Foreclosures - A Plan of Action for Those Facing Foreclosure

We can talk and write all we want to about the whys of the foreclosure mess and how to fix the problem.
But reality hit me square in the face this week as I counseled several clients facing the issue with a November 2 deadline.
Keep in mind that in Texas foreclosures occur on the first Tuesday of the month - hence the November 2 deadline.
All of the folks I spoke with had what I would call chronic mortgage problems.
They were more than 4 months past due and had a history of catching up and falling behind.
One client sent me copies of the foreclosure notices and letters received from the servicer.
So let me cut through all the chaff and get to the heat of the matter.
Loan modifications don't work! Modifications and modification companies, social agencies, etc are for the most part worthless.
While their heart or their pocket book may be in the right place, they have no leverage to help you at all.
If you do rely on a promise from a servicer or lender, obtain that promise in writing.
If you've received a notice with a specific date for foreclosure on it, do not continue your modification discussions.
You can not rely on what the servicer or the modification company tells you.
The law firm conducting the sale operates independently of the servicer or the modification company.
Don't stick your head in the sand.
The only sure way to stop a foreclosure in Texas is to file bankruptcy.
Filing suit to obtain a restraining order is not a guarantee.
Incredibly some clients are reluctant to file bankruptcy because of the stigma attached to filing.
Wake Up! That's like saying you don't want a heart transplant because of the scar on your chest.
You have to change your thinking from being embarrassed by filing bankruptcy (something I fail to understand at this point) and protecting your family.
Maybe the best thing to do is to walk away from your home.
This is a tough discussion to have with your family, but it has to be done.
Let a bankruptcy professional give you advice as to whether it's best to keep your home.
Keep in mind that once your home is foreclosed on you have no right to continue to occupy the home.
The new owner can begin eviction proceeding immediately.
Some lenders are providing cash for keys to entice folks to move out - but don't rely on that and know that there is no room for negotiation.
You don't want to complicate things by having a sheriff put you belongs on the lawn.
Talk about embarrassment.
Don't waste time dealing waiting for a loan modification - it's a fool's errand.
Be prepared to take action to save you and your family.