What is a Short Sale

Archive for the ‘Foreclosure’ Category

Foreclosure is the legal process in which you may lose your rights to a mortgaged property, say your home or usually some kind of real estate, after you have made the mortgage in order to borrow money. That makes you the mortgagor, while the mortgage represents the security for the money you have loaned from some credit company. Besides actually allowing you to be able to get your hands on the money you want to borrow, the mortgage also gets you a shot at a reduced interest rate from the lender.

When you take a mortgage loan, you retain possession of your home, and foreclosure is affected only if you fail to make payment of the debt at the proper time or to meet other obligations specified in the agreement terms of the bond.

Now here’s the catch; to effect a foreclosure, the lender usually has to apply to a court for authority to sell the property or to proceed with the sale under a power that has been provided within the mortgage itself. If you are going to stop the foreclosure proceedings, you are going to have to do it either before the lender makes it to court in the first place, or before the court gets to pass the injunction that allows them to kick you out and sell your home.

The lender here is the mortgagee because they hold your mortgage – which they could do personally, or by a trustee on their behalf. Their plan, when they foreclose on your property, is to apply the money received from its sale to all debts that you owe on the property, including – no, especially – payments due to the mortgagee. Either way, you get to lose if the process is complete, so the best way to stop foreclosure on that account is to see to it that they actually never start the process.

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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

Many homeowners are not quite clear on how the foreclosure process works in their state, especially due to differences between judicial and nonjudicial foreclosure proceedings. State law and federal lending law may also affect how the process moves forward, as HUD-guaranteed loans or those insured by the FHA can complicate the matter even further.

For mortgages owned by HUD (not just insured or guaranteed by the agency), a type of nonjudicial foreclosure may be pursued even if the state in which the property is located requires judicial foreclosure procedures to be used. The statute is called “Single Family Mortgage Foreclosure” and it replaces applicable state law. Even if no power of sale clause is included in the mortgage contract, HUD may use the nonjudicial foreclosure process.

This clause clearly seems to go against the right to contract, as it negates certain aspects of mortgage contracts used by borrowers and lenders. There may also be unlawful taking issues when the federal government affects foreclosure laws and redemption rights. In addition, there is no required pre-foreclosure meeting or hearing for the borrowers.

In order to sue homeowners for foreclosure and obtain a judgment against them, the lender must prove three aspects of its case:

1. There is a valid mortgage between the lender and borrowers 2. The homeowners are in default of the mortgage contract 3. Foreclosure procedures have been followed according to the law

If the bank does not follow the foreclosure procedures for notice or court requirements, even a sheriff sale may later be voided.

One positive aspect of the judicial foreclosure process is that homeowners can raise claims against the lender that would otherwise have been barred by statute of limitations regulations. For instance, even if the statute of limitations for Truth in Lending Act violations has passed, borrowers may still raise these issues in a defense of a foreclosure case. But if the foreclosure is through nonjudicial procedures, these claims may not be allowed by the court.

All states allow homeowners the right to redeem their property by paying off the loan in full (plus interest, costs, and other applicable fees) prior to the sale of the house. Nineteen states give borrowers the right to reinstate their mortgage by curing the default and paying the amount past due plus applicable costs and fees. This must be done before the sheriff sale of the property in order to be accepted by the lender.

When homeowners file bankruptcy to stop foreclosure or delay a sale, they do not give up substantive or procedural defenses to the bank’s attempts to take their home.

In many cases, the mortgage company does not strictly follow the pre-foreclosure procedures dictated by state and local laws. In these cases, courts have found that strict compliance is necessary for a foreclosure to go forward. Foreclosure is such a harsh remedy to the problem that these strict requirements are necessary for lenders to follow.

If a lender accepts late payments from a homeowner, it may be waiving its right to accelerate the mortgage later on in the case of default. Courts have found that allow late payments and not insisting on future on-time payments may be a waiver of the right to accelerate. The state of Maine goes even further than this and states that accepting a payment after foreclosure procedures have been started but before the right of redemption ends is considered a waiver of the right to foreclose on the home at all.

