Dan Frontgate

Ohio performs its foreclosures judicially. Specifically the County Court of Common Pleas have jurisdiction for the filing of a foreclosure complaint. There are eleven (11) separate steps to the foreclosure process in Ohio. They are

1) Breach letter; 2) Complaint to foreclose; 3) Title Report 4) Judgment Decree; 5) Praecipe ( order of sale); 6) Appraisal by three disinterested freeholders 7) Newspaper Publication; Foreclosure Sale; 9) Motion to Confirm the Sale; 10) Confirmation Hearing; 11) Sheriff?s Deed.

1.) Breach letter

The first step in the Ohio foreclosure process is for the lender to notify the homeowner by certified mail that he/she has breached the contractual terms of the promissory note and to notify the owner of its intention to foreclose on the home and seek a deficiency judgment. This letter will be forwarded to the homeowner prior to the filing of the complaint to foreclose. This is the end of the private information which we will only see if we are able to enter the home prior to an auction and purchase the property from the homeowner directly.

2) Complaint to Foreclose

The Complaint to Foreclose is just a lawsuit which is filed in the court where the property is located. The attorney prepares the complaint after a review of the file, performs a title search and has sent a breach letter to the homeowner. It recites the facts of the breach of contract by the homeowner. For instance the complaint will recite the amount of the original mortgage, the current amount that the homeowner is behind on the mortgage and will include all of the other parties of record.
3. Title Report

A list of all parties interested in the property.

4) Judgment Decree

Once the court has established that a judgment shall issue, they will enter into a judgment which will set out the amount of the debt due on the house, orders the foreclosure, marshals the liens, establishes the priority of payment and orders the property to be sold free of liens.

The judgment decree will contain the following:

1) a recital of the pleadings filed; 2) a finding that service has been made 3) a finding as to the lien for the real estate taxes; 4) a finding as to the validity of the mortgage and its right to foreclose; 5) finding as to the priorities of the liens; 6) order of sale to the sheriff.

5) Praecipe (order of sale)

This must be filed with the clerk within three days after the decree.

6) Appraisal

Ohio requires that the property be appraised by three separate impartial individuals and that the property cannot be purchased for less than two-thirds of the appraisal except when a junior lien is foreclosing.

7) NEWSPAPER PUBLICATION

The notice in the newspaper is required to have the following information contained therein:
1) The time and place of the sale.
2) The street address of the sale and description of the property.

Foreclosure Sale

The sale is then held in the courthouse at the county courthouse where the property is located. The high Bidder is required to deposit ten percent (10%) of the winning bid by certified check or cash with the sheriff. If the high bidder defaults on his obligations to make all payments within the prescribed time the high bidder will lose his/her deposit and the property will be re-advertised for sale.

9 Motion To CONFIRM The SALE

This simply is an order prepared by the Banks lawyer confirming the sale and the order of payment.

10) CONFIRMATION HEARING

The standards to confirm a sale are that if the judge finds that the sale was regular it will be confirmed. It is not subject to appeal unless there was an abuse of discretion.

11). Sheriffs Deed

After the confirmation hearing the winning bidder will be given a deed by the sheriff deed. frontgateconsulting.com/

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Leon Chaddock

In order to avoid-foreclosure, you need to find the companies and the services that are able to provide you with high quality information. You do not need someone to come in and try to sell you yet another deal. For honest to goodness help in getting out of this debt and mess, you need high quality advice. While it is not easy, you can avoid-foreclosure.

First of all, make sure that avoiding foreclosure is the right thing for you. IF you can not make the payments and you can not find a way to get around it, letting it go will ruin your credit, but until it is over it can?t get any better. While this is not news you want to hear, it can be helpful to some.

But, when you do have a shot, you need to take it. To avoid-foreclosure, you need many options. For example, you may want to actually call the bank and ask them if there is a way you can work with them to end the problems. Maybe they can extend your payments so that you can get caught back up.

You may be able to get a loan that will cover the amount that you owe as well as any other money that you need. This can then be paid off in installments. Although hard to find, this is one method to avoid-foreclosure.

You should take the time to speak with the creditors that you owe money to and see if you can work something out with them. Be honest and tell them what has happened, what you plan to do to get out of it, and see if they can help you. If it does come down to selling the house, do your best to get through it before it is too late. You can avoid-foreclosure by taking the time to find all the options that you have and then choosing the best possible answer for you.

