Finding Professional Foreclosure Assistance And Advice
November 1, 2008
Are you one of the millions of homeowners who are now facing foreclosure? Unfortunately, the fact that you are not alone is not comforting. What may be comforting is the professional assistance that is available to you. In fact, many homeowners facing foreclosure are surprised to see what their options are. Many are also surprised to learn that help is even out there for them, but it is.
If you are facing foreclosure, the first thing you need to do is sit down and look at the situation. How far behind are you on your mortgage? Is there anyway that you can make an immediate payment? Chances are you don’t have the money just laying around or else you would have used it already. What you can however do is rely on the help of close friends and family members. If you owe a small amount, such as around $1,000, can you borrow the money and repay it in small increments?
Making timely payments on your mortgage is one of the best ways to stop foreclosure in its tracks, but that may not be an option for you. What you will want to refrain from doing is automatically tossing in the towel. Preparing to move is a step that should only be used as a last resort. First, talk to your bank. When doing so, be sure to make an appointment in person. Yes, it may be embarrassing to show your face at the bank when you owe money, but it is a step that you must take. Speak with the loan officer or even the bank president. Determine what they are willing to accept to keep you in your home. See if alternative payment arrangements can be made.
If you do not find success by speaking with your mortgage holder, your first step should involve contacting the United States Department of Housing and Urban Development (HUD). The purpose of HUD is to increase home ownership. They accomplish this goal by fighting discrimination against homeowners and by working to keep housing affordable. HUD is often considered the starting point for seeking help or avoiding foreclosure altogether. They will point you in the right direction.
As for which direction you will be pointed in, it depends. For starters, the state in which you reside in may have an impact on the professional assistance received. Each state has trained housing counselors that are knowledgeable on the laws, rules, and restrictions concerning foreclosure in their assigned state. Foreclosure counseling is usually offered for an affordable fee or free of charge. Due to the high rate of foreclosure scams, it is recommended that you only speak with a HUD approved housing counselor.
There is also special assistance for veterans. This includes active service members. The VA Loan Guaranty Program is designed to help eligible men and women buy homes. However, they are occasionally known to provide assistance to those facing foreclosure.
There are also times when legal representation or legal advice is recommended. Have you made payments that put your mortgage in good standing, but are still facing foreclosure? Are you not a homeowner, but a renter who is being threatened with eviction? If so, it is imperative that you seek legal advised. The United States Department of Housing and Urban Development (HUD) can connect you with affordable or pro bono lawyers in your area, namely those with a specialty in housing or foreclosures.
There is also the option of filing a complaint with your state’s Department of Consumer Affairs. This should be done if you feel as if you are being scammed or given the runaround. Do you suspect that your mortgage holder isn’t as reliable and dependable as they look? Have you fallen for a foreclosure scam? If so, file a complaint.
As you can see, there are numbers of places that you can find professional foreclosure help and assistance. As a reminder, the best way to get started is with HUD.
Tags: foreclosure
Foreclosure Help to Avoid Foreclosure Wisely - Study Useful Recommendations
November 1, 2008
Avoid Foreclosure to Keep Your Home
A foreclosure is an action initiated by a financial organization when a debtor does not meet the legal terms of a mortgage. The mortgage is a legal agreement between two entities, one of which is a lender and one is a borrower. This agreement commits the two entities to the terms of the mortgage. When those terms are not met leg remedies such as foreclosure are possible.
If your home is the security for a loan that you defaulted then you could be in big trouble. The agreements that you signed give the creditor the right to foreclose on your property if this happens. You could then be without your home.
You Can Avoid Foreclosure
Obviously the first and best way to avoid foreclosure is to make your payments as scheduled without fail. This indicates that you need to first live within your means as well as save up some reserve money. If you have a limited monthly income then you should work on a monthly spending budget. Once your paycheck arrives divide it up as outlined in your budget. If you are a person that pays in cash, then one idea is to put cash into designated envelopes to be sure the cash is used for its intended purpose. Make sure to use your food money envelope for food and your mortgage money envelope for the mortgage. This simple idea will keep your all cash budget in order.