Nick writes daily articles specializing in how you can save your home from foreclosure while there is still time left before a trustee sale or eviction. Learn to defend the bank’s attempts to take your home, find a reputable lawyer, delay a trustee sale or eviction, qualify for a foreclosure refinance program, and put together a reasonable alternative that will let you keep your property from being auctioned out from under your feet. Visit his site to read more about your options to prevent the loss of a house and understand more about how and why the housing market has been collapsing for several years now: http://www.yousaveforeclosure.com/

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Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

With all of the good and bad reports about Loan Modification, it can be difficult to determine if this could be the answer for you should you be facing the devastating possibility of foreclosure. The truth is that there are several legitimate loan modification companies that can often stop foreclosure proceedings immediately and give you the chance to wipe your delinquent mortgage slate clean and offering you a new and more affordable payment and an opportunity to keep your home.

In a Loan Modification you will need to prove information to the lender to show that you qualify for the modification. There are not too many qualifications, so you must meet all of them. First you must have received your mortgage prior to January 2008.You will also need to show your income. The loan amount can be modified to 31% of your income if it is currently in excess of 38%.

The most important of the qualifications you will need to provide is the Loan Mod letter you will need to write. This letter will need to explain several key points to the lenders you are requesting modification from. First you should explain without emotion what happened that put you behind financially. Next you must make them understand what you have done to ensure that should you be granted a modification loan, you will not find yourself in the same financial situation. Explain what you have learned in the experience and how you have overcome your obstacles. If you have gotten a better job, consolidated or paid of other expenses, whatever steps you have take to prove to the lender that you will maintain the mortgage payments once the loan is modified.

Do your research on Loan Modification companies and find the one that is right for your needs. A good lender can walk you through the modification process and just may be able to help you save the home you worked so hard for.

Final Tip: By researching and comparing the best loan modification companies in the market, you will be able to determine the one that meets your specific financial situation, plus the cheaper and quicker options available. However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advise coming from a seasoned loan mods advisor and money by getting better results in a shorter span of time. Meaning getting your house out of risk as soon as possible.

Hector Milla runs the Best Mortgage Loan Modification website, where you can get immediate assistance from professionals serving your state. We have done all the hard work for you and selected the best 3 rated loan modification services.

Read our full reviews of those companies, plus hundreds of articles and video training about how to stop foreclose and the best way to do a loan modification in order to stop a foreclosing proceeding.

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Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

With the economy severely wounded, job losses continue to rise and, as a result, foreclosures climb. Of course, there are other life changes like divorce or major medical expenses that can affect your ability to remain current on the mortgage. No matter what led to the foreclosure process, you need to know the available options and take control of the process.

It is critical that if you find yourself in this unfortunate situation, you do not throw up your hands, shrink back and give up. Do not meekly allow foreclosure proceedings to take your home and mar your credit. This is the time to take action and explore the available options to avoid foreclosure and save your home and credit.

First, you must do some research to learn about the foreclosure process in your state. The process is different in each state. In some areas, the process moves quickly. The sooner you arm yourself with information and take action, the greater your chance to avoid foreclosure.

If you have a wealthy friend or relative willing to lend you money, the solution is simple; borrow the money and repay your angel. Most people do not have a wealthy angel.

Realistically, you will need to explore solid options. Depending on the loan and your individual circumstances, you may qualify for a loan modification. Contact your lender and find out if you meet the criteria. Under President Obama’s plan to keep American homeowners out of foreclosure, this may be an excellent option.

A second option is a refinance of the mortgage to lower the interest rate and reduce the payments. With interest rates at an all time low, this option can benefit many homeowners. Again, the individual circumstances of the homeowner and the specific loan will be the deciding factor.

A third option to consider is the sale of the home. This might not be possible in the current economy. The slump in the housing sales may prohibit the use of this option.

Another course of action may be a deed in lieu of foreclosure. This option does not allow the homeowner to remain in the house. A deed in lieu of foreclosure conveys the property to the lender and avoids the costs, time and effort involved with foreclosure. Of course, this requires acceptance by the lender.

If the loss of income is a temporary situation, the lender may agree to a Forbearance Agreement. The borrower agrees to keep the mortgage payments current going forward. It also provides for repayment of the delinquent payments and accrued fees. This option would only be beneficial to borrowers in a specific short term situation.

