Free Foreclosure Information

Don't get scammed by companies offering home foreclosure information for a fee. Homeowners facing potential property loss may be able to save the homestead and their pocketbook with free foreclosure information from credible sources; some may be experts in loss mitigation. Due to a national housing slump, borrowers with adjustable rate mortgages (ARMs) who were easily financed when interest rates were low are now fighting to make higher payments tied into a fluctuating economy. A proliferation of foreclosures -- nearly 180,000 filed in June 2007 -- has spawned an onslaught of commercial enterprises promising instant relief for distressed homeowners. But desperate consumers don't have to fall for quick fixes or exorbitant fees for information that can be readily found at the fingertips. Before signing on the dotted line with an unreliable resource, homeowners can surf the web for government entities, pro-bono attorneys, and non-profit consumer credit counseling agencies offering no- or low-cost foreclosure information.

The Department of Housing and Urban Development (HUD) and state government housing offices provide counselors to help steer distressed borrower/owners through the foreclosure process, or offer alternatives to help them hold onto the American dream. HUD-approved counselors not only provide free foreclosure information, but they negotiate with borrowers' lenders to develop workout plans and suggest stringent financial housekeeping to catch up loan payments in default. Even if the house is slated for the auction block, there are ways to keep the property. Qualified housing counselors may suggest filing Chapter 13 bankruptcy -- a drastic measure, but a proven legal tactic to delay the sale of property and give debtors time to formulate court-approved repayment plans. While the threat of losing a home can be harrowing, sellers in search of information should exercise caution. Beware of promises that sound too good to be true; they usually are. Borrower/owners should also be leery of companies which offer to catch up delinquent mortgages and rescue the borrowers credit. Pre-foreclosure distress sales are pretty common and perfectly legal; but sellers should make sure buyers purchase the home outright, legally transferring property deeds. Read the fine print and consult an attorney before agreeing to any "quick relief" scheme, which may relieve mortgage default, but forfeit ownership.

Knowing whose advice to take when seeking free foreclosure information takes wisdom on the part of the consumer. Taking the time to carefully read and research facts provided by agencies online will give consumers a good overview about the loss mitigation process and alternatives. A home is one of the largest and most important investments an individual will ever make. No one can afford to make rash decisions or rush into legally binding agreements at the risk of losing one of their most prized possessions. As Proverbs 4:7 says, "Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding." Verse 26 of the same chapter says, "Ponder the way of thy feet, and let all thy ways be established." In the long run, wisely taking the time to seek and search out reliable home foreclosure information and carefully considering options to forfeiture will pay off.

Unlike unscrupulous companies, federal- and state-approved agencies and qualified non-profit consumer credit counselors want to help consumers keep the property, with no strings attached. Knowing available options provides homeowners with much-needed ammunition to prevent the bank from repossessing the family homestead. Approved counselors may advise selling personal property, like the family's second car or jewelry, to accumulate enough money to offset delinquent mortgage payments. Or they may suggest proposing workout plans to lenders whereby homeowners can pay catch up default payments over a period of time. If debtors can provide substantiated proof that payments have fallen behind due to a legitimate temporary financial hardship, such as an illness, divorce, or job loss; and that the temporary hardship can be remedied; lenders usually approve a reasonable mortgage modification. HUD and state government housing counselors can provide home foreclosure information to help consumers compile financial statements, accurately assess future earning potential, and satisfy lender requirements. Delinquent mortgage payments or interest rates may be reduced or deferred to help prevent borrowers from losing their homes.

Consumers seeking home foreclosure information can also confer with the mortgagor, the financing institution which holds the note. Homeowners should never be afraid to have open and honest discussions with lenders regarding personal financial setbacks which have resulted in an inability to pay. If a lender has been sending out notices of default and intent to cure, or repossess property, owners should call the individual listed on the correspondence and face the problem head on. The worse response to a collection letter is to not open it. Ignoring late notices and warnings of mortgage termination won't make them go away. The lender really doesn't want the property, they want the payment; and the sooner indebted homeowners face the music, the better the chances of coming up with an amiable method of debt resolution.

Another source of free foreclosure information is the pro bono attorney. Lawyers who work pro bono (for the good) are public or private legal practitioners who agree to take on debtor cases free of charge, especially in an instance of substantiated hardship or below-the-median income. Contact a local non-profit legal aid service, surf the Internet, or check out the local business directory to find pro bono legal assistance and home foreclosure information. And don't forget the local library; it's full of how-to books on standard proceedings, acceptable work out plans, and financial management. Computer savvy homeowners can also find federal affordable housing advocates, consumer credit counseling services, and website articles which provide user-friendly, easily understood, and absolutely free foreclosure information.

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