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Mel Goodwin

The purchase of your home was certainly one of the biggest investments you have ever made. Now you are faced with the prospect of having to lose your house, due to circumstances beyond your control. Facing foreclosure is definitely very stressful and complicated. But with the proper assistance, it need not be such a bad experience and you may be able to keep your house and establish financial stability.

It is necessary to act at the right time as the longer you wait, the fewer options will be available to you. But that does not mean you should just approach the first foreclosure assistance services blindly. There are certain points to be kept in mind before opting for foreclosure assistance services.

GREAT EXPECTATIONS: First you should know what to expect from the foreclose assistance service. Most foreclosure assistance services will cover in-depth financial counselling, debt management and repayment programs, working with your mortgage company and information about the foreclosure process.

Foreclosure assistance services usually never take control of your property. The agreement will be between you and your bank. So, know what you are getting into and be wary with whom you trust your home. Remember that there are a large number of foreclosure scams.

NEED FOR SPEED: Time definitely is of essence and so you should look for a foreclosure service that acts promptly. Usually, under normal situations, a foreclosure can be stopped within a period of 4 to 6 weeks, with the help of a foreclosure service.

If you already have settled on a date for sale for your property, it is obvious that the whole process must be speeded up. So ensure that the service you choose moves quickly.

EXPERIENCE IS THE KEY: Make sure that the foreclosure services you choose is experienced and has a good reputation. You may like to talk to a few of their previous clients to see how good their service is. This is vital because if the service lacks experience they may not be able top resolve your situation and will be unsuccessful.

This will result in you losing time, which is of utmost value, and they may not be able to stop the procedure of foreclosure before the auction time. A good foreclosure service will carefully make an analysis of your financial status and standing and will the best and suitable way out for you.

KNOW YOUR OPTIONS: Make sure that the foreclosure service you choose knows all the options available to you. This is an offshoot of the service being experienced. The service will advise you on the various options, and the more options available, the easier it?ll be for you to stop the foreclosure. So, make sure that the foreclosure services are well conversant with what all can be done for you.

Some of the options are:

1. A loan modification workout program seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan.

2. A repayment plan is suitable if you have had a short-term financial hardship but are now getting back on their feet. A repayment plan requests that the lender stop the foreclosure process and structure a repayment schedule in a more lenient fashion to allow the recovering homeowner time to catch up their loan and save their home.

3. A forbearance is a request that the lender forbear (stop) from proceeding any further with the foreclosure for a short period of time. This is usually done along with another workout. For example, a lender would issue a forbearance while the homeowner tried to sell their home to cure the debt

4. A “short sale” is the best solution when the homeowner owes more on the house than the house is worth.

5. In a “deed in lieu” workout a homeowner surrenders their property to the lender in exchange for forgiveness of their mortgage.

Once you are knowledgeable about these general options you will be in a better position to discuss with the foreclosure service assistance what you can opt for or should opt for. The foreclosure assistance service will act as the negotiator, advisor, and coordinator. But it is best for you to know the options and be pre-armed.

Keeping the above points in mind, choose the right foreclosure assistance service, which will help to smoothen the process for you, so that you are on the road to financial stability, and hopefully will be able to keep your house.

Important information on how to stop foreclosure is available 24/7at http://www.stopforeclosureline.com.

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D. S. Peter

First thing I would suggest regarding foreclosures learn as much as you can on this subject. Foreclosures are considered to be very complex type of real estate investing. Second important thing for the real estate investor is - study the local market. Be sure and follow up to see what the properties sold for and how quickly. You need to be an expert on local property values if you want to be a successful real estate investor, in my opinion.

Where do I find foreclosure or pre-foreclosure deals? The best way is go to the court house and search the Notices of Default/NOD and the Trustee?s Sale/Foreclosure listings. Other things you might consider find an experienced agent that will show you foreclosure listings. They know which web sites offer up to date foreclosure listings. Start interviewing agents to find one that is an experienced investor as well, who has done what you plan to do. When you buy these properties the agent?s commission is paid by the clearing house. The advantage of going to the court house is you have a good chance to make a deal before anybody else knows about it. When it is on the internet, thousands know about it. If the foreclosure sale is an auction in your area, start your bid small and see what happens. Know how far you will go prior to starting the bidding as the biddings go fast. You might want to start the bid at $2,000, watch the bidding, keep bidding when needed, and stop your bidding when it goes over where you are OK at the amount.