Perhaps you have an income source where you get paid each day. In this case you need to figure out what your monthly obligations are and then divide by the number of days that you get paid. This is the amount that you will need to save each day from your daily income in order to meet your monthly obligations. It is important to follow through with this plan as a little bit of overspending early in the month may be harder to recover from than one thinks thereby leading to financial disaster. It would be better to save too much each day and perhaps reward yourself with any surplus at the end of the month after all the bills are paid and you put some money aside.
In the event of a financial emergency try not to use the money you have set aside to pay the monthly mortgage. It would be better to cut back on your entertainment and food bill than to risk your home to foreclosure. Perhaps you can find a temporary source of income by working extra in order to get through the financial emergency. The key to avoiding foreclosure is to always pay your mortgage on time. This often requires will power to spend within your means.
Read more about Avoid Foreclosure and how to negotiate mortgage wisely.
Tags: foreclosure
Foreclosures in Washington
October 26, 2008
Foreclosures are increasing all around the country. Foreclosed homes in Washington and the surrounding Seattle area have stayed relatively low until just recently. The housing market is quickly beginning to decline like much of the country. As prices fall it could be time to contact your Redmond Real Estate Agent
The number of homeowners ensnared in the foreclosure crisis grew by more than 70 percent in the third quarter of this year compared with the same period in 2007, according to data released Thursday. Many Homeowners find themselves in a position where they cannot continue making their Home Mortgage payments. New foreclosures almost doubled in Seattle in the third quarter as the worst housing crisis since the Great Depression continued to deepen, the online real estate data company PropertyShark.com reported.
New foreclosures in Seattle rose to 501 from 251, the second biggest gain in the study of four U.S. cities including New York and Miami. Nationwide, nearly 766,000 homes received at least one foreclosure-related notice from July through September, up 71 percent from a year earlier, said foreclosure listing service RealtyTrac Inc.
Seattle and Washington state as a whole have this past summer avoided much of the foreclosure pain that has plagued much of the country
King County saw its foreclosure rate drop sharply in September, according to RealtyTrac, a national foreclosure tracking service. Foreclosures in King County dropped 42 percent from August to September and fell 13 percent from September a year ago. RealtyTrac data shows that nearly one out of every 1,630 homes is in foreclosure in King County Washington.
Accoding to RealtyTrac’s third-quarter statistics, Washington is 26th in the amount of forclosures on the market. Of the 100 top metropolitan areas, Tacoma ranked 40th and Seattle/Bellevue/Everett ranked 77th for Mortgage Home Loan foreclosures during the third quarter.
In Washington state overall, foreclosures dropped 38 percent from August to September and declined 16 percent compared to September 2007. The state was ranked 34th for foreclosure activity.
Tags: foreclosure
Advice On Mortgage Information
October 6, 2008
For many people, whether first time buyers or not, the prime thought when looking at a fixed rate mortgage is the monthly payment cost. Buying a home later in life means that many people wish to have the mortgage payed off earlier. Although before signing any papers, there is a great deal to consider.
Over the course of the mortgage, it’s serious to recall to make sure the rate of interest doesn’t change. If you are offered a deal that appears to be too good to be true than it in all probability is. The rate of interest remains the same for long term fixed rate mortgages over the life of the mortgage. If you are someone that wants a loan with a dependable fixed monthly mortgage payment with no hidden extra charges then this is the main benefit with this type of arrangement. Both my wife and I decided to research fixed rate mortgages when we started looking at homes for sale. Although it was fundamental for us to settle our mortgage as soon as we could, we didn’t wish high, unrealistic monthly repayments which we would have a problem maintaining.
In addition to considering loans for a long run, 15 year fixed mortgage rate we also looked into loans that spanned 30 years as well. No-one likes the idea of having a mortgage when they are close to retiring, and we were no other, so it was still our hope that a 15 year fixed mortgage rate would still be an option. There was obviously very good grounds to finish paying the loan off earlier if at all possible. After learning out my wife was having a baby, reaching the decision we did was the only one that made long term sense. Because my wife wanted to raise our child at home we couldn’t be certain of her monthly financial donation to our family spending. The trouble we could see was the increased fiscal commitment with a higher monthly repayment if we had opted for the shorter fifteen year fixed rate mortgage. For us it just wasn’t feasible as we would just be in over our heads and likely be worrying about money every month.
