Many homeowners today find themselves in a position they never imagined they would be: on the brink of foreclosure. NeighborWorks America Senior Homeownership Specialist Milt Sharp Jr. offers ways to be proactive in preventing foreclosure.
Discusses the implications of a landmark decision — Landmark National Bank v. Kesler – on 8/28/09 by the Supreme Court of Kansas holding that Mortgage Electronic Registration Systems, Inc. (otherwise known as “MERS”) has no standing to commence a foreclosure action as to a home mortgage registered with it, and that when MERS transfers title to the mortgage the assignee may not get good title to the mortgage, which means that the assignee also may not have standing to foreclose. This is …
Introduction
Although it may seem a dream that is slipping away, it is possible to keep your house if you are facing foreclosure. With a few tips, tricks, and a plan you may be able to remain in your home without the worry of foreclosure on your mind at all times. Many people think that foreclosure is difficult to fight and even harder to understand. It’s really a very easy process to understand and one that doesn’t have to mean the end of owning your own home. The outcome will depend on your actions and your willingness not to give up.
Work it out with Your Lender
Your lender should be your first line of defense against foreclosure. Yes, the same lender that is filing foreclosure. Lenders don’t want to own real estate nor do they have a fascination with putting people out of their homes. They want your payment and the loan satisfied. Lenders use foreclosure as a way to get your attention when all else fails. The hope a lender has when filing for foreclosure proceedings is that you will call and make arrangements to pay using deferred payments, an adjustment to the loan payments option, or a multitude of other financial choices that will benefit you. However, the lender also knows that if you don’t call, won’t work out any arrangements to satisfy the debt, that the accumulative losses on the loan will be shortened by the use of foreclosure as the lender may resell the house to satisfy moneys owed after finalization of foreclosure.
Refinance
Refinancing may be an option to keeping your home and avoiding foreclosure. The idea of refinancing rests on adjusting the type of loan and the type of payments that you will have to make on your home. By choosing this option, you may be able to reduce and consolidate debt, saving you thousands and avoiding your financial difficulties in the process. However, before you refinance, consult with a real estate broker as there are multiple types of refinance loans available. Choosing the wrong one may compound your trouble. You will need the advice and assistance of a professional before opting for refinancing.
Obtain a Private Loan
Depending on your credit score and your current financial situation, you may be able to qualify for a private loan that can be used to stop foreclosure. This course of action will depend entirely upon a bank’s willingness to take a risk since the foreclosure proceedings may deter approval. Still, it is possible that with past history taken into account, you could secure such a loan. Just be wary of overly high interest rates and make sure that you can repay the loan once foreclosure proceedings have been halted.
Borrow from a Retirement Plan
Borrowing from a retirement plan to regain control of your financial situation could be an option for you to try. However, keep in mind that most moneys in a retirement plan were not taxed prior to being placed in the savings for the plan. This means that when you borrow from this fund, the moneys taken out will be able to be taxed. Some retirement plans also charge a penalty fee for borrowing against the money in the plan. Take these things as well as your plans stated method of repayment, which may be wage garnishment, into consideration prior to utilizing this option. Also keep in mind the number of years that the loan from your retirement will take to pay back since this may overlap with your retirement and create difficulties at that point.
Bankruptcy
Filing Chapter 13 bankruptcy can prevent a foreclosure as long as you follow all terms in the agreement made with creditors and you have passed a means to make sure you qualify for Chapter 13 bankruptcy. The basic concept is a consolidation of debt as well as making arrangements to pay the part of your mortgage in arrears without worry of losing your home in foreclosure in a time span of 3 to 5 years. The good news is that with Chapter 13 bankruptcy, creditors cannot hassle or otherwise begin actions against you during the time that you are under the protection of bankruptcy. Another positive outcome is that your credit only takes the initial hit, unlike a foreclosure. However, before you will be allowed to fall under the protection of bankruptcy, you will have to complete six months of credit counseling.
Seller Leasebacks
Before you choose to use this method, try everything else. A seller leaseback is when a home owner sells his house to a new buyer and then pays rent on the property to remain in the home until the original home owner can repurchase his home from the new homeowner. Usually, this method creates situations in which the homeowner may never regain his home because of the terms in the contract for the seller leaseback. Just by signing a seller leaseback agreement, the homeowner is at risk for audits through the IRS as this is often used to hide assets during actions such as foreclosure and bankruptcy. If the homeowner files bankruptcy while under the constraints of a seller leaseback, the IRS will almost definitely become a little more than curious. Please consult legal counsel as well as The Foreclosure Solutions Manual prior to engaging in this last ditch effort to save your home from foreclosure.
