Foreclosure In Your Future?

If keeping your home is not an option — call your lender today. The sooner you call, the sooner help is available.

Do not ignore mail or calls from your lender. If you do not contact your lender, your lender will try to contact you by mail and phone soon after you stop making payments. It is very important that you respond to the mail and the phone calls offering help. If your lender does not hear from you they will be required to start legal action leading to foreclosure. This will substantially increase the cost of bringing your loan current.

– Sale: If you can no longer afford your home, your lender will usually agree to give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to obtain the services of a real estate professional who can aggressively market the property.

– Pre-Foreclosure Sale or Short Payoff: If the property’s sales value is not enough to pay the loan in full, your lender may be able to accept less than the full amount owed. This option can also include a period of time to allow your real estate agent to market the property and find a qualified buyer. Monetary help may also be available to pay other lien holders and/or help toward paying a few moving costs.

– Assumption: A qualified buyer may be allowed to assume your mortgage, even if your original loan documents state that it is non-assumable.

– Deed-in-lieu: Your lender may agree to allow you to voluntarily “give back” your property and forgive the debt. Although this option sounds like the easiest way out for you, generally, you must attempt to sell the home for its fair market value for at least 90 days before the lender will consider this option. Also, this option may not be available if you have other liens such as judgments of other creditors, second mortgages, and IRS or State Tax liens. (Source)

---

NY Investment Property News & Resources: CNY Property Listing, Homes Going Green, FSBO Property Listing, Investor Real Estate PDF Magazine, CNY Property

 

Stop Foreclosure! Know What To Do

Stop Foreclosure! Is it possible? Yes, you can stop foreclosure if you take the appropriate actions immediately. Consider the following steps you can do to stop lenders from foreclosing your home:

Call your lender right away and request to speak with someone from the Loss Mitigation Department. This is the department that particularly handles foreclosure properties. Explain why you have missed on your monthly payments especially if you’ve been through difficult circumstances.

Know your options. Usually, you may request for some options to stop foreclosure. One option would be to ask for Forbearance. This is where your lender can waive some fees on your debts to help you keep up with the payment.

Another option would be Loan Modification. A Loan Modification is much like Loan Refinancing but instead of going through the re-application process, your lender can grant you a new loan without re-applying. This can save you money from application costs and it greatly speeds up the loan processing.

If you want, you can also request for a Reinstatement. With a reinstatement, your lender will give you an extended period to submit all the payments you’ve defaulted. However, a reinstatement requires you to pay your debts in full.

These are just some of the adjustments on your mortgage loan that you can ask from your lender. Of course, it would depend on your lending company which one among these options they would prefer. Just remember that these are just temporary options to buy you more time for repayment before the actual foreclosure. See to it that you’ll be able to come up with the solution to secure the payments you need.

Sell your home. If you see that there’s no way you can secure the amount you need to repay your mortgage in time, you still have the choice to sell your home before your lender forecloses it. But you need to be aware about the risks of dealing with foreclosure scammers or home buyers who are simply out to take advantage of you.

As much as possible, make sure that the purchase price you’ll put into your property will be fair enough for its market value and that you would have enough money to pay off the debts you’ve defaulted including other fees involved. If you’re going to sell your home, it would be better if you can buy as much time as possible before your lender files foreclosure. This way, you’ll also have more time to come up with a better deal from a buyer.

Study contracts carefully. Before you sign up any agreement, especially if you’re selling your home, never forget to scrutinize every detail included in the contract. Don’t sign a document which has blank spaces or blank lines.

Do not go into an agreement if the buyer promises to pay back your default and all you have to do is sign over the title of you property. This puts you at great risk that the buyer will not be submitting any payment to your lender. He can use your property for lease and keep the money for himself until your lender forecloses your home completely. Always remember, that you cannot pass your accountability for your debts just by signing over your property.