Another possibility is a short-sale. This requires the approval of the lender and allows the borrower to accept a contract on the property for less than the balance owed on the mortgage.

Please visit: http://www.recoverfromloss.com

Mel Otero has worked as a manager in the mortgage banking industry and title insurance industries. She has recently started web sites focused on recovering during this difficult economy. Please visit: http://www.mortgagemodificationsystem.com/motero/

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“The Foreclosure Survival Guide: Keep Your House Or Walk Away With Money In Your Pocket” by Attorney Stephen Elias, Author of “How to File for Chapter 7 Bankruptcy” is if nothing else, very timely. Unfortunately so, the rise in foreclosures this past year makes a book like this most welcome for many people going through foreclosure, or for those that the dreaded fear of foreclosure looms overhead.

In these uncertain times, with more foreclosures than ever before, a book like this will be very helpful to many people. If you have received a formal foreclosure notice, or are being threatened with foreclosure, this book will guide you through the process and your options. If you just want to know more about foreclosures, this is a very easy primer on the topic.

While the book is written by an attorney, it is written for the layperson to easily understand foreclosures and options. It starts out with an overview of what to expect and then proceeds into the nuts and bolts of foreclosures.

From there, the book discusses emotional aspects of having your house foreclosed upon, and if it makes sense to attempt to keep your house or not. There is a chapter on negotiating a workout, and chapters on how Chapter 13 and Chapter 7 bankruptcies can delay or stop your foreclosure. Elias includes a chapter on fighting foreclosures in court, and what you can do when you decide to let the foreclosure proceed and leave your home. There is even a short chapter on how long you can stay in your house for free. As the title of this book suggests, it is for the home owner who is facing foreclosure, not the bank. It is suggested that the money you save by being in your house for free can be the start money you need to find another home.

There are a number of pages of resources that may help those during foreclosures or before. It is also good that Elias points out some of the scams that go on and how certain “foreclosure rescue” companies are just looking to scam you and take the little money you have.

The book concludes with a decent glossary of terms related to foreclosures and a brief description of each of the 50 State’s laws on foreclosures. This short summary of laws is enough to get the reader pointed in the right direction when researching the laws that govern the foreclosed property.

If you know nothing about foreclosures and want to for whatever reason; you want the information, you may be facing a foreclosure in the near future, or you are facing one now, this book is a great primer on the topic. While I don’t practice in the areas of foreclosure or bankruptcy, this book provided me with additional information for those calls I sometimes field from people that need more information regarding these issues.

I just wish there weren’t so many people that need this book.

Alain Burrese, J.D. is a mediator/attorney with Bennett Law Office P.C. and an author/speaker through his own company Burrese Enterprises Inc. He writes and speaks about a variety of topics focusing on the business areas of negotiation and success principles as well as self-defense and safety topics. He is the author of Hard-Won Wisdom From the School of Hard Knocks, several instructional dvds, and numerous articles. You can find out more about Alain Burrese at his websites http://www.burrese.com or http://www.bennettlawofficepc.com

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Many homeowners are not quite clear on how the foreclosure process works in their state, especially due to differences between judicial and nonjudicial foreclosure proceedings. State law and federal lending law may also affect how the process moves forward, as HUD-guaranteed loans or those insured by the FHA can complicate the matter even further.

For mortgages owned by HUD (not just insured or guaranteed by the agency), a type of nonjudicial foreclosure may be pursued even if the state in which the property is located requires judicial foreclosure procedures to be used. The statute is called “Single Family Mortgage Foreclosure” and it replaces applicable state law. Even if no power of sale clause is included in the mortgage contract, HUD may use the nonjudicial foreclosure process.

This clause clearly seems to go against the right to contract, as it negates certain aspects of mortgage contracts used by borrowers and lenders. There may also be unlawful taking issues when the federal government affects foreclosure laws and redemption rights. In addition, there is no required pre-foreclosure meeting or hearing for the borrowers.

