Posts Tagged ‘Pre Foreclosure’

Tips On How To Avoid Foreclosure

Saturday, June 26th, 2010

foreclosure
Susan Jan asked:


Foreclosure occurs when you fail to make your payments and the mortgage company takes legal action to repossess your home or property. Mortgage foreclosure may take place if a homeowner, who has taken out a loan, defaults on the mortgage payments. Through the process of mortgage foreclosure, the lender company can take possession of the defaulted home. In case the value of the home is less than the mortgaged amount, the borrower may have to face the ‘deficiency judgment’ to pay the balance amount. Mortgage foreclosure also has a negative impact on the homeowner’s credit score.

Even though you may be facing mortgage foreclosure does not mean you have to lose the house. There are many ways to stop foreclosure when you are faced with mortgage foreclosure on your home. Some ways to avoid foreclosures include forbearance, loan modification, mortgage refinancing, sale of the property, etc.

It is also important that you save your house from mortgage foreclosure in order to maintain a good credit rating. If you have trouble making your mortgage payments, the first thing you need to do is contact your mortgage company and let them know. Prepare all your financial information such as tax returns, bank statement, etc. and do not abandon the property to avoid mortgage foreclosure. You can even have an option to go for a ‘pre-foreclosure’ sale where you simply sell your home before the bank completes the mortgage foreclosure.

To stop foreclosures, there are several other things that a homeowner can do. Homeowners can try and apply for Special Forbearance to avoid foreclosure. This may lead to a revision of the repayment schedule and in some cases the payment may either be revised or suspended. Your lender is not in the business of taking homes through mortgage foreclosure; they make more money by lending your mortgage payment to other homeowners.

If you are familiar with the foreclosure listings in your area, it will make things easier for you when you discuss with your lenders. Foreclosure listings are the lists of foreclosure homes, with comprehensive information and details geared towards potential buyers interested in buying a foreclosure property. Foreclosure listings provide detailed description on various aspects such as the property details, foreclosure information, neighborhood information, sales history, tax information and also the contact information. To find out more on foreclosure listings, the internet is a good place to learn more on the subject.



Investing in Foreclosures

Thursday, April 29th, 2010

foreclosure
William Grigsby asked:


When homeowners fall behind on mortgage payments, foreclosures may occur. A foreclosure is a process in which a financial institution repossesses or sells a piece of property because of a loan default. Mortgage lenders usually consider a mortgage to be in default when payments haven’t been made in three months. When mortgage loans are in default, the mortgage lenders can start the foreclosure proceedings of the properties, and so opportunities arise for investing in foreclosures.

There are three ways you can get a great deal in investing in foreclosures: at the pre-foreclosure stage, that is, before the homeowner falls so behind in his mortgage payments that the property is foreclosed; at an auction of foreclosed properties; or from a Bank owning foreclosed properties. Information is everything! You need to have up to date accurate information, an absolute essential for investing in foreclosures. You will need a source for knowing what properties are going to sale, for how much and when.

Success in buying homes in pre-foreclosure is all about timing and it is essential that you reach the homeowners early on to help them. When a homeowner is unable to pay one or two mortgage payments, you can be pretty sure that a probable foreclosure is ahead. Many of these homeowners don’t know who to turn to. They are mostly scared and/or worried. Wouldn’t anyone be fretful in the same situation? As an investor you have to think about the reality these people are facing and present them options in a hopeful manner, to help them move forward in their lives.

The second way you can find great deals in investing in foreclosures is at auctions. When borrowers default on their mortgage payments, the original lender takes back the property and sells it at auction, often at a seriously discounted price. Your main advantage of investing in foreclosures at an auction is that the moment a property reaches the actual sale date, all trust deeds (loans, depts.) made after the foreclosing loan are wiped off the property. In this way you can get instant equity. If you’re the winning bidder at an auction you will pay off the loan with your winning bid amount and you’ll then take title.

