Top mistakes troubled borrowers make

Pitfall #5: Not researching your options online
Do not believe everything you see on TV, hear on the radio or read in the newspapers. Pay attention to what people are saying, but do your own research. Take the time to obtain the best possible information before making a decision.

Pitfall #6: Hiring an inexperienced agent to assist with a short sale
The term "short sale" refers to selling your property for less than what is owed on the mortgage(s). Short sales are generally better for your credit and better for the lender. The challenge is the negotiation can take up to a year. Most buyers don't have this level of patience. Short sales are paperwork intensive, time-consuming and full of obstacles. This is not the time to hire a friend or relative who is in the business. You need a professional Realtor who has a proven track record dealing with these types of transactions. If the agent you're considering cannot produce names, addresses and testimonials from past short-sale sellers, continue looking until you find someone who can.

Pitfall #7: Failure to check the credentials and references of anyone you hire
Ask for references, call the references and check the person/company with a quick Google search. Type in the name of the company and then the word "complaints" into the search box. New technology tools such as Yelp and StepRep make it hard for the bad apples to hide. Keep in mind that one positive or negative review doesn't make someone a crook or a saint. Do a thorough search.

Pitfall #8: Waiting until you're out of money before you act
If you drain your bank and investment accounts, your options are limited. It's better to contact your lender as soon as you believe there may be a problem. The sooner you take action, the more options you will have. It's also the best way to protect your credit score.

Pitfall #9: Letting the house go to foreclosure because you were afraid to ask for help or didn't know where to turn for help
The key to getting help is taking action. A foreclosure should be the absolute last option. The lender does not want to foreclose on your house. There are great resources out there. If you or someone you know is in mortgage trouble, there has never been a better time to ask for help than now.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of "Real Estate Dough: Your Recipe for Real Estate Success" and other books. You can reach her at Bernice@RealEstateCoach.com.

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