Failed Bank List for Short Sales Utah

When purchasing or selling a Short Sale in Highalnd Utah, Cedar Hills Utah, Apline Utah, Utah County or Salt Lake county it is important to know what bank or loan servisor you are dealing with and who the investor is that will be actually approving the loss. This may also help you stop foreclosure. The following is a chart taken from and updated on fdic.gov. For a free consultation about how to stop foreclosure or to find out how easy your bank will be to work with for a short sale in Highland Utah, Cedar Hills Utah, Alpine Utah, Utah County or Salt Lake county please contact me.

Failed Bank List


Bank Name

City

State

CERT #

Closing Date

Updated Date

Nevada Security Bank 57110 June 18, 2010 June 18, 2010
Washington First International Bank 32955 June 11, 2010 June 11, 2010
TierOne Bank 29341 June 4, 2010 June 4, 2010
Arcola Homestead Savings Bank 31813 June 4, 2010 June 4, 2010
First National Bank 15814 June 4, 2010 June 4, 2010
Sun West Bank 34785 May 28, 2010 May 28, 2010
Granite Community Bank, NA 57315 May 28, 2010 May 28, 2010
Bank of Florida – Tampa 57814 May 28, 2010 May 28, 2010
Bank of Florida – Southwest 35106 May 28, 2010 May 28, 2010
Bank of Florida – Southeast 57360 May 28, 2010 May 28, 2010
Pinehurst Bank 57735 May 21, 2010 May 21, 2010
Midwest Bank and Trust Company 18117 May 14, 2010 May 17, 2010
Southwest Community Bank 34255 May 14, 2010 May 17, 2010
New Liberty Bank 35586 May 14, 2010 May 17, 2010
Satilla Community Bank 35114 May 14, 2010 May 17, 2010
1st Pacific Bank of California 35517 May 7, 2010 May 11, 2010
Towne Bank of Arizona 57697 May 7, 2010 May 11, 2010
Access Bank 16476 May 7, 2010 May 11, 2010
The Bank of Bonifay 14246 May 7, 2010 May 11, 2010
Frontier Bank 22710 April 30, 2010 May 4, 2010
BC National Banks 17792 April 30, 2010 May 4, 2010
Champion Bank 58362 April 30, 2010 May 4, 2010
CF Bancorp 30005 April 30, 2010 May 4, 2010
Westernbank Puerto Rico
En Español
31027 April 30, 2010 May 10, 2010
R-G Premier Bank of Puerto Rico
En Español
32185 April 30, 2010 May 10, 2010
Eurobank
En Español
27150 April 30, 2010 May 10, 2010
Wheatland Bank 58429 April 23, 2010 April 27, 2010
Peotone Bank and Trust Company 10888 April 23, 2010 April 27, 2010
Lincoln Park Savings Bank 30600 April 23, 2010 April 27, 2010
New Century Bank 34821 April 23, 2010 April 27, 2010
Citizens Bank and Trust Company of Chicago 34658 April 23, 2010 April 27, 2010
Broadway Bank 22853 April 23, 2010 April 27, 2010
Amcore Bank, National Association 3735 April 23, 2010 April 27, 2010
City Bank 21521 April 16, 2010 April 20, 2010
Tamalpais Bank 33493 April 16, 2010 April 20, 2010
Innovative Bank 23876 April 16, 2010 April 20, 2010
Butler Bank 26619 April 16, 2010 April 20, 2010
Riverside National Bank of Florida 24067 April 16, 2010 April 20, 2010
AmericanFirst Bank 57724 April 16, 2010 April 20, 2010
First Federal Bank of North Florida 28886 April 16, 2010 April 20, 2010
Lakeside Community Bank 34878 April 16, 2010 April 20, 2010
Beach First National Bank 34242 April 9, 2010 April 13, 2010
Desert Hills Bank 57060 March 26, 2010 April 2, 2010
Unity National Bank 34678 March 26, 2010 March 31, 2010
Key West Bank 34684 March 26, 2010 March 31, 2010
McIntosh Commercial Bank 57399 March 26, 2010 April 5, 2010
