How A Real Estate Lawyer Can Help Stop Foreclosure

Hiring an experienced real estate lawyer can make a big difference in any foreclosure case. Those who have handled a number of similar cases in the past can be of great help to homeowners who wish to stop home foreclosure.

Your foreclosure prevention efforts must not stop there, however. You will still eventually have to pay your debts fully if you wish to completely stop home foreclosure.

There are certain foreclosure cases that are improperly filed. Some actions of the lender can be used as defense in a foreclosure case. A good lawyer can help you find and identify substantive defense which you can use to support your case and stop foreclosure.

In some cases, principal of loans including their interest balance have the chance of being waived on the grounds of improper lending practices of the lender. In Florida, for instance, violation of the Florida Unfair Lending Act may put aside the right of a lender to claim payments and stop imminent foreclosure.

Even if you do not have a similar case, a good defense can still prove its benefits. It can provide you with additional time to stay in your property and explore your work-out options. If you are planning to sell your home, it can give you ample time to find the best deal. If you are renting your property, it can help you continue making income by continuing the collection of rent.

Panic is one of the biggest hindrances in stopping foreclosure. Once a homeowner is threatened by foreclosure, they usually begin to make hasty and thoughtless judgment.

Fighting foreclosure is always a better choice than not fighting it at all. It is important to know that the moment a foreclosure proceeding has began, no mortgage payments will be accepted by the bank any longer. Also, other delinquent charges and fees such as tax and property insurance will subsequently be shouldered by the bank while you enjoy all the benefits of complete home ownership.

Despite the cost of hiring a real estate lawyer, being able to save your property is worth every dollar. Aside from being able to stop foreclosure, you can save time when you hire a lawyer.

Author Resource:

John Cutts has been educated in the finer points of the foreclosures market over 5 years. Read about foreclosure help information on StopForeclosuresHelp.com and learn how to stop foreclosure.

Questions About Short Sales: What is a Short Sale?

The term “Short Sale” is used in the real estate business to describe a situation where the current fair market value of the property is less than the debt owing against the property. In other words, the Seller can’t sell the property unless the creditors (“Third Parties”) agree to accept a payment that is less than (or “short” of) the amounts actually owed to those Third Parties. The Third Parties may include mortgage lenders, mortgage insurers, bankruptcy trustees, and federal, state and local taxing authorities (such as the IRS or State Tax Commission) or other lien holders. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

To put it simply, a short sale is a transaction where the lender, or lenders, agrees to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

What does Third Party Approval mean?
A Short Sale requires the written approval of the Third Parties. The Third Parties may include mortgage lenders, mortgage insurers, bankruptcy trustees, and federal, state and local taxing authorities (such as the IRS or State Tax Commission) or other lien holders. Consequently, the Seller of the property and any Buyer is advised that even if they reach an agreement with each other for the purchase and sale of the property the Buyer’s obligation to purchase, and the Seller’s obligation to sell, are respectively conditioned upon Third Party Approval of the Short Sale.

Why is the number of Short Sales rising?
Due to the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.

A short sale can also be the best option for homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.

What are the Tax and Legal ramifications of a short sale or foreclosure?
Anyone considering a short sale or foreclosure needs to understand that participating in a Short Sale transaction or having a property go through foreclosure may have negative legal or tax consequences.

WE ADVISE YOU TO CONSULT WITH YOUR ATTORNEY OR TAX ADVISOR IF YOU DESIRE SPECIFIC LEGAL OR TAX ADVICE.

 Source: www.blackhawkrealty.com

The Foreclosure Crisis is Far From Over in Ohio

Ohio has been one of the hardest hit states in the U.S. during the current foreclosure crisis in the real estate market. Not only that, but the three biggest cities in Ohio–Cleveland, Columbus, and Cincinnati–are the most affected, and the rate of foreclosures is still going strong.

Only judicial foreclosures are allowed in Ohio, and some of the foreclosures are on hold right now, waiting for foreclosure fraud investigations to be completed, however, even with all of that going on, there is still plenty of foreclosures being filed.

Statistics are also showing that neighborhoods that have higher percentages of African Americans are being dealt with much more harshly than those with higher percetages of whites. Banks are less likely to refinance, modify, or allow new mortgage loans for housing, while housing equity values drop in an ever increasing spiral due to the lower value of foreclosed homes.