Despite the trepidation of having a extended term mortgage, the thirty years fixed mortgage rate did reduce the monthly repayments considerably. Also, where possible, making a few additional lump sum repayments during the year helps bring down the sum owed. Just by making a handful of supplemental installments throughout a twelve month period you can knock years off of your loan period. Although this isn’t easy to achieve, in the long term it is well worth it. Although we would have much preferred the loan for a 15 fixed mortgage rate we had to take our needs and fiscal capabilities into consideration. On the whole though, things worked out very well for us and we’re pleased we made the decision we did.
Tags: foreclosure
Stop Foreclosure With These Options
October 3, 2008
Here are Three Stop Home Forclosure Options:
There are several options a home owner may take to stop foreclosure. Below we list three stop foreclosure options that may help you if you are currently facing foreclosure.
Choosing which option will work for you, depends on your current situation:
- Special Forebearance
- Mortgage Loan Modification Option
- Particial Claim
Special Forebearance Option to Stop Foreclosure:
The Special Forebearance Option is where your mortgage lender could arrange a new repayment plan based on your current financial status.
Your lender could also offer a reduction of your monthly mortgage payment, or allow you to not have to pay your mortgage for a few months (yet adding this time to the length of your mortgage term).
Usual Qualifications Required For Special Forebearance:?
Qualification for Special Forebearance to stop home forclosure, usually requires that you have recently experienced a sudden reduction or loss of income (an injury, loss of job); or an unusual increase in living expenses.
Your lender will usually require you to provide proof to show your income hardship situation, or you may also be required to write a Hardship Letter to Stop Foreclosure.
Your mortgage lender could also request you provide proof that can now make the new mortgage payment amount, if a new payment plan is setup.
Mortgage Loan Modification Option to Stop Foreclosure:
With a mortgage loan modification option you may be able to refinance your current mortgage at a lower rate and / or add years onto your mortgage loan term. Using the mortgage loan modification to stop foreclosure may be able to lower your mortgage payment where it is more affordable for you.
Usual Requirements for Qualification for Mortgage Loan Modification:?
A mortgage loan modification may be a choice for you if you have just recovered from an unusual income hardship. Qualifying for a mortgage loan modification depends on your new financial status, and whether you could afford the new mortgage loan payments.
Partial Claim Option to Stop Foreclosure:
With a partial claim option to stop foreclosure, your lender could apply for a payment from the FHA Insurance fund, US Department of Housing and Urban Development - HUD on your behalf. This payment amount would be the total amount of money required to bring your mortgage payments up to date.
Partial Claim Qualifications Require:?
If your mortgage payments are at least 4 months past due, but not more than 12 months past due, you may qualify for a partial claim. Documented proof would also be required that shows you will be able to make you loan payments now.
In addition, with the partial claim to stop foreclosure, you would also have to sign a promissory note for the amount that will bring your mortgage payments up to date.And, a property lien will be added to your property, until the promissory note is paid. The HUD provided promissory note is interest free. It must also be paid when you pay off the mortgage and/or sell your property.
The above three options are an example of what may be available for you to stop home foreclosure. You can learn about many more options if you visit the free information site: Stop Foreclosure Tips.
Tags: foreclosure
Thinking of Selling and Rent Back Your Home? It Could Be The Wrong Choice
October 2, 2008
This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.
1. If you can reduce your monthly outgoings
Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to ask yourself ’shall I sell my home and rent it back?’ it is often worth while looking at loan consolidation as a possible alternative.
This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.
2. When you want to get full market value for your property
If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.
You need to make sure you sell to a company that (a) is honest and upfront with you and (b) has a sound business model because if they go out of business there are going to be complications with you staying in your house.
If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this ‘quick cash sale’ service (including us).
The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.
