Avoid Foreclosure Archives

Some Advice On How To Avoid Foreclosure

Monday, January 18th, 2010 at 6:47 am 
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Paying bills, especially in today’s economy, is becoming quite the chore for many families. Regrettably, this includes families not being able to pay their mortgage payments. Well, we all know what happens when too many mortgage payments are missed, foreclosure. There is; however, hope. You can avoid foreclosure if you simply take action rather than waiting for the worst to happen.

First off, contact your mortgage company. Most, if not all, mortgage companies have a Mitigation or Loss Mitigation department. This is the department you need to contact. Let them know everything that is going on. You, likely, will need to show proof of financial stability or instability.

Mortgage companies are prepared to deal with many different financial hardship situations. Depending on your specific situation there are several different options that the mortgage company can take with you. One of the most common is known as forbearance. This action allows you to repay missed payments.

There are several other options that a mortgage company may offer you. They include anything from creating a separate loan for missed payments, to adding the missed amount to the loan you already have, or even waiving a payment. Again, the action the company takes is up to your particular situation and how quickly you call them to fix the issue.

When people get into a tight spot, they often think the best thing to do is leave and start over. This; however, is the worst thing you can do. There are HUD counseling agencies that are available to aid you in these situations. The likelihood of receiving their help, if you are already gone, is zilch. You will get more assistance if you stay put in your home.

In many cases people have already receive a Notice of Default. This is bad, very bad. What this means is there really is not too much help for you. One of the best options, at this point, is to sell your home. After all, you do not have many options. Either you lose the house and ruin your credit, or sell it and have a chance to start over again.

There are a couple other options, at this point, but they will you’re your credit almost as bad as the foreclosure would. Just keep in mind that you have options. Acting before things get out of hand is your best option and will be the one that works for you. Do not let things get to the point that there is no return. If you want to avoid foreclosure, work with your mortgage company immediately.

Learn how to avoid foreclosure by using short sales. Head online today and you can learn how a short sale will help you out.

categories: avoiding foreclosure,short sales,foreclosure,Real Estate,mortgages,Homes

What You Must Know About Shortsales

Wednesday, November 4th, 2009 at 5:23 pm 
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Lenders have been doing them for years. However, due to the increase in mortgage delinquency due to our current economic situation, the lenders are now overwhelmed with request for short sales. Lenders have been very slow in their response to short sale request. Chase has indicated that they are still working on request made in June, 2009 and we are now closing in on November, 2009.

Shortsale: What is it?

If you own real property and you owe more on your mortgage then the home would appraise for and you have a hardship, then you may be eligible for a shortsale. In a shortsale, Lenders agree to accept less then what is owed.

In order for your lender to consider this option the following must apply: Your property must be listed with a realtor and must have a contract based on the comparables in the area the property is located. Owner must have a financial hardship. financial hardship could occur from divorce, loss of job, pay cut, illness, accident. etc. Owner’s expenses exceed their income, this is considered a hardship. Expenses must be legitimate expenses. One cannot have a $300 dollar a month clothes shopping addiction. Real expenses including; electric, water, rent, insurance, car payments, gas, groceries, health insurance, etc.

Once a financial hardship has been established on behalf of the owner, we collect all of the required documents that must be submitted to your lender: 1. Bank Statements – Last two months 2. Pay Stubs – Last two pay periods 3. Tax returns for 2008 and 2007 4. W’2s for 2008 and 2007 5. Financial Worksheet

A realtor will provide the following in order to submit to the lender: 1. Listing Agreement 2. Comparables ( active/pending/sold) 3. Listing History 4. Contract offer ( The accepted sales price, should be on or around the current market value) If the contract offer is not acceptable, then the agents should leave the short sale addendum un marked on #5, to allow additional offers to be submitted. But if the original offer submitted is sufficient, this clause should be eliminated.

The following will be provided by the Title company: 1. Title search 2. Preliminary Hud 3. Complete Lien search, including: Code Enforcement, Open Permit and Water balance search.

