Posts Tagged ‘Facing Foreclosure’

Fight Foreclosure: Produce the Note How-To

Saturday, July 3rd, 2010

consumerwarningnet asked:


Facing foreclosure? Info at www.consumerwarningnetwork.com may help. Your goal is to make certain the institution suing you is, in fact, the owner of the note. There is only one original note for your mortgage that has your signature on it. This is the document that proves you owe the debt.

Thursday, February 25th, 2010

foreclosure
Bob Hamilton asked:


A Foreclosure is an attempt by the lender to seize the property of the mortgagee in default to his payments. The reason could be your financial shortfall that will force you to face foreclosure. It is a true fact that when people face foreclosure, many of the companies claiming to assist them do nothing. As the number of foreclosures has risen so has the number of foreclosure scams.

Foreclosures have been climbing steadily nationwide. The main reason that gives rise to foreclosure is the generosity of the mortgage companies, where mortgager is liberal towards you; it is easy for you to take advantage to buy a home or property at ease with a hope that you pay the debts when you have enough money. But you end up facing foreclosure failing to make payments.

It is not difficult to stop foreclosure as some people think. If you really want to know the absolute method to stop foreclosure, the solution is to act immediately. Most people ignore this and fail to stop foreclosure at a very early stage. Your only solution is to find a way so that will help you change your situation.

It is very unfortunate when you lose your home to foreclosure. Finding out the best possible method to save your home or property from foreclosure is the first thing you need to concentrate on. You can always contact your lender and come out with a solution to your situation. Turn to a foreclosure counselor for assistance. You can follow the strategies provided by them. You can refer books that gives vital information which will help you to know the inside secrets of foreclosures. If you are prepared in advance, you will greatly improve your chances of surviving from foreclosure.

You can also find many websites that aid you to overcome foreclosure in addition to these books. Having a thorough knowledge of how to deal with foreclosure will help you to a great extent.

Foreclosure can happen to anybody, sometimes without any fault of their own, and if you are in this position make sure that you take initiative at an early stage. Taking immediate action and doing these things can make a huge difference as to whether foreclosure becomes a reality for you or you manage to prevent it? Don’t predict your future make use of the right foreclosure tactics that will save your home and property.



Saturday, February 13th, 2010

into foreclosure
Thomas Bladecki asked:


Would you like to know how you could stop a home foreclosure? The best answer is to take immediate action. Many people overlook the best solution, and ignore the lenders, this is not the good solution, the lenders will continue to pursue it until either they sell the home at auction or take the home back them.

Stopping a home foreclosure can be a bit intimidating, but do not try to run from it, remember that the banks do not want the property back, they are in the business of lending, not property management.

Homeowners that are facing foreclosure are either in a financial bind, or some other hardship, their intention was not to get in to this position, but this does not mean that they cannot recover from it, or stop the foreclosure process.

Once the owners take control of their lives and stop ignoring the issues at hand, contacting the lender is the first step in getting back on track. It is not easy to stop the foreclosure process; it will require some work, but do not give up on it. Most banks will work with the homeowner by attempting to resolve the default without going through the legal process, especially with the high rate of foreclosures in today’s market.

If you are looking to stop a foreclosure, chances are very good that you have already received the “Notice of Default”; this is the lenders legal way of informing you that you are potentially facing a foreclosure on your home. Depending on the state, you live in and the laws regarding foreclosures, you will have some time to take action. Whatever you do, ignoring the notice is the last thing that you want to do. This is not just a warning or a collection letter from the lender, this is the beginning of a legal home foreclosure and ignoring the notice is a guarantee that the lender will win. Working it out with the lender is the only way in which you can stop to foreclosure.

Talk to the loss prevention, or sometimes called the loss mitigation department. This department handles foreclosures, and can get you on a work out plan. Lenders not like to deal with foreclosures, however if you leave them no choice, be assured that they will if given no other option.

The lender may be willing to setup a workout plan, or payment plan for the amount in default and to keep the loan current, in this case, you should take action if you are able too. They will require certain financial and personal information in order to modify the loan agreement. Providing this information accurately and timely, will ensure a timely result from the lender, and will prevent the lender from pursuing further action on the foreclosure.

Selling your home is another option, if you are not in a position to agree with the lenders recommendations, or you will not be able to make the payments as promised, your best option may be to sell your home. Selling your home is one way that you are in control of the unfortunate situation.

Taking action is the best way to start, and you can look on the internet for a great deal of information regarding foreclosures and companies that can offer assistance. Make sure to act fast as time is already against you if you have received a “Notice of Default.”

