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Archive for foreclosure process
Dec
30
Getting Through The Loss Mitigation Red Tape
Posted by: | CommentsLoss mitigation, also known as the loss mitigation department, is usually defined as a third party working on behalf of a lender to help homeowners that are facing foreclosure. It is a division within a bank that mitigates (synonyms – relieves, alleviates makes something less severe) the loss of the bank, or a firm that handles the process of negotiation between a homeowner and the homeowner’s lender.
Loss mitigation works to negotiate mortgage terms for the homeowner that will prevent foreclosure. These new terms are typically obtained through loan modification, short sale negotiation, short refinance negotiation, deed in lieu of foreclosure, cash-for-keys negotiation, or a partial claim loan or other loan work-out. All of the options serve the same purpose, to stabilize the risk of loss the lender (investor) is in danger of realizing. Immediate foreclosure can cause higher losses for banks and lenders. A loss mitigation team or department can help ease the potential risk incurred by a lender by working out terms or loans that may be more manageable for a homeowner thereby limiting the amount of loss by either party.
It has been my experience that the loss mitigation department has a lot of red tape and is not an easily accessible group of people to speak with; in fact if you contact your lender and ask to speak to the loss mitigation department and are not already delinquent on a loan you will be passed around or deferred to someone else with in the bank.
If you feel that your home may be in jeopardy of foreclosure due to a job loss or some other financial crisis and want to go straight to the loss mitigation department to try and negotiate new terms, your chances are very slim that you will get through. Loss mitigation specialists do not negotiate on “potential” losses. By this I mean, if you sense that your debt or bills are spinning out of control and you would like to negotiate new terms with your lender BEFORE you default, trying to contact the loss mitigation department may be a futile effort. They only deal in “current risk”; homeowners that are already behind or delinquent in their loan payments. With foreclosures rates on the rise, the reality is that they barely have enough time to work through terms for homeowner’s whose homes are set to go to auction, also known as a sheriff’s sale or trustee sale depending on what state you live in.
If you as a homeowner end up behind in mortgage payments and receive a default letter or notice of delinquency from your lender chances are the signature at the bottom as well as the contact information for further assistance will be from the loss mitigation department.
Should you find yourself talking to a loss mitigation specialist like I did, you’ll need to be prepared if your intent is to try to workout a repayment option or loan modification. Everything you say during this conversation will be documented in your file. Now is not the time to contact your lender without some idea of your financial status. Being prepared will not only give your a better result when speaking with a specialist but will help speed the negotiations and give you a much better chance of success.
If the lender is willing to work out an arrangement with you, most likely you will be asked to send in all your current financial information, documentation as proof/cause for the recent delinquency and a financial hardship letter.
It is extremely important that you have some idea of what to pull together if you want a chance to save your home from foreclosure. Pulling together random bills as a snapshot of your debt WILL NOT be enough in most cases to get you the relief you seek nor save your home from foreclosure. You must be well prepared if you want to be considered for a workout option.
Believe me I know…I was turned down twice for assistance. The first time I was told I made too much money to be considered. The second time I was told I didn’t have enough income to cover the payments even if I did receive a workout plan. Meanwhile the clock was still ticking on my impending sheriff’s sale until I finally figured out what to do to stop the foreclosure and get a remodification that saved my home. Should you find yourself in a similar situation or facing foreclosure, I’ve made a video that takes you through my personal foreclosure story and explains in detail after weeks and months of research how I over came foreclosure and saved my home by working with my lender’s loss mitigation department.
If you’re interested in finding out How to Save Your Home from Foreclosure – like I did! Follow the above link to watch my 20 minute foreclosure video.. Check here for free reprint license: Getting Through The Loss Mitigation Red Tape.
Oct
27
How To Stop Foreclosure: How Loan Modifications Can Help
Posted by: | CommentsDid you buy your house when the market was at its peak, only to find yourself now owing more on your mortgage than your property is worth? Are you having trouble making those mortgage payments? Factors, such as job loss, illness, divorce, or a death in the family can affect your ability to make your house payments. It is amazing how fast the months go buy when you’re struggling to pay your bills. I’m sure you’ve noticed all the foreclosure and bank owned property signs popping up all over your neighborhood, so you realize you are not alone. If you find those notices piling up from your lender, you can start to feel desperate and scared. Losing your home would be a devastating experience. Here are a few tips to help you stop foreclosure.
