Act Now to Stop Foreclosure and Save Your Home

The biggest mistake you can commit when you fall behind on your mortgage payments is to wait too long to tell your lender what is going on. It’s never too late to do anything but to prevent foreclosure, it is better to be proactive than reactive.

Acting fast is very important. It is extremely important to contact your lender as early as possible, after you find yourself unable to make your loan payments. Most of the major lenders have programs for mortgage modification, forbearance, or other remedies that can help you prevent foreclosure. More than half the people who go into foreclosure never respond to letters from the lenders, nor contact the lenders. Your options become limited as time passes by. Contact your lender immediately and tell the lender about your situation. Once you contact your lender, they can allow payment delays, mortgage modification, and come up with new repayment plans, or they may negotiate a lump-sum payment.

When it comes to preventing foreclosure, every minute counts. Early contact – within the first 15 days of missing a payment – is critical in saving homeowners from the devastation of foreclosure. More than half of those in foreclosure did not call for help when they fell behind in their mortgage payments. Do not hesitate to contact you lender. There is nothing to fear about or be embarrassed.

You can get emotional or fear contacting the lender when you face foreclosure. But you must contact the lender. You are not alone. There is nothing to be embarrassed about missing a mortgage payment.

Remember your loan servicer – who you get your monthly statements from may be different from the one who actually owns your loan. If you are not sure whom to contact, call the number on the statement and they will advise you.

Explain your situation to the lender. Once the lender appreciates the situation, he may come up with a workable suggestion. Remember, all this time his aim would be the same as yours – you are able to pay and the house remains in your hands. This can be done by increasing the number of installments which you were required to pay. This will ease the situation for your and lender’s money also remains the same. In fact, as a simple calculation may tell, the lender gains financially. Depending on your situation and the status of your mortgage, there may be different options available to you including restructuring.

• refinancing
• selling your home
• deed in lieu of foreclosure

Be honest about your situation, so they can help you find the right solution. Lenders usually offer a variety of solutions for people who have fallen behind on their mortgages including temporarily reducing or waiving payments, setting up short-term repayment plans to help you make up the deficit, adding the unpaid balance to the principal of your loan and increasing your payments slightly to cover the extra amount, refinancing the debt, arranging a repayment plan or modifying the loan by adjusting the interest rate or extending the terms to make it more affordable. These options are discussed in detail in the following chapters.

However, if your situation is really bad, the lender may even agree to make other concessions. For example, the lender may be willing take less money in settlement of your dues. Once the lender realizes that the situation of the borrower has become very nonviable, it is time for the lender to retrieve whatever possible from a potentially bad situation.

If the lender feels that the only way of saving the situation is to reduce the financial burden on the homeowner, the lender may also agree to reduce the interest.

The lenders have even been known to reduce the principal. It all depends on what sort situation the borrower finds himself in. It goes without saying that the lender will not be happy to do this, but then again, he has to reassess the circumstances and then decide.

If you cannot keep your home, your lender can work with you to avoid foreclosure and reduce the negative effect on your credit reputation. For example, the lender can permit a qualified buyer to take over your mortgage debt and pay the mortgage payments, even if the mortgage is non-assumable. As a result, you may be able to sell your property and avoid foreclosure.

Don’t just sign your home away and walk out. Negotiate. Whatever be your situation, never ever enter into any deal without consulting an attorney. Never make an impulse decision. Your instincts will drive you to make quick decisions in order to resolve defaults as soon as possible. Before taking any decision, weigh the pros and cons.

Ways on How to Avoid Foreclosure

Foreclosure is an undesirable situation especially for those who desire to keep on living in the homes that they’ve grown used to. When this happens, they often seek ways to avoid foreclosure and if possible, to stop foreclosure for good. There are many situations when foreclosure happens to people: when they lose their source of income, when they forget to pay the necessary expenses, when they have to move away, etc. Though this may be a stressful situation, it may be dealt with effectively with the proper attitude and adequate help from those who can resolve the situation. Seeking ways to get themselves out of their predicament is a sign that they’re taking responsibility for the foreclosure, and is the first step towards solving the problem.

People can choose to avoid foreclosure for as long as possible, or they can decide to stop foreclosure. Avoiding or stopping it depends on the particular circumstances that they’re in, but it mostly depends on the lender’s decision. To avoid the foreclosure, it’s best to be in good terms with the lender. Avoiding doesn’t mean ignoring the lender especially when he’s trying to establish communication. They must talk with him, answer his letters or calls, and seek to reach an agreement. By negotiating, the lender may allow them to pay when they already can, or pay little by little until the complete amount is reached. In case that the lender can’t be negotiated with, there are companies and organizations that can help those who are burdened by foreclosure. However, they must avoid abandoning the home or going into hiding, because doing so disqualifies them from being helped by these people.

