PREFACE

"To live through an impossible situation, you don't need the reflexes of a Grand Prix driver, the muscles of a Hercules, the mind of an Einstein. You simply need to know what to do."
                              Anthony Greenbank, The Book of Survival

Prior to founding the Horizon Legal Center in 1996, I foreclosed thousands of loans for one of the largest foreclosure firms in Illinois. Being on the inside, I learned a great deal about mortgage banking and the process of foreclosing delinquent loans. More importantly, I learned that, overall, there is a tremendous lack of credible information for homeowners in foreclosure.

This booklet is presented as a plain-language, no-nonsense guide through and around the foreclosure minefield that you may be in. If you are in foreclosure, BEWARE! You are about to become very popular. Depending on where you live and the amount of equity in your

home, you will receive upwards of 50 letters from people offering to 'help" you. Remember the old saying. If it sounds too good to be true, it probably is! Get advice before you sign anything.

What you need to know first and foremost is that your mortgage company wants to avoid the foreclosure of your loan, if it is possible. However, foreclosures are ultimately financial problems and in most cases, without money, you may not be able to keep your home. Even then, it is important for you to minimize the damage caused by foreclosure and to prevent yourself from being scammed.

How do you avoid foreclosure or minimize its impact? It's simple. You must take action. As has been said, "Ask and you shall receive. Seek and you shall find." If you don't know, ask. If you need information. get it In the back of this booklet are the names of housing counseling agencies, legal service providers and other resources to help you get the information you need.

When should you take action? Now! Time is your enemy. The amount you owe increases with each passing month which decreases the possibility of a workout. The filing of a foreclosure case adds between $1,500 and $2,000 in attorneys costs and fees to the amount you owe. And as the case progresses, you have fewer rights.

Be persistent. If the first person you talk to at your lender is not helpful, talk to a supervisor. If your lender doesn't have the answers, call your loan guarantor (HUD or the VA), or your mortgage insurer (such as MGIC or GECMIC), or your mortgage investor (Fannie Mae or Freddie Mac). Somewhere there is someone who is interested in working out your delinquent loan.

Get informed. Take action. Be persistent. And don't quit. It is possible for you to save your home.

Russell C Wirbicki
Executive Director