State Bank of Aurora 8221 March 19, 2010 March 23, 2010
First Lowndes Bank 24957 March 19, 2010 March 23, 2010
Bank of Hiawassee 10054 March 19, 2010 March 23, 2010
Appalachian Community Bank 33989 March 19, 2010 March 23, 2010
Advanta Bank Corp. 33535 March 19, 2010 March 23, 2010
Century Security Bank 58104 March 19, 2010 March 23, 2010
American National Bank 18806 March 19, 2010 March 23, 2010
Statewide Bank 29561 March 12, 2010 March 17, 2010
Old Southern Bank 58182 March 12, 2010 March 17, 2010
The Park Avenue Bank 27096 March 12, 2010 April 1, 2010
LibertyPointe Bank 58071 March 11, 2010 April 1, 2010
Centennial Bank 34430 March 5, 2010 March 9, 2010
Waterfield Bank 34976 March 5, 2010 March 10, 2010
Bank of Illinois 9268 March 5, 2010 March 10, 2010
Sun American Bank 27126 March 5, 2010 March 10, 2010
Rainier Pacific Bank 38129 February 26, 2010 March 2, 2010
Carson River Community Bank 58352 February 26, 2010 March 2, 2010
La Jolla Bank, FSB 32423 February 19, 2010 February 24, 2010
George Washington Savings Bank 29952 February 19, 2010 February 24, 2010
The La Coste National Bank 3287 February 19, 2010 February 24, 2010
Marco Community Bank 57586 February 19, 2010 February 24, 2010
1st American State Bank of Minnesota 15448 February 5, 2010 February 12, 2010
American Marine Bank 16730 January 29, 2010 February 3, 2010
First Regional Bank 23011 January 29, 2010 February 3, 2010
Community Bank and Trust 5702 January 29, 2010 February 3, 2010
Marshall Bank, N.A. 16133 January 29, 2010 February 3, 2010
Florida Community Bank 5672 January 29, 2010 May 21, 2010
First National Bank of Georgia 16480 January 29, 2010 February 3, 2010
Columbia River Bank 22469 January 22, 2010 February 2, 2010
Evergreen Bank 20501 January 22, 2010 February 2, 2010
Charter Bank 32498 January 22, 2010 February 2, 2010
Bank of Leeton 8265 January 22, 2010 February 2, 2010
Premier American Bank 57147 January 22, 2010 April 5, 2010
Barnes Banking Company 1252 January 15, 2010 February 3, 2010
St. Stephen State Bank 17522 January 15, 2010 January 26, 2010
Town Community Bank & Trust 34705 January 15, 2010 January 26, 2010
Horizon Bank 22977 January 8, 2010 January 12, 2010
First Federal Bank of California, F.S.B. 28536 December 18, 2009 May 21, 2010
Imperial Capital Bank 26348 December 18, 2009 May 21, 2010
Independent Bankers’ Bank 26820 December 18, 2009 May 21, 2010
New South Federal Savings Bank 32276 December 18, 2009 May 21, 2010
Citizens State Bank 1006 December 18, 2009 May 21, 2010
Peoples First Community Bank 32167 December 18, 2009 May 21, 2010
RockBridge Commercial Bank 58315 December 18, 2009 May 21, 2010
SolutionsBank 4731 December 11, 2009 May 21, 2010
Valley Capital Bank, N.A. 58399 December 11, 2009 May 21, 2010
Republic Federal Bank, N.A. 22846 December 11, 2009 May 21, 2010
Greater Atlantic Bank 32583 December 4, 2009 May 21, 2010
Benchmark Bank 10440 December 4, 2009 May 21, 2010
AmTrust Bank 29776 December 4, 2009 May 21, 2010
The Tattnall Bank 12080 December 4, 2009 May 21, 2010
First Security National Bank 26290 December 4, 2009 May 21, 2010
The Buckhead Community Bank 34663 December 4, 2009 May 21, 2010
Commerce Bank of Southwest Florida 58016 November 20, 2009 May 21, 2010
Pacific Coast National Bank 57914 November 13, 2009 May 21, 2010
