Using Logic When Facing Foreclosure
Emotional decisions inevitably lead to regrets, disappointments, and costly financially mistakes, especially when you try minimizing foreclosure consequences.
When you understand the psychological "wiring" behind your choices, you are more likely to make prudent strategic decisions for your family.
The purpose of this article is to assist you in this process.
Based on my experiences with the overwhelming majority of my foreclosure clients, the loan modification programs are, by their very nature, unpredictable.
No one can guarantee that you'll avoid foreclosure consequences with a loan modification.
Some families in foreclosure will find themselves going to the bank one week, only to be told that they're overqualified.
Then they may come back, only to be told by the same bank that they're under-qualified.
The numbers haven't changed significantly; rather, the modification system itself is so complex and convoluted that it has a hard time helping anyone avoid foreclosure consequences.
If loan modification is so unpredictable, then why are ninety percent of pre-foreclosure families driven towards it? One of the primary reasons that people facing Utah foreclosure consider a loan modification is based on emotion.
As humans, we are wired to resist change and preserve a status quo.
You're attached to your home, and you think that, with just a couple hundred extra dollars a month, you can avoid foreclosure consequences.
Unfortunately, when you put the emotion aside and look at the raw numbers, this option is almost never the best choice.
Therefore, before deciding on proceeding with the loan modification, follow these 6 easy steps to make a better decision for your family and avoid false sense of security and hope.
STEP 1: Separate your emotions from facts by simply writing them down.
You will be surprised by the clarity gained from this simple exercise.
Many of my clients reported that this simple step immediately gives them an objective perspective the Utah foreclosure situation.
STEP 2: Scrutinize your income for consistency.
You will be surprised, how many homeowners forget some critical factors affecting their income, including the seasonal nature of their job or overlooked tax refunds to mention a few.
It is important to annualize your income to ensure all the highs and the lows are fully accounted for, which will give you an accurate financial picture of your household income.
Remember the golden rule: garbage in, garbage out.
If you information is inaccurate, your financial decision will also be inaccurate.
STEP 3: Scrutinize your expenses by preparing an annualized financial statement.
Avoid relying on the financial forms provided by your mortgage company, which often miss critical pieces to the puzzle.
Some of the most frequently forgotten categories might include non-escrowed property taxes and insurance, unaccounted HOA assessments, car payments that do not include insurance, maintenance (oil change, tires, repairs) and gas cumulatively, medical and dental insurance, cafeteria and 401k deductions, cable but not internet to mention a few.
Inaccuracy of your annualized financial statement will lead to unexpected financial difficulties in the future, perpetuating your financial hardship like a groundhog day.
STEP 4: Take your time to review all viable options to both foreclosure and loan modification based on the most reliable up-to-date information.
Do not take the advice of well meaning friends or relatives as an absolute truth.
Do your own research regarding forbearance agreements, repayment plans, reinstatement, short sales, bankruptcy, etc.
STEP 5: Stay away from "too good to be true" third-party offers by asking intelligent questions.
Are you a licensed professional? How long have you been in business? Are you registered with the state chamber of commerce? If the offers sounds "too good to be true", it probably is.
Ask for the copy of the professional license.
STEP 6.
Take advantage of a free expert advice offered by licensed real estate professionals and mortgage brokers.
Strictly regulated by the state law, they are always the source of the most reliable up-to-date information regarding Utah foreclosure and its long-term consequences.
Don't be fooled, and don't be taken in by false promises and high emotions in Utah foreclosure.
Before you waste weeks or months pursuing loan modification, follow these simple 6 steps proven to work for many of my clients.
This intelligent approach can put you at the pinnacle of the decision-making process and save you from many foreclosure consequences.
Remember, you too can avoid foreclosure consequences and save the American dream.
When you understand the psychological "wiring" behind your choices, you are more likely to make prudent strategic decisions for your family.
The purpose of this article is to assist you in this process.
Based on my experiences with the overwhelming majority of my foreclosure clients, the loan modification programs are, by their very nature, unpredictable.
No one can guarantee that you'll avoid foreclosure consequences with a loan modification.
Some families in foreclosure will find themselves going to the bank one week, only to be told that they're overqualified.
Then they may come back, only to be told by the same bank that they're under-qualified.
The numbers haven't changed significantly; rather, the modification system itself is so complex and convoluted that it has a hard time helping anyone avoid foreclosure consequences.
If loan modification is so unpredictable, then why are ninety percent of pre-foreclosure families driven towards it? One of the primary reasons that people facing Utah foreclosure consider a loan modification is based on emotion.
As humans, we are wired to resist change and preserve a status quo.
You're attached to your home, and you think that, with just a couple hundred extra dollars a month, you can avoid foreclosure consequences.
Unfortunately, when you put the emotion aside and look at the raw numbers, this option is almost never the best choice.
Therefore, before deciding on proceeding with the loan modification, follow these 6 easy steps to make a better decision for your family and avoid false sense of security and hope.
STEP 1: Separate your emotions from facts by simply writing them down.
You will be surprised by the clarity gained from this simple exercise.
Many of my clients reported that this simple step immediately gives them an objective perspective the Utah foreclosure situation.
STEP 2: Scrutinize your income for consistency.
You will be surprised, how many homeowners forget some critical factors affecting their income, including the seasonal nature of their job or overlooked tax refunds to mention a few.
It is important to annualize your income to ensure all the highs and the lows are fully accounted for, which will give you an accurate financial picture of your household income.
Remember the golden rule: garbage in, garbage out.
If you information is inaccurate, your financial decision will also be inaccurate.
STEP 3: Scrutinize your expenses by preparing an annualized financial statement.
Avoid relying on the financial forms provided by your mortgage company, which often miss critical pieces to the puzzle.
Some of the most frequently forgotten categories might include non-escrowed property taxes and insurance, unaccounted HOA assessments, car payments that do not include insurance, maintenance (oil change, tires, repairs) and gas cumulatively, medical and dental insurance, cafeteria and 401k deductions, cable but not internet to mention a few.
Inaccuracy of your annualized financial statement will lead to unexpected financial difficulties in the future, perpetuating your financial hardship like a groundhog day.
STEP 4: Take your time to review all viable options to both foreclosure and loan modification based on the most reliable up-to-date information.
Do not take the advice of well meaning friends or relatives as an absolute truth.
Do your own research regarding forbearance agreements, repayment plans, reinstatement, short sales, bankruptcy, etc.
STEP 5: Stay away from "too good to be true" third-party offers by asking intelligent questions.
Are you a licensed professional? How long have you been in business? Are you registered with the state chamber of commerce? If the offers sounds "too good to be true", it probably is.
Ask for the copy of the professional license.
STEP 6.
Take advantage of a free expert advice offered by licensed real estate professionals and mortgage brokers.
Strictly regulated by the state law, they are always the source of the most reliable up-to-date information regarding Utah foreclosure and its long-term consequences.
Don't be fooled, and don't be taken in by false promises and high emotions in Utah foreclosure.
Before you waste weeks or months pursuing loan modification, follow these simple 6 steps proven to work for many of my clients.
This intelligent approach can put you at the pinnacle of the decision-making process and save you from many foreclosure consequences.
Remember, you too can avoid foreclosure consequences and save the American dream.