Stopping or preventing a home foreclosure is entirely up to the homeowner, if you are willing to work with the lender, provide the required information, and come to an agreement, you may stop the foreclosures on your home. On the other hand, if you are not willing to talk to them or ignore their phone calls and letters, then make sure that you have your personal belongings packed and ready to go when they foreclosure on our home.



Saturday, January 2nd, 2010

into foreclosure
Mark Walters asked:


The number of homes facing foreclosure continues to grow in many parts of the country. The consensus among ordinary citizens seems to be that a fortune can be made buying foreclosure homes. Is that true or false? The truth is – it’s some of both.

Three and a Half Ways To Buy Foreclosure Properties

Buying real estate foreclosures only produces profits for those who have the knowledge required to recognize and negotiate profitable deals. With foreclosures that’s not as easy as it might seem.

Preforeclosure

The preforeclosure period offers the greatest opportunity for the novice investor. Preforeclosure can be divided into two periods. The first is where a financially distressed home owner realizes he or she will soon be unable to stay current with their mortgage payments.

If you can reach the owner during this period you have a chance to buy the home in the normal way. That is, make your deal with the home owner, get a mortgage loan and go to the close.

Ah, but how do you reach that owner. You target a housing development that first began selling new homes about three years ago. You do that because many adjustable rate mortgages reset to a much high interest rate after three years. As that date approaches many home owners begin to realize they have a problem.

You blanket that development with flyers every 30 to 60 days advertising yourself as a home buyer . Once a week you spend a Saturday afternoon going door to door and asking “Are you the folks that are planning on selling your home? No? Let me leave my card in case you change your mind.”

The second part of the preforeclosure period is at some point after the homeowner has stopped making mortgage payments and the lender has filed a notice of foreclosure (sometime called a notice of default). Now the clock is running and you must move quickly to make your deal before the lender takes the home.

The owner could be as much as six months behind in mortgage payments. You’ll need cash to bring those payments current and stop the foreclosure.

The catch is that many of these homes were purchased as real estate values peaked. Now home values are falling and the home is worth less than the amount due on the mortgage loan. The owner is “up side down” and there is no equity and no profit for you.

If there is equity you have a chance to make a good buy. There is seldom enough time to apply for and qualify for a mortgage loan. You will either need cash or the ability to strike a deal using a lease-option or to buy “subject to” the existing financing. You will need a thorough understanding of those tactics to use them profitably.

Foreclosure Auction

Your next chance to buy is at the foreclosure auction sale. Auctions are cash-on-the-spot sales. Yes, you will need cash, but even more important is the ability to research the property being sold to determine if it would truly be a profitable buy.

Many foreclosure homes have been trashed and stripped. What will the cost of rehab be? How’s the neighborhood? Is it safe to go in unarmed? Are there zoning or building permit issues attached to the property. Foreclosure auctions are not a game for the inexperienced investor.

Now we have listed the first two opportunities to buy foreclosure homes:

1. During just before a foreclosure.

2. At the foreclosure auction.

Bank Owned Homes

Opportunity number three is homes owned by the bank. These are often called REOs for real estate owned.

If there are no successful bidders at the foreclosure auction the home becomes the property of the bank. When there are many foreclosures banks end up owning thousands of homes they do not want. If you have the cash they will listen to offers. If the bank is eager to get those homes off of their books they may consider financing your purchase if you have a decent credit history. Often they want cash.

You can put together a group of investor who pool their funds to bid at foreclosure auctions or buy REOs.

Redemption

I promised three and a half ways to buy foreclosure homes, so here’s the half. In some states the owner has redemption rights. That means during a certain number of months after they have lost their home at the foreclosure auction they can regain ownership.

To redeem they must pay all money that was owed on the mortgage, pay all the costs of the foreclosure and pay any interest that accrued during the redemption period. It is sometimes possible to buy the redemption rights from the displaced owner, cover all the costs and own the home.

What about the investor who bought the home at the auction? He or she has our most sincere sympathy.

That’s it, three and a half ways to buy foreclosure homes. There’s money to be made, but you will earn every nickel!



Avoid Foreclosure – Bloomberg: Your Money

Saturday, December 26th, 2009

Bloomberg asked:


If you’ve fallen behind with your mortgage and facing foreclosure, don’t panic and do nothing. It isn’t the time for in-action because with guidance, you may have options. Here’s what you need to know if you want to save your home from foreclosure.

