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Archive for Stop Home Foreclosure
Dec
25
Save Your Home Before It’s Too Late: File Bankruptcy to Stop Foreclosure
Posted by: | CommentsAvoid Foreclosure San Diego
When it comes to stopping a foreclosure on a home, the last thing that most homeowners want to resort to is a bankruptcy to stop foreclosure. Most homeowners do not fully understand using bankruptcy to stop foreclosure on their homes. In reality, filing bankruptcy to stop foreclosure can give a homeowner they need to save their home. Of course, there are disadvantages to bankruptcy as well, which is why many homeowners do not consider it in the first place. Bankruptcy does offer solutions to the problem of foreclosure, especially if there is no other way to save a home.
Homeowners who stop their foreclosure by filing bankruptcy will actually use the bankruptcy as a sort of repayment plan that will allow them to repair and restore their credit. While it will take time to repair their credit, there is the hope that they will be able to accomplish this through bankruptcy. However, it must be known that this repayment plan will be costly to the homeowner, but the cost will be well worth it to keep your home. Most homeowners will be more than willing to pay a larger sum of money every month as to meet any obligations of their mortgage. Of course, once the bankruptcy has run its course, the homeowner will be able to return to paying their normal monthly payments. Also, there will be no worry of a foreclosure after the bankruptcy is completed. When a homeowner files for bankruptcy during the foreclosure of their home, the foreclosure process will be put on hold. This will allow the homeowner extra time to get their financial affairs in order to prepare for the bankruptcy. Even if a foreclosed home will soon be up for auction, the bankruptcy will halt these actions. This is one of the best benefits of filing for bankruptcy to save your home before it’s too late.
It is wise to keep in mind that using a bankruptcy to stop foreclosure should be a last resort only. When all other options have failed, a bankruptcy to stop foreclosure may be the best option. You will want to work with a good attorney, if possible, if you decide to take the bankruptcy route to give you a higher chance of achieving favorable results. Filing for bankruptcy is an expensive and complicated process and there is always the chance that the homeowner will not get the results that they desire from filing bankruptcy.
How To Avoid Foreclosure San Diego
Dec
07
No Real Government Help to Stop Foreclosure
Posted by: | CommentsAvoid Foreclosure San Diego
If you are waiting for government help to stop foreclosure, you will need to wait until President Elect Obama and the new congress is seated before you have any financial difficulty. That’s because the existing program, Hope for Homeowners (H4H) is great for the government but not so good for anybody else. When the initial plan was unveiled by the Federal Housing Administration (FHA) the anticipation was that it would help to save over 400,000 homeowners from foreclosure. H4H went live on October 1st, 2008 and in the first two months relatively few homeowners have taken advantage of it. There will be many articles touting it as a great thing that will help many people. To me, it is a fairly stupid idea.
H4H requires lenders to take a serious haircut and for borrowers to give up their equity. At first look, it seems like a good idea. Under further investigation I think it falls apart. Let’s take a look at how the FHA describes this will work. For purposes of discussion, we will presume that you paid $250,000 for the house with a 10% down payment. The example information below is taken directly from the FHA website.
These are examples of how the unique equity and appreciation sharing elements of this program work. Keep in mind that these are only examples, and your actual experience will depend on many things, including how much your home increases or decreases in value1
Let’s say your home has an appraised value at the time you receive your FHA mortgage of $200,000.
And your mortgage is 90% of this, or $180,000.
This means the initial equity is the difference between 1 and 2, or $20,000.
In this example, you and the FHA share this $20,000 when you sell your home or refinance your loan, because the program requires you as the homeowner to share the “equity” created when the lender walks away from $45,000 of debt.
Here’s how that $20,000 would be split:
If you sell or refinance:
During Year 1 FHA receives 100%, or $20,000 you receive 0%, or $0
During Year 2 FHA receives 90%, or $18,000 you receive 10%, or $2,000
During Year 3 FHA receives 80%, or $16,000 you receive 20%, or $4,000
During Year 4 FHA receives 70%, or $14,000 you receive 30%, or $6,000
During Year 5 FHA receives 60%, or $12,000 you receive 40%, or $8,000
After Year 5 FHA receives 50%, or $10,000 you receive 50%, or $10,000
So, if you sell or refinance right after receiving the new loan, the FHA keeps the equity that was created, and you don’t receive any of it. On the other hand, let’s assume you stay in this loan and don’t sell or refinance for ten years. At that point, you’re entitled to half of the equity – in this example, that’s $10,000 – and the FHA is entitled to the other half2.