It is highly recommended that a title search and lien search be completed on the property being sold in order to make sure that there are no judgments, liens other than the existing first or second mortgage. If a title search is not completed and a Preliminary HUD -1 Closing Statement is submitted to the lender, which does not reflect other items such as: Code Enforcement liens, Outstanding Water Balances, Open Permits, HOA Liens, Certified Judgments, delinquent real estate taxes, you can get your approval. However, once you have completed your title search and lien search and they show any of the items above, at that point you have to re-negotiate with the lender. In some cases you will not be able to re-negotiate with the lender, so now you have wasted time and energy and you no longer have a deal.

Important Items to consider regarding a short sale: Be careful of large homeowners associations back assessments. Most lenders are not paying the entire amount owed. They are comparing a short sale to a foreclosure in these cases. If a lender proceeds to the foreclosure sale, the lender is, under law, only required to pay a certain portion of the back assessments. This is the rule of thumb to go by, if the property is a condominium, the lender will pay up to 6 months in back assessments, if the property is a single family home, then the lender will pay up to 1 % of the original balance of their mortgage or 12 months of back assessments. Attorney fees are not considered, nor paid for by the lender. In most cases, the HOA will reduce the amount owed to them. However, some HOA’s are taking a stance that they will not accept what the lender is offering and they will kill the deal. Most lenders will only accept individual buyers. Most lenders do not allow; Corporations, LLC, LLP, Land Trust, Trust etc. The property must be purchased by an individual person(s). Not all companies who say they can negotiate a short sale are qualified to do so. Negotiating a short sale or even a loan modification requires a background and experience in mortgage, title and real estate. Most short sale negotiators who have a background in title insurance, mortgage, or even real estate have a better idea of the entire process and what is involved in all areas of the short sale transaction.

GETTING THE SHORT SALE APPROVAL LETTER FROM THE LENDER IS THE EASY PART. PUTTING ALL THE PIECES OF THE PUZZLE TOGETHER: PRICELESS!

For more Shortsale Assistance visit our Shortsale Assistance Center

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Consider The Idea Of A Short Refi To Save Your Home

Tuesday, October 27th, 2009 at 11:27 am 
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As the economy continues to paste in this slow down, folk are still endeavoring to make it day by day, which is leading to a rise in the requirement for a short refi or short sell. This economy makes it particularly challenging for owners to keep current on their mortgage and prevent foreclosure. In a few cases, regardless of the best efforts, a house owner could find themselves facing the chance of foreclosure. There are things a home-owner can do to help stop this from happening and protect their investment. 2 options are a short refi or a short sell.

Lower your debts: A short refinance is a refinance of your present mortgage. You take out a new loan to pay off your present loan. This new loan has new terms, doubtless a lower IR or the power to extend your loan length. This lets you keep your house and finish up owing less on the home as you are refinancing at your houses currents price, you are getting a new IR and you are doubtless also extending the length. Fundamentally, a short refi is a short sell of your house back to you. Rather than you selling the home to somebody else, your bank simply restructured a loan and repays the higher existing loan so you can now stay in your house. Now, though, you have lower payments that make it cheap, permitting you to avoid foreclosure.

Cautions of a Refinance: naturally, you can’t forget that refinancing of any sort incorporates risks and drawbacks. A short refinance or perhaps a short sell is a settlement by your bank on the current loan. Your bank takes the profit cut because they’re paying down what you owe now, which is more than the amount you’ll refinance at. This leaves a piece of money which will never be repaid. The bank deals with this by charging it off as an unpaid debt.

When the lender does this charge off, they will probably report this to the credit bureaus. Your credit will be negatively impacted. This charge off will appear as an unpaid debt. It is well worth weighing your options to ensure that a short refi is the best choice, considering the damage to your credit. You may decide that actually doing a short sell to another buyer is the better choice.

In the end, a short refinance is your call. You have got to make a choice and think about what will occur in each eventuality. You must think about how much it suggests to you to remain in your house. You also have to consider the future and if a short refi will truly help you to get back on your feet or not. Think through your short refinance or short sell options so you can make a call which will actually be of use for you in the long run.

Facing foreclosure is scary and almost any option, whether it be refinancing or selling, is a better choice than letting your home go into foreclosure. Whether you keep your home through a short refi or you end up with a short sell and move out, you should try to stay on top of things. Keep in contact with your lender and try to get help in deciding what your best option really is.

To Learning how to go about short refi could literally save yourself thousands of dollars and you can pay your high interest loans visit homesshortsale.org

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