Orion Bank 22427 November 13, 2009 May 21, 2010
Century Bank, F.S.B. 32267 November 13, 2009 May 21, 2010
United Commercial Bank 32469 November 6, 2009 May 21, 2010
Gateway Bank of St. Louis 19450 November 6, 2009 May 21, 2010
Prosperan Bank 35074 November 6, 2009 May 21, 2010
Home Federal Savings Bank 30329 November 6, 2009 May 21, 2010
United Security Bank 22286 November 6, 2009 May 21, 2010
North Houston Bank 18776 October 30, 2009 May 21, 2010
Madisonville State Bank 33782 October 30, 2009 May 21, 2010
Citizens National Bank 25222 October 30, 2009 May 21, 2010
Park National Bank 11677 October 30, 2009 May 21, 2010
Pacific National Bank 30006 October 30, 2009 May 21, 2010
California National Bank 34659 October 30, 2009 May 21, 2010
San Diego National Bank 23594 October 30, 2009 May 21, 2010
Community Bank of Lemont 35291 October 30, 2009 May 21, 2010
Bank USA, N.A. 32218 October 30, 2009 May 21, 2010
First DuPage Bank 35038 October 23, 2009 May 21, 2010
Riverview Community Bank 57525 October 23, 2009 May 21, 2010
Bank of Elmwood 18321 October 23, 2009 May 21, 2010
Flagship National Bank 35044 October 23, 2009 May 21, 2010
Hillcrest Bank Florida 58336 October 23, 2009 May 21, 2010
American United Bank 57794 October 23, 2009 May 21, 2010
Partners Bank 57959 October 23, 2009 May 21, 2010
San Joaquin Bank 23266 October 16, 2009 May 21, 2010
Southern Colorado National Bank 57263 October 2, 2009 May 21, 2010
Jennings State Bank 11416 October 2, 2009 May 21, 2010
Warren Bank 34824 October 2, 2009 May 21, 2010
Georgian Bank 57151 September 25, 2009 May 21, 2010
Irwin Union Bank, F.S.B. 57068 September 18, 2009 May 21, 2010
Irwin Union Bank and Trust Company 10100 September 18, 2009 May 21, 2010
Venture Bank 22868 September 11, 2009 May 21, 2010
Brickwell Community Bank 57736 September 11, 2009 May 21, 2010
Corus Bank, N.A. 13693 September 11, 2009 May 21, 2010
First State Bank 34875 September 4, 2009 May 21, 2010
Platinum Community Bank 35030 September 4, 2009 May 21, 2010
Vantus Bank 27732 September 4, 2009 May 21, 2010
InBank 20203 September 4, 2009 May 21, 2010
First Bank of Kansas City 25231 September 4, 2009 May 21, 2010
Affinity Bank 27197 August 28, 2009 May 21, 2010
Mainstreet Bank 1909 August 28, 2009 May 21, 2010
Bradford Bank 28312 August 28, 2009 May 21, 2010
Guaranty Bank 32618 August 21, 2009 May 21, 2010
CapitalSouth Bank 22130 August 21, 2009 May 21, 2010
First Coweta Bank 57702 August 21, 2009 May 21, 2010
ebank 34682 August 21, 2009 May 21, 2010
Community Bank of Nevada 34043 August 14, 2009 May 21, 2010
Community Bank of Arizona 57645 August 14, 2009 May 21, 2010
Union Bank, National Association 34485 August 14, 2009 May 21, 2010
Colonial Bank 9609 August 14, 2009 May 21, 2010
Dwelling House Savings and Loan Association 31559 August 14, 2009 May 21, 2010
Community First Bank 23268 August 7, 2009 May 21, 2010
Community National Bank of Sarasota County 27183 August 7, 2009 May 21, 2010
First State Bank 27364 August 7, 2009 May 21, 2010
Mutual Bank 18659 July 31, 2009 May 21, 2010
First BankAmericano 34270 July 31, 2009 May 21, 2010
Peoples Community Bank 32288 July 31, 2009 May 21, 2010
Integrity Bank 57604 July 31, 2009 May 21, 2010
First State Bank of Altus 9873 July 31, 2009 May 21, 2010
