Not surprisingly, as the housing market has slowed down, and interest rates on Adjustable Rate Mortgages have soared, homeowners are facing foreclosure in record numbers. News stories covering the foreclosure situation are also appearing even more frequently than ever before, with new articles being posted online every few minutes, it seems. Some of the articles are only full of statistics with no relevant content to homeowners, but there are many useful, well-written articles that attempt to help foreclosure victims stop foreclosure and avoid potential foreclosure scams.

An article by The Patriot Ledger details some of the important statistics that we are seeing from experts in the foreclosure industry. While the article focuses on Massachusetts in particular, the numbers are comparable throughout the country: "Lenders filed about 18,900 petitions to foreclose on properties in Massachusetts last year, up from nearly 11,200 in 2005, The Warren Group reported yesterday. The number of foreclosure auctions that were advertised in the state also rose significantly, climbing 46 percent to about 6,700 from about 4,600." Typically, the article supports the view that mortgage brokers who sell homeowners loans they can not afford are mainly to blame. This isn't a view shared by ForeclosureFish.com, as we believe all parties involved must share the blame for these situations, including the homeowners. However, the rising foreclosure numbers are disturbing, especially because they are expected to keep rising for the forseeable future.

This also means that more predators and criminals are joining the business of taking advantage of homeowners, stealing thousands of dollars from their victims, and even leaving them homeless. An article from The Online Ledger exposes a few of these scams. A homeowner that they interview unknowingly signed their home over to a company in exchange for $1,700. This foreclosure scam is becoming more popular as are two other methods that perpetrators use to defraud homeowners: loss mitigation scams with "consultants charging high fees to help homeowners out of trouble but never delivering the promised services," and a private investment plan where "a homeowner knowingly signs over their home and agrees to buy it back over time, but the terms of the agreement make it nearly impossible for the homeowner to succeed." Homeowners, it seems, could benefit from as much education on the foreclosure process as they can get, in order to be able to recognize the red flags of most foreclosure scam operators.

A useful reference guide/FAQ is available online from the Daily Bulletin, that addresses common questions that most homeowners have when facing foreclosure. Although not as comprehensive as our free foreclosure e-book, the tips listed in the article provide a good starting point for foreclosure victims. The article even addresses the issue of foreclosure scams: "To the unscrupulous, you're as tempting a target as someone bleeding in an area where sharks are swimming. All sorts of scam artists may contact you, whether they're pretending to be 'buyers' offering to help you or phony credit counseling agencies who will charge you hundreds of dollars to do things you could do for yourself." Always remember: get all of your contracts and paperwork in writing from your lender, their attorneys, or any third party companies you choose to work with, and have them reviewed by competent legal counsel before signing any agreement.

For more information on how to stop foreclosure, please consider signing up for a free copy of our foreclosure e-book. Several thousand readers have accessed the book and have learned enough about the foreclosure process to be able to save their homes on their own. Working out a solution to foreclosure yourself is always the best insurance against being taken advantage of by a scam.

Our free foreclosure e-book has recently undergone a few new changes, designed to clear up some of the confusing language and add a helpful new resource for homeowners facing foreclosure.

For those who sign up to receive the free e-book, we will also send a complimentary "workout package" to your lender. This package will request a postponement of any foreclosure date, sheriff sale date, or eviction date. As well, we will ask your lender for the most recent payoff and reinstatement figures, so you know exactly how much you are being charged. Another feature of the package will be a request for a lowered payoff amount, as well as for the qualifications for loan modification or other repayment plan options.

This package can mean the difference between you being able to stop foreclosure, and having the bank take the home all the way through the foreclosure process. The foreclosure e-book is designed to help you understand what happens during foreclosure, as well as know what options you have to save the home.

We are also updating and improving the software that will creates your free listing on ForeclosureFish.com. Everyone who receives the free foreclosure e-book also receives a free property listing, which will allow you to access mortgage and real estate professionals. These experts specialize in foreclosure situations and can help you examine all of the different options that are available, including repayment plans, loan modification arrangements, foreclosure refinancing, or other programs.

Sign up for our improved free foreclosure e-book, and start taking the first steps towards saving your home!

Do any of these messages sound familiar?

-I own my own bank. I have doing FC bailouts for 13 years. I can help you get your equity and stay in you home at the same time. Call me.

-If you are serious about saving your home and credit a good friend of mine can help you. Send an email and I will have my friend send another one back with his contact info.

-My boss is an ethical person, and is very good at forclosure bailouts.

-PLEASE CALL ME AS I AM A LENDER THAT CAN HELP YOU GET OUT OF FORECLOSURE. CALL ME.

-PLEASE GET IN TOUCH WITH ME, AS I AM A LENDER THAT CAN HELP YOU REFINANCE AND GET YOU OUT OF FORECLOSURE AT A LOW 2.4%.

-PLEASE CALL ME FOR MORE INFORMATION WHICH DOESNT OBLIGATE YOU DO ANYTHING.

They should sound familiar, as all of them came from actual marketing emails that some of our clients have received from foreclosure companies who offered their "services." Many of our clients who are behind in payments or in the actual foreclosure process may receive large amounts of marketing materials from, literally, dozens of these "foreclosure help companies." While there are some great companies and individuals who help homeowners work out a solution to stop foreclosure, the vast majority of these companies are mainly trying to take advantage of the foreclosure victims in whatever way possible, either by stealing their homes, or charging them thousands of dollars up front for vague promisies of "servcies" that will magically be performed once the homeowners pay up.

These unscrupulous foreclosure spammers usually attempt to send out as much of their promotional material as they can, until they find the few homeowners who are undeducated and gullible enough to fall for their tricks. The foreclosure victims typically end up in much worse situations than they were in before they were contacted by these individuals or companies.

The first problem is that these foreclosure spam emails contain material that is exactly what the homeowners are looking for: "LOW 2.4%" rates, "stop foreclosure right in its tracks," save the home, smaller payments, hocus-pocus, etc. They also make sure to mention that the messages are coming from reputable companies, as in "a good friend of mine can help," and "My boss is an ethical person." Usually, individuals that immediately approach someone with a "just trust me!" attitude are the very people that should never be trusted.

Messages like these that are sent to homeowners by foreclosure spammers are really no different from the endless spam of cheap drugs, make money from home with no work, trackback spam, comment spam, and nonsensical gibberish that is already clogging most foreclosure victims' Inboxes and internet browsing experiences. Unfortunately, for homeowners who are desperate to save their homes, they may fall victim to some of these emails. One of the best ways to find an actual, reputable company or investor to work with, is to call them, interview who you will be working with, and look for an investor or foreclosure service provider that is as local as possible.

But if it's just "easier" to work with someone through email and fax, then why bother putting in the enormous amount of effort required to save the home in the first place?