Tags: foreclosure
Sellers Advantages and Property Auctions
October 1, 2008
People In real estate are finding that tax lien auctions are growing quickly. Perhaps this is due to the failing economy and increasing rate for home forclosure. As homes go through foreclosure and repossession, the homes are sold at Property tax lien auctions to the person with the highest bid so that the mortgage companies can get back their losses. Since a foreclosure can look very bad on a property owner’s credit report, most will avoid this by auctioning off their homes before it gets to this point. Over the next ten years according to some authorities, more than 35% of homes for sale will be purchased at Property tax lien auctions.
Some benefits sellers have when they decide to use Property tax lien auctions to sell their houses is the sale is quick and you don’t have to wait for ‘pending financing’ rules set by the buyer. The money from the purchaser will be present at auction time
Homeowner who intend to sell his house at action should ensure the participation of enough buyers who are either capable to pay from their source or who have got confirmed financing committment from financial institutions of repute.
Property tax lien auctions offer properties for sale “as is”. Bidders know that they need to do some repairs and other things to take care of. It is not necessary for the buyer to be concerned about spending a large amount of money on paint, new carpet or appliances before the auction of their house. The buyer will be responsible for replacing the water heater if it is about to malfunction. Buyers understand when buying Property tax lien auctions they usually have a small amount of time to check out the property before bidding. By not relying on the professional services of a home inspector, the buyer, not the seller, is to blame if something malfunctions.
One of the benefits of property tax lien auctions for investors is not having to worry about potential purchasers wanting to view the home at their convenience. Pets, lives, family — sellers have these things too. The risk of getting a call at any time of day or night from an agent who would like to show the home is more than likely the hardest part about putting a house on the traditional market. Can they not accept this? While it is possible, it is very difficult for sellers to sell an unseen home sight. If an agent can not be shown the home, they will not come back to call again. The family and the house should always be at hand and ready for viewings. During showings, the owner must remember that their house is cleaned and tidy every moment of that day, also considering where they travel in order to take their pets along with them. Sometimes it can be hard, especially when the call comes when you are having dinner or when you have a visitor.
A number of homeowners are unaware of the potential benefits of using property tax lien auctions to sell their homes. Property tax lien auctions make it easy for homeowners to sell their home quickly for any number of reasons. The price may not go as high as the seller would hope but the advantage of Property tax lien auctions is worth the loss.
Get more data about Pre Foreclosure Property such as purchasing tax liens where you’ll find many things you need to know about the Buy Tax Lien Laws and much more.
Tags: foreclosure
2 Situations Where Sale and Rent Back is the Wrong Choice
September 30, 2008
This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.
1. If you can reduce your monthly outgoings
Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to ask yourself ’shall I sell my home and rent it back?’ it is often worth while looking at loan consolidation as a possible alternative.
This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.
2. When you want to get full market value for your property
If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.
You need to make sure you sell to a company that (a) is honest and upfront with you and (b) has a sound business model because if they go out of business there are going to be complications with you staying in your house.
If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this ‘quick cash sale’ service (including us).
The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.
Tags: foreclosure
How To Stop A Repossession
September 30, 2008
This article will outline the steps you can take to stop a repossession. It assumes that notice of eviction has been issued by the court bailiffs giving a date and when eviction will occur. If you are not sure if you are at this stage please contact the national debt helpline.
If you have been given a notice of eviction you may be able to stop this, but you must act quickly.
Which forms you need to fill out
If you need more time to sell, to find somewhere else to live, or want to make a revised offer to pay the arrears by monthly instalments you should apply for the warrant to be suspended on court form N244.You can pick up this form from your local county court.
When you fill in the N244 form remember to:
- Write the claim number of the case
- Write the warrant number
- Include the reason you have not been able to pay and your new offer (in part A on the front of the form)
- Tick the box in part B saying you rely on evidence in part C
- Attach your personal budget or write it out on the form in in part C on the back of the form
- Sign the statement of truth at the end of the form
Do this as soon as possible to allow the court time to arrange a hearing.
The court will set a date for a hearing, usually before the eviction date. It is imperative you go to this hearing or the court is unlikely to suspend the warrant.
If any further warrants are issued at this hearing you may still be able to ask the court to suspend them (for example, to give you time to find somewhere else to live). If all your efforts to stay in the property fail, you will be given an eviction date.