Security Bank of Jones County 8486 July 24, 2009 May 21, 2010
Security Bank of Houston County 27048 July 24, 2009 May 21, 2010
Security Bank of Bibb County 27367 July 24, 2009 May 21, 2010
Security Bank of North Metro 57105 July 24, 2009 May 21, 2010
Security Bank of North Fulton 57430 July 24, 2009 May 21, 2010
Security Bank of Gwinnett County 57346 July 24, 2009 May 21, 2010
Waterford Village Bank 58065 July 24, 2009 May 21, 2010
Temecula Valley Bank 34341 July 17, 2009 May 21, 2010
Vineyard Bank 23556 July 17, 2009 May 21, 2010
BankFirst 34103 July 17, 2009 May 21, 2010
First Piedmont Bank 34594 July 17, 2009 May 21, 2010
Bank of Wyoming 22754 July 10, 2009 May 21, 2010
Founders Bank 18390 July 2, 2009 May 21, 2010
Millennium State Bank of Texas 57667 July 2, 2009 May 21, 2010
First National Bank of Danville 3644 July 2, 2009 May 21, 2010
Elizabeth State Bank 9262 July 2, 2009 May 21, 2010
Rock River Bank 15302 July 2, 2009 May 21, 2010
First State Bank of Winchester 11710 July 2, 2009 May 21, 2010
John Warner Bank 12093 July 2, 2009 May 21, 2010
Mirae Bank 57332 June 26, 2009 May 21, 2010
MetroPacific Bank 57893 June 26, 2009 May 21, 2010
Horizon Bank 9744 June 26, 2009 May 21, 2010
Neighborhood Community Bank 35285 June 26, 2009 May 21, 2010
Community Bank of West Georgia 57436 June 26, 2009 May 21, 2010
First National Bank of Anthony 4614 June 19, 2009 May 21, 2010
Cooperative Bank 27837 June 19, 2009 May 21, 2010
Southern Community Bank 35251 June 19, 2009 May 21, 2010
Bank of Lincolnwood 17309 June 5, 2009 May 21, 2010
Citizens National Bank 5757 May 22, 2009 May 21, 2010
Strategic Capital Bank 35175 May 22, 2009 May 21, 2010
BankUnited, FSB 32247 May 21, 2009 May 21, 2010
Westsound Bank 34843 May 8, 2009 May 21, 2010
America West Bank 35461 May 1, 2009 May 21, 2010
Citizens Community Bank 57563 May 1, 2009 May 21, 2010
Silverton Bank, NA 26535 May 1, 2009 May 21, 2010
First Bank of Idaho 34396 April 24, 2009 May 21, 2010
First Bank of Beverly Hills 32069 April 24, 2009 May 21, 2010
Michigan Heritage Bank 34369 April 24, 2009 May 21, 2010
American Southern Bank 57943 April 24, 2009 May 21, 2010
Great Basin Bank of Nevada 33824 April 17, 2009 May 21, 2010
American Sterling Bank 8266 April 17, 2009 May 21, 2010
New Frontier Bank 34881 April 10, 2009 May 21, 2010
Cape Fear Bank 34639 April 10, 2009 May 21, 2010
Omni National Bank 22238 March 27, 2009 May 21, 2010
TeamBank, NA 4754 March 20, 2009 May 21, 2010
Colorado National Bank 18896 March 20, 2009 May 21, 2010
FirstCity Bank 18243 March 20, 2009 May 21, 2010
Freedom Bank of Georgia 57558 March 6, 2009 May 21, 2010
Security Savings Bank 34820 February 27, 2009 May 21, 2010
Heritage Community Bank 20078 February 27, 2009 May 21, 2010
Silver Falls Bank 35399 February 20, 2009 May 21, 2010
Pinnacle Bank of Oregon 57342 February 13, 2009 May 21, 2010
Corn Belt Bank & Trust Co. 16500 February 13, 2009 May 21, 2010
Riverside Bank of the Gulf Coast 34563 February 13, 2009 May 21, 2010
Sherman County Bank 5431 February 13, 2009 May 21, 2010
County Bank 22574 February 6, 2009 May 21, 2010
Alliance Bank 23124 February 6, 2009 May 21, 2010
FirstBank Financial Services 57017 February 6, 2009 May 21, 2010
Ocala National Bank 26538 January 30, 2009 May 21, 2010
Suburban FSB 30763 January 30, 2009 May 21, 2010