Although it is not a widely known area in the subject of foreclosure, one of the many programs that homeowners can use to stop foreclosure is a loan modification, also known as a mortgage modification. Many homeowners first attempt to pay back the lender, but can not catch up, refinance, but can not be approved, or ask for a simple repayment plan, which they can not afford. In a successful modification, however, the lender agrees to change the terms of the homeowners' defaulted mortgage, which usually results in more manageable payments and a second chance for the foreclosure victims.

When the homeowner first begins to fall behind in payments, the lender may seem like the worst enemy. Constant phone calls, letters from the collections department, foreclosure department, and the lender's attorneys are some of the main strong-arm tactics that banks use to attempt to collect on the loan. By the time they are more than a few months behind, many homeowners just want to do whatever they can to get away from their lender. This feeling, however justified, may not help the homeowners save their home, though.

In the event that no other viable solution to stop the foreclosure is found, the homeowners may have to work with their lender to put together a plan to keep their original relationship. Refinancing and selling may not be options for the homeowners, depending on the specific circumstances of the hardship situation that caused the foreclosure. When the lender and their clients work together, though, they may be able to put together a loan modification.

A loan modification, as defined by HUD, is "a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford." This means that the lender may extend the term of the loan to take back the missed payments, or they may spread out the defaulted amount over several years or the entire life of the loan. The homeowners may see their payments increase in a mortgage modification, or their loan's life extended, but they will be able to remain in the property.

Some lenders, usually larger banks or servicing companies, refuse to modify any of their mortgages. This is another strong reason to have the mortgage through a local bank that does not sell its loans. Many smaller banks are more willing to work with their clients, since they both exist as parts of the community. But before ruling out saving the home at all, most homeowners should examine this option with their lenders. A loan modification program has certain requirements to qualify for it, but as long as the homeowners have overcome the original hardship that caused them to face foreclosure, and now have a stable income, they may want to ask their lender what they need to do to stop foreclosure through a mortgage modification.

One of the main factors that we've seen in cases of people who save their homes, compared to those to who lose them, is the amount of work the homeowners are willing to put into it. There's really, honestly, no simple way to save your home from foreclosure. It would be nice if there was, but there's not. Stopping foreclosure is a big project that many homeowners may not even want to attempt. For some, the stress of a half-hearted attempt to work out a solution will only bring about the same result as doing nothing and walking away from the property.

Over our many years working with clients in foreclosure to save their homes on their own, the biggest key to success was that the serious homeowners really wanted to save the home, and were willing to do whatever it took to make it happen. A few cases in point may help current foreclosure victims understand how much of their time and effort they can expect to devote to finding a solution to foreclosure.

One of the homeowners who saved their home in 2006 was already far beyond the sheriff sale, with no redemption period, by the time they contacted us for free foreclosure help. We gave them several different ideas to get the home back, and they decided to have a family member attempt to purchase the home from the bank which was now the owner. The problem was that the purchasers had bad credit, no down payment, and little income. This meant they had to jump through several extra hoops from mortgage companies, only to be turned down over and over again. But they didn't give up: they kept applying for a mortgage, knowing they were only missing one or two key variables, until they found a lender who was willing to overlook some of the problems and take a chance on the family. They saved up for a small down payment, wrote letters to explain their situation and why they deserved to buy the home, and met all of the guidelines the lender set. It took a solid three months of work to buy the home back, but they family was able to purchase the home from the bank. In addition, they were able to prevent being evicted for over two months after the original eviction date because they made sure to keep in touch with the bank on a weekly and daily basis.

The second case study was of a family who wanted to refinance their home. We put them in touch with a lender who was interested in helping them, but it was going to be at a higher interest rate. They knew they were going to have to pay a premium for borrowing several hundred thousand dollars when they hadn't paid their current mortgage for months. Plus, the loan had to be completed, from start to finish, in less than three weeks, due to the sheriff sale of the property. The homeowners made sure they completed paperwork to the best of their ability, filled everything out completely, sent in the necessary supporting documents, and met every single stipulation for the loan as soon as possible -- usually within a few hours of getting the stipulation. They made time available for the appraiser, they kept in contact with their lender, and the loan was funded about two hours before the home was scheduled to be sold at sheriff sale. This family did everything correctly, double checking work, asking questions, and taking advantage of the time they had. They also understood that a three-week time period was extremely short. They took the best deal they could find that had a possibility of being finished on the date it needed to be done to stop foreclosure.

These short examinations don't begin to convey the sense of urgency that was felt throughout each of these situations. But the homeowners, instead of feeling depressed, being lazy, or putting off the work they needed to do, put in as much effort as they possibly could. They went beyond what was expected of common foreclosure victims, and proved that the hardship they faced was, in fact, only a temporary setback. These temporary setbacks did not affect their belief that they deserved their homes, and they decided, on their own, to work as hard as it took to stop foreclosure. Homeowners who aren't willing to put forth the level of work these two families did can not seriously expect to save their homes. All they can do is hope, and hope will never be a substitute for effort.

A home has been on the market for nearly half of a year, while the owners watch prices steadily decline. Because of how much they owe, the homeowners are unable to lower the asking price of the property. However, they are unable to afford the payments any longer. They seem to be in a lose-lose situation: they can't sell the property for its value, because values have dropped and they owe too much; and they can no longer afford to keep the home. So what should homeowners in this common situation do to prevent foreclosure proceedings from being started on the house?

Usually, if the owners are not able to keep paying the mortgage, and a reasonably lower rate wouldn't fix the situation, then a short sale with a local real estate investor may be the best option if they are just attempting to unload the property or are interested in remaining in the home. This involves finding the purchasing investor, and then staging a joint negotiation with the lender for a lower payoff amount on the loan. This negotiated amount is usually based on the value of the home and a fair sales price of the property.

Obviously, the private investor and homeowners would not want to give the lender a ridiculously low offer, but the bank should be willing to consider anything that is reasonable. For homeowners who are already in some stage of the foreclosure process, the lender may have already done a comparative analysis of the property and has determined their own estimate of value. In fact, they may already be aware what their requirements are for a potential short sale to avoid taking a loss on the property.

For homeowners in these types of situations, the best idea is usually to find a local real estate investor or other buyer who could purchase the property for less than what is owed on it, thereby helping the owners stop foreclosure, and helping the lender by paying off the defaulted loan for a reasonable price. Once an investor is found, the homeowners can show the bank that they are working on a solution to save their home; the lender may give their clients more time to work on a plan, even going so far as to postpone a sheriff sale or foreclosure auction. This gives the investor and homeowners more time to work out a mutually beneficial solution to stop the foreclosure process.