In addition to this equity sharing, you will have to share any future home price appreciation with the FHA. This means that, if your home has gone up in value between the time you receive your FHA mortgage and the time of your home sale (or other disposition); you will share the amount of this increase with the FHA (less closing costs and a portion of any improvements you have made). This is a 50/50 split that does not change over time.
For example, if:
1. The value of your home when you take out this loan is……………………$200,000
2. After some years, you decide to sell. Now the home is worth…………………$250,000
3. That means the appreciation is the difference between 1 and 2, or………………$50,000
In this example, you would keep half of this, or $25,000. The FHA would also receive half, which is also $25,000.
Naturally, if the value goes down, there will be no equity to split and therefore no issue. Fortunately, given enough time, home values always improve, so you will see some proceeds from equity growth at the time you sell or refinance. Did I mention that you also cannot go get a second mortgage except for making home improvements? That’s right! A second mortgage would cut into the equity, of which the government is entitled to half, unless you’re making improvements and thereby increasing the amount of equity that the government gets. Even if you are currently in trouble, would you consider using this type of government help to stop foreclosure? Or would you look for some sort of assistance that is not so intrusive?
Now I know what you’re thinking, what if I don’t sell my house? I’ll just stay in it until a mortgage is paid off. Maybe even pay it off early and enjoy the house in my retirement. This way I’ll never pay the government anything. Not so fast! Take a close look at the information above and you will see which you must pay the government their half of the equity when you refinance, sell “or other disposition” of the property. Your estate could potentially have to pay the government half of the equity when they inherit. This could force them to sell or refinance the house. Is that what you want?
Today banks are in the mood to negotiate and modify loans in order to avoid foreclosure in the first place. This could be a far better option for you than expecting any government help to stop foreclosure. I’m afraid that help from the lender is the best you’re going to do, at least until the new President is seated.
Here is a unique option to help you with stopping foreclosure. Visit: http://www.stopforeclosureanswer.com
Mark Elkins is a real estate investor and host of the “Profit on the House” radio program. Mr. Elkins can be heard Monday’s at noon Central Time in the Chicago area on WBIG radio 1280AM and nationwide from his website http://www.profitonthehouse.com
How To Avoid Foreclosure San Diego
Nov
09
Can You Still Stop Foreclosure In The Current Housing Crisis?
Posted by: | CommentsAvoid Foreclosure San Diego
In spite of reports stating foreclosures are showing evidence of decline in some states the overall numbers are still increasing nationwide. With over a million loans in default and more expected now through the end of 2008 the overall outlook is bleak.
These days’ homeowners trying to stop foreclosure are asking whether they qualify for help. In spite of what one may have heard it is fairly easy to determine if you can get help to avoid foreclosure. The basic pre-qualifying questions are:
1. Do you want to keep your home?
2. Is your mortgage payments are 3 or more months behind?
3. Have you taken steps to rectify the situation that caused you to fall behind on your payments to start with?
4. If you can honestly answer yes to all the above questions there may be help available.
Now you have to determine what stop foreclosure option would work best for your particular situation. Just how many options are available and which is the right one for you?
Should you consider filing for bankruptcy?
This is an option using a Chapter 13 bankruptcy where you agree to pay back all creditors under a court approver plan. Keep in mind this is not so easy to do anymore with the new bankruptcy restrictions put in place making it much harder to file. Also consider the long-term ramifications on your credit.
Is an attorney the right answer when looking at foreclosure prevention options?
There are relatively few attorneys that actually specialize in foreclosures. Many that claim they do are actually bankruptcy attorneys with little or no experience in foreclosure matters.
What if you allow your lender foreclose on your home?
It is in your best interest to do everything you can to keep your home off the auction block. Allowing the home to go back to the lender makes it almost impossible to finance a home in the future. You would actually be better off filing bankruptcy before allowing the lender to take back your home.
Are you able to exercise the option to refinance your mortgage?
Given your specific situation refinancing a loan isn’t always the best solution. Refinancing for most people in the best of situations can be a long and difficult process and if you are already one or two payments behind on your mortgage that will make it all the more harder. This is when a knowledgeable consultant is invaluable for guiding through your decision making.
What is a stop foreclosure service and can they save your home from foreclosure?
The main argument for hiring a company to help you stop foreclosure is the looming deadline. Time is working against you. Their expertise is in dealing with this issue on a daily basis. They have the resources, experience, and support networks in place to call into action at a moments notice.
So can you stop home foreclosure in the current housing environment?
