If you are facing difficulty paying your mortgage or have been served with foreclosure filing papers, I can help.

I have written a great deal on the subject here and I've made a number of videos here.

The stress and anxiety of financial difficulties, the possibility of losing your home, and the future ramifications of potential bankruptcy, eviction, damage to credit, and all that comes with it is a difficult load to bear. Worse, there are operators out there who target distressed borrowers with too good to be true solutions that are great for the scammer, but ruinous for the borrower. Here are some things anyone facing potential foreclosure needs to know:

1. The lender doesn't want your house.
2. You have options if you want to keep your home.
3. If you feel that selling is your best option, you have a right to a dignified exit.
4. If it sounds to good to be true, it is.

Mortgage lenders prefer to not have to foreclose. The process is expensive, time-consuming, has them carrying a non-performing asset often for years. They spend thousands on legal fees in the courts, pay preservation companies to secure and maintain the property, and have to pay field operatives to oversee evictions, renovations, repairs, snow removal, lawn care, and, eventually, preparations to sell the property as an REO ("Real Estate Owned").

Lenders would prefer to offer a forbearance if the difficulty is temporary, and a deed in lieu or assistance in the sale if the borrower cannot keep the home in the long run. That includes a short sale if the mortgage balance is higher than market value.

If your difficulty is temporary, a forbearance might be a solution. This is when the lender grants the borrower a grace period of a few months, sometimes 3, sometimes 6 or more, where no late payments are reported to the credit agencies and the back payments are bundled into a subordinate lien or added to the back end of the loan term.

A mortgage modification might be possible, and as in the case of a forbearance, you have to contact the lender and explain your hardship so they can inform you of your options. Modifications take time, are not always successful, and don't always have better terms than the original loan.

If the long term situation is not a sustainable outlook for keeping the house, then selling is the best way to preserve your credit, save your equity, and clearing the path for better housing options. Most people will rent, and it's easier to get a rental without late payments on your credit, which is why communicating with your lender is so important. Even if your credit is adversely affected, we've never failed to find clients their next home.

Even lenders send warning about scams in their summonses and notices. Here are a few red flags to watch out for:

• Equity stripping. In this scam, a self proclaimed investor promises to buy the house from you but allow you to remain there until you get back on your feet, proposing that you rent from them until you can buy the house back. In the meantime, they say they will pay your mortgage. But the instant you deed your home to another party without paying off the mortgage, you trigger an acceleration clause and the entire loan becomes due and payable. The scammer pockets the rent, doesn't pay your mortgage, and leaves you facing eviction in a house you no longer own but still have a mortgage in your name.
• Wholesalers are would -be investors who claim that they will buy your home for cash, but are actually middle men with no capital who look to profit by assigning their purchase offer to another investor. Since time is not your friend in these scenarios, waiting for an amateur investor/middle man to find an end buyer is like listing your house for sale but in secret. Worse, you could have gotten more money but cannot because you're often contractually trapped.
• Various fixers who charge exorbitant fees up front and promise to negotiate with the lender on your behalf who pocket your money and disappear.

There are other red flags to be aware of, but suffice to say, with foreclosure filings being public record, there is often a feeding frenzy around borrowers facing difficulty, and it is hard to discern the professionals who can help you from the scammers.

We counsel clients to remain in close touch with their lender, learn about every possible relief and assistance program the lender offers, and to never make a decision hastily out of stress or panic. When we have a consultation with a borrower in these circumstances, we refer them to an attorney, execute a market analysis to determine how much equity they have, and offer a candid plan that takes their financial circumstances into account. Preserving your equity is always among our top priorities.

I offer a confidential consultation at no charge with no obligation to see how best I can help. If any of this describes your circumstances, contact me today.