Only if the deal falls through or the lender rejects the short sale offer, should the homeowners pursue other, less attractive options. These options may be refinancing through a traditional or hard money lender for a high interest rate, working out an expensive repayment plan the homeowners may be unable to keep up with, or voluntarily give the property back to the bank via a deed-in-lieu of foreclosure.

One of the best ways for homeowners to stop foreclosure and begin the process of getting their life back on track is to use a local private equity investor to buy the house and arrange a mutually beneficial way for the foreclosure victim to stay in the property and the investor to profit. In this way, the investor and homeowner create a miniscule economy that is dependant only on the local environment for its health. While the relationship will have regional, national, and global issues affecting it, it is an essentially local strategy for keeping wealth within the community.

This arrangement is in stark contrast to the common myths of homeownership, which rely on the belief that consumers should become the customers of large, multinational banks to obtain money for a home purchase. The results of this kind of debt-financing puts the control of the local housing market more and more in the hands of lenders who, 1) are not a part of the local community, 2) most often sell the loans to groups of international investors who have no interest in the well-being of the community on a local or national level, and 3) have no incentive to disproportionately form a relationship with one community over any other that the lender operates in.

For these reasons, many homeowners who have poor credit or are facing foreclosure may want to turn to a party who has a more local view of the housing community. Direct private investing in real estate can bring home buyers closer to the investors who finance the loans. Mortgages originated by large banks are sold to investors in the secondary market anyway, so it makes much more sense for homeowners to know who is investing in their property, get to know the individual or group, and feel assured their concerns will be met if a hardship situation develops. The investors, as evidenced by the popularity of these securities, can make a healthy profit by engaging in these deals. As well, the community, by creating and nurturing a local economy, can increase its self-sufficiency and reduce its reliance on investment from outside the locality.

One of the great sites on the internet now for more information on creating local economies is run by Catherine Autin Fitts, whose previous positions include working with Dillon, Read & Co., Inc., a large Wall Street investment firm, and as the Assistant Secretary for Housing-Federal Housing Commissioner at HUD. Her website, Solari, examines the current state of economic world affairs, and proposes an increasing self-sufficiency of local economies as a means of increasing wealth and well-being for the community and the world at large. She has a free seminar offered on Google Video, titled "Safely Navigate the Falling US Dollar." Her work is definitely worth checking out for both homeowners attempting to stop foreclosure, as well as private investors interested in helping foreclosure victims and investing in communities.

The real goals of every homeowner in danger of losing their home should be twofold: find a way out of the situation, while keeping realistic expectations for remaining in the home or selling outright, and decrease the reliance on debt financing for any good or service.

The Burning Tigris by Peter Balakian examines in great detail the massacres of over a million Armenians by the Turkish government during the late 19th century and during World War I. With over 1,100 footnotes to the work, Balakian leaves no stone unturned in this monumental work which focuses on a little-known area of Armenian, Turkish, and American history.

The story starts with the first massacres of Armenians in the late 19th century, and the first instances of organized killings by groups of Turks. As Christians, the Armenians (and to a lesser extent, Greeks and other Christian ethnic groups) were treated the the ruling Muslim Turks as second class citizens, at best, and expendable, at worst. This was in contrast to the fact that Armenians made up a large part of the intellectual and economic life of Turkey in the late 19th and early 20th centuries. With the first of the massacres, however, the stage was set for future atrocities against the Armenians.

The rise of the "Young Turks" as leaders of the government was the point at which the plan to eliminate the non-Muslim groups was accelerated. The Young Turks, who came to power in 1908 under a guise of standing up for the rights of all the groups living in the country at the time, furthered the destructive path of their predecessor: Sultan Abdul Hamid II. The expectations of the Armenians for the brighter future promised by the Young Turk government, however, were met only with prejudice, hatred, and violence from the new rulers, who initiated a plan to eliminate the Armenians entirely.

With Turkey's involvement in World War I, on the side of Germany, the government saw its opportunity to begin the systematic genocide of the Armenians. On one occurrence, April 24, 1915, in Constantinople, the Turks rounded up the intellectual and artistic leaders of the Armenians and proceeded to eliminate the vast majority of them. This scene, and many more horrifying ones, were played out across Turkey. Men and boys were burned alive, shot, stabbed, drowned, starved, and deported. Women endured the same fates as the men, along with various forms of sexual torture committed by the Turks. The trail of burned villages and dead Armenians extended across the entirety of Turkey.

Balakian cites sources as diverse as official government documents, correspondence from ambassadors, consuls, diplomats, and other witnesses to the events. The same descriptions of massacre and torture are played out over and over again in different regions of Turkey and are seen by numerous representatives of foreign governments and aid institutions.

The Turks culminate their activities in a nationwide deportation of the Armenians, who are forced to march from the homes hundreds of miles away into the desert, given no food or water, with intermittent killings and rape committed along the way. As can be expected, few Armenians survive the mass deportation.

By the end of the war, between one million and 1.5 million Armenians meet their fate at the hands of the Turkish government's genocide, effectively wiping out two-thirds of the Armenian population of Turkey. If not for the philanthropic and activist involvement of important American organizations who provided aid to the Armenians, the number of dead may have been even more catastrophic. Such organizations as the Rockefeller Foundation and the Red Cross provided aid during the initial massacres and during the wide-scale genocide of World War I.

Balakian goes on to further examine the response of the world to the Armenian genocide from the end of the war until the present day. Unfortunately, the genocide has been pushed into the background of 20th century genocides, with Turkey actively denying the entire mess as Armenian propaganda, and America failing the Armenians both after the war, and even now, refusing to invoke the anger of Turkey by acknowledging the genocide. In fact, the US will not officially support using the word "genocide" to describe the systematic elimination of over one million people, in contrast to numerous other countries who have accepted the massacres as a genocide.

America's giving in to Turkish influence is, of course, based on the lack of power exercised by the new Armenian nation, and the strategic location of Turkey. With two-thirds of its population destroyed, the Armenians were given their own country far from their original homes in Turkey, and were forced to accept the aid of the U.S.S.R. in order to gain protection against further attacks by Turkey after the war. Even with their current freedom, their military power and natural resources do not compare with those of the more influential Turkey.

And even now, America protects its military, economic, and political interests in Turkey, by its active complicity in the downgrading of what happened in the late 19th and early 20 centuries, culminating in the century's first genocide. In this case, unfortunately, the winners have decided what history speaks for Armenia. And oil, as it has almost since its discovery and widespread use, runs thicker than the blood of millions of people.

With his book The Burning Tigris, Peter Balakian has given a definitive account of the Armenian Genocide and America's successes and failures in aiding the remaining Armenians. Thoroughly sourced, well written, and accurately descriptive, this book brings to the light one of the darkest, most horrifying occurrences of the 20th century.