Dean Williams is the author of “The Foreclosure Solutions Manual”. For more information on avoiding foreclosure visit: http://www. foreclosure-help-book. com
Those who are on the verge of losing their home due to foreclosure have a silver lining in the form of a foreclosure loan. It is never too late to get out of the financial crisis of a foreclosure and there are banks and lending institutions that have special foreclosure loan programs to help such needy people. The funds for a foreclosure loan are obtained from additional funds from certain companies that are keen to work with certain people. The companies pay off the old loan and offer a new loan whose monthly payments stretch for a longer duration with the result, the monthly installments are reduced, giving a breathing time for the borrower. There are various plans that are suitable and affordable to different borrowers. Such foreclosure loans are available under certain conditions from the bank or lending institution. Some private lenders also offer foreclosure loans. Banks offer foreclosure loans and are eager to bring the borrower out of the crisis for another reason. If the borrower is not in a position to pay the debt and loses the home due to foreclosure, the banks would have a significant number of such homes that would become more than manageable for them. Hence, the banks would only be keen on clearing off foreclosure homes that come under their jurisdiction. The banks also have references of many private lenders and would be ready to reveal them so that a workable foreclosure loan can be achieved. But before starting to apply for a foreclosure loan, it would be better to ascertain whether it is really important to stay in that home and seek a loan. If the borrower decides to cling on to the home and avoid foreclosure, then it is good to seek professional advice from the professional rendering assistance and think calmly to overcome the financial crisis. The bank can be approached for a foreclosure loan who would offer the loan to offset the current debt- may be even other expenses can be met. But the bank would insert provisions in the loan agreement to ensure prompt payments in installments that is conducive to the borrower. The borrower may not get bargain loans, nevertheless, he can rest assured that he would get enough funds to set off the debts and also meet the immediate expenses. Foreclosure loans can also be utilized when a person wants to buy a home under foreclosure and is in short of funds. Again, a foreclosure loan would help to buy the home and even if he spends certain amount on repair works and construction costs and if he sells at a good value, he can pay off all the loans and still walk away with excess amount in hand.
Check it out http://my-foreclosures. info for an expert’s guidance and tips to deal with all foreclosure related matters.
Foreclosure listings are very useful and in fact, very essential for those in the real estate business particularly interested in buying and selling homes that are under foreclosure. Real estate agents find foreclosure homes very profitable rather than a brand new property where they have to start right form the beginning. Also, the profit margins gained through foreclosed properties are certainly higher than other types of properties. Such dealers buy foreclosed properties at a price well below the market value and resell them at a much higher value. These types of real estate agents mostly rely on the foreclosure listings or foreclosed properties provided by banks and government based agencies. Foreclosure listings basically contain detailed information regarding the location, address, status of the foreclosed property and the foreclosed value. At times, the listings may also contain information on the type of foreclosure being used, liens, if any, on the property and the person to be contacted. These listings are posted for free by the banks and other agencies because they would like to dispose of these assets as soon as possible. There are free government foreclosure listings which range from a simple single house suited for an ordinary individual to big deals suited to big icons. Government foreclosure listings offer details about foreclosure resources, the kind of deals that can be ventured into and bidding them. But, there are web based services which charge quite an amount as membership fees to allow access to their database. People who are in search of finding a foreclosed property and investing in them find such foreclosure listings very useful. Listings also help them to compare various offers available at various places. Foreclosure listings have undergone many modifications and with the help of search engines, it is possible to see properties according to certain type of foreclosure process. All the matters pertaining to foreclosure properties can be obtained through the listings that are available in the internet that provide in –depth, up- to -date data regarding the area, details and pricing. Some of the banks also provide foreclosure listings while some others prefer to maintain its secrecy. Of course, foreclosure listings are available on the local newspapers. Free real estate magazines are another source of information on foreclosure listings. It is widely agreed that investing in foreclosed property is a good decision not only for real estate agents but also for those who just want to invest their money in some property or for those who really want to reside in a purchased home bought at an affordable price that suits their budget. Foreclosure listings would definitely prove to be fruitful for them all and save the hassle of hunting for a foreclosed property and overcome the biggest obstacle by narrowing down the search.
Check it out http://my-foreclosures. info for an expert’s guidance and tips to deal with all foreclosure related matters.
