Avoid Foreclosure By Seeking Good Resources
Deborah Schultz
You are in preforeclosure and have tried everything -- friends, family and websites. You need help and you think that calling an investor is a good idea. But how do you choose one? Here is a short checklist to help you sort out those investors that can and will help you, from those that are just trying to make a buck at your expense.
Does your investor have experience?
Brand new investors can be enthusiastic and willing to work hard for you. They have probably been training or studying for a long time. Possibly they are working with a mentor. If you trust them and they have rapport with you, that is important. If the auction is coming up soon however, you want someone who is experienced and really knows what they are doing. An investor who has helped lots of people has means and contacts that a new investor may not have. Make sure whoever you choose is committed to helping you and gets things done quickly.
What do the investor's marketing materials look like?
The impression that you get when you look at the investor's marketing materials is important. Dotting i's and crossing t's is important because the investor will be dealing with a lot of your legal documents. Someone who is careful and competent in how they present themselves, will use the same type of care when they are presenting your case to the bank or prospective buyers.
Is the investor a local person?
Dealing with someone local is always better than a nationally based company. They are there for you. They know local laws and they have a database of local people to help them. Out of state investors may give you a good deal, but if something goes wrong, who will be there to help you?
How comfortable are they with letting others look at your paperwork?
The deal that you make with your investor should be a win/win situation for both of you. He or she will make money, but you shouldn't feel that someone is stealing your equity either. They should be open with the paperwork involved. You should be able to have anyone you choose look at it, before you sign it. The understanding that you come to with the investor should be good for everyone involved.
Is the investor responding quickly to your concerns?
Helping people in foreclosure is a competitive and time sensitive business. The investor should get back to you right away, within a few hours of your initial contact. If they don't, perhaps they are working with too many people in trouble. But you also need to have a certain amount of patience. Many times the investor is working with a bank on your behalf. It may take time for the bank to get back to them. Keeping you informed should be important. They should return your phone calls in a timely matter.
How difficult is it to get out of a signed contract?
If an investor is really pushy and demanding in getting the deed from you, back off. Though you need to help, no one should pressure you into signing something that you're not sure about. The only situation where days count, is if an auction is coming up quickly. There is more pressure then because the investor is working against a deadline. If someone says you have to sign today, or I can't help you, unless it's an auction deadline, don't be pressured into signing.
Don't shop around for deals or investors.
If you find the right solution to your foreclosure situation, then stick with and use that investor. It's not right to try and shop around for help, once you've committed to someone. The investor has put time and effort into helping you as best as they can. If you deal with people in a fair and just manner, then that is how you will be dealt with. Pass over a good deal and you may end up with no deal at all.
Gut feelings are good.
Common sense is important. If something doesn't feel right, then its probably not. Some investors can be amazing sales people. If you feel that you are being sold a bill of goods, and that the solution is not good for you and the investor, its time to call someone else.
Having your home go into foreclosure may be the worst thing that has ever happened to you. Doing nothing, hoping that the problem will just go away, will make the situation even worse. If you have studied these guidelines and found someone that you feel good about, who seems to know what they are doing, and has answers to all of your questions, work with him or her. Choosing a good investor will help you get past this situation and help you come up with the best solution for your house and your credit.
Being in pre-foreclosure is frightening and confusing. Don't try and go it alone. Read Deborah Schultz's excellent tips on http://www.firstaidforforeclosures.buyforeclosing.com/) finding a good foreclosure investor, and http://www.firstaidforforeclosures.buyforeclosing.com/) avoiding foreclosure scams
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