Sometimes when you see a doctor about a particular ailment, the diagnosis and treatment you receive depend on the doctor you see. Visit your family doctor about back pain, and she's likely to prescribe a pain reliever and perhaps a muscle relaxant or anti-inflammatory medication. Consult a chiropractor, and he schedules you for adjustments. A psychiatrist may think your back pain has something to do with your repressed childhood memories. A neurologist may trace the problem back to a pinched nerve. The same thing seems to happen when homeowners in default consult experts for advice:

• Real estate agents may recommend selling the home or doing a short sale.

• Mortgage brokers are more likely to recommend refinancing or a short-refi.

• Bankruptcy attorneys are more likely to recommend filing for bankruptcy, especially if the homeowners have a lot of unsecured debt (such as credit card debt).

• Loan modification specialists will recommend a loan modification for anyone who qualifies.

• Lenders may offer some sort of forbearance agreement followed by a re-payment plan to catch up on missed payments.

• Credit counselors may encourage homeowners to consolidate their debt and budget more carefully.

• Real estate investors may step in to purchase the home before, at, or after the auction and then sell it back to the homeowners with a lease-option agreement or land contract.

• Authors of foreclosure self-defense books are likely to recommend that homeowners buy their books and pursue options on their own.

• Radical consumer advocates (perhaps friends and relatives) may recommend that the homeowners stop making payments and refuse to move out or simply abandon the property and mail the keys to the lender... or not.

The point here is this: When distressed homeowners approach you to request assistance, encourage them to explore all of their options and get second, third, or even fourth opinions before choosing a course of action. Homeowners need to assess their situation honestly, figure out what they really want, determine which options they can reasonably pursue, and develop an understanding of what each option means for them in the long term. Every situation is different. For many homeowners, the best option will be to seek a loan modification with their current lender. Others would be more qualified and better off refinancing. Some would fare better declaring bankruptcy or selling a home they really cannot afford to keep.

As a real estate professional, one of the most valuable services you can offer distressed homeowners is to refer them to other specialists in the field who are best qualified to serve their unique needs. Sometimes, this means you get their business. Other times, you may lose a particular client's business for the time being. In the long run, however, you build credibility and trust, which always pays dividends. I encourage you to study up on the various foreclosure alternatives and then build a referral network that can assist distressed homeowners in their time of need, whatever their needs may be.

Ralph R. Roberts is a consumer advocate, spokesperson for Federal Loan Modification Law Center, host of KeepMyHouse.com, and author of numerous books, including Foreclosure Self-Defense For Dummies and Loan Modification For Dummies (Summer, 2009). Ralph is based in Sterling Heights, Michigan and can be reached at RalphRoberts@RalphRoberts.com.

Published: June 15, 2009

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Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker. Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families. As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; Sales Force and Office Management, Motivation, Design, and Team Building; and Foreclosure Self-Defense and Loan Modification, fields in which he has demonstrated his commitment to preserving the American Dream of Homeownership. Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including: Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team Financing Real Estate Investments For Dummies (John Wiley & Sons) Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons) Foreclosure Self-Defense For Dummies (John Wiley & Sons) Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan) Foreclosure Investing For Dummies (John Wiley & Sons) Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties (John Wiley & Sons) Advanced Selling For Dummies (John Wiley & Sons) Flipping Houses For Dummies 52 Weeks of Sales Success (John Wiley & Sons) Walk Like a Giant, Sell Like a Madman (John Wiley & Sons) Cross-Cultural Selling For Dummies (John Wiley & Sons) To learn more about Ralph, visit AboutRalph.com, check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com, or visit his latest blog dedicated to helping distressed homeowners fight foreclosure, KeepMyHouse.com. You can reach Ralph at or by calling (586) 751-0000.