When the bailiffs come
Bailiffs have the power to force their way into your home if they have to so you need to move out before this date if you have not been able to stop the eviction. If they arrive when you are there you will have very little time to pack up your belongings and will only be able to return to pack up a couple of weeks later. You will then have to get the lenders permission to enter the property again in the future and arrange to remove your furniture. Some lenders try to arguethat they can keep any belongings left in the house. It is safer so remove all that you can before the eviction date.
After your eviction your lender will still add interest to your mortgage until the property is sold. They are obliged by FSA rules to sell your home fast for the best price but in reality their need to get a quick sale to recover their money means that it is likely to sell a lot lower than the price you could receive on the open market. They may sell it anything from 15% - 40% below the market value of the property.
The proceeds from the sale are used to pay off the court costs, the estate agents and solicitors bills, the mortgage and any second or third mortgages. The lender must tell you in writing how the money has been spent.
When will the nightmare end?
They must send you any money which is left over but if not enough was raised on the sale of the property to pay off all secured debts and costs you will still owe money to the lender. Due to repossessed properties being sold below their market value this is all to common unfortunately.
You do not want to get to this situation so take action as soon as possible by trying to pay off the arrears, selling your property before you get evicted (so you get a better price) or selling and renting back your property so you can stay there.
Tags: foreclosure
What is the Timeline for Foreclosure
September 29, 2008
If you are interested in learning what it will take to stop foreclosure proceedings you will have to seek the knowledge that will be required in order to do so. Actually, the timeline for foreclosure is different from state to state, but there are similarities. If you are a borrower it would be smart to fully understand and know the entire foreclosure process, not just the timeline for foreclosure. Many borrowers lack knowledge or are very uninformed, or even misinformed. This sad lack of knowledge can wind up being devastating.
As you have probably discovered, any undertaking without the required knowledge will usually end up being a bad deal. Many borrowers do not comprehend or want to admit that there are predators out there disguised as mortgage brokers, real estate investors and attorneys that will steal you blind. Your misfortune, likely caused by lack of knowledge can bring them large monetary growth.
The timeline for foreclosure will generally follow this agenda. The foreclosure timeline begins when you are just one day late in paying your mortgage payment. Yes, one day late. Usually, at this point no additional fees have been added yet. If you do not remit your entire payment within 16-30 days a penalty or a late charge will be added on to the total amount due. Around this time you will certainly hear from the mortgage lender. They will ask you why you haven’t sent your loan payment. If your loanpayment goes more that 30 days behind, you will be defined as in default of your mortgage loan agreement.
Being in default in the simplest terms, at this point, means you are late on your house payments. If you have not sent a mortgage payment after thirty days, the lender may decide to exercise their rights and take possession of your property. Whatever you do, do not freak out. Remain calm and remain in contact with your mortgage lender during this foreclosure process. These days the bulk of lenders really do not want to take possession of the property. They will usually be willing to assist you if they can. Do not be afraid to inquire about� what plans they have available to you.
Between the 60th and 90th days or non-payment, an official notice of default will be sent to the homeowner. At this point during the timeline for foreclosure, collection costs will be added on and the mortgage company’s legal department will put together and send the required documents to a local lawyer. This will begin the actual foreclosure proceedings.
The last leg of the foreclosure timeline occurs somewhere between day 150 and day 415. The homeowners property will be scheduled for quick sale at a foreclosure sale or a foreclosure auction after the Notice of Trustee Sale is filed. There are certain guidelines and points that must be followed and adhered to during a foreclosure process. Remember that a foreclosure is a legal event. The up-coming foreclosure will likely advertised in the local paper, once the case is referred to local lawyers.
The homeowner still has the right to halt the process leading up to the foreclosure. Most states have laws pertaining to. During the pre-foreclosure period, the borrower may be able to purchase the property back from the lender if they have secured the financial means. Sadly a great many of homeowners will be put out of their property by the local law enforcement agencey. This situation could be avoided if the borrower pocesses the knowledge about what is available to them when they are facing foreclosure.
Tags: foreclosure
