Foreclosure News and Information
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A OneCaboodle experienced lawyer answers a few important questions about Foreclosure. Visit OneCaboodle.com today.
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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.
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Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage. If you attack it from a legal standpoint, you must be able to find a flaw in the foreclosure lawsuit to dismiss it. I don’t see any other way of stopping foreclosure.
If you are facing foreclosure at this moment, you are inundated by letters from foreclosure assistance companies that charge outrageous amounts of money to negotiate with your lender; the majority of these companies are a scam.
You also get creative letters from so-called “investors” offering free advice and with the intention to make you sell your home to them at a deep discount using deceptive kitchen table closings in which they make you sign mysterious paperwork (land trusts, etc) that basically transfer the title/deed of your home to them sometime taking over your mortgage payments and leaving the loan liability on your name. Some of this “investors” also offer very deceptive “lease-back” arrangements in which they let you stay in your home as a tenant, and they pray that you stop paying rent so that they can evict you so that they can take possession of your house. You also get letters from Realtors® who are trying to make you list your home for sale and paint a rosy picture of the real estate market and the value of your home (Read National Consumer Law Center’s report “Dreams Foreclosed;” one of the best studies recently written about the rampant theft of American’s homes through equity-stripping foreclosure rescue scams).
Last but not least dangerous, you get letters from nice attorneys offering free consultations to make you file Chapter 13 bankruptcy; what these attorneys don’t tell you is that based on research (see studies: The Realities of U.S. Personal Bankruptcy under Chapter 13, and Chapter 13 Bankruptcy: Successful Versus Unsuccessful Debtors) the overwhelming majority of Chapter 13 filers do not complete their payment plans and are not discharged.
You will also find on the internet a proliferation of eBooks that promise to stop foreclosure magically with names such as “Foreclosure Free Zone,” “The Fight Of Your Life: How To Beat The Foreclosure Demons Smart Solutions For Saving Your Home,” “Avoid Foreclosure And Fix Credit Problems,” ”Foreclosure Help – Don’t Let The Bank Take Your Home!“ In my research, I’ve even bought some of these type of eBooks just to see what’s so magical about them, and found that they don’t have any information that isn’t common sense and readily available for free online. All the advice in these books fall into these categories: 1) Talk to your lender, 2) Sell your home, 3) File for Chapter 13 bankruptcy protection, and 4) Refinance/Get a loan. None of these books, nor the Chapter 13 attorney, nor the Realtors®, nor the “investors” in their white horses tell you about your legal rights and how you can defend yourself from the abuse of the debt collector attorneys.
Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage regardless of negotiating a payment plan with your lender yourself or through a foreclosure assistance/consulting company. Bear in mind that when negotiating a payment plan with your lender (sometimes called Forbearance Agreement) , you may be required to come up with a lump sum (usually half of your past-due payments) and proof of income. It’s very simple; if you have sufficient cash and/or income to pay your monthly mortgage obligation, it’s very likely you can negotiate something with your lender to stop foreclosure. If you don’t have the cash and/or the income, you will have to attack the issue from a legal standpoint.
If you attack the issue from a legal standpoint, you must learn about your legal rights and, preferably with the help of a consumer protection attorney (www.naca.net), find a technical or legal flaw in the lawsuit to have it dismissed. These flaws could be hidden in the lender’s debt collection attorney not following your state’s rules of civil procedures (for instance: You were served improperly) or by digging into the foreclosure complaint and court docket to see if there is an actual plaintiff’s proof of ownership of the promissory note, or if the original promissory note has been filed in the court records, or any of the other twenty-something reasons that that could render a judgment void or invalid.
There is no magic in foreclosure. If a homeowner doesn’t pay his or her mortgage, the lender will foreclose on their homes. There is no magical negotiation with a lender that can be done without cash at hand and/or ability to pay supported by proof of income. There is a lot of literature on the internet and in bookstores about the debt collection industry, on how to stop foreclosure negotiating with the mortgage lenders, about how debt collections works, about what to expect from debt collectors, etc, etc. However there is little information about how to navigate the legal system, on how to file pleadings and motions and on how to execute the steps necessary to win the debt collection/foreclosure battle in court. Almost nobody explains to homeowners in simple terms how the legal system works and how they can use it to your advantage to win debt collection lawsuits.
