In today's world many folks are confused about what to do when facing a foreclosure. There are a lot of "opportunists" that have every angle on how to get your money figured out. I have seen it all. The most prominent scam is the "short sale" saving your credit idea.

Lets be truthful. Before you are served a notice of foreclosure you are already a couple of months behind on payments. Do you honestly think that the bank is NOT going to put your late payment on your credit report? No one tells you that your credit is already on the rocks and going down. Why? Because they use this angle to get your money. When you think that by signing a "deed in lieu of foreclosure" is NOT going to affect you, well here is the real story.

The only way that you can handle this situation is IF, the lender agrees in writing to delete your prior paying history and also agrees NOT TO proceed with the foreclosure action. What will this do? It will keep it out of public records and avoid a "default judgment"

Read very carefully. Especially if you have made up your mind that "aw the hell with it" "I am just going to walk away from this mess". Here is what you have not been told. Not by an attorney, your friendly investor, your mortgage broker and surely your recommended real estate broker.

IF, you fail to defend your foreclosure because you did NOT answer the complaint, then the plaintiff (lender) whether or not they own the note, will get a "DEFAULT JUDGMENT". Now read this a couple of times over. This means that in most states the default judgment is entered into PUBLIC RECORDS and remains there for many years.

Here in Florida it can remain for (20) years. So, think ahead my friend. Here is it (5) years later and things have straightened out for you. You have a decent job, want to buy another house. You have been paying your bills on time. BUT, when you apply for the loan the underwriter or title company checks public records and there it is. Shining like a light at midnight. You have to satisfy that judgment in order to get a new mortgage.

How do you protect yourself from this happening to you? DEFEND the foreclosure. Even though you don't have an attorney, answer the complaint. Do so within the time frame as spelled out on your complaint. Is it hard to answer a complaint? NOT AT ALL.

Now on another note, IF you are negotiating with your lender to either take the house back or sell it to someone on a short sale, make DARN sure that the bank agrees in writing NOT to enter a foreclosure on your credit report, agrees to waive any deficiency and in that case you guarantee that they won't come back to get a deficiency judgment.

But, getting the bank to agree to take the house back is as hard as "pulling grandpa's teeth". He has been in the grave for a while and that dog won't bark. In closing, you can be on the alert for ANY foreclosure scheme or scam that gets you to sign a deed in lieu of foreclosure with the promise from that well dressed "shark" that he is going to make your payments for you and save your credit. BS! BULL CRAP! Wake up man, this is not la la land where strangers walk around and hand out money. This is the real world.

If you want to know more free information, go to our website at www.thecreditprofessors.com Get educated on your rights and don't fall into the trap of having a judgment in public records that will truly haunt you for many years.

Regis Sauger

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