Friday, December 18th, 2009

foreclosure
Dean Williams asked:


As a real estate investor in Central Florida, I’ve come across many homeowners who are facing foreclosure for the very first time and they all seem to make the same mistakes. When you have fallen on hard times due to a job loss or a mortgage reset, it is easy to feel depressed, helpless, and think “I’ll just let them take the house”. But you must realize that there are many solutions available to avoid foreclosure and save your home! The following are common mistakes you should avoid in order to prevent foreclosing on your home:

1. Paying For Foreclosure Prevention Services

Search the Internet for “foreclosure help” and you are bound to encounter countless foreclosure agencies that, for an upfront fee, will stop your foreclosure. Their fees will cost you thousands and many of these agencies just take your money and let your home fall into foreclosure. What these agencies do is contact your lender on your behalf and ask for a lender workout. A lender workout is a relatively simple process that you can do yourself and save thousands in costly fees. If you are interested in learning more about doing a lender workout yourself, complete with letter templates, you should consider this lender workout foreclosure solution.

There are numerous foreclosure scams being run through direct mail and the Internet. Before you sign any documents or send a check to anyone, you should look the company up through the Better Business Bureau, Yahoo, and Google for complaints. If you are asked to sign a “Quit Claim Deed” or any other documents that transfers ownership of your home, you are most likely being scammed. Should the company or person ask for a large upfront fee with no guarantee or contract agreement that outlines the details of his or her services that should also signal a red flag. Hang up the phone and walk away. You should always see everything in writing and have written guarantees from anyone claiming to stop a foreclosure for you.

2. Ignoring The Lender

Believe it or not your lender is your best friend during foreclosure. If you are facing foreclosure, the lender has every right to your home. After all you did grant them a mortgage on your home. The good news is that your lender does not want your home; it simply wants you to make payments on time so they can get their money back. You should maintain contact with your lender and explain to them the reasons why you have missed payments. Your lender may consent to a forbearance agreement, loan modification, or a delayed repayment plan.

Your lender will want to work with you because if you do foreclosure it will cost the lender between $30,000 – $40,000, the lender is not in the business of owning real estate, and foreclosures on lenders’ books makes it harder for them to obtain low-interest capital for future loan portfolios. Do not stick your head in the sand by ignoring your lender, educate yourself on your options and then contact your lender.

3. Feeling Overwhelmed And Not Seeking A Solution

More often than not homeowners in foreclosure have pressing day-to-day life issues, and are simply too overwhelmed to adequately find solutions to their foreclosure. Many then succumb to fraudulent foreclosure agencies or unscrupulous real estate investors who cost them their home. If you have no equity, no savings, and are one or multiple payments behind on your mortgage they are simple ways you can stop foreclosure or relieve yourself of that hefty mortgage payment and find something more affordable. You do not necessarily have to sell your home or if you must vacate it, you don’t have to go through the trouble of waiting for a buyer and you can still save your credit for a more affordable home purchase in the future.

4. Not Taking Advantage of Government Programs And Resources

The Federal Housing Administration has designed a program just for homeowners who can no longer afford their mortgage because of an adjustable-rate mortgage reset, or homeowners who are in “interest-only” loans are may now have to begin to make principal payments. You can learn more about the FHASecure Refinancing program at http://www.fha.gov or search for FHA-approved lenders at http://locator.fha.gov. You may also seek the counsel of a HUD-approved counseling agency at 1-800-CALL-FHA.

5. Not Having A Home Equity Line of Credit (HELOC)

A foreclosure stands a good chance of being prevented or delayed if a HELOC was established before the homeowner ever missed a first payment. Unforeseen events such as job loss or medical problems will make it difficult, if not impossible, to obtain access to low-interest lines of credit , so it is important to have a HELOC ready for emergencies. A HELOC should not be used for frivolous expenses, but for real emergencies such as medical expenses or fees associated with getting yourself out of foreclosure. In the event that you lose your job, you can use the HELOC to pay for necessities until you are back on your feet and can repay the loan. Most HELOCs do not have a monthly fee if you do not access the line, so if you are in a position to set-up a HELOC you should do so as soon as possible.

6. Spending What Money You Have On Other Bills

Though it may seem easier to pay your utility, credit card, and cell phone bills before you make payments towards your mortgage the reality couldn’t be further from this notion. After 3 or 4 missed payments the lender has the right to “accelerate” or “call” your home loan and insist on getting all back payments at once. If you plan to keep your home you should cut all of you unnecessary expenses such as cable and cell phones so that you can devote what little money you have to pay for your house. There are many methods to prevent foreclosure, and will you need to have cash available to cover expenses. Keep in mind that in order to get the mortgage company’s consent to a forbearance agreement or delayed repayment plan you need to prove to that you made every reasonable attempt to make mortgage payments.

