Hi I am Lucy Malone, the founder of BREVAN FORECLOSURE. With 26 years of experience behind me I rose through the ranks quickly and became a well-respected and highly sought after and successful industry expert, speaker, and trainer. I have set standards and practices and created training manuals in the field of Mortgage Banking Practices. Basically, I have been around a long time and I know the industry very well.

This is my second go around in a very bad market, although the 90’s were never this bad, not even close! What I learned from the last downturn is that, as times get worse and when things seem sliding downward, that is the best time for a homeowner to gain a powerful negotiating position with their lender.

Foreclosure is a big part of many lives these days and I hope my simple tips will help you understand the processes involved and how you can avoid foreclosure happening to you and your family:

Foreclosure is a legal action or leverage used by a mortgage company to recover any money from a customer when the customer does not pay his or her debt in accordance with the mortgage agreement, or note. In other words, it's the legal remedy used by a mortgage company to assume ownership of a property when the agreed upon loan payments are not made. Foreclosure obliterates otherwise good credit. Although the actual process varies from state to state, foreclosure revolves around a homeowner's inability to keep up with monthly mortgage payments. The farther behind the homeowner gets, the closer to foreclosure the homeowner becomes. After a specified (by law) number of missed payments, foreclosure proceedings may begin. However, in the current state, lenders are reluctant to begin expensive foreclosure proceedings if they can find some reason to put off foreclosure.

If you have the misfortune of falling behind enough in your payments that a Notice of Default (NOD) is filed, it then becomes public record. You will be flooded with offers to "help". Many of these offers are from honest, well-intentioned people or companies that are experienced at these matters. You may not be, so their experience can be a real benefit to you. However, there are also scam artists out there that will try to take advantage of you. Please be wary. I cannot identify every scam that comes along since there will be new ones every day. However, I can give you some points that will help: NEVER sign a deed for your house without consulting an attorney. One scam is for you to sign over your house and then rent it back. If you sign a deed, it is NO LONGER YOUR HOUSE! Even if your house is foreclosed upon, you will still never have to sign a deed. You signed what the lender needs at your original loan signing. Look out for "Buy Your House" scams. You might hear all sorts of angles, which include an investor "partnering" with you, sharing equity, etc. Do not give anyone an interest to your home unless you completely understand what you are doing. Check with an attorney. Financially struggling with your home is one of the loneliest things you will ever do. And there is really not much a person can "fix for you" that you can’t do yourself. You could even compile the information that we are offering on your own, if you had the time. We want to inform you and encourage you that you can successfully modify your note with your lender. They want you to make it happen, but they are overwhelmed. They cannot do the work for you.

Loan Modification - This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in adjustable rate mortgages and no way to refinance out of them, a loan modification may be the only way to assist struggling borrowers. Loan Modification is the term used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification can be made to your rate, balance of loan, delinquent fees owed, term of loan etc. Your Lender can modify any or all of these terms! In the past this was typically used when a borrower was delinquent as a result of some hardship. Now we see it being used even before someone is delinquent. Loan Modification will be the hottest term and the best way to help people avoid foreclosure. With so many banks struggling as a result of non-performing debt, they are becoming more willing and ready to help you stay in your loan.

A Loan Modification will change the existing mortgage note and give the borrower a fresh start in managing their home mortgage. Accounts will be brought up to date immediately. With a loan "modification" you take the mortgage you now have and change the interest rate and payment requirements in order to achieve manageable terms. A change in rates and payments does not result in the need for a new closing, legal fees, or escrow. When modifying the balance, a new appraisal may be required, but it will be money well spent. In contrast, if you (could) "refinance" a loan you'll be required to have an escrow, closing, and forced to pay a variety of fees and taxes. Lenders are willing to negotiate when borrowers are facing financial difficulties and can't obtain other financing alternatives. The last thing they want is to own another property! (I know, hard to believe) so that you can help them understand why it would be in their best interest to agree to a workout, or modification arrangement. As a result, the lender will reduce the loan interest rate, reduce monthly payment amounts or change other loan terms to allow for an affordable loan that allows you to avoid foreclosure and remain in your home. If you need any more tips please do visit my website. My team and I are here to help you STOP FORECLOSURE FROM HAPPENING! For more details please visit www.brevan.net