Get a foreclosure attorney should you need a help (most likely you will if you are beginner). Another thing you want to take into account is the redemption period (if you are doing business in a redemption state). Some redemption states for example have 6 month right of redemption. Which means the original owner has 6 months to buy back his/her property. It can be even longer if the house was bought in a year when the redemption period was 12 months before they changed the law and made it 6months. Now the new buyer (you in our case) will be stuck with 12 month redemption. Which means you cannot sell during that period.

This in turn can make a huge difference in holding costs for you. To make it clearer, let?s say you bought a house at a foreclosure auction for $60K on the 2nd of January 200X, the amount owed to the bank was $30K which they received after the sale and the owner got his/her check for $30K (minus all expenses in most states the amount above what is owed goes to the owner). The former owner comes on the 29th of May year 200X and he/she can legally buy back the property for $60K (plus all other transaction costs). If the house was in bad shape and you put money to fix it, you might consider it gone as well. The important thing to keep in mind in redemption states is the redemption date and holding costs (buying right is always a rule number one in any real estate deal).

Now let me show you a general pre-foreclosure real life case scenario you most likely will encounter numbers may vary, but the concept is the same. A note holder (private party or a lender) wants out since the owners quit paying their mortgage. The balance on the note is $25,000 and the house is worth about $60,000. (We assume this is a properly executed and recorded first mortgage.) Offer the note holder $17,000 to $19,000 for the mortgage (cash, or paper if the circumstances allow). After you have purchased the mortgage you will have to get them (the original buyers) to deed to you in lieu of a foreclosure by offering them some money (offer them $15,000 or more in our case) to move and deed out or foreclose on them. Don’t forget to get TITLE INSURANCE. (To make sure you are not getting into some sort of mess, which could be quite troubling and costly if not noticed on time). Let?s say you paid $19,000 to the bank and $20,000 to the owner that makes
$39,000 + $3,000 closing cost (at the most) = $42,000. You got $18,000 in equity. You can either keep it as a rental or sell it and make a nice profit.

Sometimes the owners won?t move out. Here is very well working trick if you foreclose and the occupants (works with tenants too if you hold rentals and have the same issue) do not want to leave. Offer them moving allowance of $1,000 if they move within 10 days, $800 if they move within 14 days, $600 in 20 days. It won?t be long till they leave. The amount varies based on whatever the deal allows. When you find a property way below market never take more than 50% of its market value. Instead share it with the owner. There are some consumer protection laws and you cannot ?unjustly? gain because of someone else?s misfortune. Some states (California for example) have tough rules, so if you want to play the foreclosure game, you have to learn and play by the rules. If foreclosures are too complex for you, there are other ways you can make money in Real Estate, but if you happen to come across a good pre-foreclosure or foreclosure deal consult a local attorney who does foreclosures to guide you through the process. If you want to invest in foreclosures learning your state’s foreclosure law backwards and forwards is very important.

Here are a couple of links to websites with articles on Real Estate Investing where you can learn different techniques from other investors: http://www.buying-investment-property.info/ and http://www.realestate-investinginfo.com/

One good thing to remember which will save you time, money and efforts try to always work with motivated sellers. Oftentimes the owners in pre-foreclosure are in denial with their situation and need to be brought back to reality. You have to know how and what to talk to them in order to get them sell you the property at your price. You have to motivate them. There are tricks to the trade. Learning is a never ending journey.

Use the right Real Estate Forms when you buy and sell. If you don?t have any forms here is a website you can print forms for free: http://www.realestate-agentsinfo.com/

Good luck!

Copyright ? D. S. Peter is a successful real estate investor for over 14 years. This article can be published by anyone as long as the reference box remains intact and all links are kept live.

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Stacey Krech

While there are many technical aspects to successfully stop a foreclosure, I
thought it best to cover a more personal aspect here. You are doing nothing
while your home slips away from you! Ignoring your foreclosure will not
keep the bank from taking your home. (No, there is NOT a chance they forgot
about you.)