One of the most controversial programs put into effect by the state of Illinois to protect homeowners from predatory lending has been suspended by the governor. And this is great news for both homeowners and mortgage professionals.

Since its inception, the State of Illinois Predatory Lending Database Pilot Program, or HB4050, has been a source of contention between mortgage companies who lend money in the zip codes affected by the program, and the lawmakers and citizens. Although the bill has good intentions, such as protecting homeowners from possible predatory lending, and providing eduction to loan applicants with poor credit, the implementation of the law has caused many lender to refuse to operate in the Pilot Program areas.

According to the official website of the program, "[T]he pilot program has been designed to provide additional financial guidance to families who wish to take on a mortgage, or refinance the mortgage they already have. In addition, the pilot program will allow the State to gather important information on the kinds of loans being offered to Chicagoans and the costs and terms of those loans." This required lenders to provide mandatory credit counseling to applicants whose credit was under certain qualifying scores.

In addition, there were numerous other requirements lenders and every party to the loan had to meet, and any failure to comply resulted in an unrecordable mortgage. This meant that a mistake made by the borrower, lender, loan originator, processor, appraiser, title company, or anyone else who worked on the loan could result in an unrecordable mortgage.

This past Friday, Governor Rod Blagojevich suspended the program, stating that, "Even though this law was designed to fight predatory loans, it is clear that the program may be negatively affecting the communities it is designed to protect." The draconian measures required of the lenders caused many of them to refuse to do business in the areas affected by the program. This, in effect, created a severe shortage of funds that were available to homeowners for new purchases and refinances.

According to a >recent article from the Chicago Tribune covering the suspension, " Critics contend the measure has resulted in a form of redlining that has dramatically slowed the availability of mortgages and the ability to sell properties in predominantly minority communities." In fact, the article states that housing sales in the areas affected by the program dropped nearly 30% more than in areas not covered.

For foreclosure victims, the suspension of this law comes as good news, as more funds will be available from lenders in the affected areas. While it is important for the state of Illinois, and all states, to protect homeowners from predatory lending, the pilot program imposed such implausible requirements on the lenders that the program effectively locked many lenders and homeowners out of the market. Homeowners facing foreclosure had a much tougher time finding a lender to refinance them, and were less able to sell their homes for the full value, because buyers could not find anyone to lend them money, as well. Consumer education and lender accountability programs would much better protect consumers than the now-suspended Pilot Program.

The following zip codes in Illinios were affected by the controversial program: 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643, and 60652.

Foreclosure and the loss of a job are two situations that can become irreparably linked for some homeowners. Homeowners lose jobs, fail to pay bills, and find their credit score dropping dramatically. While everyone knows that borrowers in these situations will have a tough time obtaining credit at reasonable rates, it is not as well known that people with poor credit will even have a hard time finding a job. Their low credit score, caused in part by the loss of a job, can lead to even further hardships when homeowners are unable to find a new job.

Job loss is one of the top reasons homeowners find themselves buried under their mortgage, credit cards, car loans, and other debt. Layoffs, seasonal work, and failed self-employment are just the three most common occurrences we hear about from our clients. These unexpected, unfortunate situations result in thousands of foreclosure victims losing their homes every month. But possibly even worse, the former homeowners may find their foreclosure coming back to haunt them in ways they may not expect.

With many more employers looking at applicant's credit scores, it will become even tougher for homeowners to begin working again and get back on top of their debt, or repair their credit after saving their homes. According to The Christian Science Monitor, "Credit checks are a growing factor in hiring, with 35 percent of employers checking applicants' credit in 2003, up from 19 percent in 1996," and applicants with poor credit are not offered positions. Obviously, a current or recent foreclosure can mean the difference between being offered a fresh start, and being publicy humiliated a few more times during a long job search.

Furthermore, this does not even take into account the fact that employers, by ordering credit reports, are only contributing to even lower credit scores for job applicants who need a second chance. Every time a consumer has their credit pulled, the inquiry shows up on the report; a large number of inquiries tells the major credit bureaus that the person is on an "application spree," and will penalize the applicant with a lower score.

The article goes on to emphasize that "employers who screen for credit are setting up a Catch-22 for poor people: They need jobs to get good credit, but employers won't hire them because they don't have it." Also, this credit requirement effectively locks out many minorities from obtaining higher-paying jobs: "Studies show that minorities are more likely to have bad credit, but credit problems have not been shown to negatively affect job performance." And as ForeclosureFish.com has examined in an earlier post, minorities generally do not receive the best mortgage products when they attempt to become homeowners.

All of this points to an instance of employers and lenders attempting to extract as much profit from the poor and minorities, and then preventing them from receiving a second chance to build credit and prove their worth as employees in moderately or highly paid positions. Foreclosure victims, who represent an extreme case of being trapped in a "job loss - credit score - job prevention" cycle, bear the full brunt of these policies, all of which are designed to protect only the corporations at the expense of the homeowners' privacy and future.

You've fallen behind in your mortgage by several months. Your lender keeps refusing to take your calls about setting up a repayment plan and refers you to their attorneys. Their attorneys transfer you to voicemail, never call you back, and leave you on hold for hours. When you finally get ahold of someone who can help you, you ask about setting up a repayment plan. The attorney tells you that it will take 10 days to figure out how much you need to pay them to reinstate the mortgage. Ten days later, you receive a bill that may be the equivalent of six mortgage payments, even though you are only behind three months. This causes you to spend more time working, begging, borrowing, and stealing money in order to scrape up enough to pay reinstate. When you finally have the money, you call to tell them, and they tell you it will take another 10 days to update the numbers. By then, the reinstatement amount has doubled again, making it impossible for you to get back on top of the mortgage and stop foreclosure.

Does this sound familiar?

Unfortunately, for many homeowners who are in foreclosure, one of the main issues they have to deal with is figuring out some way to pay back the legal fees. The banks hire attorneys to handle the foreclosure proceedings in the local courts, and they charge exorbitant amounts for their services. The fees, as expected, are charged to the borrowers, who are required to pay the fees and all of the back payments in order to reinstate the loan. Several thousand dollars in excess fees can mean the difference betwee homeowners saving their properties and finding themselves out of a home completely.

It may be a fact that lenders "do not want to foreclose" on your house, but their use of high priced attorneys to pursue foreclosure actions against clients belies this statement. The banks who wish to work with the homeowners create insurmountable barriers to their clients, who may never be able to come up with enough money all at once to pay the growing legal fees. And banks know this. Yet they persist in refusing to deal directly with the homeowners after the file has been forwarded to the foreclosing attorneys.