MagnetBank 58001 January 30, 2009 May 21, 2010
1st Centennial Bank 33025 January 23, 2009 May 21, 2010
Bank of Clark County 34959 January 16, 2009 May 21, 2010
National Bank of Commerce 19733 January 16, 2009 May 21, 2010
Sanderson State Bank
En Español
11568 December 12, 2008 May 21, 2010
Haven Trust Bank 35379 December 12, 2008 May 21, 2010
First Georgia Community Bank 34301 December 5, 2008 May 21, 2010
PFF Bank & Trust 28344 November 21, 2008 May 21, 2010
Downey Savings & Loan 30968 November 21, 2008 May 21, 2010
Community Bank 16490 November 21, 2008 May 21, 2010
Security Pacific Bank 23595 November 7, 2008 May 21, 2010
Franklin Bank, SSB 26870 November 7, 2008 May 21, 2010
Freedom Bank 57930 October 31, 2008 May 21, 2010
Alpha Bank & Trust 58241 October 24, 2008 May 21, 2010
Meridian Bank 13789 October 10, 2008 May 21, 2010
Main Street Bank 57654 October 10, 2008 May 21, 2010
Washington Mutual Bank
(Including its subsidiary Washington Mutual Bank FSB)
32633 September 25, 2008 May 24, 2010
Ameribank 6782 September 19, 2008 May 21, 2010
Silver State Bank
En Español
34194 September 5, 2008 May 21, 2010
Integrity Bank 35469 August 29, 2008 May 21, 2010
Columbian Bank & Trust 22728 August 22, 2008 May 21, 2010
First Priority Bank 57523 August 1, 2008 May 21, 2010
First Heritage Bank, NA 57961 July 25, 2008 May 21, 2010
First National Bank of Nevada 27011 July 25, 2008 May 21, 2010
IndyMac Bank 29730 July 11, 2008 May 21, 2010
First Integrity Bank, NA 12736 May 30, 2008 May 21, 2010
ANB Financial, NA 33901 May 9, 2008 May 21, 2010
Hume Bank 1971 March 7, 2008 May 21, 2010
Douglass National Bank 24660 January 25, 2008 May 21, 2010
Miami Valley Bank 16848 October 4, 2007 May 21, 2010
NetBank 32575 September 28, 2007 May 21, 2010
Metropolitan Savings Bank 35353 February 2, 2007 May 21, 2010
Bank of Ephraim 1249 June 25, 2004 April 9, 2008
Reliance Bank 26778 March 19, 2004 April 9, 2008
Guaranty National Bank
of Tallahassee
26838 March 12, 2004 May 21, 2010
Dollar Savings Bank 31330 February 14, 2004 April 9, 2008
Pulaski Savings Bank 27203 November 14, 2003 July 22, 2005
First National Bank of Blanchardville 11639 May 9, 2003 August 6, 2009
Southern Pacific Bank 27094 February 7, 2003 October 20, 2008
Farmers Bank of Cheneyville 16445 December 17, 2002 October 20, 2004
Bank of Alamo 9961 November 8, 2002 March 18, 2005
AmTrade International Bank
En Español
33784 September 30, 2002 September 11, 2006
Universal Federal Savings Bank 29355 June 27, 2002 April 9, 2008
Connecticut Bank of Commerce 19183 June 26, 2002 May 21, 2010
New Century Bank 34979 March 28, 2002 March 18, 2005
Net 1st National Bank 26652 March 1, 2002 April 9, 2008
NextBank, NA 22314 February 7, 2002 November 23, 2009
Oakwood Deposit Bank Co. 8966 February 1, 2002 May 21, 2010
Bank of Sierra Blanca 22002 January 18, 2002 November 6, 2003
Hamilton Bank, NA
En Español
24382 January 11, 2002 May 21, 2010
Sinclair National Bank 34248 September 7, 2001 February 10, 2004
Superior Bank, FSB 32646 July 27, 2001 May 21, 2010
Malta National Bank 6629 May 3, 2001 November 18, 2002
First Alliance Bank & Trust Co. 34264 February 2, 2001 February 18, 2003
National State Bank of Metropolis 3815 December 14, 2000 March 17, 2005
Bank of Honolulu 21029 October 13, 2000 March 17, 2005