The Top Tip to Stop a Foreclosure: Understanding and Moving Past Your
Emotions.

So let’s be honest here, ok? You have feelings and feelings are messy. We
often do not want to deal with them. To make it worse, we have a glut of
emotions linked to money. I know from experience how you may be feeling.

Foreclosure is a stressful experience. During my crisis I felt anxious and
worried. I was afraid to open my mail and I dreaded answering the phone. I
was so ashamed and afraid of being labeled a “loser” that it was hard for me to
ask for help. Maybe your feelings are similar.

But guess what? Avoiding a phone call or tossing out a threatening notice does
not stop the lender from taking your home! In fact, it may just speed up the
foreclosure process. You are telling the lender that you are uninterested.
Plus, foreclosure is an urgent matter. You have a deadline after which the bank
auctions off your home. And be assured they will, even if they never speak
with you.

So…understand your emotions. Know how you are feeling is ok and natural.
You are not alone. Just this month there are over 100,000 homes in foreclosure
across the USA! We are all different, yet I somehow think a great deal of
these people are feeling just like you.

Also understand that this is not personal nor is it a reflection on what kind
of person you are. You are not your money and life will life you. Maybe what
caused you to fall behind on your house payments was not your fault. Ok, I got
that. Now, how will you deal with this? That, my friend, is entirely up to
you.

The facts: No matter what you feel you must take action to stop a foreclosure.
You must face it, deal with it and get the help you need to reach your goal
before the time runs out. If I could do this, so can you!

Start with small steps today. Open your mail, organize your statements…or
even contact your lender to simply say “I am seeking help with this”. Maybe
just talk to a close friend and share how you honestly feel.

In the end, nothing feels better than taking some positive action.

Stacey Krech from http://www.HelpMeKeepMyHome.com is a nationally known
House Foreclosure Specialist and Financial Educator. She helps
homeowners impower themselves and stop foreclosure through
education, public awareness and service.

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Ernani Uchoa

Illinois foreclosure listings include homes for every demographic, from upwardly mobile singles to family-oriented homes and neighborhoods and even Illinois foreclosure listings for mature adults wishing to find that perfect home at a great price. It makes no difference what age, job, interests or housing preferences you have, because there are foreclosed property listings in every part of the state, including Chicago and Chicago-area suburbs. Some of the fastest growing cities in the state have a lot of Illinois foreclosure listings, and the housing market is only getting better with time.

Illinois is famous for a number of things, from great outdoor destinations to museums that are out of the ordinary and very interesting. Over 12 million people call Illinois home, and the Chicago area is home to around two million of those residents. Incidentally, the name Illinois comes from the Algonquin Native American tribe and means “tribe of superior men.” This superior state has a lot to recommend it. The Illinois foreclosure listings include such a wide variety of housing options. From condos in the city to nice little ranch style homes located in the suburbs, foreclosure listings in Illinois have it all.

Illinois foreclosed homes listings include various pre-foreclosures, HUD properties, VA houses, real estate or bank owned properties, and others. This means that just about anyone can find a foreclosure deal that makes them happy and is also very affordable. With such a nice variety of foreclosure homes listings, anyone should be able to find a property that suits. The price range for foreclosure listings in Illinois can also vary widely, depending on the size of the foreclosure property and the location. With that said, most foreclosed homes listings are a good deal cheaper than other homes. The rate varies, but it can be as much as 50% below the actual cost, or something like 10% below the actual cost. Either way, you can still save a bundle on Illinois foreclosure listings.

It does not have to be a long and difficult search to find Illinois foreclosure listings, either. Foreclosure Data Bank has foreclosed properties listings in every state, and that includes the state of Illinois. Search by county or city or even ZIP code to find foreclosure listings in Illinois that will whet your appetite for owning a home. Home ownership in Illinois is something that people in every demographic can aspire to, and Foreclosure Data Bank makes that easier with tons of Illinois foreclosure listings to choose from.

Bank Foreclosures - Find HUD Homes in Our Pre Foreclosure Listings

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John Nazareno

There are many different things to invest in these days. One investment route which individuals take is with regard to foreclosures. Foreclosures occur when the current homeowner of a property fails to pay their monthly mortgage and the property is repossessed by the lender. There are various risks and rewards which go along with investments of this type and some of these will be discussed below.