By Liz Roberts. Roberts is a loan consultant with Loan Hunt Finance and has been providing consumers and business owners with home loans financing since 1989. For years she has helped people with home loan problems especially pertaining to home mortgage loans and bad credit home loans. Copyright. (Source)

---

More Real Estate Resources: CNY Property Listing, Homes Going Green, FSBO Property Listing, Investor Realty PDF Magazine, CNY Property

 

Foreclosure 101

Foreclosure occurs when a borrower fails to make payments on his or her mortgage. The lender then obtains a court order to repossess the property and sell it to recoup the mortgage.

Types of Foreclosure
There are several types of foreclosure. Judicial foreclosure and foreclosure by power of sale are the two most common. In judicial foreclosure, the residents must move out of the home in a specified period of time. The sale of the mortgaged property is then conducted under the supervision of a court. When the home is sold, the proceeds are first used to pay back the first mortgage. Any remaining proceeds will go to other lien holders and then finally the borrower, if anything is left.

With foreclosure by power of sale, the lender can sell the home without the supervision of the court. A “power of sale” clause, however, is usually required in the mortgage contract in order for this type of foreclosure to occur. In addition, this type of foreclosure does not provide the lender with a deficiency judgment. This makes it difficult to obtain title insurance for the property. Like a judicial foreclosure, once the home is sold, proceeds must first go to pay off the mortgage and any other lien holders.

There are also other types of foreclosure. Since foreclosure laws can vary in each state, if you are facing foreclosure, it is best to obtain legal advice in your area.

How to Avoid Foreclosure

If you can no longer meet your mortgage payments, do not be embarrassed. The first step is to contact your lender. Your lender may be open to some of the following options:

Forbearance: Lenders may be willing to postpone taking legal action against you and let you work out a repayment plan that is feasible for you.

Repayment Plan: Lenders may let you spread out the missed payments over a longer period of time. You would pay a little extra in your future payments to make up for those that were missed.

Note Modification: Lenders may change the parameters of your loan. For example, they may freeze your rate on an adjustable loan. They could also extend the term of your loan.

Refinance: The lender may add the missed payments back on to the balance of the loan. This is only available if you have sufficient equity and meeting lending requirements.

Debt Forgiveness: The lender might waive your obligation on some of your missed payments. This, however, rarely happens.

How to Stop Foreclosure

Sell Your Home: Sell your home and use the proceeds to pay off the mortgage.

Short Sale: If your home is worth less than your mortgage, talk to you lender about a short sale. In a short sale, the lender agrees to selling the home at market value and forgiving the remainder of the loan. A short sale affects your credit but not as bad as a foreclosure.

Deed-in-Lieu of Foreclosure: In this scenario, the lender signs over the property’s deed to the lender in exchange for closing the loan. Deed-in-lieu of foreclosure, however, affects your credit the same as foreclosure.

For more information about foreclosures, visit LendingForeclosure.com (Source)

---

Real Estate Investing Resources: CNY Property Listing, Homes Going Green , FSBO Property Listing, Investor Realty PDF Magazine, CNY Property

 

Foreclosure Investment – Is it For You?

Buying a home facing foreclosure can seem attractive to real estate investors, for obvious reasons. The thought of walking away with an amazing deal hits the money buttons, and screams profit more than any other opportunity.

Before you begin pursuing foreclosure real estate, a simple question needs to be answered. Do you really know what is involved? You may know the financial results and the manner in which a below market value purchase can affect your balance sheet, but do you know the effect it has on a family?

Foreclosure Investing

Home owners facing foreclosure are usually in distress due to job loss, difficulties with family, or relocation issues. Or they could just be having trouble managing their income and making mortgage payments.

Most people losing a home through foreclosure have just been spending more money than they earn. By the time they are losing their home they have exhausted every source of cash in an effort to stay current with their mortgage payments.

Many real estate foreclosure investors herald the benefits they can offer owners by buying their property. An experienced investor can get home owners out of a tight spot and keep a foreclosure off of the family’s credit history.