The answer is yes but deciding which option to use to keep your home can be a difficult one. The best advice is too take action and seek professional help well before the problem becomes to much to handle on your own.
Free
consultation on how to stop
foreclosure. A plan for stopping foreclosure whether they want to try to
keep or sell their home. Information and contacts of people/organizations that
can help them avoid foreclosure. See www.SaveMeFromForeclosure.com
for more details.
How To Avoid Foreclosure San Diego
Oct
30
Stopping Foreclosure Advice From an Experienced Investor
Posted by: | CommentsAvoid Foreclosure San Diego
As a real estate investor and as a radio program host and commentator, I am frequently asked “how do I go about stopping foreclosure?” While there are a number of factors you need to be careful and watch for. There are some things that will jump out and say this house has a mortgage that can be renegotiated. Or we can stop the foreclosure or in some other way.
· Are you behind on your payments? If you are not behind on your payments many mortgage lenders, particularly at the customer service line will not be willing to negotiate with you. This is because of that particular line of employee at the mortgage company does not understand the nature of your circumstances. If you are not yet behind on your payments, but in jeopardy of falling behind on your payments. You need to find the home retention unit or equivalent at your mortgage company. This division is empowered with the ability to work with you stopping foreclosure and seeing your mortgage stays current and you get to keep your house
· How much can you afford to pay for rent? If you are in the position that you can barely afford your payments for your mortgage, but can afford a roughly similar payment in a rent. Let’s say your mortgage is $1000 a month, but you could afford $800 a month in rent. The mortgage company may be willing to stop foreclosure proceedings and renegotiate the loan with you. Renegotiation is also called modification. When the mortgage company can modify the loan rather than foreclosing on it. They would rather do that because it’s less expensive, and it continues to keep a performing asset in the portfolio.
· Would a small amount of relief take care of the problem? Many people get into foreclosure trouble because they really just needed a couple of months break from payments. Unfortunately, when you add up all late fees and all the costs and stride to answer the demands of the mortgage company, it becomes too difficult to catch up. Stopping foreclosure in this case can require a call to the mortgage company to explain to them that you just needed a break from payments for a short period of time. And that you can get back on track just as soon as they negotiate with you. They don’t want your house and so they’ll be happy to negotiate with you in most cases. All you need to do is prove that once you have the negotiated the payments, you can continue to make them on a regular monthly basis.
· Have you refinanced in the last three years? Knowing the answer to this may be an important tool in stopping foreclosure. If this was a refinance on your principal residence certain rights inure to the refinancer or if the mortgage company did not do all the things that they were supposed to do and required by law to do. Then you may have a claim against the mortgage company. Under the truth in lending act, exercising your rights under the act will absolutely stop your foreclosure and put the mortgage company on the defensive.
· Have you tried speaking with your mortgage company? It may surprise you to learn that a great many people I speak to were in trouble on their mortgage and need me to step in to stop foreclosure have not even made a simple phone call to their mortgage company. They haven’t answered the phone when the mortgage company called. They haven’t opened the mail of the mortgage company sent. They know they’re behind and they don’t want to hear about it from the mortgage company. However, if they just answered the phone, open the mail or called the mortgage company, they may find that the mortgage company is in a great mood to refinance the mortgage. And when they do it for you on this basis it’s not called a refinance it’s called a modification. A modification has nothing to do with your credit. If the mortgage company feels that you can continue to make a payment they will offer you a modification so that your loan in their portfolio remains a performing asset and they do not have to go through the pain and the expense of actually foreclosing on your home.
· The mortgage company doesn’t want your house. They would prefer to see you stay in your house and continue to pay the mortgage. If you haven’t tried to renegotiate your mortgage, now is your chance to make a call. There’s a lot of new things coming along, particularly with regard the new laws, the new bailout and the new presidency, that are going to have a positive impact on your ability to keep your home and stop foreclosure. It’s worth a phone call. Make the call today.
Here is a unique option to help you with stopping foreclosure.
Visit: http://mortgagebailoutidea.com.
