It amazes me every time investors are slammed as a whole when one bad apple does something wrong.  The media can interview one scammed homeowner on television or write one sad story in print, and the result is that all investors suffer.

Let me ask this question, what about the foreclosing banks?  Who is holding them accountable for their actions.  We do a lot of real estate investment business and our primary customer is a homeowner in foreclosure.  After working with hundreds of these cases, whether we help them keep their home or buy it from them, their stories are too similar to ignore.

Many of them have been told by their lender's customer service representative that they can mail whatever payment they can afford, or that they will wait until "x" date to begin the foreclosure, both of which are the lender does not stand behind.  The banks will tell you that they've phoned the homeowner tons of times, without an answer or returned call, and the homeowners will always say that they can't get an answer from their bank.  The fact is that the banks are using automation to make the phone calls, and when someone answers, there is either a long pause until a live person picks up, or a recorded voice will ask the person to hold for a representative (without naming the caller).  In both cases, the homeowner hangs up.  Heck, who wouldn't?  Meanwhile, both parties believe that the other is avoiding them, and the next thing you know, the foreclosure begins.

Many homeowners have been close to working out a re-payment plan only to find out that the customer service representative that they just worked it out with is no longer employed there, and they either need to start their re-payment plan negotiating over or are denied because too much time has lapsed.  Again, the homeowner is at the mercy of the bank and doesn't know what their choices really are.

With foreclosures, when we order reinstatement figures from the lender, we inevitably receive figures that have no real back-up.  When we order payoff letters, we inevitably receive figures that shouldn't even be included, such as pre-penalties.  Pre-payment penalties can be in the thousands of dollars and cannot be charged against a homeowner in foreclosure by law, except in very few cases.  However, we seldom receive a valid payoff that doesn't involve further calls to the bank for correction.  If the investor doesn't know the laws, we simply help fill the wrong pockets.

Imagine a homeowner facing foreclosure just a few days away, who is borrowing just enough money to reinstate, only to find out that the reinstatement figure is thousands more than expected, without validity.  Again, without time on their side, an attorney at their service or knowledge of what figures are really allowed, the homeowner can unnecessarily lose their home.  In that same situation, we are often told by the bank and/or its attorney that payoff figures will take seven to ten days to receive.  If the foreclosure sale is in three days, what is the homeowner supposed to do?  Again, without knowledge or counsel, the homeowner is backed against the wall in a no win situation.

Most folks in these situations are advised by the media, etc. to hire a lawyer or seek the help of a licensed real estate agent.  Lawyers don't work for free and many aren't even as experienced in the subject as many seasoned real estate investors.  Likewise, generally speaking, real estate agents wouldn't have a clue as to how to handle any of the above situations.  A homeowner in this type of trouble needs to be able to find an ethical and professional investor who practices win-win situations and who actually puts the needs of the homeowner in front of their own.  The right investor will have the resources the homeowner needs.  This is the way that real estate investors should be viewed by the public.

One of the problems we have as investors as a group is that there are so many new investors constantly entering this business that do not have enough experience, but talk the talk.  They tend to learn by trial and error using their first several homeowners in trouble as their guinea pigs.  They should be seeking the advice of a mentor, more experienced investor or working closely with a foreclosure defense attorney until they have enough knowledge to make intelligent decisions when dealing with these situations.  Constant education is mandatory when your job as an investor affects the lives of others who are depending on you to help solve their problem.

Another problem investors have as a group is the number of greedy investors in the business who are simply out to line their pockets.  They are compassionless and only care about one thing...getting the deal at any cost.  The good investors far outnumber the bad, but when the media is involved, it doesn't appear that way.

Being a successful investor involves being able to properly and ethically handle the responsibilities that come with working with folks in trouble.  It also involves knowing the laws that govern you, as well as homeowners in these situations, so that you can act properly and swiftly.

We can't ask you enough to make sure that you check your motives on every deal you do, always do the right thing, and boycott relationships with other investors, mortgage brokers, etc. that do not practice business ethically.  We have to stand together to maintain our good reputation before others try to do it for us.

Sharon Restrepo is a nationally known real estate investment expert.  15 years of experience has afforded her the ability to specialize in acquiring homes through short sales and wholesaling properties.  Sharon is the author of REIP the Rewards, Beginner's Fast Track, an introductory guide essential for all new investors serious about investing in real estate the correct way.