⚖️ From Foreclosure to Freedom: How to Navigate and Win With Mike Russell

Real Estate Marketing Implementation Podcast (The REmarketing Podcast)

Summary

• 🏠 From Real Estate Success to Rock Bottom: Michael Russell spent 30 years in real estate, owning a successful Century 21 franchise. He witnessed both booming markets and devastating downturns, losing everything—homes, business, marriage—during the 2008 crash.
• 💔 The Emotional Toll of Foreclosures: Mike recalls handling thousands of foreclosures for banks like Fannie Mae and Bank of America. Witnessing over 200 physical lockouts left a lasting emotional impact, motivating him to shift toward compassionate solutions.
• 🤝 Founding Hope for Hardship: Out of personal bankruptcy and deep regret, Mike founded Hope for Hardship—a nonprofit that helps homeowners avoid foreclosure. His mission: offer assistance with mortgage relief, application navigation, and negotiation with banks—completely free.
• 📈 Understanding Foreclosure: Mike explains that foreclosure is the bank reclaiming property as collateral for unpaid debt. It begins with a “Soldier and Sailors” notice and escalates through public filings, legal proceedings, and eventual auction.
• 📆 Timeline & Urgency: The process can unfold over 60-100+ days. But many delay action due to fear, denial, or misinformation. Mike emphasizes the first 45-day window after the initial notice is critical for intervention.
• 🔍 Options to Avoid Foreclosure:
• Reinstatement: Pay back all owed amounts at once (rarely feasible).
• Loan Modification: Often not favorable due to today's higher interest rates.
• Partial Claim Mortgage (for FHA loans): Outstanding balances are moved to a no-interest second mortgage, preserving the original low interest rate.
• Short Sale: Selling for less than owed, now rare due to high market values.
• ⚖️ Your Rights & Legal Protections:
• Right to Cure Notice: Typically gives 90-120 days to fix the issue.
• Federal Bankruptcy: Chapter 13 can pause foreclosure but comes with long-term risks.
• Attorney General Support (in some states): Can delay auctions with proof of sale.
• 📉 Why Bankruptcy Is a Last Resort: Mike shares from personal experience—filing bankruptcy led to a 7-year struggle. He urges exploring all other options before considering it.
• 📞 Importance of Communication: Mike emphasizes: “The bank is not going to chase you—it’s your job to chase the bank.” Proactive contact can halt foreclosure and open up relief options.
• 🛠️ How Hope for Hardship Helps:
• Assists with preparing complete, bank-accepted assistance applications.
• Maintains consistent 3-day follow-ups with lenders.
• Helps clients keep homes, secure trial payment plans, or transition to better options.
• 💬 Healing Through Helping: For Mike, helping others navigate foreclosure is both personal healing and purpose. His goal is to transform from being a “negative inflection point” in people's lives to becoming the reason for their fresh start.

Insights Based on Numbers

• 200+ lockouts witnessed: Deep emotional exposure to the pain of foreclosure.
• 30-year career: Mike combines experience and empathy to guide clients.
• 70%+ success rate: In helping clients stay in their homes through Hope for Hardship.
• 2.875% mortgage example: Shows why saving low-interest loans is vital.
• $190,000 in equity: One client who hadn’t paid in 3 years still cashed out thanks to appreciation.