When purchasing or selling a Short Sale in Highalnd Utah, Cedar Hills Utah, Apline Utah, Utah County or Salt Lake county it is important to know what bank or loan servisor you are dealing with and who the investor is that will be actually approving the loss. This may also help you stop foreclosure. The above is a chart taken from and updated on fdic.gov. For a free consultation about how to stop foreclosure or to find out how easy your bank will be to work with for a short sale in Highland Utah, Cedar Hills Utah, Alpine Utah, Utah County or Salt Lake county please contact me.

8 Options to Foreclosure & Your 2 Best Options

Eight Options When Facing Foreclosure

Your Best 2 Options

Option 1: Short sale

A short sale is when you sell your home and the bank agrees to take a payoff “short” of the full balance they are owed. That is why it is called a short sale, not because it is a short process. In my opinion, most of the time this is the BEST and most responsible option a homeowner can take when he is upside-down on his home and facing a hardship that keeps him from making payments. A short sale will have the LEAST impact on the seller and the mortgage investor when done right.

For the borrower, it will have the least impact financially, most of the time owing nothing to the bank. It will have least impact on your credit, especially when negotiated properly, and the least emotional impact when you know you are doing what you can to make it right with the bank.

It is the best option for the bank because the bank does not want the property back. Having the property back on the books will hurt the bank more financially then taking a small loss on the loan payoff. Bank officials don’t want the expense of a foreclosure process, nor do they want the expense of managing a property they will have to ultimately sell at a loss anyway. If a bank isn’t getting payments, it just wants the property sold so they can re-coup their investment and re-invest at a profit. That is why short sale is the best option. Taking a difficult situation and making it the best possible win/win for both parties is the right choice almost every time!

Option 2: Loan modification

Most of the time when I first talk with homeowners facing foreclosure they are in the beginning process of trying to get a loan modification. A loan modification is when you lender agrees to modify the terms and or interest rate of your loan in a permanent or semi-permanent way. For example, if your loan was an adjustable mortgage and your rate just adjusted up from 6 percent to 12 percent, you may be able to have the terms modified to extend the 6-percent interest period for 5, 30 or even 40 years. More and more lenders are now approving loan modifications with certain hardships. Adjustable mortgages are the most common. Loan modifications are extremely difficult to do yourself and they always must be full doc, meaning you have to provide full documentation proving that you can afford the new interest rate and terms. This will be a deal killer for some and might eliminate this option. Also, when you submit your current income to qualify, your total debt-to-income ratios must meet the lender’s guidelines to approve the deal. If your income is too high or too low, you either may not get the deal you want approved or you may not get it approved at all. In Utah, real estate agents cannot do a loan modification for anyone but themselves. You must have a mortgage license to negotiate a loan modification on a mortgage for another person. I have both. Companies will charge you anywhere from $2500 to $4000 or one full mortgage payment. Beware of companies that will charge you the full amount up front and not refund any of your money if the loan modification is not approved. There are many companies making huge promises to desperate homeowners and getting zero results. Many states are now regulating up-front fees for loan modifications. You can also try one of the lender funded free services “like hope for homeowners”, although I personally haven’t gotten the best feedback about their services. I have read statistics saying that any where from 65 percent to 75 percent of loan modifications end up in foreclosure anyway. It’s no wonder why some lenders are leery to take the time to do them.