To stop foreclosure means to pay whatever amount is being required by the lender. This may also mean that the lender will just forget about the whole matter. The first option is easier and more possible than the second, but both can happen. To have money to pay the lender, home owners must seek ways of getting money such as working, finding sources of income, borrowing money, selling their possessions, etc. It may take some time before the desired amount of money is reached, but once this is paid, the foreclosure is cancelled. The lender may choose to cancel the foreclosure, but it will need a high degree a rapport between the lender and the home owners. This may work when they’re very good friends, or if the lender is indebted to the home owners in some way.

To avoid foreclosure is often the easier alternative. For more information on how to avoid foreclosure visit our website consumerdefenseprograms.com

Should You Be Stopping Foreclosure

Stopping a foreclosure is really very simple if you understand a few keys to the process. It is very important that you first evaluate your situation to see if stopping foreclosure is what you really want to do. This article will outline some guidelines that you can follow should you find yourself in the unfortunate need of stopping foreclosure.

Should You Be Stopping Foreclosure

Before you take the necessary steps in stopping foreclosure you must evaluate your entire financial state and see if stopping foreclosure will really help your situation. If you find it hard to make payments on your credit cards, car, or other items you probably need more help than just stopping foreclosure on your home.

You may want to seek the free advice of a credit counselor if you are simply going under on several other payments besides your house payment. These credit counselors can help in deciding if stopping foreclosure is going to help you or not.

Should You Be Stopping Foreclosure

If your home is in an area of homes that is increasing in value you may have more incentive for stopping foreclosure to reap some profits for selling in time. You could check with some local real estate offices and see what homes are selling for in your neighborhood. This will give you a good guideline as to what you could expect to gain. Make sure that you are using comparable results when determining the real value.

Should You Be Stopping Foreclosure

You should ask yourself if the home you are in is really what you want. Maybe it is time for a move to a new town or neighborhood. You might be able to walk into a very nice situation where you could earn credit towards a home by doing repairs. If this is the case you might be better off to let your home go into foreclosure, but you must act quickly.

If you have determined that stopping foreclosure is worth it for you then you should contact the lender and explain your situation. You might ask them to lower your payments. You could ask for a reduction of 50% or more in some cases for a certain period of time. This can work if you are several months delinquent on your payments.

If you are stopping foreclosure and choose to have your payments lowered you will most likely not gain on your principle very quickly, but you will at least be able to continue enjoying your home. Once you get back on your feet you can regain equity by making extra payment that is applied to the principle only.

If you need more foreclosure help then quickly head over to consumerdefenseprograms.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Stopping Foreclosure.

Act right away, and learn on how to stop foreclosure!

If you want to find out the best way to stop foreclosure, the answer should be to act promptly. That is definitely the solution that lots of folks overlook when they want to know tips on how to stop foreclosure. Stopping foreclosure isn’t as hard or as frightening as lots of people believe. Needless to say, home owners which have been dealing with foreclosure have gotten on their own right into a pickle, but that doesn’t imply there isn’t any technique to stop foreclosure. They basically must alter from ignoring what exactly is going on to taking handle of their lives and operating challenging to stop foreclosure and continue to keep their property.

Chances are if you’d like to know ways to prevent foreclosure, you’ve obtained a discover of default, which is your bank’s technique for letting you already know that there is an issue, nonetheless they are supplying you a while to do the job it out ahead of the foreclose on your own property. Tend not to make the error of considering your lender is performing very little following receiving your recognize of foreclosure. The lender is beginning the legal foreclosure method therefore you only technique to stop foreclosure is to do the job out a method to fix the challenge.

Once you are searching for precise methods for the best way to stop foreclosure, you should begin along with your financial institution. Call them nowadays, clarify the problem briefly and request to speak to an individual inside their loss prevention department. They’ll direct you for the accurate human being or division. Though financial institutions really don’t wish to foreclose, they’re going to when they don’t have any other preference. Foreclosure isn’t their 1st decision.

The best way to stop foreclosure together with your bank will be to put in place a payment method that should do the job out what you owe when nonetheless holding you latest with your approaching mortgage loan payments. You have to truthfully supply all the info they ask for. Not carrying out this could interfere with the best way to stop foreclosure. Tips on how to stop foreclosure all is dependent on contacting your financial institution, how ready and equipped you might be to fork out what you owe, and next through along with your guarantees.

There’s always a possible way to stop foreclosure. However you are not able to wait around for your wonder, or neglect the notices and calls out of your lender. If you are certainly not in a position to stop foreclosure by shelling out the missing mortgage loan payments, take into consideration promoting your house. This can also be considered a great way for how you can cease foreclosure. You will discover selections for tips on how to stop foreclosure that continue to keep you in command of the situation. All you need to do is act, and select an answer.

