The Need to Communicate

Posted on November 10th, 2009 by saman

It's necessary to comunicate in this period of foreclosure crisis

We can say that the foreclosure crisis is not at its peak yet. One of the solutions offered by experts is to mediate. Such a situation is specific to a period of crisis. Debtors are not able to pay their debts and creditors call the executors. Nevertheless, we must take into consideration the fact that this situation has not reached its peak yet.

It could be easily changed for better if the parts involved would use mediators. While a trial can last three to four years, mediation can last two hours, according to the lawyers. At the same time, experts in Economy consider that political influences are obvious in the manner in which legislation is created, for the benefit of groups of interests. Political aspects are definitely activated by financial interests. Politicians are animated by their financial interests and those of their customers too.

Thus, unfortunately, legislation assumed by governments can be catastrophic. Now, provisions concerning great criminality actually favor high-level criminals. At the same time, there are some laws that are not public and they can influence the foreclosure system. If laws are not public, that does not mean that they do not exist. Thus, any decision issued based on such law can be considered ineffective. Moreover, non-homogenous activity in courts is another reason why foreclosure is affected in some countries.

Under conditions of economic crisis, it is normal that the number of foreclosure files increase. However, foreclosure procedures are complicate, because activity in courts is not well organized. This is a problem related to mentality. Experts in sociology think that apart from the economic crisis in the case of more countries, the huge number of foreclosures is caused by a mentality showing a deficit. It means people’s attitude towards investment and income.

In the case of many countries, there is not any balance between the two parts. We should have started from the assumption that you can get a loan, but you must make sure that you will be able to pay it back, even in the most difficult situations. More people tend to dream of minimum investment and fabulous earning. Many countries, cities, and people do not have a rigor of investment. We can say if we want to make an analogy between attitude and religion that Christians are more exposed to loss than Catholics or Protestants.

There are many people eager to gain rapidly, leading to foreclosure. Those who wanted to earn a lot of money in a short time, not necessarily cheating, have risked a lot and unfortunately, for them they have lost, because of the period we all have to face.

How can be foreclosure avoided? In the lawyers’ opinions, it is easier to prevent foreclosure or bankruptcy situations than to eliminate them. We are tributary only to situations in which something negative has already appeared, nobody is interested now in prevention.

When you face an avalanche of debts for which you do not have financial resources to cover them, you must know that you have not lost everything. You just have to follow some steps in order to find solutions for these extreme situations. Those who have debts must overcome the negation phase. The problem must be approached correctly, in a transparent and professional manner. You do not have to turn creditors into opponents.

At the same time, the problems must be discussed with creditors and you can find solutions together. Thus, you can find a plan to overcome crisis. Lawyers think that good communication with creditors can lead to a solution. It is a good thing to ask creditors’ opinion concerning potential solutions because they can have a positive reaction. If you want to face the difficult situation, you have to mediate and to negotiate with all the creditors.

Besides, it is recommended to propose realistic rate plans. The lawyers also say that negotiation to stop penalties is very important. It is extremely important to negotiate with creditors in order to stop or reduce the penalties flow, as these are the threats with which creditors push on debtors.

Moreover, respect the commitments assumed in front of the creditors. An intelligent creditor will always prefer rates of debts proposed by the debtor than a trial. There are solutions, but there is necessary as well availability for negotiation.