RISMEDIA, Feb. 15, 2008-Robert Shemin says one of the most important secrets to becoming wealthy is getting out of debt. And the only way to get out of debt is to take action.
“The new freeze on foreclosures is the perfect opportunity for everyone who has too much real estate debt or is facing foreclosure or is in foreclosure to take action now and turn a negative money situation into a positive wealth-building opportunity,” says Shemin. “Stop looking at those massive mortgage payments, take advantage of this gift and call your lender right away.”
Shemin, who is himself a real estate multi-millionaire, offers these action steps to take advantage of the foreclosure freeze:
1. Call your lender with the end result you want firmly in mind. Know what you can afford and how much less you want to pay and ask for it.
2. Have back up documentation. Banks and lenders love paperwork. If your home has gone down in value have copies of three comparable sales from the Internet or local realtors. Solid proof can help you favorably renegotiate your loan or interest rate.
3. Prepare a basic financial statement showing your assets and liabilities as proof to the lender of what you can or cannot afford.
4. Try for a short sale agreement. Ask the lender to agree to discount or reduce the debt so the property can be sold below what you owe if you get an offer.
5. Ask about refinancing the loan or lowering payments.
The most important thing is to take action and communicate with the lender immediately. Make sure you are talking to a decision maker, who can make a final decision to change, alter, or modify your loan. Finally, be patient but persistent. Banks and lenders are on overload, recognize that it may take you two or three months and dozens of phone calls to get the result you want. But no matter how long it takes it’s worth it if you can get lower payments or interest rates. You’ll end up with less stress, less debt and more money in your pocket.
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