Advantages and Disadvantages to Buying Pre-Foreclosure Properties

One type of property sale which relates to foreclosures is the pre-foreclosure sale. A pre-foreclosure sale occurs when the lender allows the homeowner with past due mortgage payments to sell the home on their own and pay back the lender what they can from the sale of the home. The lender often agrees to this so that they do not have to get involved with possessing then reselling the home and the homeowner likes this option because it prevents foreclosure. The investor also benefits from this type of sale as well.

Some advantages to purchasing an investment property via pre-foreclosure sale include discounted price, speedy purchase and wonderful profit opportunities. As for the disadvantages, the investor who buys property by way of a pre-foreclosure sale may find that the homeowner is hard to contact and/or unwilling to sell, the research is cumbersome and there are other potential buyers who wish to purchase the property.

For those who wish to purchase property via a pre-foreclosure sale, they should do their independent research, approach the homeowner in a courteous manner and ensure that they make an offer that will not cause them to lose money in the end. By doing so, the investor may find that buying a house by pre-foreclosure sale will work to their advantage.

Advantages and Disadvantages to Buying at a Foreclosure Auction

Another way to purchase foreclosure property is through a foreclosure auction. Auctions of this type are usually held at the local courthouse of the county where the property is located within. This is a common way for foreclosed properties to be sold and this too has its pros and cons.

The main advantage to purchasing property at a foreclosure auction is the reasonable price for which one can bid on a property. Although there will be other bidders, the resulting price is usually one that is quite attractive. Another advantage relates to the profit which the purchaser will see when they resell the home. Since the home was won at a reasonable amount, when the highest bidder goes to resell the property they will most likely see a good profit margin from that sale.

With regard to the disadvantages, purchasing a home at a foreclosure auction has a few which are tied in with it. The first disadvantage to buying a home this way relates to the inability to inspect the property. As auction homes are usually sold as is, the bidder who wishes to adequately inspect the home beforehand will be unlikely to do so. Another disadvantage to purchasing a home via auction is that the purchase price and deposit is due via cash or cashier?s check in many instances which may be difficult for many investors to obtain on short notice.

Advantages and Disadvantages to Buying Real Estate Owned (REO) Properties

One last type of property purchase which relates to foreclosures is real estate owned properties, or REOs. An REO is when the property returns to the exclusive hands of the lender and then needs to be sold from that point. The lender is looking to sell their newly acquired property as soon as possible since they do not want to be in charge of the property and its necessary maintenance. The lender will then look for potential buyers of the property.

Some advantages to buying an REO are that they usually have good title, property taxes will be up to date and repairs may have been made to the property by the lender to ready it for sale. As for the disadvantages, those who purchase REOs may find that the savings which they see by purchasing an REO are not as great as they could be and therefore, the profits may not be as great as well.

Conclusion

When purchasing property in any of the previously mentioned ways there are a few things to keep in mind when doing so. It is extremely important to do independent research with regard to the properties and purchase methods, ensure necessary funds for purchase and inspect the property whenever possible. This will help to ensure that the buying process goes as smoothly as possible.

Learn about Foreclosures and free foreclosure list.
Pittsburg Real Estate

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Suzie Shannon

A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons. The main cause is delinquent payments on a mortgage. The mortgage company or second and even third mortgage holders contact the owner, then the trustee (usually an attorney) to begin the process. If it is VA guaranteed or FHA insured, many times they offer assistance or alternatives. Then the appraisal is ordered to determine fair market value.

It can also be for medical bills, delinquent taxes and other liens, even credit cards. “The purpose of this foreclosure is for collection of a debt” is usually printed in the legal section of the newspaper as well as some other publications, such as local business papers and law papers.

Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. If the property is ” free and clear” of other liens then it is solely based on the taxes, penalties and interest due. I know of some that have sold for less than a few thousand dollars.

The owner has the right to cure the default right up to the very last minute before the sale. A pay off statement is prepared including the delinquent payments, trustee fees (usually 5 % of the remaining balance of the loan), processing fees, property inspections, appraisal and any other thing the mortgage company can think of. The problem is not only coming up with the funds but knowing what charges are and if they are legitimate. I have only heard of lawyers and accountants challenging mortgage companies on over or false charges. Please rate and tell friends.