Anthony Holmes and Mark Elkins are real estate investors. Mark Elkins is the host of the radio program profit on the house,
which can be heard Mondays at noon Central Time on WBIG radio Chicago 1280 am. Or by going to the website http://www.profitonthehouse.com. Click the listen live button at noon Central Time on Mondays
How To Avoid Foreclosure San Diego
Oct
26
When Stopping Foreclosure the Top 5 Mistakes to Avoid
Posted by: | CommentsAvoid Foreclosure San Diego
As of May 1st 2008, tens of thousands of homeowners are facing foreclosure. The reason so many homeowners are facing foreclosure is varied: loss of job, medical problems, adjustable rate mortgage (ARMs) doubling their monthly mortgage payments. Most homeowners have never faced this problem before and they are receiving bad advice from friends and family on what to do next. This whole process seems so overwhelming that they make many mistakes and just quit fighting for their home, and when you stop fighting for you home you can’t stop foreclosure and devastating your credit. Are you one of these homeowners? These 5 mistakes and how to overcome them will allow you to either stop the foreclosure or at least save your credit rating.
1. DOING NOTHING. This is the biggest mistake. If you don’t start fixing the problem, you won’t determine a solution that works in your favor. Many homeowners facing foreclosure are paralyzed in fear of the calls from the collection department and just let the foreclosure process take over, giving up their homes without a fight. You need to study up on your options, make a plan and follow it up. There are many options for you which will make life easier in the long run if you do some research yourself and then approach a professional to assist them in stopping a foreclosure.
2. TALK TO LOSS MITIGATION, NOT JUST COLLECTIONS DEPARTMENT. Contacting regular mortgage staff instead of Loss Mitigation Department is another common mistake. The collections call you received from the bank are from operators trained in collections only and departments are not in communication with each other. They will ask you things like “Can you borrow money from somewhere else?” Guess what? No, you are already stretched to the last penny, so no, there are no more options! The collectors are only looking at bringing your loan current. If you borrow more to make a payment you can’t afford you’ll only end up that owing more people money you cannot pay back. You need to tell the collectors that you need the number to Loss Mitigation Department, they might be hesitant, but keep politely insisting for the number to Loss Mitigation.
3. NOT RESEARCHING CHOICES BESIDES A FORECLOSURE. DO NOT leave your foreclosure process or workout completely in somebody else hands. There comes a point you might hire a professional to help you with the process. It might be an attorney, real estate agent or some other type professional. This is where your research and study is very important. That real estate agent might tell you they handle short sales, but if you researched and asked the agent a few key questions you will know right away. So research and study, the effort could save you tens of thousands of dollars and up to 300 points on your credit score.
4. DO NOT MOVE FROM YOUR PROPERTY WHEN FACING FORECLOSURE. There are so many houses in foreclosures right now that the mortgage companies cannot keep up with them. The mortgage companies are not landlords, they know how to give out loans, but they are not land owners. When you leave your home the yard overgrows, a sure sign to vandals that the house is empty or if a water pipe burst who going to stop the water. Staying in the house until a solution is found could save you thousands of dollars in monthly mortgage payments. You staying physically on the property is of value to the mortgage, even if you cannot make mortgage payments you are preventing vandalism and providing care and maintenance of the mortgage company’s investment. Sometimes the process of foreclosure could take 12 months saving you $18,000 at $1500 a month payments. In fact one of the first questions two questions mortgage companies ask you almost immediately are: do you plan to keep the property? Are you living in the property?
5. THINKING YOUR HOME IS WORTH WHAT YOU PAID FOR IT. Because your mortgage company paid for the assessment, it undoubtedly came in as worth the asking price or above. But that is not an indication the home is worth what you paid for it two years ago or four years ago. Guess what? The Mortgage lenders and the subprime folks are part of the reason we are in this mess right now. They overinflated the market, handed out money like candy and promised you that a home is your best investment and never goes down. WRONG. The mortgage crisis is not new, the US experienced the same set of problems in the 1980s, resulting in some of the protection methods now in place to protect homeowners in 2008. Take the hit on the value and save your credit so that you can buy an affordable a house in a year or so versus seven years from now when filing bankruptcy or paying 2 to 5 interest points higher after going through foreclosure.
In in nutshell, invest a few dollars now on educational materials to guide you on how to stop foreclosure, to inform you of your rights, and to protect your credit rating from unnecessary damage. Then make a plan. Do you save your home or look at a short sale? Then put your plan in action. Just taking these steps alone will relieve some of the stress your feeling right now. The process will take time, but then the hard part of stopping foreclosure is finished in a day or two, then it’s a waiting game for the bank to process it and keep track of the process.
MJ Jensen is an advocate for homeowners, developing up-to-the minute tips and tools to save homeowners from foreclosure or damage to their credit ratings. Find such tips here: www.stopbankforeclosurestips.com/free_report Or you can visit his blog at www.stopbankforeclosurestips.com/blog
How To Avoid Foreclosure San Diego