Lenders who engage in such practices are generally the largest lending or servicing institutions in business. While they may come across as caring community activists, providing consumers with the "American Dream" of owning a home, their actions once a homeowner misses a payment show them in a much worse, truer light. The lenders terminate communication with their client, puts up a wall of lawyers to make it impossible for the homeowner to save the home, and ends up with much of the client's personal wealth: up to 55% of the homeowner's monthly disposable income, whatever the can scrape up to apply for an expensive repayment plan, and the valuable real estate once the home is sold at sheriff sale.

And what is the lender's investment in this whole process? Nothing. The money loaned to the homeowner comes from the deposits the bank holds, and the loan is usually sold to investors in the secondary market just after being originated anyway. Nothing of value changes hands, anyway: the bank changes a few numbers in one account to make more numbers in the homeowner's mortgage account. Numbers in a computer and paper currency are poor exchanges of value for the underlying asset: the house and its location.

What is their risk? Nothing. If the house is foreclosed, the bank can sell it at auction. If they sell it for a loss, do they actually lose money? Of course not: the bank simply makes less on the sale than they would have made if the homeowner had completed the mortgage contract. No money is actually "lost" in any sense of the word.

And what do the homeowners lose? Their homes, their dignity, their self-esteem, their standing in the community, and possibly their hope for a better future. As one hardship leads to another and finally to a debased situation of begging friends or family for help, just to keep their shelter, the family inches ever closer to losing their home completely.

Is there any cause for hope? Yes. The first step for homeowners should be locating a reputable lender or investor who is more interested in playing a positive role in the community than in gathering money. This can help the homeowners stop foreclosure, and create a local, cooperative investment in the community through the use of local lenders or real estate investors.

Today, we are presenting a few links to some interesting foreclosure-related articles. They provide a lot of great information, although none of them relate to the foreclosure process directly.

CNN ran a story today titled "Foreclosure Rates Up Big in December," detailing the dramatic increase in foreclosures from 12/05 to 12/06. The article is cautiously optimistic, quoting the chief economist for the Mortgage Bankers Association as believing "the pain will be minimal. He expects the economy to keep adding jobs through the rest of the year and for mortgage rates to vary little from around 6.2 percent for a 30-year fixed mortgage." Time will tell if the market can bear the higher interest rates if a large number of loans go into default. And if rates are lowered, the value of the dollar may decrease further, causing serious consequences to the economy.

The Online Journal, in a story called "Five Minutes to Doomsday," examines the fact that the Bulletin of Atomic Scientists have reset the famous "Doomsday Clock" to five minutes to midnight. It was previously set at seven minutes before the hour. The clock was conceived of as a symbol to warn the population of the experts' estimate of the possibility of nuclear war. The change is due to the scientists' determination that climate change is having a significant effect on the world. This is the first time that the BAS has changed the clock in response to an issue affecting the planet that is not directly related to nuclear war.

Yesterday, the New York Times ran an online article on "The Voices in My Head Say 'Buy It!' Why Argue?". According to the article, researchers are attempting to locate the parts of the brain that control buying impulses, in the hopes of better understanding why Americans and virtually everyone else will spend money they have and do not have in order to acquire more stuff. The question is, will consumers even care to know what is driving their cravings to acquire more useless items?

And finally, from The Telegraph, Britain's No. 1 quality newspaper website, there is an article called "Earn More, Spend More, Want More," which examines the issue of people who have more money spending more of it and desiring additional things to buy. The author details the concept of "affluenza," which is defined as "the placing of a high value on money, possessions, appearances (physical and social) and fame, " which "envious keeping-up-with-the-Joneses state of mind that increases our vulnerability to emotional disorders, and is responsible for rising levels of depression, addiction, violence and anxiety in the developed world." This article is extremely interesting, as it examines many of the reasons that so many homeowners buy homes they can not afford, purchase products they do not need, and have no regard for the consequences of these actions, even if they hurt themselves, close friends and family, or people they do not even know.

We chose these articles for their relevancy and the quality of the writing contained in them. None of the sites are affiliated with ForeclosureFish.com and, actually, none of them contain any direct information to help homeowners stop foreclosure.

Only a shorter post tonight. ForeclosureFish has been working hard after the holiday yesterday (Martin Luther King, Jr. Day), and we are coming up with new methods to teach people how to stop foreclosure on their own. As always, it is our mission to give homeowners the necessary information they need to save their homes, avoid foreclosure scams, and keep as much of their equity and money as possible.

We have added several new companies and individual investors who can help homeowners in foreclosure. Everyone who submits an evaluation form to the site can have their case reviewed by hundreds of lenders, investors, and consulting agencies to determine what options are open. This is the best way to save a home from foreclosure -- learn all the options you have, evaluate which ones are the most affordable and least expensive, and make the best effort you can to follow through with the plan.

Foreclosure can always be stopped but saving a home is never a painless experience. We try to make our site and its resources as helpful and informative as possible, though, and we look forward to making even more options available for homeowners who want to stop foreclosure and just need to know their options.

There is a great article at the Online Journal that discusses many of the issues affecting the housing market, and its impending collapse. For what to expect in 2007 in the real estate and mortgage industries, this article, titled "Housing Bubble Bloodbath," should be required reading.

The rising foreclosure numbers are the result of rising monthly payments on the new-fangled loans which have low introductory interest rates, but can unexpectedly double after a two- or three-year period.

These loans are one of the main causes of the record foreclosure numbers, as we have stated before. Consumers have spent years buying property with loans that have the same low introductory offers that are common in the credit card industries. The mortgage companies base the qualifications for the homeowners' loan on the introductory payment, not on any estimate of what the interest rate will reset to after the initial period. Of course, it is impossible for banks to predict what interest rates will be in 1-2 years, but conservative estimates of higher payments may at least give homeowners another warning of what is to come.

Mortgage companies are just one part of the problem with these loans, howerver. The article quotes Dan Dorfman of the New York Sun, who reported that "A recent sampling of 100 stated income loans by an auditing firm in Virginia (based on IRS records) found that 90 percent of the income statements were exaggerated by 5 percent or more, WHILE ALMOST 60 percent OF THE STATED AMOUNTS WERE EXAGGERATED BY MORE THAN 50 percent." Clearly, homeowners share much of the blame for the current situation in the housing market. Overstating income by even a few percentage points allows homeowners to obtain mortgages that they otherwise would not qualify for now -- let alone if the payment doubles in a year or two. And the mortgage companies do not even bother to check if the loan applicants are lying or not. But that is because they don't hold onto the loans, and won't ever have to worry about the defaults.

It is the investment bankers, pension fund managers, and the rest of Wall Street and the economy (and consumers) who will bear the ultimate burden of these defaulted loans. As the article from the Online Journal states, "Fund managers have been more than eager to take this "collateralized debt" and use it in the booming hedge fund industry. No one really knows what will happen to the stock market when foreclosures begin to skyrocket and the banks and hedge funds are unable to recoup their losses." Thus, it is probably safe to assume that the economy and consumers at large will pay for the loose lending of banks, and loose ethics of "exaggerating" (lying) home buyers of the previous years.

