Being in pre-foreclosure can be an absolute nightmare. If you have tried everything and your mortgage is still in default, it’s time to call an investor. You’ve gotten enough brochures, letters and cards to paper your kitchen, but they are all so confusing. The following guidelines can help sort out all that information and find someone that can help you solve your real estate problems.
Does the investor have experience working with preforeclosures?
Experienced investors can be good or bad. A new investor who is honest may not be a bad thing. They are up on foreclosure laws and practices. They will work hard to make sure that your situation is taken care of, because that it is how they get paid. Determining who will be best for you depends on the amount of time that you have before the auction. An experienced investor will be able to help you more quickly. They have done this before and they have leads and resources that they have built up over the years.
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?
There are national franchises of investors that pay for leads from your area. It is always better to work with someone who lives relatively close to you. Local laws and local people are there to help you if something should go wrong. You may get promises of a good deal from a large franchise, but someone from your own community will be there for the long and the short haul.
Can lawyers and other professionals you choose, look at the papers you will sign?
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.
Do you feel like you are being pressured into signing something your not ready for?
When you sign a contract with an investor, it is a legal document. In California, people facing foreclosure have three days to change their mind and back out of anything that they have signed in regards to their house in foreclosure. If you live in another state, this same consideration should not be a problem, unless you are days away from auction.
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.
There is definitely a foreclosure crisis and plenty of business for the honest investor. If the person you have chosen to work with is patient, knowledgeable and a good fit for your situation, then you have probably found a good investor to work with. The worst thing that you could do is nothing. Your situation will only get worse and may come to the point where no one can help you. This is not a time to try and go it alone. If you choose the right investor, they can help you save your credit, and maybe even your house.