Lastly you can also find great opportunities for investing in foreclosures with properties owned by banks or other lenders. 10-20% of all properties progressing to the trustee’s sales (auctions) have no bidders show up. The instant that no bids are made at the sale, the foreclosing beneficiary (bank or lender) becomes the owner. Banks and lenders are now getting these properties back regularly. It is very expensive for them to be stuck with these properties! The costs to the lender would be enormous in the event that they chose to list the property with a broker and many months elapse during the clean up, the marketing, and the escrow period. The whole key for you to be able to invest in foreclosures at this stage is to act quickly by approaching the beneficiary (lender), the same day of the sale, before he turns the property over to a real estate agent for resale. Your quick action at this point can save you tens of thousands of dollars.

As a general rule, when a property has a lot of equity you should approach the owner during the pre-foreclosure or default stage with an offer. It’s in his interest to accept an offer of a few thousand dollars to get out before losing everything at the foreclosure sale. When a property has little or no equity, you simply step back, be patient and wait for the trustee’s sale at auction. The trustee’s sale will wipe off all previous liens, creating equity. Ten to 20% of the time no outside bidder will show, and the property will revert to the foreclosing beneficiary. Now is your perfect time to low ball the bank or lender with an offer substantially below the minimum bid at the trustee’s sale before he incurs any costs, such as commissions, clean up, repairs and holding costs.

There are three key elements to investing in foreclosures with the lowest possible amount of capital. First you must know which properties are in trouble and know exactly at what stage of the foreclosure process the property is in. Second, it is critical that you know how much time the owner has left. Third, you should always find out all the trust deeds (loans) that are against the property so that you can establish the lowest possible price to offer. You should have some way of getting these three elements researched as completely as possible on every property giving, so that you get all the most important information that any buyer can have. To do this you need a first-class reputable and reliable foreclosure information service, to enable you to successfully profit through investing in foreclosures. You can find a first-class reliable service providing updated details of more than 600,000 foreclosures and pre-foreclosures at : Investing In Foreclosures



Foreclosure: What is It? and How to Avoid it

Friday, January 15th, 2010

foreclosure
Troy Foote asked:


(c) 2008 Troy Foote

To understand the foreclosure process one must know what it is first. So what is the definition of foreclosure? Simply put, the foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”.

Within the United States and many other countries, several types of foreclosure exist. Two of them – namely, by judicial sale and by power of sale – are widely used, but other modes of foreclosure are also possible in a few states.

The process of foreclosure can be rapid or lengthy and varies from state to state. Other options such as refinancing, alternate financing, temporary arrangements with the lender, or even bankruptcy may present homeowners with ways to avoid foreclosure.

The number of households in foreclosure increased 79 percent in 2007, and that number is increasing for 2008! So how does the foreclosure process end? Well it can end in one of four ways:

1.The borrower/owner reinstates the loan by paying off the default amount during the grace period.

2.The borrower/owner sells the property to a third party during the pre-foreclosure period The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.

3. A third party buys the property at a public auction at the end of the pre-foreclosure period.

4. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure, via a short sale foreclosure or by buying back the property at the public auction.

Remember that understanding foreclosures is the first step for homeowners to stop foreclosure. As long as real estate prices, which are pretty much dictated by real estate buyers, continue to decline, there will be increased numbers of defaults and foreclosures.

Few choose to go into foreclosure voluntarily. It’s often an unpredictable result from one of the following: Laid-off, fired or quit job. Inability to continue working due to medical conditions. Excessive debt and mounting bill obligations. Squabbles with co-owner, divorce or job transfer to another state.

So how do you avoid foreclosure?

The best way to avoid foreclosure is to prevent the filing of a Notice of Default. That is why it is better for you to call your lender before falling behind on your payments, because lenders are often reluctant to work out repayment schedules after foreclosure proceedings have been commenced. You will be given a certain time period to bring the payments current, pay the costs of filing the foreclosure and stop the foreclosure.

No one expects to lose their house to foreclosure, but by understanding the foreclosure process and what may lead up to it, you can be in a better position to recognize and address potential problems that may impact your ability to make every mortgage payment on time.