The real cause of these conditions, however, originated with the Federal Reserve system, which lowered interest rates and increased the supply of money in the economy. This allowed banks to lend much more at lower rates, by using loan guidelines that allowed them to increase the income these loans generate at a later time, regardless of the interest rate. Most of the extra money generated by the Fed found its way to the housing market, and the low interest rates enticed many potential home buyers to finance now "while rates are low."

Obviously, for homeowners who are currently behind in their mortgages, or are expecting their payments to dramatically increase, it is most important to get out of debt as much as possible right now. And for those who need to stop foreclosure, the best way may be to refinance before it is too late, or arrange a short sale to an investor, who may be able to help save the home. While there will need to be a deeper correction to the real estate market and greater economy in the coming year, homeowners can take action now to prevent or stop foreclosure before it is too late.

The subprime mortgage market throughout 2006 resulted in or is now expected to result in so many defaulted loans and foreclosures that some lenders are taking drastic actions to cut their losses. Some are refusing to fund any new loans until conditions stabilize, while others are getting out of the subprime lending market altogether. A few have even been forced to seek bankruptcy protection.

The consequences of loose lending policies are being felt more and more, as homeowners see housing prices that do not even come close to what they expect their homes are worth. For foreclosure victims, lower home values can mean the difference between being able to stop foreclosure, and losing the home with nowhere to turn to.

And while Fannie Mae and other lenders have finally decided to tighten up their lending guidelines, there are no resources current homeowners can use to protect their property and credit from being taken away and ruined for years. The lending policies are designed to protect future homeowners, but there is nothing being done to protect current homeowners.

This is why it is vitally important that homeowners who have missed a mortgage payment do not delay in finding some solution to foreclosure. If they do not have a plan of action to stop foreclosure, then they can be sure that no one does. Lenders experiencing record rates of default will not look too kindly on another homeowner failing to make their payments, and failing to return their phone calls to work out a solution.

Undoubtedly, the blame for the current record default rates should be placed equally in the laps of lenders, loan originators, and homeowners. The trend of chasing after borrowed money to fund unnecessary projects shouldn't be allowed to run so rampant that both homeowners and banks experience record foreclosure numbers. Tighter lending policies are needed, but even more important is to establish new solutions to protect homeowners and banks who are experiencing two sides of the same problem.

Are foreclosures likely to keep increasing? This is an important question, because most of the news lately has been that the economy is doing quite well. The stock market is at record highs, news media states that the worse of the housing market is over, and rebounds in housing values should begin to occur in the near future. But this does not really reflect what homeowners are experiencing in their own lives, as they run out of money, miss mortgage payments, and find themselves facing foreclosure.

One of the reasons that homeowners' experiences are in contrast to the news they hear is that interest rates had risen in 2006. This is causing homeowners who have Adjustable Rate Mortgages to see their payments increase dramatically -- sometimes increase by 50% or even double. They can't afford the new, higher payments, and struggle along until a hardship occurs and they fall behind. The hardship is the one bad thing the homeowners were hoping didn't happen, until they had time to build their credit, apply for a new loan, and start making lower payments again.

Furthermore, the higher cost of lending due to higher interest rates has caused property values to drop. Many homeowners have attempted to refinance or sell their way out of foreclosure only to find out they're upside down in the mortgage, owing more on the loan than the home is worth. This makes selling the property to stop foreclosure more difficult, and necessitates a short sale process -- a process that is best handled by a private real estate investor. And if values are expected to decline even further, then investors are less likely to purchase properties that they do not feel will hold their value.

Also, banks are tightening up their lending policies and making it harder for homeowners with bad credit to obtain new mortgages. This will make it even harder for these homeowners to refinance to stop foreclosure. Especially since, under the new lending guidelines, the homeowners don't even qualify for the loans they are in curently. The new lending policies will only contribute to homeowners losing their homes in mass numbers. The question is where do the homeowners turn to when they find out their loan isn't something that anyone thinks is in their best interest, but they are unable to qualify for any loan under the new guidelines.

So yes, foreclosures will continue to increase, and homeowners will have a tougher time finding any solution to stop foreclosure and prevent losing their homes. The best thing to do will be to save as much money as possible, in case a hardship strikes. And if the homeowners don't have enough income to create or fund an emergency account, then maybe the decision to purchase a home in the first place was a little premature.

There are too many reasons to list why homeowners are losing their homes to foreclosure in record numbers. The slowdown in the housing market, greater debt, loose lending, less protection for consumers, and outright criminal activity are contributing to more and more people finding themselves too far behind in debt to even conceive of catching up. They take out loans and rely on credit for the smallest purchases, borrow their food, borrow their car, and borrow their home. When the magic ends, and hardship occurs, the homeowners suddenly realize that creditors are not nearly as friendly and caring as the commercials and advertising presents them to be.

Homeowners facing foreclosure invariably end up realizing that, once they have begun missing payments, there are no other loan companies to turn to for help. Miss a mortgage payment, and you have to pay the whole amount of the loan. Miss a car payment, and ride a bike to work. Miss a credit card payment, and you can't borrow any more money or charge anything on the card. Miss a combination of payments, and there is virtually nowhere to turn.

Homeowners have taken out so many loans for both massively important and completely useless items. Refinancing a mortgage for home improvements, refinancing to consolidate debt, refinancing to pay for a child's education. Using a credit card to take out a loan for a cup of coffee, a CD, or to make another debt payment. These actions have turned into a perpetual cycle of homeowners taking out debt to pay debt and have resulted in a near doubling of total household debt since 1999.

Due to this cycle, the difference between the middle class and the poor is that the middle class can still afford their debt and take out additional loans. The poor are simply forced to make due with what little they have and earn. The rich, of course, are the ones lending the money to the middle class, collecting the interest payments, and financing more loans to collect more interest.

So what is really worse? Running around the "debt-to-pay-debt" wheel, or being forcefully free from it by having ruined credit but no assets? It's not really a choice at all, unfortunately, as homeowners will keep debt-financing their debt until the machine breaks down, and they find themselves in foreclosure, collections, or having their assets repossessed or wages garnished.

Solutions? Using equity financing instead of debt financing would be a start. Getting out of debt any way possible would be another idea, if it is even possible at this point. And for homeowners who are behind on their mortgage, then it is incredibly important to find some way to stop foreclosure before it is too late. But taking out worse loans to pay off bad ones will not solve the problem. A temporary solution may help stop foreclosure, but until the root cause is taken care of and debt is reduced or eliminated, get used to collection calls for the rest of your life.

