Will All The Foreclosure Bailouts Get You Out Of Foreclosure?

For the last 6 months, both the federal government and local governments have been coming up with all sorts of crazy plans to stop foreclosure. For some of these plans, lenders are required to participate, and others are optional. But there are many participating banks and basically every government backed lending vehicle is on hold from foreclosure. With all these new foreclosure plans, there is a lot of doubt and many of the nation's top law makers feel we're headed towards certain disaster.

The main downfall with many of the foreclosure relief options is that the government is spending money it doesn't have and wont have in the near future. This is setting our financial system up to suffer for many years into the future. Basically, the government is just putting the problem off until a later date by printing more money and minimizing the value of the dollar. This couldn't be more true with all the moratoriums across the nation. Most of these plans call for a 90 day hold on foreclosures, but don't have any plans for actually helping the home owner out of foreclosure. They don't require the lenders to modify loans and they don't offer any additional support or even advice for the homeowners.

Many consumers are enjoying the interruption from worrying about missing payments, but then 90 days later, when they are evicted, they don't understand what happened. One second they felt safe and the next the sheriff was posting an eviction notice on their door. This is happening all over the country because consumers are completely uninformed of what's happening.

Many people think that just because there was a break in the foreclosure process they can stop worrying. They think that the Obama plan or their bank is going to give them a solution before the process is started again. This just isn't the case; if you want to save your home, you'll need to do it yourself or find a professional to do it for you.

In the event you are one of the lucky ones who was helped by a bailout plan, make sure you get all the proper paperwork and that everything you agree to is in writing. And remember, once you've agreed to a workout plan, missing another payment is absolutely not an option! When a payment is missed, it can be as if the foreclosure process never stopped. You could literally lose your home the same week!

If you are getting closer to the sale date and you have not been able to get a modification plan from your bank, or if you don't have anything in writing, it's time to seek immediate help from a specialist. There are many companies and individuals in the real estate and mortgage industry who can help you modify your loan with your bank. Although you should get help as soon as you know you're in foreclosure, it's never too late. In fact, when our company was providing negotiation services, it was not uncommon for us to stop a sheriff sale a day or two before it happened. Knowing the right person to contact and having a good reputation with a lender can make all the difference in the world, so try to find someone who has experience with your specific bank.

Ultimately, if you are worried about foreclosure, you'll need to take care of it yourself. If you don't have the experience or knowledge to deal with it without assistance, or if you been unsuccessful up to this point, then it's time to seek professional help. Don't wait until your house has already been sold; take action now before it's too late!

Nick writes for the ForeclosureFish website and blog, which provide foreclosure help and information to homeowners attempting to save their homes. The site describes numerous methods to prevent foreclosure, including deed in lieu, loan modification, stopping a sheriff sale, and many others. Visit the site today to read more about stopping foreclosure while there is still time: www.foreclosurefish.com

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