The most important thing you can do is not to ignore the problem. Many people tend to become overwhelmed and try to avoid facing the issue. This is a big mistake and will only aggravate things. Be honest with your mortgage lender and keep the lines of communication with him/her open. Tell them whatever hardship has befallen you that is making it difficult for you to make your payments. The last resort for them would be to take your house and they do not want to do that. They will work with you to help figure out a plan to resolve your debt and avoid your foreclosure. So it is imperative to stay in contact no matter how behind you are.
If you feel incapable of dealing with your lender, get help. There are HUD counselors you can consult. They have a website that has a lot of useful information for you. There are also companies out there who specialize in dealing with mortgage lenders. Since this is not a free service, make sure you research them and find a reputable company with a good track record. They will have experience in dealing with your specific issues, and may be able to help resolve things with your lender and stop foreclosure.
Different solutions you can discuss with your lender include: adding your debt onto the back end of your mortgage to bring you current, lowering your interest rate, reducing your payment amount, and extending your grace period. Depending on what your hardship is and when you can expect it to improve, there are multiple avenues you and your lender can explore to come to an agreement and avoid foreclosure.
Come up with a plan to repay your debt.
You may want to start with short-term solutions. Selling a car, jewelry, or other valuable items to make a payment will go a long way in proving your willingness to resolve your issues. Restructure your budget and cut back where you can. Let your lender know how and when you expect your income to increase, ie with a new job, inheritance, etc. The more proactive you are, the better.
Due to the excessive amount of people in need and banks not properly staffed to assist with loan modifications, they tend to take a long time to process. That is why it is important to have an attorney based firm who can assist you when you are ordered to go to court for foreclosure proceedings. In many cases, just having a note from your modification company and their attorney will allow you more time to stay in your home while completing your loan modification.
Learn more about Obama Mortgage Relief Plan Qualifications.
Oct
26
How To Stop Foreclosure: Some Tips on How to Stop Foreclosure
Posted by: | CommentsLearning how to stop foreclosure is not that difficult as long as you are generally knowledgeable about the foreclosure process in general. First; let’s overview the foreclosure process: The foreclosure process consists of all the different steps your lender goes through to repossess your home.
There are few things that could be as stressful and traumatic for a family as facing the risk of losing their home. Even though the actual loss does not happen overnight and can be stretched over a period of several months, the actual knowledge of the inevitable might prove to be a really trying experience for a family involved in the process both emotionally, financially and physically.
After you receive the notice of foreclosure, you can decide whether or not you want to request a hearing in the local circuit court. In this hearing you can ask for the opportunity to share your side of the story, but unless your circumstances are very unique, these hearings are nearly impossible to win. Most people lose these hearings, and the judge approves the petition for foreclosure for your lender. Once your lender has received approval from the courts, they can sell your home at a property auction, and you will have as little as one week to move out of your home before you can be evicted by the local Sheriff.
Another factor contributing to the issue at hand is the governmental bailout funding. Because of this, most banks are trying to clear any bad dept history including houses acquired through loan foreclosures. As a result these houses appear on the market with extremely cheap costs. Thus, while some people cannot keep their houses and find themselves in the foreclosure process others with comparably stable incomes are able to purchase houses at a minimal cost. There is no need to further illustrate the negative aspects of the foreclosure process, it is already obvious that this is a process that should be prevented and avoided by all means, and there is no other better way of doing so but by stopping the dealings before they might occur. This can be achieved through a negotiation process with the bank. Homeowners can also ask for the bank to forgive the payments they have already failed to make in the beginning of the negotiations process as well as ask for lower interest rates stretched over a longer period of time in order for the mortgage to be paid.
No matter the actions chosen for the prevention or ways on how to stop foreclosure everything is based on your ability to communicate successfully with your bank, and if you’re facing any doubts of being successful you can always request the help of a third party to represent you in the negotiations and come to the best solution for you.
Learn more about Obama Mortgage Relief Plan Qualifications.