Some of the free foreclosure help services and products provided by ForeclosureFish.com:

-Stop Foreclosure E-Book. This 15-page foreclosure e-book explains the basic foreclosure process, and how your lender will proceed when taking your home from you. The red flags of foreclosure scam companies are examined, as well as the most common methods you can use to stop foreclosure. Our foreclosure e-book, used in conjunction with our website, can teach you how to save your home on your own and avoid all of the worst foreclosure scams. Best of all -- the e-book is completely free to anyone who wants a copy of it.

-Letter asking your lender to stop foreclosure. For the cost of postage, we will send a complimentary workout package to your lender, asking them to stop the foreclosure process, examine repayment options with you, and help you structure a short refinance or short sale. Other companies may charge you thousands of dollars to request only one of these three vitally important services. ForeclosureFish.com is the only website providing this service for free to approved clients. Saving your home shouldn't cost you hundreds or thousands of dollars; this is money you should use to pay your mortgage, get out of debt, or apply to a refinance.

-Pre-screen your property details to hundreds of foreclosure help resources. You really don't know what options you have open until you actually start contacting companies and asking them what they can do to help you stop foreclosure. But we take all of the work out of this. Once we know a little bit about your situation, we will present the details to several hundred lender, hard money lenders, private investors, and general foreclosure help companies. They will be able to tell you exactly how they can assist you in saving your home. This can save you hundreds of hours of searching for foreclosure help companies, or calling around until you find a company that can provide assistance in your situation. Have companies call you directly with what they offer, and you can decide to accept the help they provide or not.

These are three of the free foreclosure help services provided by ForeclosureFish.com, in addition to daily updates on the website, foreclosure news analysis, and loads of free informational resources. When you are attempting to stop foreclosure, you need as much help as you can get. The problem with foreclosure help is that it is notoriously expensive. Companies who charge foreclosure victims thousands of dollars are misguided at best and criminal at worst. Use the money you have to stop foreclosure -- not to take a chance on a foreclosure company that has no interest in helping you save your home.

In a long overdue measure, central banks and major players in the mortgage market are now tightening up their policies. Interest rates have risen to new highs in recent months, and some banks are reexamining their loose mortgage lending policies. It is commendable that some restrictions are now being considered, but there will be no help for current homeowners who are struggling to pay their mortgages.

The real interest rate has been increasing, making money more expensive now than it has been in quite some time. From our other discussions of the ways that money works (see here and here ), this fact means that more dollars are needed to buy goods and services. In addition, inflation is slowing down. While this may help to curb the increasing prices of goods and services, it also creates indicates that wages are not increasing. For homeowners who need more income to pay their increasing mortgage payments, these two factors alone can push them into foreclosure and create an impossible situation where the homeowners are completely locked into their homes, unable to stop foreclosure in any effective manner. And this doesn't take into consideration the slowing real estate market and lowering of home values.

In response to so much of the negative foreclosure news, some banks and lending institutions are considering tightening their lending policies. These new policies will affect the market most in danger of the loose lending of recent years: the subprime mortgage market. And this new tightening of lending policies will not fix the problems in the subprime market without a large number of sacrifices. Subprime borrowers, who were the original victims of the loose lending, will find their mortgage payments to be increasing at rates they can not hope to keep up with, due to higher interest rates. And now, they will not even be able to refinance their loan to save themselves, with tighter lending policies.

In fact, homeowners may find that the loans they are currently in are programs that they would not have qualified for in the first place, if more responsible lending policies were in place to begin with. Furthermore, as they fall behind in these mortgages, they will be unable to stop foreclosure by refinancing, because there are no longer any mortgage programs they qualify for. And they will be unable to sell their homes, as they may owe more on their mortgages than the home is worth. And finally, with the new bankruptcy laws firmly in place, they will not even be able to take the last resort to stop foreclosure.

What does all of this really mean? It amounts to a massive transfer of real estate wealth from the poorer subprime mortgage market into the hands of banks, the government, and other private real estate investors. Obviously, the banks and the government, if they end up with the homes, will not allow the homeowners to live in the properties, as they will be repackaged, grouped with other blocks of properties, and sold off in lots. It may be the only hope for many homeowners to find help through a private investor to stop foreclosure; an investor who will let them live in their home, rebuild their credit, and create a local economy.

But then again, some states have even outlawed or placed restrictions on deals of this nature. Unfortunately, some homeowners may find they have absolutely nowhere to turn to remain in their homes.

The recent slowdown in the housing market has caused a marked increase in the number of news stories relating to foreclosure and, by extension, to various foreclosure scams. Almost one half of all the news stories about the market conditions and foreclosure in particular are aimed at warning homeowners of the potential for abuse by unscruplous scammers. It is a sad commentary on the state of mortgage education that so many homeowners are unaware of the ease with which criminals can steal their homes.

One of the most common scams involves tricking people into signing over the deed to their homes, in exchange for "fast cash," "equity funding," or a similar offer. The sad fact is, however, that these offers for cash are nothing more than attempts by scammers to have homeowners sign over their homes for a nominal price. The scammers take advantage of the homeowners' apparent ignorance and to understand what the paperwork they are signing actually states regarding their homes.

Many news stories are also taking a more careful look at the increase in "foreclosure rescue services," and the scams associated with these companies, which also attempt to trick homeowners into signing over their homes. Once the scammer has stolen the home and recorded the new deed, they can collect rent payments, telling the homeowners that they are using it to pay the mortgage, or even evict the homeowners who no longer own the home. If this happens, the scammers can rent the house out to another family until the eviction process is completed, thereby being directly responsible for the eviction of more than one family.

A simple search of any news site, such as Google News, or Yahoo! News, yields numerous similar stories detailing various scams that former homeowners have become victim to. If homeowners are behind in payments on their mortgage, the best protection is gaining knowledge of the foreclosure process and how best to stop foreclosure. Idly remaining uninformed is the single best way to lose the home, all of the equity, and a good portion of your life savings.

In fact, the only possible defense against losing the home to foreclosure is to learn how foreclosure works and how to stop foreclosure. Homeowners who do not know any better have sent thousands of dollars to criminals or have signed over their homes, only to be evicted shortly thereafter. This is a high price to pay for ignorance, and a price that is entirely avoidable.

A few basic tips to remember when attempting to stop foreclosure is to read what you are signing, or have competent legal counsel examine the documents, make sure you are obtaining a solution that is affordable, and, most importantly, examine all of your options to stop foreclosure and avoid scams.

The most common complaint from foreclosure victims is that they feel they are in the dark about their situation and are not informed enough to stop foreclosure. Education about the foreclosure process should be the homeowners' first priority after missing multiple mortgage payments. Only by understanding the foreclosure process can they avoid scams and save their homes on their own.