7. Missing Bankruptcy Filing Deadlines

A Chapter 13 bankruptcy filing will stop foreclosure dead in its tracks. However, you should explore all other foreclosure solutions and consider bankruptcy a last resort. If you decide that Chapter 13 is the right answer to your situation, then you should be sure to meet all filing deadlines and make all payments outlined under the plan or may end up losing your home.

8. Not Moving Quickly Enough

Time is of the essence when you are facing foreclosure. Once you begin to miss payments the bank can accelerate or call the loan, and you will then have to come up with all of the back payments at once. Or, if you are in states such as Texas, it can be only a matter of three weeks before you are forced out of your home. You should be diligently seeking solutions for your foreclosure

9. Not Being Persistent

If you decide to do a lender workout you will have to put a considerable amount of effort into gathering your financial information, writing letters of hardship, finding the right numbers to dial, and having the patience to sit on hold for HOURS while you await your chance to speak with a representative from the mortgage company. This will be a very trying experience and there is no guarantee that the lender will consent to anything you may suggest. Before contacting your lender you should have everything you need in order, including the numbers to dial, to ease the stress of this entire process and you must be persistent with the representative you are assigned (if you even are assigned one).

10. Not thinking creatively

Many homeowners assume that if they cannot make payments on their home their only options are to foreclosure or file bankruptcy. And even still, many individuals are not even sure how to go about those options. Before you jump the gun and quickly go down the wrong path be sure you have explore all avenues to get yourself out of your situation. Have you considered renting? Selling a fraction of your home for the amount in arrears? Have you spoken with a reputable real estate investor who may be willing to negotiate a deal so you may keep your house?



Wednesday, December 9th, 2009

foreclosure
Thomas Bladecki asked:


Negotiate a foreclosure help plan prior to losing your home; people that are facing foreclosure often do not realize that there are options to avoid foreclosure. Home foreclosure help is available for these who may be losing their home if they are willing to talk to the lender and entertain options that they offer to avoid foreclosure.

Lenders are calling, sending letter and other correspondences attempting to collect the money that is owed to them. Homeowners believe that this is because they are like “robots” and do not care about the circumstances; however, this is simply not the case. Lenders are just doing their job, then loan people money and in turn, they expect payment to be made on time every month. In most cases, lenders will negotiate a reasonable arrangement to avoid foreclosure.

Lenders have several options available to people that are facing a foreclosure, however you have to talk to them in order to determine if they are viable options for your particular situation. Lenders do not want to process a foreclosure to get the house back. The process can be very length, time consuming and expensive, therefore the often times would prefer to negotiate a suitable settlement versus taking your home through a foreclosure.

Interest Only Payments

Depending on the amount of the default and the time that lapsed your lender may be willing to offer you an interest only loan for a year or two. Foreclosure help is often available from lenders by modifying their loan and getting your payments lowered. This should lower your monthly payment and allow you to get back on track and prevent foreclosure of your home.

Half Payment

Some lenders may discount your monthly payment, up to 50%, if they feel that this will afford you the time that is needed to correct the financial difficulty that you are experiencing. Discounting your monthly mortgage payment is a foreclosure help option that is rarely available, but it never hurts to ask you lender.

Short Sale

Often times a lender will allow a homeowner to sell their home for less then the amount that is currently owed on the loan. This is commonly referred to as a “short sale.” Borrowers may not think that this is a valid form of foreclosure help however, a short sale is prefer over a foreclosure to minimize the impact to future credit. While some lenders will not allow or offer borrowers facing a foreclosure this option, it is worth asking prior to the lender taking foreclosure action.

While this is an overview of only a couple of options that are available to borrowers for foreclosure help, it is a great starting point. There are a number of options available to people that are facing foreclosure, be sure to research and investigate all of your home foreclosure help options prior to making any decisions or simply walking away. Many home foreclosure help web sites offer valuable information that can assist homeowners that are facing a foreclosure.



Produce the Note – Fighting Foreclosure – CNN

Sunday, November 29th, 2009

consumerwarningnet asked:


Facing foreclosure? Info at www.consumerwarningnetwork.com may help. Your goal is to make certain the institution suing you is, in fact, the owner of the note. There is only one original note for your mortgage that has your signature on it. One such case is profiled on CNN’s Your Money.

Foreclosure Hits Unexpected

Wednesday, November 18th, 2009

CBS asked:


A new wave of homeowners who pay their mortgages on time are now facing foreclosure after losing their jobs in the slumping economy. Ben Tracy has more.