How does a workout work?

A true "work-out" starts when you notify your lender that the present loan terms aren’t working. A workout is only available if you have the ability, in a short period of time, to cure the problem that got you into default. In a broad sense, a workout is finding a solution, any solution, to your problem. It can therefore include bankruptcy or a walk away.

P.S. On nearly every page I remind my readers to monitor their credit score. I do that because one of the most serious consequences of foreclosure is damaged credit. The first step to protect your credit is to review your credit report (you can get a free credit report here).

A workout requires negotiation. Reading (or listening to an audio of) a good book on negotiating skills can really help. I recommend Brian Tracy's Communicate With Power . Brian Tracy has spent his career studying and writing about negotiating, sales and success.

If you just can't imagine negotiating with your lender, there are some reputable companies that will do the talking and paperwork for you. I recommend HomeAssure.com . I'd take them up on their offer for a free consultation before making a decision to sign up with them.

Chapter Overview

• Temporary Relief
• Goal of a Foreclosure Workout
• Creating a Workout Plan
• Communicating with Your Lender
• The Lender’s Workout Objectives
• Parties to a Foreclosure Workout
• Deed in Lieu of Foreclosure
• Example of Letter Requesting Deed in Lieu of Foreclosure
• Bankruptcy
• Short Sale
• Example of a Short Sale Letter
• Refinancing