Wondering why you’re getting a bunch of solicitations in the mail after you’ve missed a mortgage payment? How do these real estate companies know you’re in trouble and why are they talking about short sales? Typically, when you miss a mortgage payment, the bank’s first step is NOT starting foreclosure proceeding. The first step is to report your late payment to the credit bureaus. What do the credit bureaus do with that information. Well, they use it to lower your credit score, but they also sell the information to marketers. 30-60-90-120 days late data is available for purchase by short sale real estate professionals. That’s why you’re getting the postcards, letters and phone calls (hopefully not if you’re on the National Do-Not-Call list).
- www.ssaa.org Heat Spot pre-NOD map
As an increasing number of home owners have become affected by the downturn in the economy and real estate market, an ever growing segment of real estate professionals have incorporated short sales marketing into their business model. If you’re having problems making your mortgage payment, they probably know who you are and will be targeting you soon.
So, what’s your first step? EDUCATION! Before someone tries to convince you of what to do next, you owe it yourself to become better informed about your options and the whole process itself. Knowing terms like notice of default, short sale, foreclosure, sheriff’s sale, deed in lieu of foreclosure, deficiency judgments along with acronyms like HAMP, REO, CDPE, BPO and others will help you take the next step that is right for YOU.