The rest of the Options

Option 3: The worst option Let the bank foreclose

To proceed with this option, you simply have to do nothing. The easiest and least responsible option you have: simply accept zero responsibility and do nothing. Ignore your bank’s phone calls, don’t explore your options, and blame the foreclosure on a bad economy. Recently, I attended a trustee’s auction and asked the auctioneer who was auctioning on behalf of the trustee (or lawyer handling the foreclosure) “Do you know if any of these lenders are seeking a deficiency judgment against any of these homeowners?” She replied, “Yes, all of them!” I then asked about all the other files that they had initiated the foreclosure process on but were postponed due to a short sale or work-out agreement. She said “none!” The fact is that most of the work-out agreements or short sales properly negotiated can be free and clear of any liability to the bank. Also, after a bank forecloses, secondary market mortgage purchasers like Fannie May and Freddie Mac will not purchase a loan with your name on it for at 24 months or longer from the date of foreclosure. With a short sale, that time is only 18 months depending on how you negotiate the short sale agreement and how they report to your credit.

Option 4: Refinance & principle-reduction refinance

One of the first things your lender will probably suggest to you when you contact them to work with you is a refinance. And why not? They will make money off you and get your loan off their books! (Hot potato mentality) Most of the time, this does not work out because the nature of the hardship causing the delinquency does not allow the borrower to fully re-qualify under today’s strict guidelines.

One of the biggest myths of this and last year is the principle-reduction refinance. A principle reduction refinance is when the lender will agree to refinance your loan, adjust the interest rate, and reduce the principle balance owed to the agreed upon current market value. Supposedly, government officials say they are rolling it out and everyone is talking about it, but as of this writing all of the lenders and PMI companies I have worked with won’t touch it. In fact, a representative from one of the big three lenders said she felt like a liar telling people about it because the programs have never become available. I don’t know a single person who has had this program approved this year (2009). If there is someone out there who has been able to qualify for and use this program, please e-mail me at investutah”at”gmail.com

Option 5: Work-out or forbearance agreement

Most loans at some point early on in the foreclosure process will have reached some sort of work-out or forbearance agreement. Many home owners who try and get a loan modification themselves will actually receive a work out aggreement.  A work-out or forbearance agreement is a written agreement you can reach with your bank to stall the foreclosure process and set up a payment plan to repay past-due payments. The bank wont actually modify the terms of the loan, just set up a repayment plan of current terms. The biggest mistake homeowners will make when doing a workout themselves is believing that the banks first offer is the final offer. Often, they will request 50-75 percent of past-due payments in a cashier’s check, due at the signing of the agreement to postpone foreclosure and set up a payment plan. With some simple negotiating skills, you can reduce that amount to 0 percent, tack the past-due balance on the top of the loan balance, and have a reduced payment for 6 months to a year. Who is to judge the homeowner, though? It’s not everyday that your average homeowner will try and negotiate with a multimillion, if not multi-billion dollar corporation. Doesn’t quite seem like a level playing field, does it?

Often times even when an agreement is reached, the nature of the hardship forces the homeowner again behind on their mortgage leaving them right back where they started.

Option 6: List your home and sell it!

This is the option that usually provides the quickest way out of a mortgage in default. List your home, sell it and pay off your mortgage. Unfortunately, there are a lot of people who owe more than what their home is worth and this is not an option.

