Squatters flourish with lack of information on The Loan Modification Process. Experts convince homeowners to stay in home without paying for their mortgage.
August 7, 2009
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While red tape is blocking the loan modification process, home owners find it may be easier to stay in their home. This article is a response to one recently posted by Todd Ruger at the Herald Tribune. With the avalanche of foreclosures entering the courts, advice from financial officials to homeowners is to stay in your home till the dust settles.
In a perfect world, working your loan modification with your lenders is the ideal solution. However, if this is not the case, at lease homeowners have an opportunity in their favor. If you no longer want to maintain your ownership of the home, living it in rent free should be your end goal.
There are many guidelines that must be followed to put a home into foreclosure. Paperwork must be filled in the proper order and forms need to be neat and tidy. Asking the lenders to provide proof of their right to foreclose, for example, can extend your foreclosure sale for up to 2 years. This added bit of time gives the borrower the chance to recoup necessary funds to settle their loan or to finalize a plan that works for both lender and borrower By far the least attractive option for a homeowner is leaving their home while in foreclosure. This gives the property right to the bank without a fight. Even if you are not interested in keeping your home, this time can be spent towards building a nest egg which can carry you through the foreclosure process.
In 2006, 46,455 homes were placed into foreclosure in Manatee Country alone. With the foreclosure epidemic on the rise, Todd estimates that even more homes will be placed into foreclosure. With the weight of the paperwork upon the courts, a homeowner can expect the foreclosure proceedings to last for years instead of months.
Putting the savings of a few months rent free is a boon for most borrowers, but for others it will allow for many options after the foreclosure process. By delaying your lender as long as you can, you are only helping yourself prepare for the future.
Todd shows an example of this in a Sarasota couple who filed for a 45 day extension on their loan. 6 months later the courts finally heard the case to the reason on why they needed the extension.
If you are behind in your payments, you may want to look at how to stall your Lender and the Foreclosure Advice. After all, you owe it to yourself to take advantage of any opportunity which may keep your home.
Tags: foreclosure
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