Learn to recognize the warning signs of foreclosure. Know what early steps you can take to avoid foreclosure. If you are in the midst of a foreclosure, know the dos and don’ts. Know where to get help in dealing with issues that could lead to foreclosure. The time to develop a backup plan is not when things have gotten so bad that you are facing foreclosure, but when things are going well and you can prepare for the unexpected “what if’s” that happen in life.

Nearly four out of ten sub prime ARM loans are a month or more late, or in foreclosure. And sub prime ARMs account for 39% of the loans that fell into foreclosure during the quarter. Prime fixed-rate loans, which are considered very low risk, have also seen sharp increases in their delinquency and foreclosure rates, although they are performing far better than the riskier loans on the market.

There are 431,000 prime loans in foreclosure. This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. Nearly half of the homes in foreclosure are concentrated in six states. Those four states have nearly 400,000 homes in foreclosure, or a third of the nationwide total. Ohio has about 61,000 homes in foreclosure, while Michigan has about 54,000. The rate of homes going into foreclosure in Ohio and Michigan was narrowly lower than it was in the fourth quarter, and 18 other states also saw a decline in that rate.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible.



Fighting Foreclosure/ Learn Fighting Foreclosure Options

Saturday, January 9th, 2010

foreclosure
Deana Owens asked:


You have many options when fighting foreclosure, but which one will work best for you? The best defense you have in saving your home is educating yourself in order to make the right choice when making that life changing decision. Whether you want to save your home or feel it would be best to walk away, it will be the hardest choice you will ever have to make. There is an option for those fighting foreclosure which is to seek professional help but when you are unable to make mortgage payments, it may be difficult to find the money to pay for legal proceedings. You can do it yourself through education and knowing your fighting foreclosure options.

Option 1: Forbearance – If you are just in the beginning stages of fighting foreclosure or it has proceeded to an intermediate point, Forbearance may be an option for you. This term is used for an agreement that gives you a temporary break from making the mortgage payments. This works well if you are suffering from temporary financial crisis such as a job layoff. This option can give you the time you need in order to get your life back on track.

Option 2: Loan Modification - A loan modification is an adjustment of an existing mortgage that can include a lower interest rate, longer term or reduction in principle balance. When you are accepted for a loan modification, the new note is considered current at the time it is created which means your efforts of fighting foreclosure is stopped immediately.

Option 3: Pre-Foreclosure Sale/Short Sale/Friendly Foreclosure – This option will allow you to avoid foreclosure by selling your home for less than what is owed on your mortgage. To qualify, your loan must be at least 2 months delinquent, appraisal of your home meets their criteria and your debts outweigh your assets.

Option 4: Partial Claim/For FHA Loans Only – You may be able to work out with your lender a one-time payment from the FHA Insurance Fund to bring your mortgage current. To qualify you must be at least 4 months behind on your mortgage but no more than 12 months and you are able to start making full mortgage payments. This claim filed by your lender to the U.S. Department of Housing and Urban Development will result in an interest free Promissory Note which will be due when you pay off the first mortgage or when you sell the property.

Option 5: Deed-In-Lieu of Foreclosure – This involves voluntarily giving your home back to the lender. Although this won’t save your home or forgive the debt, it will not damage your credit as much as a foreclosure will. If you have done all you can in fighting foreclosure and do not qualify for any of the other options, this may be a choice that cannot be ignored.

These are just your options but do you know about the laws that are out there to protect you as your fighting foreclosure? Knowing these laws is a vital step in protecting your home. Do not contact your lender until you are fully aware of your rights. Find out what the latest new legislation in Congress is going to do for homeowners fighting foreclosure. Did you know there are Foreclosure Assistance Programs? Are they really legitimate or something to avoid? Find out whether selling your home right now is a real option for you. Fighting foreclosure may be one of the most intimidating experiences you will go through. Don’t do it alone. Learn what you can do to stop foreclosure now.

 

 

 

 



Jim TV SD Pre-Foreclosure Tour

Monday, April 6th, 2009

JimtheRealtor asked:


A sampling of those houses on the foreclosure rolls in SD North County Coastal – an area of prime RE that has endured so far…….