As you move into foreclosure investing just be sure to square your business mind with your conscience before you proceed. Assuming you don’t have a problem, and that this kind of investing is part of your overall plan, the following tips and ideas should ensure that you have every chance to make this particular buying strategy one of your specialities.

Foreclosure Properties

Once you have made up your mind to invest in foreclosure property, a few things need to be considered. There are three periods in a foreclosure action and you must choose which ones to focus upon:

1. Preforeclosure
2. Foreclosure auction
3. Bank owned homes

Each of these buying opportunities has pluses and minuses for investors. To be successful you must understand how to cope with the problems and opportunities presented by each of them.

It is also very important that you are familiar with the laws governing foreclosures in your state. For example: In some states, foreclosures due to mortgage arrears could leave the previous owners in the home for up to a year following the foreclosure. Not allowing for that could seriously affect your investment plan.

Some home owners are working feverishly to bring their mortgage payments current and hold off a foreclosure. This scenario applies particularly to those investors who are prospecting for preforeclosures. If an owner is moving heaven and earth to find the cash to make mortgage payments, you could find yourself sniffing around a property that will stay with the owner, and ultimately be just a waste of your time and effort.

Take time to know the property. Will it need major or minor repairs after you take title? Are you going to have to evict occupants? Will the embittered occupants damage or strip the property on the same day title is transferred into your name? Does you state’s foreclosure law allow the former owner a redemption period? If so, can you take the chance of spending money to rehab the property; while there’s a chance the former owner can find the funds to cure the default?

Have contingency plans for all eventualities, and stick to them. All of them cost money and reduce your profit.

Buying foreclosure property can be lucrative. Just make sure that you are being purely business minded, and that you prepare for all eventualities. Consider state regulations on foreclosures, carefully determine the real value of a property, and you should be able to turn a profit.

Author Mark Walters is a third generation real estate investor and founder of CreatingWealthClub.com. For a limited time Mark is offering his big guide to finding hard money loans for real estate investing free. Free guide to private money loans – http://www.Isnare.com

---

Real Estate Investing Resources: CNY Property Listing, Homes Going Green , FSBO Property Listing, Investor Real Estate PDF Magazine, CNY Property

 

Can You Stop Foreclosure?

You have several options when it comes to saving your home from foreclosure. Refinancing, bankruptcy, selling your home, working with your lender’s Loss Mitigation Department; all of these can stop your foreclosure. When trying to keep your home, loss mitigation is the best option to keep your home and minimize damage to your credit.

Loss Mitigation

If your loan balance is relatively high versus the value of your home, your refinance options are very limited. It would be very difficult to try and refinance your home loan because of credit score and “loan to value” issues. However, you may have a case for Loss Mitigation.

What that means is that you have the right to contact your lender, and see if there is a way for you to get caught up with your home loan. If you present your case effectively, you would probably be able to qualify for a home loan workout plan. There is another thing to consider when thinking about Loss Mitigation to keep your home. You have to be able to make the new payments.

If you agree to a lender’s “workout” or “loan modification” solution and then fail to make the agreed-upon payments, you’ll be right back into foreclosure.
This can be a big problem if the financial crisis that caused you to fall behind in the first place isn’t over. If you don’t know where you’re going to get the money to make the payments, trying to work out a solution with your lender will be tough.

Be realistic. Many times people struggle to hang on to a house that they simply can’t afford. That may seem harsh, but sometimes it is the truth. This is especially if you have an Adjustable Rate Mortgage where your monthly payment continues to increase.

If that is the case, you may not be able to work out a plan with your lender’s loss mitigation department. You may want to think about a Short Sale or some other option of selling your home so that you can at least minimize the damage to your credit, put this behind you, and get on with your life.

Many homeowners facing foreclosure simply don’t know what to do. You can learn exactly what you need to do, and even get started for free. Take a minute and give them a look… ForeclosureConsultations.com – – (Source Link)

Real Estate Buyer & Investor Resources: CNY Property Listing, FSBO Property Listing, Investor Property PDF Magazine