If you’d like additional info regarding how to stop foreclosure, you may drop by Foreclosure Knowledge Lender. On top of that to staying an outstanding foreclosure listing support, they can be also a source of very helpful data on how to cease foreclosure.

Check our Foreclosure Defense programs web site for a lot more good ideas: www.consumerdefenseprograms.com

How Can Bankruptcy Stop Foreclosure?

The recession that hit us hard in last couple of years has left many out there jobless, or to a lesser extent, with lower wages and salaries. And when your source of income is affected, you tend to struggle to stick to your payment schedules, especially for large payments such as your monthly loan payment for your home! Missing your mortgage payment for a few consecutive months would leave you vulnerable to the risk of being exposed to foreclosure proceedings, especially if your creditor is eager to recover his losses by selling your home to someone who is willing to buy it as soon as possible! If you are caught in such a situation, what can you do to stop foreclosure?

There are many methods and solutions available to homeowners today that seek to put an end to foreclosure proceedings. For one, you could try negotiating with your creditors to delay foreclosure until you get your finances in place, probably with the aid of a hardship letter. Or you could try to refinance your home by making use of the government’s foreclosure assistance! If any of these solutions do not work, then you could, as a last resort, opt for the most drastic move of them all, bankruptcy! File for either Chapter 7 or Chapter 13 Bankruptcy now, and forget about mortgage debts ever again!

Do not fall into the delusion that you would be able to save your home through filing for bankruptcy. The truth is you would not be able to salvage your home, but you can definitely stop foreclosure once you file for bankruptcy, and get your lenders off your back for good! Not only will you eliminate all your current debts, you can also make sure that your creditors do not have the capability of suing you for missed payments in the future after you are declared bankrupt. Nevertheless keep in mind that bankruptcy should only be taken into serious consideration once all other ways of stopping foreclosure has been exhausted, as it has serious implications on your financial stability, especially for the long run! Once you are declared bankrupt, you would struggle to get approval for future loans and credit cards, and even have difficulties when you apply for future employments.

So can bankruptcy stop foreclosure? Most definitely yes, but only if you know how the concept of bankruptcy works, and you utilize decent bankruptcy lawyers to help you out with your case.

Secrets to Stop Foreclosure – Part 2

This is Part 2 of my article on the “Secrets to Stop Foreclosure” In Part 1, I discussed the secrets of how to communicate with your lender and how to find the appropriate person at the lender’s office. In this article, I’ll discuss the secrets of finding someone with authority at your lender’s office, getting your files organized, and learning to understand the foreclosure clock.

A. Find Someone With Authority to Stop the Foreclosure

As you develop a strategy to stop your foreclosure, the secret is to be in close contact with someone at your lender’s office who has authority to stop the foreclosure. Don’t waste your time negotiating with a lower-level collection person who has little interest in your hardship or the reasons you are not making the monthly payments. All he wants to know is when you are going to pay.

The secret here is that collection personnel have no authority to negotiate with you or stop foreclosure. You need to find someone with authority. Here is another secret. If a collection person calls, politely say goodbye and hang up. Then call the main office of your lender. Ask for the names of the branch manager and the senior loan officer. When you get the information, thank the person you’re spoke to, and hang up again.

Wait one hour, call back and ask for the branch manager or senior loan officer specifically by name. Once you are connected, request an appointment. If you can’t get through and no one returns your call, send a letter. Be sure you send a copy to the president of your lender. Wait several days and call again. Sooner or later, you’ll reach someone with authority. This is the person you will want to meet with.

B. Get Organized

It is important to gather together all the documents that relate to your property and your loan. In a typical real estate transaction, you signed a purchase contract, escrow instructions, a promissory note, and either a mortgage or deed of trust. Organize and review as many of these documents as you can in order to understand how the foreclosure process applies to you.

Here’s what you should get:

• Copies of the promissory note, mortgage or deed of trust,
• Copies of all documents and letters in your escrow file (contact the escrow company or title company that handled the purchase of your property to get copies).
• A “property profile” which contains information on all documents recorded against your property. You can obtain a free copy of a property profile from the title insurance company that originally insured your purchase of the property. Also ask the company for copies of all documents recorded against your property in the county recorder’s office.
• Copies of all letters you sent to and received from your lender, along with the envelopes the letters from your lender came in, if you have them.
• Copies of your monthly mortgage statements, loan payment stubs, or any other billing and payment information.
• Copies of all foreclosure documents you’ve received, if any. Also save the envelopes of documents you’ve received, if available. Label one file folder for each group of documents and put them in the folders in chronological order. You will refer to these documents again and again as you fight your foreclosure.