Suzie has been in the business twenty years as a licensed real estate agent, broker and certified residential appraiser who majored in real estate and architecture. She hopes to improve the industry one step and one person at a time. Other professionals in the same fields as well as educators have contibuted.

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Herbert Addison

On October 17, 2005 President Bush?s sweeping bankruptcy reform law goes into effect forever changing the rules of debt collection in this natiion. Consumer advocates and the public appear to be completely unaware of the total and complete victory of the creditors under the new legislation. This article opens the door to the Trogan Horse so that consumers can prepare themselves for the worse.

The most important aspect of the bankruptcy code was the ?automatic stay? provision. This allowed consumers to file for bankruptcy at anytime during the creditor?s collection process putting an immediate stop to all contact and collection activities from the creditor. The new law requires that a debtor receive credit counseling from an approved non-profit credit counseling agency for 180 days prior to filing Chapter 7 or Chapter 13 bankruptcy.

While this may sound benevolent, a much closer look at the practical effect of this provision reveals the crafty peeling of the debtor?s rights. The 180 day requirement is to provide the credit counseling agency the opportunity to work out payment plans with creditors. However, during this same period of time the creditor is not restrained from collection efforts. For example, Margaret is a homeowner in Jacksonville, Florida and is six months behind on her mortgage. As a rule, credit counseling agencies only work with credit card companies and have little or no training with dealing with mortgage companies.

After receiving foreclosure papers, Margaret goes to see her attorney to file for bankruptcy and is told that she must first seek credit counseling before filing for bankruptcy protection. Meanwhile, the foreclosure proceeds on schedule and a sale date is set 120 days later. However, Margaret still has not completed her 180 day requirement. What will happen to Margaret?s home? That?s right! The home will be sold and she cannot stop the sale by filing bankruptcy.

This is the most sweeping shift in debt collection in the past 50 years. Margaret?s only hope will be to work out a repayment plan or a loan restructure with her mortgage company. This is a process called loss mitigation and is explained in great detail to consumers in our new book, How to Save Your Home, ISBN#09753754-0-7, $19.95, SYH University, LLC, 2005 which is sold at Amazon.com.

Loss Mitigation works because lenders lose an average of $28,000 to $50,000 per foreclosure nationwide. It is a myth that the lender wants your home and makes a profit off of foreclosure. A lender has to pay attorney fees, court and collection costs, maintain fire insurance, hire a real estate professional, repair structural and other damage to the home, and pay property taxes. The homeowner can work out an agreement with the lender in over 90% of cases. Our company has provided housing counseling service to thousands of homeowners and loss mitigation absolutely works.

In conclusion, it is up to the consumer to educate and prepare themselves for worse case scenarios. How to Save Your Home is an excellent training tool and will teach homeowners how to protect themselves under the new bankruptcy law. Most Americans do not have health or disability insurance and are vulnerable to job layoffs because of a stagnant economy. Who amongst us is immune to heart attacks, business failure, strokes, law suits, tax liens or other challenges that life sometimes presents. One pay check is literally what separates many families from home security and despair and the new bankruptcy law will severly punish those who slip behind on their mortgage payments.

Herbert Addison, JD, CHC is a Certified Housing Counselor and a member of the Virginia Association of Housing Counselors. Mr. Addison is co-author of the new book, How to Save Your Home, and has helped thousands of families to save their homes from foreclosure sales.

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A. Annika Smith

If you are behind on your mortgage payments for any reason — job loss, medical expenses, and/or unexpected emergencies — don’t panic! You CAN save your home and you don’t have to spend a lot of money to do it.

It happened to me. I am extremely grateful I still have my home. After losing two jobs during the dot com bust and 9/11, I found myself unemployed and unable to pay my mortgage, not to mention any of my other bills. I was alone and afraid. I didn’t know whom to turn to and I didn’t have a lot of money to pay an attorney or seek other help. I sincerely hope that you don’t find yourself in this situation, but if you do, immediately take the steps that I took so you can also avoid losing your precious home. This list is in order of importance.

