Short Sales Vs. Foreclosure Defense

Home Foreclosures. 

They are here with us, and will be in the news for the next few years.

First – lets put the last few years in perspective.  Over 2 Million people have lost their homes to foreclosure since 2008.

The lenders know that some of those foreclosures were completed with less than stellar paperwork.  That’s why the largest servicers agreed to a $25 Billion payout in the settlement last week.   I use the term “payout” loosely.

If you lost your home to foreclosure in the last few years, and can prove any type of mistake in the foreclosure process, there is $1.5 Billion that will go into a trust fund to pay others like you.  There are estimates that up to 750,000 people will receive a check for $1,500 to $2,000.

“Sorry you no longer have a home of your own, here is a check for $2,000.”

That makes some people upset.   The LA Times had a pretty good article last week about the settlement here.

You can also find the link at

Second, lets talk about the current situation.

There are estimates that over 4 Million people are still at some risk of immediate foreclosure, and closer to 11 million more are underwater on their mortgages.

When I talk with banks and attorneys across the DC area, most agree that we are 2 or 3 years, and some are saying as much as 5 years, from real resolution to this mortgage situation.

I tend to agree.  In the servicing settlement last week alone, the banks have up to three years to implement the entire plan.

Some people are upset with the pace that these banks are proceeding.  Some homeowners are choosing to fight for their individual situations.  Most people outside of government agencies are upset with what appears to be lopsided settlements with the largest lenders, banks and servicers.

Join us this month at our Washington REIA meeting as we invite attorneys from a local law firm to visit with us and discuss some of the foreclosure defense strategies they are using to assist homeowners in this struggle.You might be very surprised at some of the updates from the “front lines” of the legal community.You will hear about actual cases that homeowners have won locally, and other cases that are working through the appeals process.Lastly– Monday night learn how you can increase your leads by helping homeowners who are upset, but don’t know how to proceed.Let’s give homeowners who may be facing foreclosure what they need most – guidance  – and work with them to suggest legal alternatives to foreclosure that are in their best interest.  Sometimes a short sale agreement will work out fine for all the parties involved.  However, in some cases, more aggressive legal options are truly best for the homeowner.Remember we will be at a new location in 2012 – The Womans Club of Bethesda.  Location and registration details are below.

And as always, let me know if I can help with your real estate investing here in the DC area.

See you on Monday!

John Peterson

Washington REIA Network, President
Profitable Property, Founder
Find video updates on the Profitable Property Channel at


Register early for the Feb. 27th WREIA meeting online, and skip the registration line!

 You will also find the registration link at