C. Learn the Clock

Foreclosure involves very specific timetables in which notices must be carefully served, mailed, recorded, posted, and published before your lender can legally foreclose.

Foreclosures can be conducted either judicially or nonjudicially, depending on your state. You need to know which type lenders in your state use. Each kind of foreclosure has its own procedural rules, so you need to know whether you are facing a judicial or nonjudicial foreclosure. Here are the particulars:

Judicial foreclosure. Most foreclosures of mortgages are judicial. This kind of foreclosure starts when your lender files a lawsuit in the court in the county in which your property is located. You must be served (provided with) with a copy of the Summons and Complaint for foreclosure. A judicial foreclosure can take anywhere from one to two years.

Nonjudicial foreclosure. Most foreclosures of deeds of trust are nonjudicial. Your lender avoids the court system entirely by having a trustee (a third party who conducts the foreclosure) follow a specific series of notice procedures, then sells your property at a public auction. A nonjudicial foreclosure can take anywhere from three to four months depending on your state.

Knowing the foreclosure clock is another secret to successfully stopping your foreclosure. Once you understand the time constraints within which you are working, you can customize a strategy that fits your particular situation. For example, if you have two to three months until the foreclosure sale, you still have time to bring your loan current, negotiate with your lender, or refinance your property. On the other hand, if you have less than a week before the foreclosure sale, your only option may be to file for bankruptcy.

Remember, the secret is that these time periods are for your benefit–not your lender’s. This is your opportunity to apply a strategy that can most effectively stop the foreclosure.

This article was written by Lloyd Segal. Lloyd is a mortgage banker, attorney, and author of “Stop Foreclosure Now.” His new book helps homeowners understand the foreclosure procedures in their state and develop strategies on how to stop foreclosure.

Recognizing Foreclosure Fraud

Never before in the history of the U.S. have there been so many people who have lost their homes to foreclosures. Banks and lending institutions are foreclosing on homes at a rate that is unparalleled when compared to historic periods, even when there was a recession and depression taking place in the country.

Finger pointing suggests that Wall Street’s near total failure is to blame. Others believe the government and other economic woes are at fault. No matter whom the blame is being attributed to, what matters is that many people are eager to find a way to save their homes. This places many unknowing homeowners at risk for foreclosure fraud.

Just as the Internet has become a venue for many individuals to attempt and successfully engage many people in identity theft, there are risks associated with entrusting your information to a person or business that may be conducting foreclosure fraud. Not sure what to look for when you’re dealing with a foreclosure? Here are a few tips you can use:

o Home loan modification agencies and the specialists who work for them will not solicit money from you before an initial consultation to determine whether or not you qualify for their help. If you receive an e-mail, a postal mail letter, a telephone call or a visit to your home from someone who claims to be a home loan modification specialists who asks for money in any form, contact your local authorities. Likewise, do not provide any information to such an individual.

o Lenders do not offer home modification loans. Many hackers are very sophisticated and can create a web page that is designed to mirror your lender’s web site in virtually every way. If you receive an email that appears to be from your lender telling you to log in, provide your account information and pay a processing fee for a home modification loan, forward the e-mail to your lender, a crime tracking website such as Scambusters and to your local authorities. And again, do not provide any information or follow the link to the web site in the e-mail.

o If you believe you have received a legitimate offer from an agency you’ve never heard of or want to investigate, check with the Better Business Bureau to see if the company is registered. If it is a newly formed company, they may not be. This doesn’t mean they are a foreclosure fraud, simply that you need to conduct more research to find out if they are legitimate. Don’t be afraid to ask for references from previous clients they’ve served.

Recognizing foreclosure fraud often just involves common sense. If something seems too good to be true regarding an offer you’ve received to help solve your foreclosure, chances are it isn’t true. Don’t allow yourself to become a victim of foreclosure fraud. Take the time to check and recheck your source.

Article Source: http://EzineArticles.com/2907880

FAQs About Home Foreclosure

Q. What is a foreclosure?

A. When a secured creditor, usually a bank, attempts to recover monies owed to them based on a promissory note by selling the collateral. In more simple terms you have probably borrowed money from a bank or mortgage company in order to purchase or refinance a home. In exchange for lending you the money, you made a promise that if you could not pay them back they could take the house. I will refer to the events associated with these actions as the foreclosure process.

Q. Can the bank just come and kick me out of my house?

A. No. Only an order of the court can force you to leave your home. Ultimately you may be evicted but there are procedures within the court system that the mortgage holder must follow first for the foreclosure and then another set for the eviction.

