Top 5 Mistakes When Overleveraged or Facing Foreclosure (Our First Video!)

The 5 Mistakes Are:

1. Stop Paying Without a Plan -- depending on the bank you can actually start a loan workout / modification or a short sale without stopping your payments! Other times you may need to stop paying to get their attention (or because you simply don't have money!) Angel will never tell you to stop making your payments without making sure you understand the consequences.
   
   
2. File Bankruptcy As a Stall Tactic -- if done incorrectly this may backfire and be considered "abuse of process" especially if you do it more than once. Yes, there are some good reasons to seek bankruptcy protection. Be sure you are working with a reputable bankruptcy attorney (we have referrals). Usually Angel can get your foreclosure stopped or delayed without having to live with a big fat "BK" on your credit.
   
   
3. Paying Up Front For Loan Modification -- there is a hot business in loan modifications right now. Watch out for the sharks who will promise to negotiate with the bank for thousands of dollars upfront only to take your money and run... or do a half-hearted job. It's not their house and credit on the line. Angel thinks you're much better off calling the bank yourself. It's not that hard. We may put together a simple How-To document on loan modifications at some point soon.
   
   
4. Falling for "Stop Foreclosure" Scams in the Mail -- in California, after a couple of months of not making payments your bank will likely start the foreclosure process by filing a Notice of Default (NOD). This is a public notice and anybody can lookup your name and address and send you all types of offers... and scams! Be careful! As the saying goes, "If it's too good to be true [especially when asked for money upfront], it probably is!"
   
   
5. Hiring an Agent Who Has Never Closed a Short Sale -- please don't just ask your buddy real estate agent do your short sale if they don't have a proven track record of successfully negotiating and closing these special types of transactions. Short sales are not easy and require specialized knowledge and experience. If you don't have a good short sale specialist, you know who to call!
   

I think this turned out to be a pretty nice first video with some valuable tips... what do you think?