In order to sue homeowners for foreclosure and obtain a judgment against them, the lender must prove three aspects of its case:

1. There is a valid mortgage between the lender and borrowers 2. The homeowners are in default of the mortgage contract 3. Foreclosure procedures have been followed according to the law

If the bank does not follow the foreclosure procedures for notice or court requirements, even a sheriff sale may later be voided.

One positive aspect of the judicial foreclosure process is that homeowners can raise claims against the lender that would otherwise have been barred by statute of limitations regulations. For instance, even if the statute of limitations for Truth in Lending Act violations has passed, borrowers may still raise these issues in a defense of a foreclosure case. But if the foreclosure is through nonjudicial procedures, these claims may not be allowed by the court.

All states allow homeowners the right to redeem their property by paying off the loan in full (plus interest, costs, and other applicable fees) prior to the sale of the house. Nineteen states give borrowers the right to reinstate their mortgage by curing the default and paying the amount past due plus applicable costs and fees. This must be done before the sheriff sale of the property in order to be accepted by the lender.

When homeowners file bankruptcy to stop foreclosure or delay a sale, they do not give up substantive or procedural defenses to the bank’s attempts to take their home.

In many cases, the mortgage company does not strictly follow the pre-foreclosure procedures dictated by state and local laws. In these cases, courts have found that strict compliance is necessary for a foreclosure to go forward. Foreclosure is such a harsh remedy to the problem that these strict requirements are necessary for lenders to follow.

If a lender accepts late payments from a homeowner, it may be waiving its right to accelerate the mortgage later on in the case of default. Courts have found that allow late payments and not insisting on future on-time payments may be a waiver of the right to accelerate. The state of Maine goes even further than this and states that accepting a payment after foreclosure procedures have been started but before the right of redemption ends is considered a waiver of the right to foreclose on the home at all.

Nick writes daily articles specializing in how you can save your home from foreclosure while there is still time left before a trustee sale or eviction. Learn to defend the bank’s attempts to take your home, find a reputable lawyer, delay a trustee sale or eviction, qualify for a foreclosure refinance program, and put together a reasonable alternative that will let you keep your property from being auctioned out from under your feet. Visit his site to read more about your options to prevent the loss of a house and understand more about how and why the housing market has been collapsing for several years now: http://www.yousaveforeclosure.com/

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Life after a foreclosure can be filled with lots of doubt about what the future will hold for you and your family. Losing a home can be very devastating and is hard to recoup from. Life however does and will go on for better or worse. You can make rebuilding life after a foreclosure a beneficial learning experience that will prepare you for a sound financial future if you are willing to commit to regaining your stability.

For those seeking to move on after a foreclosure one of the first steps needed is to reassess finances. Either a mismanagement of money or an unfortunate loss of income may have been the cause of the foreclosure. Taking on a home that was too expensive, falling behind on the mortgage repeatedly or loss of a job and lack of savings to accommodate are all reasons why so many people end up losing their homes.

Learning to manage one’s finances is the key to rebuilding one’s life after foreclosure. Set up a budget that allows you to live beneath your means. When renting or leasing a new home or apartment choose a place that is no more than 28%-30% of your net monthly income. This calculation is used by many home lenders to determine if a person can afford a home and still live comfortably.

You should use these numbers as a guide for obtaining affordable housing. Minimize luxury expenses while trying to reestablish yourself. If you must have cable television, internet and other optional services opt for the minimal services to keep expenses low.

Work on improving your credit and building a savings. Having good credit could have helped in avoiding a foreclosure. People with decent credit are able to refinance to make their mortgages more affordable and if you weren’t able to do this because of your credit you should consider serious credit repair. The only true way to repair credit under any circumstance is to pay off negative balances and begin paying bills on time. Good payment history over a period of time will gradually improve a damaged credit report due to foreclosure. In addition, establishing a savings is also necessary. Having reserve funds for a rainy day helps people get through rough periods such as a job loss. Having such funds can be the determinant factor as to whether you can pay a mortgage or not. For security purposes having three to six months of living expenses in a savings account is advisable.

Once you are able to live on a budget that allows you to live beneath your budget and you are making an attempt to reestablish credit and build a long term savings you can possibly consider purchasing a home in the future.