Q. Can you explain some of the steps in the foreclosure process?

A. In Massachusetts it works like this. (Other states may have similar procedures but almost all states have a fairly unique system of foreclosure. If you are already in the foreclosure process you would be well advised to consult with an attorney that is familiar with the laws in your state.)

Pre-Foreclosure

• Customer misses mortgage payment.
• Late notice send by bank.
• Customer misses additional payments.
• Bank attempts in writing and by phone to contact customer and resolve situation.
• No arrangements are agreed upon and customer continues to miss payments.
• Bank issues demand for payment under the note in full, based on the acceleration clause. Most mortgage notes contain language which basically says if you fail to pay the bank under the terms of the note with monthly payments as promised they can accelerate the note, meaning that the full amount is due on demand. For example if your mortgage is $100,000 with payments of $1000.00 per month you are only required to pay $1000.00 per month unless you miss these payments and the bank subsequently demands the balance based on this acceleration. Once this happens you legally owe the full balance of $100,000.00 plus back interest, plus late charges, plus legal fees all at once. You will find from this stage on the bank will not accept monthly payments. They will instead demand much more to reinstate the loan. Although I consider this step in the pre foreclosure category, once demand has been made and the note has been accelerated you should already have contacted an attorney who is an expert in dealing with these matters.
• No payments or arrangements acceptable to the bank are made.

Formal Legal Foreclosure Process

• Bank sends by sheriff or by certified mail Notice of Intent to Foreclose.
• Bank begins action in the court system to foreclose.
• Legal notices (see soldiers and sailors notice below) as required by law begin to be published in local papers.
• No payment or settlement arrangements are made with the lender.
• Notice and waiting periods expire.
• Court holds hearing regarding banks claim.
• Court issues order allowing bank to foreclose. (Beware, one foreclosure firm will begin 2 and 6 at the same time shortening the process.)
• Legal notice of actual foreclosure sale and advertisements published in local papers.
• No payment arrangements or settlements reached with the bank.
• House sold at auction to highest bidder.

Q. How long does this process usually take?

A. From the time you miss your first payment to the final foreclosure sale its not uncommon for six months or more to pass. In some states this could be more and in others considerably less. Texas residents could find the foreclosure process completed in only around 45 days. It will also depend a great deal on your mortgage holder and how aggressively they pursue your case.

Q. When in the foreclosure process do I have to move out of my house?

A. YOU DON’T!!!!!!!!! The foreclosure process even when followed through to completion only transfers ownership of the house from you to the high bidder. This transfer of ownership becomes complete at a closing following the foreclosure auction. After the auction you automatically become a tenant in the house you formally owned. At this point the new owner must follow the legal procedures in your state for eviction.

Q. What is the eviction process?

A. Again this will vary widely from state to state and you should be consulting with an attorney with expertise in this field if your case has gone this far. The process in Massachusetts is as follows:

When someone has taken your house at foreclosure they can send you a legal notice to leave the premises under a 72 hour notice.
If you fail to leave after the 72 hours has elapsed the new owner must go to court to present his case before a judge that you should be evicted.
At a hearing the judge will decide if you are to be evicted or not as well as how long you may stay in the house before you must go. Your willingness to pay rent will play a large role in granting more time.
If the judge finds against you and you are unhappy with his ruling you have 10 days to appeal his decision.
If you have been ordered evicted and you have not moved out on your own by the day designated by the court the new owner may obtain an execution of the eviction judgment which will give a sheriff the right to physically remove you from the premises.
A sheriff gives you notice of the execution and as little as 48 hours to move.
Anything left in the house is moved by the sheriff into storage, where you will have to pay fees to get it back, locks are changed, resistance at this point may subject you to arrest.

Q. How long does the eviction process take?

A. From the day you are given you notice until a sheriff might pack up and move your possessions out of your house you can expect a 6 week to 6 month time frame, with the average coming closer to 10 weeks.

Q. Once the foreclosure process starts is there anything I can do to stop it?

A. Yes. If working from your first late payment there are at least 10 or 20 different ways to resolve the situation. The longer you wait, however, the more some of these options will become unavailable. You may also wish to visit a site explaining much more about foreclosure and how to stop it including a tool to analyze your own situation, an article on the top 10 mistakes people make when facing forclosure and foreclosure myths.

Q. At what point will I have absolutely no options left?

A. Never. You have not lost until you decide the fight is over. Even after a foreclosure, even after an eviction you still have as much right to buy your house back in the open market as anyone else. Realistically if you have not been able to save the house before a sheriff evicts you, chances are strong you will never be able to structure a deal to buy the house back. This is largely based on the assumption that you hired a capable attorney and had the ability to strike a deal. If so, you would have done so long before a sheriff removed you from the house. I actually handle many cases which have been resolved after the foreclosure auction with the result that the homeowner keeps their house. Although possible, I have not yet seen anyone repurchase a home after a physical eviction.