Can Ohioans Fight the Foreclosure Crisis?

First of all, if you find yourself in the situation where your house is being foreclosed, make sure that the company that is foreclosing actually owns the house. There have been instances of colossal errors, and outright fraud when it comes to foreclosures. Recently, a Florida couple actually got a judgement against a bank that foreclosed on them wrongfully, then wouldn’t pay them the judgement fees. Below is a video describing this situation.

There is Help for People Trying to Avoid Foreclosure

There are both national and local organizations that have been organized to help people avoid foreclosure by modifying loans or negotiating on your behalf. Some experts are saying that going into bankruptcy is better than foreclosure. Whichever choice you make, consult with a financial expert that is there on your behalf to avoid putting trust in the lawyers and banks that are working against you.

One of these organizations is Save the Dream Ohio which works with home owners as an intermediary. They can decipher confusing laws or regulations, and help you determine your next response to a foreclosed home.

HUD is another government organization that can offer help in several different areas of foreclosure circumstances.

This article is originally published here.

Mortgages for People in Foreclosure

The Federal government has launched a number of programs to stop foreclosures that have become rampant after the collapse of the housing market. Some of these programs are meant to help homeowners modify mortgage payments while others help home owners refinance their home. In addition to modifying mortgage payments and aiding mortgage refinancing, the Obama administration is also trying to provide relief to homeowners, who are unable to make the necessary mortgage payments, by encouraging mortgage lenders to allow short sales. To know more about the eligibility criteria, to qualify for mortgage modification or refinancing, one may refer to the article titled, “Government Help to Stop Foreclosures“.

Mortgages for People in Foreclosure

Mortgage refinancing refers to the process of replacing a mortgage loan with another mortgage of the same size having relatively favorable repayment terms. Of course, mortgage refinancing is possible only if one has positive built up equity in the house. The following programs can help homeowners refinance their mortgage and thus prevent foreclosures.

Home Affordable Refinance Program

People, whose loans are owned or guaranteed by Freddie Mac or Fannie Mae, have the option of refinancing their mortgage from an adjustable-rate mortgage (ARM) to a low fixed rate loan. In fact, they may be able to replace their current mortgage with a mortgage that demands interest only payments or balloon payments. The new mortgage loan, that is provided under HARP (Home Affordable Refinance Program), cannot exceed 125 percent of the current market value of the property. The Home Affordable Refinance Program is a part of the Making Home Affordable Program and will be operational till June 10th, 2010.

HOPE for Homeowners Program

The HOPE for Homeowners Program was launched on October 1st, 2008. This program is meant for homeowners whose loans are insured by the FHA (Federal Housing Administration). This program can help homeowners refinance their mortgage even if the built up home equity is less than 20 percent. The program, which expires on September 30th, 2011, was modified on May 20th, 2009, with the intention of providing additional compensation for primary and subordinate mortgage holders.

Bad Credit Mortgage Refinance

People, whose loans are not owned or guaranteed by Freddie Mac or Fannie Mae or individuals who do not have FHA insured loans, may consider approaching a mortgage broker, who may be willing to provide a new mortgage loan to replace the current mortgage, provided they have sufficient built up equity in the house. However, the borrower may be forced to pay a high rate of interest on the loan and this may very well defeat the purpose of mortgage refinancing. Moreover, mortgage brokers may also expect the borrower to purchase points wherein the cost to purchase one point is equal to 1% of the total principal amount of the mortgage loan. Although purchasing points will lower interest rates, the Internal Revenue Service (IRS) considers points as prepaid interest which has to be deducted over the term of the loan rather than at the time of closing. Again, the borrower would be required to pay closing costs that are rather steep to refinance the mortgage. A cash strapped borrower, who is not eligible for refinance under HARP or HOPE, may be unable to afford mortgage refinancing due to the aforementioned reasons.

It’s evident that mortgage refinancing may help prevent foreclosures. Just as mortgages for people in foreclosure are hard to come by, seeking a mortgage after foreclosure is also a tough task. The best way to obtain a mortgage after foreclosure is to improve credit scores that may fall by up to 350 points as a consequence of foreclosure.

About the author:
By Aparna Iyer