Click here to learn more about the Steps of Foreclosure. And if you’ve had your power shut off, consider the use of Portable Propane Heaters.

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Sometimes life can get hard. There are unexpected nasty surprises that pop up so suddenly that have the potency to kill your lifestyle. Being diagnosed with a heavy illness is not at all a welcoming thought. Aside from the emotional and physical strain, you must deal with the financial losses as soon as you recover or even as you lie incapacitated in the hospital. It is really a difficult process because these points of stress do not just come at any one point but rather spread throughout an extended period of time. It is almost as if they do not even like you to recover from the sickness. To make matters worse, your period of incapacity has most likely deprived you of employment which makes it harder to meet financial demands.

Many families and homeowners resort to a real estate mortgage in order to secure a loan. In a real estate mortgage, you deal with financial companies who can grant you a loan to pay necessary expenses such as health and hospital bills. The loan is conditioned upon the attachment of security or collateral that you own. A real estate mortgage as implied from the name requires real estate to be attached as security. Real estate can generally be defined as those immovable properties such as buildings or pieces of land that you may own.

Depending on your agreement, you are given a period of time after the grant of the loan from which to pay off your debts. If the period lapses and there are no grace periods left available to you, the financing company will be forced to go to court in order to foreclose on the mortgage. Your building or land being your collateral in this instance will be forfeited in favor of your creditors. You will be deprived of your home just like that.

However you can avoid foreclosure by utilizing the right strategies and coping mechanisms. Right after securing the loan, make sure to immediately plan ahead and start to process how you would pay off your debts. If your current salary is insufficient, then make a financial assessment of your needs in your current situation. If there are options or luxuries that you are currently taking such as cable then you must make a sacrifice and forego of these amenities. If you spend a lot eating out then take the time to start cooking your own meals.

If those sacrifices are not enough, then seriously consider taking a second job if you are able. There are a lot of simple part time jobs available online as long as you know where to look. A family member can also contribute to the financial gap if they can work at this time. Make sure that you explain the situation so that they would be willing to do so.

If this is not enough, sell some of your assets such as jewelry, a second car, and other similarly placed objects. Make sure that you set your priorities straight because deprived of a home is tragic loss.

For more help regarding real estate issues, visit Ohio Community Blog and Ohio Real Estate Articles.

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In select cities across the nation, the average house price increases nearly 20% every year. Drastic price increases makes it difficult for some to afford a new home. Fortunately, there are ways to purchase a home at market value. For years, real estate investors have taken advantage of bank owned properties. Because of an increase of online services offering foreclose listings, it has become effortless to find an affordable home.

What are Foreclosed Homes and Listings?

When a homeowner can no longer afford to make monthly payments, the bank or financial institution that financed the loan will repossess, or reclaim the property. Once the lender has possession of the property, the goal is to recoup their money. Usually, the lender is not looking to make a huge profit; they simply want to resell the property. Thus, it is possible to purchase a foreclosed home at a huge discount. These properties are ideal for real estate investors and bargain shoppers.

Foreclose listings include detail information about foreclosed properties for sale. For those looking to buy a foreclosed home, lists should serve as a primary resource. There are many kinds of foreclose listings. Certain listings are outdated and offer little help. On the other hand, if you choose a reputable listing company, you can expect an up-to-date housing list on a monthly basis.

How to Find an Online List of Foreclosed Homes

Various companies offer online listings of foreclosed homes. If you are a new investor, or just want to purchase a bargain home, these lists are valuable. Housing lists consist of a large database of homes for as little as $10,000. The list will include property description, sale price, agent contact information, etc.

Accessing a listing of foreclosed homes online is more beneficial than investing in print lists. If subscribing to an online service, you are able to search foreclose properties from across the country. Moreover, online services include the most recent listings.

Performing an online search for “foreclosed homes” will present pages of foreclose listing services. Membership fees are required by some online services before access is granted. However, fees are very reasonable and worth the investment. Trial memberships are also offered by some online listing services.

View our recommended source for the largest list of foreclosed homes online. Carrie Reeder is the owner of ABC Loan Guide, your sources for information about Home Mortgage Loans and lenders online.

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