life after your foreclosure!

First, make sure that all of your other payments are up to date, and keep them there. You're not making a mortgage payment anymore—use that money to help pay your other bills! Keeping the rest of your bills current will protect you from taking such a large hit to your credit rating after your foreclosure.

Do you need to make any major purchases? A new car? Do it now, preferably before the second payment on your current mortgage comes due. This step alone will save you thousands of dollars in wasted interest payments!

If you have any accounts at all other than your mortgage with your mortgage lender, move that money out of those accounts before you skip your second payment! You don't want your lender trying to take money out of your other accounts! Also, one way you're going to discourage your lender from going after you after your foreclosure is to show hardship. If possible, take the assets you have and put them in an account held by a very trusted friend or relative.

Now, you still have options once the foreclosure proceedings begin. You can apply for a loan modification, for example. Very, very few people get them, and for the most part they don't help—but the application can drive back the foreclosure process by 6 months or more. That's 6 more months you get to live in your house rent-free!

The other thing to remember about pre-foreclosure and foreclosure is how important it is to stay calm! Your lender will try to harass you—stop answering the phone. Or better yet, scrap that expensive land line completely and get yourself a pre-paid phone with an unlisted number!

Your friends and extended family may be under the delusion that you should do the “honorable” thing and keep servicing that underwater mortgage. Calmly tell them that you think it's more honorable to protect your family during this foreclosure, and don't let them sway you.

Unless they're willing to take on your mortgage, that is!

As you're contemplating pre-foreclosure and foreclosure, remember that this is not a life-and-death situation unless you make it one. There is life after foreclosure, and you'll make it a good one if you just keep your head together, learn everything you can, and plan carefully!

Related Articles
  A plate of juicy, sliced lemons!
  Lemonade Marketing
  Ya Gotta Have a Plan
  Alternative to Win/Lose Negotiation
  Women Entrepreneurs Getting Back on Track, Part 2: Determining the Future
  Personal Responsibility: Bloom Where You're Planted
  5 Top Success Factors for Today’s Entrepreneurs
  5 Preventable Pitfalls to Solid Client Relationships and How to Resolve Them
  The Unlimited Power Within
  Why Should I Become an Entrepreneur?
  How you can work towards a happy life
  Overcoming Objections 101
  Top Qualities of Small Business Owners
  Lesson #4: Embrace Your Obstacles
  Small Time Business In Comparison To Legitimate Home Based Business
  Don't Be Flat Lemonade
  Free Business Plan Example
  How To Grow Your Business and Thrive in Tough Times
  Five keys to business success
  Keeping a Positive Outlook

Article Tags: bank short sale, home short sales, house short sale, how to do a short sale, how to short sale, mortgage short sale, short sale, short sale definition, short sale foreclosure, short sale help, short sale information, short sale process, short sale training, what is short sale
Referred by: http://www.meetkarennewman.com/



Related Forum Posts
Making Money in 2011 - Hello forum members! As we draw closer to the new year I thought it would be appropriate to change the title of our forum category "Making Money in 2010" to "Making Money in 2011" - I'm looking forward to some interesting discussions and wish everyone a prosperous New Year!
Re: Marketing potential of virtual worlds - Making such amounts, are they for real? I mean, have heard about Second Life, but can one make real money there?
Re: Essential Leadership skills - Vision Values Mission Strategic Thinking Decision Making Communication Team Bonding People Development Coaching / Mentoring / Guiding / Grooming Presentation Thanks Robert
If you had a million dollars... - I'm curious to find out what type of entrepreneurs we have in the forums here. Making money is an obvious part of running your business, but is it everything? How would you complete this sentence: "If you had a million dollars..."?
Re: answer this question - This is a good topic. I haven't done anything, yet, to seriously damage my business. I did shift gear though. It was the best decision I ever made. For me, affiliate marketing was not working. Making the switch to Network Marketing made all the difference.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Top 7 Tips to Real Estate Agents’ Success

Qualities of Leadership Part 1

Your Local Small Business Online Marketing Funnel

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.