It is unfortunate, but true, that many foreclosure scam companies trick homeowners into sending hundreds or thousands of dollars to provde mysterious "foreclosure assistance" services. The money is collected up-front, and the scam company proceeds to do nothing for the client, turning them down or recommending bankruptcy at the last minute, with a foreclosure sale date quickly approaching. When this happens, the homeowners may not have enough time to stop the sheriff sale.

However, the homeowners should be able to avoid falling prey to scams by informing themselves of the ways that foreclosure works, and what options are used to stop foreclosure. No one will provide this to the homeowners, so it is up to them to find the information on their own. If they do not learn how foreclosure works and can be stopped, they are much more likely to become victims of foreclosure scam companies who leave them in worse situations, by taking hundreds or thousands of dollars from their victims; money that could have been used to pay the mortgage.

Thus, it is vitally important that foreclosure victims learn what is happening to them, and what options they have to save their homes. Only after obtaining a basic understanding of the process should homeowners attempt to stop the foreclosure process. They will know how to work with their lender to negotiate a repayment plan, what the qualifications are to refinance, and what else can be done to save the house. Most mortgage companies do not provide their employees with detailed foreclosure knowledge, so a basic understanding on the part of the homeowner will help tremendously when working out a solution to foreclosure.

Once the homeowners miss their mortgage payment, the world changes for them: collection calls every day from the lender, potential scams calling or sending postcards, and a general sense of helplessness sets in. However, the homeowners can stop the foreclosure without relying on third party help from companies that they are unfamiliar with and whose sales tactics they do not understand. The most effective way to stop foreclosure is for the homeowners to learn all they can about the foreclosure process, first, and decide on a solution, second.

With the increasing number of foreclosure scams that are discovered and exposed on a weekly basis, it is important for homeowners to be able to spot "red flags" of companies and individuals that may be trying to steal from the homeowners. This post doesn't focus on specific scams, how they operate, or what to do to get a refund. Instead, this post explores three of the main ways scammers may try to take advantage of their clients.

Signing blank documents. No matter who you are working with to stop foreclosure, a blank document that you are to sign should raise immediate concerns. You never want to sign blank documents, as you won’t know what they will be used for until it is too late. You may sign away the deed to your house, authorize another lien to be placed on your home, or give a criminal power of attorney over all of your financial matters. Someone who is trying to steal your home can easily have the documents witnessed and notarized in your absence, making them appear official. If this happens, a closing can take place where your property is sold without you even being aware of the sale.

Powers of attorney. Signing over power of attorney to someone should be done only in extreme situations, if ever. In almost all cases, you will need to maintain control over your home and what happens to it, and giving someone power of attorney effectively transfers your control to that person. Do not let anyone else make decisions about your property without your knowledge and consent. You should always retain the right to revoke any decisions or actions made by the attorney. However, it is usually best never to give anyone power of attorney over your home in the first place.

Outright criminal activity. This section covers a wide variety of actions you may witness. The main characteristic, though, is usually someone requiring large sums of money up front before they will provide you with any services at all, whether it is an investor, attorney, or loss mitigation company. Be very, very careful of sending anyone money if you are in foreclosure. The problem with paying for services before they are provided is that you have no way of knowing if the services will be performed adequately, or at all. Many foreclosure help companies will ask you to send thousands of dollars to them, or as much as one month’s mortgage payment, just to begin their services and have them review your case. Until you have determined exactly what the services are worth, you should never send anyone money because, in almost all cases, their services are worth nothing to you.

We've made a slight change to the blog. Anyone can leave comments now, not just registered users. If you see anything that you would like to leave a comment, please feel free. Also, if there are any questions, please leave those, as well.

By far, the most popular option that foreclosure victims are interested in is refinancing to stop foreclosure. While this is one of the most effective ways to save the home, it can often times be very difficult to qualify for a refinance.

This fact may, surprisingly, come as a surprise to many homeowners in foreclosure. It reflects much of their experience, but is the exact opposite of what many mortgage brokers will tell them. The vast number of homeowners have tried to refinance once, twice, or several times before, but they end up being turned down, with nothing to show for their efforts but higher fees on their current mortgage, and a vast reduction in the time available to stop foreclosure. Also, most brokers will claim to be able to do foreclosure loans, but there are very few direct lenders or hard money lenders who do foreclosure bailouts.

Where the confusion comes from is that when a broker takes the homeowners' loan application to a lender, he is processing the application under his own company's name -- not the direct lender's name. This causes the homeowners to believe that there are literally thousands of potential refinancing options available, and all they have to do is be lucky enough to hit upon the right broker who will accomplish the refinance for them.

What the homeowners do not know, though, is that each broker may take the application and present it to the same direct lender, who turned the loan down before. If a lender turns down a loan once, then they will not consider doing it a few weeks or months down the road, when additional fees, interest, and charges may accrue to the tune of several thousand dollars. Remember: if a lender turns down your loan, and your situation gets worse, and you apply for the same loan through the same lender again, you will get turned down again.

But why don't homeowners know this is happening? The confusion in names is the biggest reason. For example, Broker ABC can submit the foreclosure refinance to Eastern Foreclosure Bailouts, LLC, who will turn the loan down. Broker ABC will tell the clients they have been turned down, and the clients believe they have been rejected by the Broker ABC, so they try another company. The homeowners apply for a loan through Broker XYZ, who takes the application and submits it to Eastern Foreclosure Bailouts, LLC, who turns the loan down again. Broker XYZ tells the client that they are unqualified, and the homeowners think they have been rejected by a second broker. In fact, though, they have been turned down by the same direct lender.

This is the mistake that homeowners make when searching for a foreclosure refinance. There may very well be a lender who will give them a loan, but the homeowners will not be able to narrow down the list of direct lenders to apply to, if they do not know what companies their loan has been sent to in the past.

Having the same loan submitted to the same lenders will only result in the same rejection of the application. Furthermore, submitting the same loan does not stop foreclosure, especially if you have been turned down before. Find out what lenders your brokers have submitted the loans to, so if the loan is not approved, you will know what options are now closed. Then you can use another broker who uses other lenders, or submit your loan directly to lenders yourself.

Remember, you will most likely be better off submitting the loan to lenders on your own, but you will not have the benefit of experience that comes with using a broker. It is up to you, though, to find out as much as you can about the options to stop foreclosure, and what has been done previously to help you.

Happy New Year!

Make 2007 the year that you stop foreclosure or help a family in foreclosure save their home.

ForeclosureFish will be reopen for business tomorrow, January 2nd, 2007. We are closed on New Years Day in observance of the holiday.

Hopefully, your New Year's resolution will be to learn as much as you need to be able to stop foreclosure and avoid any potential foreclosure scams.