Q. I am receiving a lot of mail from people that claim they can help me where are they getting my address?

A. Because of the legal nature of the foreclosure process your name and address may be part of public information offered through the court system and ultimately published in certain journals and publications.

Q. What kind of people send these letters and can they really help me?

A. Many groups of people try to contact homeowners in foreclosures:

Mortgage Brokers. If there is enough equity in your home they can help you to refinance and stop the foreclosure by paying off your current mortgage in full. This solution often works well, but you must be careful because the interest rate and closing costs on these types of loans can be high. Due to your credit situation you will pay much more than at a bank, but some brokers may try to charge even more points or interest then another just to gouge the debtor for more fees if they think they can get it. Keep your eyes open and a foreclosure prevention loan can save the day.
Chapter 13 Attorneys. If you have the financial ability to complete the chapter 13 plan this also provides a valid way to save the house, just beware that many of these attorneys will be more than happy to file a chapter 13 for you whether it is the best option or not. It is my personal feeling that this should be an option of last resort unless your personal circumstances dictate this as the best solution for you. Keep away from lawyers running “bankruptcy mills” as I call them. These firms may offer low fees but will let paralegals handle your entire case, never really getting to know your situation or giving you the personal attention you need. Read more about chapter 13 bankruptcy or find a chapter 13 attorney near you to learn more.
Mortgage Negotiators. Some people hold themselves out as professionals who can save you from foreclosure, other than those who fall into the crooks category below, some can be quite skilled at negotiating “repayment plans”. Homeowners can arrange these plans with the banks themselves in easy cases. These professional foreclosure negotiators can help in cases where the people seem to be failing at getting a “repayment plan” done with the bank on their own or where the bank’s terms seem too demanding. Often more favorable terms can be reached by a professional.
Private Financiers. Two very distinct groups fall into this category. The most useful for people wanting to save their home from foreclosure will be private mortgage financiers who will help arrange a new home loan, even when they have been turned down by other high risk lenders. Other investors will want to buy the house from you. Keep a sharp eye on what they are doing for you and what they want for themselves. Sometimes these people can help save your home, other times they don’t care about anyone else and depending on how they set things up they can make your situation even worse. Remember there are many ways to save a house from foreclosure. You do not need to sell your house unless you do not want to live there anymore or you can not afford the payments even if you got a new mortgage or could catch up on the old mortgage.
Your Mortgage Holder. Especially those involved with government backed mortgages will offer ways for you to reinstate your existing mortgage. While I have seen some of these letters which can be down right misleading compared to what the banks will realistically do, reinstating an existing mortgage is a viable option and in many cases the best option. Sometimes a mortgage mitigation professional can adjust terms to lower payments and stop the foreclosure in its tracks, in some cases even moving arrearges to the balance and extending the mortgage term.
Crooks and Con Artists. I include in this group not only those who will take your money with promises to keep the house take your money and provide no services but also groups which do no more than take your money as an illegal referral fee and then pass your name onto a chapter 13 attorney. In the worst cases I have heard of groups that will take title to your home, force you to pay them rent with the promise that they can save your home, with the result that either they save your home keeping any equity for themselves or in the alternative collect rent from you until the home is sold. Furthermore, since you would no longer own your home Chapter 13 would be lost as an option.

Q. How will I know which is the best option for me?

A. This is a tremendously complicated question. The answer will depend upon your assets, liabilities, income, expenses and the underlying reason why the house is in foreclosure. The best solution will also depend upon the type of mortgage you have and where in the foreclosure process you are when you make the decision to save the house.

Q. Is there anyone familiar with all of these options that can help me take the best course?

A. Law firms that specialize in residential foreclosures from the debtor’s side should be familiar with all of these options. This does not mean a bankruptcy firm who may only deal in bankruptcy but a firm who in addition regularly reinstates mortgages for clients as well as refinances clients through mortgage companies. Finding such a group may be difficult. While it should not be substituted for a lawyer, we have put together an interactive form using an online program to review your circumstances and offer some help on how to stop your own foreclosure.

Q. From your experience how do you find that most of these cases are settled?

A. Our older statistics indicated the following: Approximately 40% of clients refinanced Approximately 35% of clients filed a chapter 13 Approximately 20% reinstated their existing mortgage, most with the help of a professional foreclosure negotiator and about 5% are unable to save their homes or used a more unusual method. More recent trends and lending criteria indicate far fewer people refinancing, most using a loan modification to save the home and a higher percentage of people losing the house.

Q. What if I do not want to keep the home or I exhusted all options and know I will not keep it?

A. It usually works out better to try a short sale, deed in lieu of foreclosure or sometime even choose bankruptcy rather than just allow the foreclosure to take place.

