I HAVE A FORECLOSURE DATE SET FOR APRIL 14. ONCE MY HOME ...

[Pages:2]I HAVE A FORECLOSURE DATE SET FOR APRIL 14. ONCE MY HOME GOES TO FORECLOSURE, WILL I BE ABLE TO GET MY FURNITURE AND PERSONAL ITEMS OUT OF THE HOUSE?

This viewer needs to speak to the party foreclosing on the home, Martin said. Technically, when a house is heading into foreclosure, it means that, on the 14th, the lender will take over the title of the property and officially own the home; as of the 14th, this viewer will no longer own the home. But what that actually means in practice, and what happens next, is between him and his lender.

Believe it or not, there is no rulebook here, no formal process to follow. Some banks will say they want you out right away so they can begin the process of re-selling the home. That means you need to be prepared to move out on the 14th. Others will allow you stay until a certain date. But you can't know unless you call and speak with your bank. Call and ask them what they intend to do with your property come the 14th.

"And when you have that conversation," Martin advised, "say, 'Would you like me to stay and pay some reasonable amount of rent, so I can maintain the property?" Often, the answer will be "No," but these are unique times, so it's certainly worth asking the question.

Martin also says this viewer is very typical of people losing their homes. It's clear that the homeowner hasn't communicated with his bank. A recent study found that the majority of people who are foreclosed on never speak with their lender.

We've received lots of letters from viewers who complain that they have called their bank, but have essentially been brushed off. They're promised return phone calls that never come, or are told that their questions can't be answered at the present time.

You absolutely must be forceful when you speak with the banks, Martin stressed. Be firm, and make it clear that you expect to receive the answer you are entitled to.

Once you speak with your bank, it's also worthwhile to check your state's laws. Specifically, contact your state's attorney general's office. More and more states are putting relief plans in place that won't help you save your home, but will delay the foreclosure process. This may enable you to stay in your home longer.

I AM HEARING SO MUCH ADVICE ABOUT PEOPLE WHO HAVE MORTGAGES AND ARE FIGHTING DROPPING HOUSING PRICES, BUT I HAVE NOT HEARD MUCH ABOUT PEOPLE LIKE ME WHO ARE LOOKING TO BUY A HOME. WOULD YOU RECOMMEND THIS TO BE A GOOD TIME TO LOOK FOR A HOUSE? WHAT OPPORTUNITIES DOES THIS DOWN HOUSING MARKET PROVIDE?

In short, Martin believes this is a fine time to buy, but not a great time. It's certainly better than it was two years ago, when buyers were in the midst of bidding wars, but it will likely be worthwhile to wait a bit longer to pull the trigger on a purchase.

Why?

Congress is likely to pass a homeowners' relief bill that would include a tax credit for buying a foreclosed home. If it's a new home you're interested in, builders will probably begin throwing in more and more upgrades and incentives to buy. And, mortgage rates will probably come down.

Martin predicts that this fall will be a better time to buy.

What you need to do in the meantime is "shop the heck out of the market," Martin said. Spend a couple hours a month assessing the market and researching what's happened in areas where

you might want to buy. You can then spot market trends and know when it's smart to take the plunge.

I WILL SOON BE UNABLE TO MAKE THE MORTGAGE PAYMENT ON MY HOME. HOW CAN I BUY SOME TIME, SO I CAN READY MY HOUSE FOR SALE WITHOUT AFFECTING MY CREDIT AND/OR FORECLOSURE? IS THERE SOME PLACE THAT CAN GIVE ME SOME HELP TO GET THROUGH THIS ROUGH ECONOMIC TIME?

Here are the three resources Martin suggests:

1) Your bank's loss mitigation department. Call and explain that you're about to start missing payments. If you're not far from being able to pay the monthly mortgage, the bank may modify your payments or stretch out the amortization on the loan to make the payments smaller, and thus more manageable.

2) National Foundation for Credit Counseling/Homeowner Crisis Resource Center () If it's not just your mortgage that's the problem, you have other debt, this Web site offers helpful resources. The group also recently established a "Homeowner Crisis Resource Center" that helps put you in contact with a housing counselor and more.

3) Hope Now Alliance (888.995.HOPE): This is an alliance of counselors, loan servicers, investors, and other mortgage market participants established by the government in October with the goal of helping struggling homeowners. Give them a call, and they'll talk to you about your financial situation, look up your loan, and let you know in about 20 minutes about alternatives you may have to foreclosure.

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