Option 6.5 List your home for more than it is worth

Homes with high mortgage balances tend to list for higher list prices. Sometimes more than they are worth. Usually homeowners know that they are asking too much but don’t want to lose hope that just maybe they really can sell it and get out from under their mortgage in default. A huge mistake to make is to list your home with a Realtor™ who will take advantage of your situation and give you false hope. This person may make huge promises of a high sales price just to get a listing, only later to tell you to reduce the price. You need someone who will be honest and up front with you and show you your options and let you decide what is best for you. If you are in a short sale or distressed sale situation, you need someone who specializes in those areas.

Option 7: Deed in lieu of foreclosure

A deed in lieu of foreclosure is when you sign the deed back over to the bank instead of having them go through the foreclosure process to take title and sell your home. This saves the bank the time and expense of the foreclosure process, but they will still incur the additional expense of managing the home during the sale. It also has a significant impact on the bank’s books, affecting how much money they can lend and cash-reserve requirements. The bank’s officers do not want your house on their books in their REO department (Real Estate Owned by the Bank). Because of this, most banks will not willingly accept a deed in lieu unless you have marketed your home on the local MLS (multiple listing service) for a certain period of time, making a reasonable effort to sell you home yourself. Even then, the bank did not buy the home, you did. So, in my opinion, the homeowner should see the sale through to the finish. Some banks that accept a deed in lieu will still seek a deficiency judgment against the homeowner unless the deed in lieu paperwork specifically states that they won’t. You wouldn’t want the bank to manage the sale of your property poorly and then seek a deficiency against you a year later when the property sells. This also gets a little more complicated if there is more than one mortgage on the property. Most of the time it will not work if that is the case.

Option 8: Call the sign on the side of the road that says “Facing foreclosure? I pay cash for homes” You have probably seen these signs and wondered what they were all about. You may have even called a couple of them. The irony of these signs is the advertiser almost never actually themselves has any cash or will pay cash for your home. Most of the time the sign should more accurately read “I will try to find someone who might be able to pay cash for your home, maybe, but only if it is a really, really good deal”. What they will do is try to use on option contract to put your home under contact and flip it to someone who will close on it with either cash or a loan and make a profit. This, however, only works if you have real equity in your home. Most will pass you by at this point if you don’t have equity.

There are a few others who will still use an option contract to put your home under contract in the name of their business for less than what you owe the bank, subject to the bank approving the contract. They will then have you sign an authorization form allowing them to contact your bank and negotiate on your behalf. If they get their offer approved, they will then flip the contract or assign it to someone who will actually close on it with cash or a loan, making a handsome profit. One of the problems with this deal is the company does not represent your best interest. As a business, they are looking to make a profit. If they cannot get their contract approved at their contract price (65 percent of the value or better) they no longer are able to make the profit they need, nor are they capable of finding a buyer who can close on your property. At this point, the company could pull out of the sale, leaving you high and dry and most likely with an auction date right around the corner. Even if the bank counter offers a short sale price of 85 percent or 90 percent of value, this is not a big enough margin for the cash-for-homes guys to flip a property.

Another irony is the cash-for-homes companies sometimes advertise “no agents” or “no commission” to make you feel like you are saving money. But I have them approaching me all the time, asking my legitimate investors to pay cash for the good deals they sometimes bring. And, trust me, there is plenty of commission in those deals, even if it’s called otherwise.

The last scheme I will touch on is rent skimming. “An investor” will tell you that he has buyers for your home, but you first need to sign the deed over to him so he can negotiate with your bank. He may even have you seller-finance the home to him, promising that he will make the monthly payments for you so you won’t get any further behind. Many rent-skimmed homes are vacant, but sometimes schemers will have you move out so it will be “easier” for them to show the home or for them or to “supposedly” move in if they are “buying” it. They will then put a renter in your home, unless it is already rented, and begin pocketing the rent and not making any payment to you or the bank. They then stretch out the foreclosure process as long as they can and make a huge monthly income on multiple properties for as long as a year. This past year, there have been convictions in both Utah and Salt Lake counties for this. You would think that no one would do this but, sadly, they do.