Foreclosure prevention has been getting a lot of media attention lately.  The president and the federal government have both offered plans to help defaulting homeowners avoid Foreclosure.

Refinancing a mortgage by borrowing money is one way to avoid Foreclosure. According to a recent article in the Sacramento Bee by Kevin Hall, Sheila Bair--chairwoman of the FDIC--called for borrowers to identify and report banks who aren't lending to consumers and small businesses. Ms. Bair admitted that many banks have created their own agenda, and consumers are the only people who can identify and stop this practice.

The Lending Act does not seem to help the situation. It is difficult or impossible to enforce this act because many banks refuse to cooperate voluntarily.

The Lending Act may help investors buy Foreclosure properties, but it doesn't help property owners stay in their homes.

Loan modifications (link to loan mod landing page or article) remain elusive. Anyone who has tried to negotiate for a loan modification without profesional assistance can confirm this. Treasury Department statistics also provide evidence that loan modification has done little to slow the huge numbers of Foreclosures occurring every month.

For most homeowners, the preforeclosure short sale remains the best option. With a Short Sale, the homeowner takes back control of the process by hiring a negotiator, many of whom work without any upfront fees. In this scenario, the negotiator assumes control of the process on behalf of the homeowner rather than leaving homeowners at the mercy unscrupulous bank employees.

Many clients are reporting success with obtaining Short Sales. These clients also indicate that they are staying in their homes for up to one year without making mortgage payments. This respite gives homeowners a chance to make an orderly withdrawal from the financial mess they find themselves facing.

The Obama administration's new plan offers people $1,500 to move from their current property. This is not helpful to the homeowners. The same plan offers lenders monetary incentives to hurry the process along.  Keep in mind that the lenders often save $40,000--$50,000 in expenses by doing a Short Sale instead of a Foreclosure.

 Prevent foreclosure. Write to info@wabroker.com today.