Q. What is a “Soldiers and Sailors” answer date?

A. In Massachusetts during World War Two an act was passed to stop foreclosures on anyone in active military service. Unless the debtor is in active service this is just one hearing in the process. In most cases it’s significance is that the real foreclosure date will be 3-6 weeks following the soldiers and sailors answer date. You do not need to appear at the hearing or answer unless you are currently in the military.

Q. What happens at the actual foreclosure sale?

A. Although any given sale may be a bit different the process will go like this:

The Auctioneer will read various legal notices and legal descriptions of the property.
He or she begins taking bids on the property.
If the Auctioneer has not already pre-qualified bidders by asking for their deposit checks, when a bid is made by a party the Auctioneer will ask for their deposit check. For most residential auctions this will be $5,000.00
The Auctioneer will solicit bids for higher amounts. Depending on the auction increments will be set by the Auctioneer. Examples of increments maybe $100.00, $500.00 or $1,000.00. This process will continue until it has become clear to the Auctioneer that the high price has been reached.
The Auctioneer will announce the standard “going once, going twice, going three times, sold!” and the auction is concluded.
Foreclosure deeds and purchase papers will be drawn up by the new purchaser and the mortgage holder.
A grace period will be given to allow the purchaser to line up financing. In most cases this should be thirty days.
A closing will take place and the new owner will formally take title to the property.

Q. What happens to the money paid by the new purchaser?

A. Monies will be distributed in order of priority. First priority will be real estate taxes. If monies are available after taxes monies will go to the first mortgage then the second mortgage, third mortgage etc., etc. The next money will go to any lien holders or attaching creditors. This process will continue until all liens and encumbrances on the property are paid. If by some chance there is still money left over it goes to the former home owner.

Q. May I bid at my own auction?

A. Yes if you have the required deposit. Remember this is a non-refundable deposit and if you are the successful bidder you must be able to refinance the home within the specified period of time required under the terms of the auction. Also beware that some of the old debts may merge and become reinstated.

Q. What does this mean when debts merge?

A. Let’s say for example that the first mortgage is foreclosing and forecloses out the second and third mortgage. The second and third mortgage holder no longer has any right or title to your home. You may still owe this money but they have no right to foreclose on the home nor do they have any security interest in the home in any way. If you had filed a chapter 7 bankruptcy prior to the sale and received a discharge after the sale you would not only not owe them any money and they would no longer have a security interest either. Your debt for all intents and purposes will be extinguished completely. If someone else buys your home at the auction the bank, the second and third mortgage holders have lost all their right to the property but on the other hand if you buy the property back the debt may “merge” back to the property with you and reattach, as if the auction never foreclosed them out.

Q. What happens when a property is auctioned subject to a first mortgage?

A. This happens when the mortgage is being foreclosed by the second mortgage holder. They can only foreclose from their position. Let us say for example there are outstanding taxes of $10,000.00 and a first mortgage of $90,000.00 on the property with the second mortgage foreclosing. At the auction the second mortgage would foreclose from their position subject to the first mortgage and the taxes. You find at this type of auction at a bid of $1.00 is the same as bidding $100,000.00. To own the house out right one would have to satisfy the first mortgage and the taxes.

Q. What happens if no one at the auction bids an amount high enough to cover my debt?

A. If the mortgage were $150,000.00 and the high bid at the auction was $100,000.00 the $50,000.00 balance would be called a deficiency. Under most loans in most states you would still be responsible for the $50,000.00 as an unsecured debt and the bank would have legal rights roughly the same as what would exist on a credit card debt to pursue you.

Q. Is there any special redemption period after the foreclosure during which I could buy the house back?

A. Many states have such a redemption period. In Massachusetts there is no redemption period for the foreclosure of a real estate mortgage. There is however a redemption period if your house is sold at a sheriff’s sale or for back real estate taxes.

Q. What is the difference between a foreclosure and a sheriff’s sale?

A. Foreclosure auctions will be held by a mortgage holder after a default. A sheriffs sale would be held by a lien holder or attaching creditor after default.

Q. At the foreclosure sale will the attorney’s and potential bidders have to come inside the house?

A. No. More than likely they will come onto the front lawn. If you would like to invite them inside the house you are welcome to but you are under no obligation to and they can not make you let them in. If you know you are going to lose the house and are hoping for a high bid so you will have little or no deficiency you may invite them in (assuming the house is nice inside) otherwise don’t.

Article source: FAQs about home foreclosure | www.debtworkout.com

Do you know how you can Avoid Foreclosure?

A foreclosure is when you use your home as security for mortgage and you fall behind in your mortgage repayments and the financial institution start foreclosure proceedings, repossession, to resell your home and get the outstanding amount of your mortgage repaid.