1. Contact Your Mortgage Company
Call your mortgage company immediately, even if you are technically not yet behind on your payments.Your lender is not in the business of taking homes; believe me, they make far more money lending your mortgage payment to other homeowners. Your lenders may work out a payment plan that will help you until you get back on your feet. There are many different plans they may offer you — a temporary grace period, a temporary reduction of payments, or, if you have already missed payments, stretching those missed payments for a period of time.

If you are already in foreclosure, you can still work with your mortgage company! I did. I worked out a “forebearance agreement”. I had to pay my regular mortgage payment plus a portion of the missed payments every month. I also had to agree to send the funds certified or else they would have taken my home.

2. Speak To An Attorney
Attorneys are expensive. I wouldn’t advise paying one at first. Try to find an attorney that will give you a free consultation, or consult Legal Aid. The money that you do have should be earmarked to pay your mortgage. That being said, if you cannot find free or cheap advice, I would then spend the money for an attorney. I was lucky. I asked around and I spoke to a friend of a friend for free. You don’t need an attorney until you have to go to court — then, please hire one!

3. Reduce Your Other Expenses
I immediately cut off my cable, reduced my cell phone plan minutes (I still needed mine for job searching), and made other cuts to my spending until I got back on my feet. For me, that also meant temporarily changing my dietary habits and purchasing cheaper food. I travelled less so I spent a lot less on gas and train fare. If you can, cancel your registration and insurance on your car so you can save those payments. Little changes go a VERY long way. Remember, it’s only temporary.

4. Rent Your Rooms
I had three extra rooms in my house and immediately furnished and rented all of the them. This single step helped me save my home. I checked with my town to verify it was legal for me to do so. I used VERY little money to get this going. Once I was started receivng rent from my tenants, I was able to give more to the mortgage company. The benefit of this is that you will get money without working and you can deduct your expenses as a business!

5. Have A Yard Sale
Sell some of your things. I’m not talking about the family heirlooms here; I’m talking about extra pieces of furniture, used books, clothing, CDs, movies, etc. You’d be surprised how much money you can raise!

6. Spend Full Time Hours Looking For A Full Time Job
I have to tell you, for me this step was very hard. I did not want to look for another job, but I had to in order to save my home. For some, this step may take longer than others — your mileage may vary. Looking for a job is numbers game - network, post your resume on the job boards, look in the classifieds. It may seem like it will take forever, but you will find something. I promise.

7. If Feasible, Work Part Time
Unemployment checks did not pay my bills in the slightest. In addition, receiving rent for your rooms and collecting unemployment may be prohibited under law. Check with your local unemployment office. In the meantime, find a part time job — even if you are making only minimum wage — and get some cash in your pocket. This will probably get you more than unemployment will give you anyway! Some part-time jobs have limited benefits as well. Plus, getting out of the house is a big energy booster. Having your home in jeopardy is very stressful and depressing. You NEED to get out of the house!

For some of you, health problems may prevent you from working, or you may have suffered some other unfortunate event that may not allow you to do all the steps above. At the very minimum, contact your mortage company and try to rent your rooms. If you can find a temporary place to live, you may want to consider renting your house in full. You may find a smaller or cheaper apartment or you may be able to stay with family and friends.

If all else fails, you may be faced with the choice of selling your home. Before you call a real estate agent or speak with an investor, call around and check the references of any agents or investors you consider. Not all investors are out to steal your equity or your home; many can make incredible deals with you that may even allow you to still live in your home and purchase it back, if push comes to shove. You may in fact be able to sell your home to an investor and save costly realtor fees. Be careful! Never make any decisions on the spot. Now would be a good time to pay for an attorney’s advice.

I made an agreement with my mortage company and rented out my rooms. I found a job, and then kept my tenants to help “catch me up” on my other bills. Then, I just enjoyed the passive income that allowed me to pursue my other dreams. Unfortunately, to get to this point, I did spend money on services that didn’t do anything I couldn’t do myself — and, in fact, they ended up not helping me at all. There are plenty of free resources and articles that you can read to help you make the right decision. Good luck. You will be fine.

Annika Smith is dedicated to teaching others how to be not only financially free, but wealthy and happy. Want to be rich? It?s easier than you think. Follow the exact path Annika took to massively improve her life by checking free information at http://cluestocash.rentrooms4cash.info.

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