There are always two sides to every situation.  It is the same with foreclosures.  The people who are dealing with the loss of their property have to be very careful who they turn to for help.  They also have to be realistic that no one is going to give them a pile of money to make everything alright; there is always a cost of some sort, even if working it out with your lender.  There is no free ride when you can’t pay for what you have obligated yourself to pay for.  Every expert on foreclosures will tell you to start with your lender.  If they will not or cannot help you, find a HUD approved foreclosure counselor in your area to help you.  This is not a guaranteed service but they can normally help you in some way.  Do not fall for the “letter” in the mail or stuck in your door.  Be very leery of these types of solicitations.

You also have to be careful on the buyer’s side when purchasing foreclosures.  If possible, work with Realtors who are somewhat familiar with the process of purchasing a REO or bank owned property.  There are loss mitigation teams that are trying to get as much as possible for the bank and the bank that is caught between having a bad loan on the books and selling a property at a loss.  Both are loose/loose propositions for the bank so they are not always happy people.  Of course, any qualified Realtor can do these deals; it just may take a little longer for them to get through the process.  Patience is required when foreclosures are involved whether a buyer, an unfortunate homeowner or the bank.  Understanding that will put you ahead of the game.