Oct
25
How To Stop Foreclosure: How to Stop Foreclosure Proceedings From Snatching Your Home
Posted by: | CommentsHave you been notified by your lender that your house payment is overdue? Perhaps you are 2 or 3 payments behind, and the lender is threatening you with foreclosure on your home. You are not alone in this situation. In today’s difficult economy, many homeowners are in the same boat. You may have fallen into this situation due to an unexpected financial hardship or the loss of your job. Whatever the reason, it is possible to stop foreclosure quick, if you take the appropriate action.
It’s one thing to line up all this assistance, it’s quite yet another whether those people in need can reach it or not. A startling one-third of Americans polled literally have no idea how much money they owe. The average American also scored only a D-grade in a survey on financial literacy. We were quick to jump onto the bandwagon of owning a home so now we better buck up on how to defend it when the situation gets rough.
A loan modification seems to be the best option for most homeowners who want to keep their home, because it typically involves lower monthly payments. This requires a permanent change in your mortgage terms whereby the lender either agrees to reduce the interest rate on the loan, or they extend the total repayment period so that your monthly payments are brought down to a level that you can afford. Loan modifications have become very popular. The good news is that thousands of homeowners have taken advantage of a loan modification to save their home from foreclosure. The bad news is that, most lenders now have a considerable backlog of non-performing home loans, and can be slow to respond to your calls and letters. It is easy to understand the frustration of many homeowners over their failed efforts to work out an agreement with their mortgage lenders. They often find that they are bounced around from one person to another, speaking to someone different each time they call. The problem is that most of the people you talk to are reading from a script, telling you to send X dollars. But, they don’t have the authority to actually change any of the terms of your loan. You may find that, after sending in the payment you were told to, the lender continues with foreclosure proceedings anyway.
File for a case at the local circuit court, and delay foreclosure indefinitely! When you take into account the number of cases that are waiting to be heard at each circuit court across the country, you would understand that it could easily take a year or two before your case is heard in court. And this means that you can stay in your home without paying anything while your case is pending to be heard!
All sorts of information and help agencies have mushroomed everywhere, not least the internet. Public information and assistance websites, real-estate brokers, banks and other lending institutions, investors and capitalists, attorneys and consultants and guides and handbooks can be found in abundance online, all possible solutions on how to stop foreclosure. Then, there are also loads of scams and crooks so watch out, you don’t want to be burnt further!
Learn more about Obama Mortgage Relief Plan Qualifications.
Jan
21
Discover the Best Ways to Stop Foreclosures
Posted by: | CommentsAvoid Foreclosure San Diego
As of late, there has been a great increase in the number of homeowners who are dealing with foreclosure on their homes. Unfortunately, the majority of these homeowners are not aware of the specific foreclosure laws of the states in which they reside or they are under the impression that these laws were put into place for the lender’s benefit and not their own. Not to mention, the larger percentage of these homeowners are not prepared or are unaware of how to handle a foreclosure on their home. In the following article, we will discuss how to stop foreclosures and save your home.
While a foreclosure is not a pleasant thing, it does give the homeowner more time to get their finances in place and to educate themselves on how to deal with a foreclosure. The foreclosure process is not a quick one, due to the state laws that make it mandatory for lenders to follow a step by step approach with the whole endeavor. This extra time given to the homeowner is priceless as the owner can take this time to come up with a course of action and discuss things over with their lender. The best way to stop a foreclosure on your home, other than taking preventative steps, is seriously discussing the situation with your lender. Lenders are not interested in the homes that they foreclose on, they would rather have your business. Many homeowners might think that the lender would be happy to have their home, but lenders are not real estate agents; they deal with financial matters and earning their money through interest on the loans they provide. The foreclosure process is not a pleasant one for the lender either. They will have to feed their own money into a foreclosed home to ready it for the market once again. The lenders will also have to deal with attorneys and courts, which is not what they are looking for. Most all lenders would much rather have your late payments.
Therefore, talking with your lender is the best step to take first in stopping a foreclosure on your home. You can even write the lender a letter to explain how you have come to find yourself in your current financial situation. Of course, the lender is interested in your money, but most of them will be sympathetic to your letter, especially with the current state of the economy. If you have had a history of making your payments on time, this will certainly help while talking with your lender. Discuss the foreclosure at all angles with your lender and come up with a plan that is advantageous to the both of you. Your lender will be willing to work with you if you give them a chance.
How To Avoid Foreclosure San Diego