I was going to write today about why legal or tax advice can be critical in loss mitigation, but before I could get to it, I received the weekly list of default notices. I was stunned. They are 'way, 'way up in both Washington and Multnomah counties. I didn't even look at Clackmas'.

This foreclosure thing cuts across all neighborhoods and income groups.  Another curious thing I noticed was the lenders.  Wells Fargo and Bank of America were most often named. I'm still not seeing anything from Wasshington Mutual or Providian, which it had bought.

Amny of these homes will end up bank-owned because their owners won't intercede. That's a mistake. People should call their lender BEFORE a Notice of Default comes out.  Having  not done that, they need to call their lenders right away.

DON'T PAY SOMEONE UPFRONT TO DO A LOAN MODIFICATION FOR YOU. Do it yourself.  If your lender is willing to work something out, you'll get just as good a deal doing it yourself than an outsider will.

Yeah, I know I do loss mitigation, including loan modifications, and it sounds like I'm shooting myself in the foot by suggesting people try it themselves first. 

If you want to get into other kinds of loan workouts--forebearance, deed-in-lieu, etc. (see the list, upper left), I can help (I think my pricing is reasonable :).  People can also go to groups like Open Door for help and advice. Free. Tell them I sent you.