Fixing a Hole

The real estate world can be a cold and lonely place. Okay, not so lonely, but our fellow realtors can be cold.

Unfortunately, my latest deal with Dumpster has ended up there, in the dumpster. Our back-up offer was tossed away like so much waste paper. I found out by accident that the first offer had closed already. I hate having to tell people bad news. I try to mitigate it with something a little positive, in this case with the hopes of looking at something else to invest in. Hopefully, (there's another word you'll be seeing often), I can find something else in the "crappy" category for my client. It's becoming more of a fixer-upper world out there and competition for pieces of crap is getting tough.

Speaking of which, the glut of fixer-uppers and foreclosures out there are bringing the sharks in, circling like blood sniffing flesh-eaters.

How do you keep from being devoured and plug the hole that is your sinking ship?

The mortgage industry is being persuaded (by a rather large stick) to throw a life preserver to homeowners that are going down for the last time. Part of that big stick is made up by the mortgage industry themselves because they do not and I repeat do not want to foreclose on a home. The other part of that big stick is the National Association of Realtors. Realtors have a lot of sway in their states through lobbyists (okay, that can be a dirty word) and by the fact that there is a realtor on every corner; we are a prolific lot.

Realtors are also taught, advised and asked to take a working interest in their communities for the betterment of us all. Some do it better than others (obviously), but the good ones not only want to see you get into a good home but they want to see you keep it. (Really!)

Even in better market times, the bank will work with you when you get behind on payments. The worst thing you can do is nothing. The more you ignore the threatening letters, the madder the bank will get.

Another thing to remember is that the bank does NOT want your house. Believe it or not, that is the last thing they want. In order to foreclose on your house, they have to pay lawyers to do a lot of research and draw up a lot of papers. They have to pay someone to go to the foreclosed upon house and weatherize it, winter or summer, so pipes don't burst or a leak doesn't develope. They have to pay someone to cut the grass. They have to pay a real estate agent to sell the house. At every turn, it takes money out of the banks pocket to own a house.

For that reason, it is in the bank's best interest to help to keep you in your home.

The first thing to do when you get behind is call the mortgage company or bank. If at all possible, talk to your old loan officer. They are nice people (most of them are anyway) and very knowledgeable about how banks work and what services they offer. If you can't talk to that person, ask for someone that has information on how to help you get back on a payment schedule.

At this time, there are several programs available through banks that are designed to either help you set up a payment schedule to get back on track or, in some cases if you qualify, actually funds on hand to pay your shortfall.

Hard times can fall on anyone at anytime. Most households in this country are one paycheck away from disaster and once you get behind on your bills, it is hard to get caught up. But you would be surprised at how many companies, from the utility company to your credit card company to your mortgage company, are willing to help if you just call at the first sign of trouble.

So, grab hold of that life preserver, put an arm through the hole and hold on. There may be a hole in the ship but it doesn't mean you have to go down.