You are in preforeclosure and have tried everything -- friends, family and websites. You need help and you think that calling an investor is a good idea. But how do you choose one? Here is a short checklist to help you sort out those investors that can and will help you, from those that are just trying to make a buck at your expense.



Does your investor have experience?

Experienced investors can be good or bad. A new investor who is honest may not be a bad thing. They are up on foreclosure laws and practices. They will work hard to make sure that your situation is taken care of, because that it is how they get paid. Determining who will be best for you depends on the amount of time that you have before the auction. An experienced investor will be able to help you more quickly. They have done this before and they have leads and resources that they have built up over the years.

Does the investors marketing materials look professional?

Make sure that they are neat and well organized. An important part of being a good investor is paying attention to the details. If there are grammar and spelling errors in their materials, that shows that attention to detail is not something they do well. Saving you from a foreclosure demands attention to detail. You don't want someone working on your foreclosure that can't even remember to use spell check.

Is the investor a local person?

But don't let a slick website from a national franchise impress you either. It is better to work with someone who live relatively close by. The foreclosure business is hot, and you may be approached by someone who can live practically anywhere. Working with a local investor will help assure you that if something goes wrong through the foreclosure process, at least help will be near.

Can lawyers and other professionals you choose, look at the papers you will sign?

The deal that you make with your investor should be a win/win situation for both of you. He or she will make money, but you shouldn't feel that someone is stealing your equity either. They should be open with the paperwork involved. You should be able to have anyone you choose look at it, before you sign it. The understanding that you come to with the investor should be good for everyone involved.

How fast do they respond to your questions?

An investor may have many other clients, but you should feel that you are their only one. This is a stressfull and sensitive time for you. The last thing that you want to feel is that your concerns are not important. You should keep in mind however, that good work takes time. The investor may not have control over how soon he gets an answer back from the bank. You should however, have your calls returned promptly. If you feel like you are playing telephone tag, use email. Often times its a much faster and convenient way of communicating.

How difficult is it to get out of a signed contract?

When you sign a contract with an investor, it is a legal document. In California, people facing foreclosure have three days to change their mind and back out of anything that they have signed in regards to their house in foreclosure. If you live in another state, this same consideration should not be a problem, unless you are days away from auction.

If you find someone you like, stick with them.

If you find the right solution to your foreclosure situation, then stick with and use that investor. It's not right to try and shop around for help, once you've committed to someone. The investor has put time and effort into helping you as best as they can. If you deal with people in a fair and just manner, then that is how you will be dealt with. Pass over a good deal and you may end up with no deal at all.

If common sense says its not a good deal for you, then it probably isn't.

If something sounds too good to be true, than it probably is. Don't be wowed by flashy advertising, or slick websites. If it seems fishy, use your common sense and move on.

Having your home go into foreclosure may be the worst thing that has ever happened to you. Doing nothing, hoping that the problem will just go away, will make the situation even worse. If you have studied these guidelines and found someone that you feel good about, who seems to know what they are doing, and has answers to all of your questions, work with him or her. Choosing a good investor will help you get past this situation and help you come up with the best solution for your house and your credit.