Sep 17 2008
A Down Economy May Be The Answer To Your Prayers
The stock market is plummeting, banks are going belly up, and the value of the US dollar is almost comical. These tragic economic declines are all interrelated, as are the price of gas and the devastation caused by Hurricane Ike. How does this affect you? Aside from the obvious reduction of your 401(k) and the painful cost of filling up your car, this economic decline has a direct affect on the foreclosure market. What may surprise you is that this bad economy may actually help those people facing foreclosure.
As the economy declines, so does the stability of the banks that loaned the money and the investors that purchased those loans from the bank. The banks can’t afford to take back all those houses that they are attempting to foreclose. They don’t have the infrastructure to handle real estate and wont be able to implement any with all of the impending layoffs coming. This means that the banks will be much more willing to work with borrowers in modifying their loans or approving short sales at lower prices.
The problem facing both the borrowers and the banks is the lack of time. While the banks want to work with the borrowers, the attorneys employed by the banks are mandated to get the foreclosure judgments entered and get the properties sold as quickly as possible. I know this doesn’t make sense since it isn’t what either party wants, but it is simply a result of one hand not knowing what the other hand is doing. The loss mitigation department of the bank wants to accomplish one agenda and the legal department is attempting to accomplish a contradictory one. So what is the answer?
The answer is that borrowers need to stall the foreclosure actions against them for as long as they possibly can. Borrowers need to use the legal system to their advantage and fight the foreclosure attorneys at their own game. By stalling the foreclosure process, the borrowers are buying themselves time to work with the banks and either modify the loans they have, refinance under new loans, or sell the property to another buyer. In order to accomplish this goal, knowledge of the legal system, the foreclosure process, and the stall techniques are required. For more on how to attain this knowledge, visit www.ForeclosureDefenseSecrets.com.
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