Quick action by you is first step to Avoid Foreclosure on your property.

What should I do if I am behind on my house payment?
Call your lender. You will find that the majority of lenders will be accommodating in helping you overcome any financial hardships that you are experiencing. A lender is someone who lends you money, they are not real estate agents, they do not want to take your home and sell it.

Don’t ignore letters from your lender because you are scared to tell them that you can’t make a mortgage repayment. They will work with you to help you keep your home and stop it from going into foreclosure.

How Can My Lender Help?
Your lender will have several options available to them to help you save your home from going into foreclosure. They can restructure your mortgage repayments for a period of time to help you overcome a cashflow problem.

What If My Lender Won’t Help Me?
Every individual has a different financial situation. If your lender is not helping you then contact other lenders. There are options available to you including refinancing your loan. You will find more detailed information within this website about your options.

The Foreclosure Process

The Foreclosure Process begins when you receive a Notice of Default. The Notice of Default tells you that you have not made your mortgage repayments and how much of your home loan is outstanding and what you owe in terms of the foreclosure fees.

This is not the end of your property ownership.

You still have 3 months from the date the Notice of Default is recorded to pay the back payments and fees. You can find the date the notice was recorded on the first page next to the words “recorded on.” If you pay the amount on the Notice of Default, the lender cannot sell your home.

When Can A Lender Sell My Home?
The lender can sell your home if you fail to repay the outstanding amount within three months. The lender will forward you a Notice of Sale stating the date, time, and place your home is to be sold. You must be given the notice of sale at least 20 days before the day they plan to sell your home.

Can I Stop The Sale Of My Home?

Yes you can stop the sale of your home. If you repay the outstanding amount due, including fees, up to 15 days before the sale date.

You can still save your home at the “last minute” but you will have to make a full repayment of your loan. Many people find themselves doing this after refinancing their loan.
Once paid, the lender will issue a Notice of Rescission. This proves that that the sale has been canceled.

Beware of Fraud
The foreclosure process is a stressful and trying time for many people. Especially since the subprime mortgage disaster, it seems there are record numbers of foreclosures with each passing week. Be careful that you don’t become a victim of a scam when you try to save your home from foreclosure. There are many who will and do take advantage of people facing desperate situations.

Article source: Discover How You Can Avoid Foreclosure | Articlebase.com

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them? Do not disregard the notice from your lender, try to contact them and also try to reach an agreement with them to stop the foreclosure. There easy steps that you can take to stop the foreclosure proceedings that have been brought against you.

Before your lender or mortgagee would initiate a foreclosure proceeding against you, you must have defaulted by more than one month in a stipulated repayment agreement you had with them. Anyway, the mere fact that a foreclosure proceeding has been initiated against you does not mean that it will be successful, that is, that you will lose your home most especially if you are well informed. I will discuss below the 3 easy steps to stop foreclosure and retain your home but if push comes to shove, you should sell your house by yourself as a last resort.

That way, your credit slate will remain clean but before push comes to shove, let’s consider the following steps to stop foreclosure.

1. As soon as your lender serves you a foreclosure notice, arrange to meet with them to figure out if two of you can fashion out a new mortgage repayment plan. I believe that the reason behind your mortgage default may have been due to the arising of an unforeseen circumstance. Which means that you will not be able to honor the already agreed repayment schedule, therefore, the only way you can honor it and also be able to meet other financial obligations that you have is if the amount that accrues at the end of each month is reduced to suit your present financial condition. For your lender or mortgagee to agree with this mortgage modification, you have to show them beyond any reasonable doubt that you will be able to truly honor the second agreement.

2. Another step you can take to stop foreclosure is to apply for a stop foreclosure loan or move to refinance your mortgage. To qualify for the stop mortgage loan, you have to scale some criteria. These criteria are determined by the agency that will give you this loan to specifically stop foreclosure. Choosing the option to refinance will see you get a second mortgage that you will use to totally offset the first one. In the process of striking the second mortgage deal, you will be in a position to choose the maximum monthly repayment amount that you can efficiently honor.

3. The third step to stop foreclosure that we shall be discussing in this write up is known as reinstatement or forbearance. Forbearance is a situation where your lenders agree to stop foreclosure proceedings against you for a while and also allow you to be repayment free for a particular period of time to enable you go get back on your feet financially. This can happen if there is sufficient indication that at the end of this repayment holiday you will completely offset your loan arrears and continue with your agreed monthly repayment obligation.

Note: There are various other ways that you can take advantage of to stop foreclosure proceeding brought against you, the important thing is that you should make an effort to stop it.

Article source: 3 Easy Steps to Stop Foreclosure | Articlebase.com