Julio Martinez-Clark has a Bachelor’s degree in Electrical Engineering (B.S.E.E), a Master of Business Administration (M.B.A.) and extensive domestic and international business experience in the telecommunications and real estate industries. Mr. Martinez-Clark has been a victim of the deceptive practices of the debt collection industry and has done extensive research on debt collection law. Mr. Martinez-Clark also publishes an informative newsletter called “The Truth Report” available at his website www.juliomartinezclark.com in which he exposes the truth about several life topics (money, law, health, etc), news and general information that you likely won’t see in the mass media. If it’s in the media, it’s probably not important for you to know it. He is also the author of a book titled “How To Legally Beat Debt Collectors.”
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There are many ways to avoid and stop foreclosure.
The first step in avoiding foreclosure is to keep your mortgage company aware of your situation, continue to try and make some sort of payment, even if it is a partial payment.
If you get so far behind in payments that the lender files a Notice of Default, then your options get very limited and some mortgage companies are very reluctant to work out a repayment schedule after foreclosure has started.
At this point you will be given a certain amount of time to pay the delinquent payments current, any past interest that has accrued, costs of foreclosure filling fees along with all legal attorney fees.
Sometimes all these fees mount up so quickly that it is almost virtually impossible for home owners to face. It is often easier to walk away from their home instead of dealing with the situation. The sad part is, often they don’t realize there are other options available to prevent foreclosure.
Foreclosure laws differ from state to state, but for the majority it all works the same either on judicial foreclosures or non-judicial foreclosures. However, on February 13th 2008 the Foreclosure Act of 2008 was introduced to congress. The bill could help over 600,000 people stop the foreclosure process by allowing them to file for bankruptcy, and then the bankruptcy judge has the option to modify the home owner’s loan. There are many stipulations to this law and who qualifies. Not always is the home owner going to be able to save their house from foreclosure this way.
Foreclosure assistance is out there while many people are under the impression they must just let go of their home, and all of the equity they have built over a period of years, due to their financial situation. There are many companies out there that have the knowledge and understanding to help prevent foreclosure. Foreclosure prevention companies and loss mitigation companies have this knowledge specific for your state.
Not only will they work in your behalf to stop the foreclosure process, they will communicate directly with your Mortgage Company or lender. Often times these companies are able to negotiate lower monthly payments with smaller interest rates.
Many times these companies can help families to recover their life, and return to normalcy while staying in their home, when other wise they would have lost everything. There are many options that these companies can explain to you in your initial consultation. If you are one of the many home owners that are facing a foreclosure situation call a foreclosure prevention company to help you understand the foreclosure proceedings.
Has over 10 years experience in the Foreclosure assistance industry with a specialization in Residential Foreclosures. For free consultation on any foreclosure issues contact http://www.mortgagebuyerbasics.com/
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It’s sad, but it’s true. Whether you are a homeowner who experienced a sudden loss of job or income, a first home buyer stuck with a mortgage you can no longer afford, a person who suffered a critical injury or illness and now has overwhelming medical bills, or even an investor who was unable to sell before the bubble burst, the skyrocketing numbers of foreclosures will devastate millions of people personally and financially, not to mention ruin their credit for many years.
There has never been a better time to be delinquent on your mortgage. The foreclosure epidemic has created tremendous leverage for homeowners, because banks do not want more homes. Liquidity has become a serious issue with banking institutions; therefore they are negotiating and offering home loan modifications with lower payments for homeowners.
This may sound obvious, but don’t skip your house payment. It takes only one missed payment to set the foreclosure procedure in process. Missing a mortgage payment is very serious compared with missing a credit card payment or any other unsecured loan payment. So if you need to prioritize which payments to make, mortgage ALWAYS comes first!
Foreclosure prevention specialists are available to assist you with foreclosure prevention options that may be available to you. You can also speak to a legal foreclosure attorney about loan modification, short sales, deed-in-lei and bankruptcy options.
Most foreclosure victims only “allow” the foreclosure to happen because they feel they have no other options. It’s not a decision like deciding to go to the mall for the day, or take a trip to Six Flags with the kids, and this decision is often based on false of incomplete foreclosure information. Homeowners have more options than they realize to prevent foreclosure, which is why it is important to get the most relevant foreclosure advice possible, and examine which options, besides refinancing, putting together a bank workout plan, or selling the property, would result in them being able to keep their homes and begin repairing their damaged credit.
Other things that can help you on your monthly payment:
You can have a home equity line of credit already in place. If you ever get into a financial bind, you may need to access funds quickly. Having a line of credit in place can give you that much needed resource. There are credit lines available that you do not need to make payments on unless you carry a balance so it’s a great resource if you don’t have an emergency fund built up.
It would probably be best if the foreclosure victims found a Realtor or investor who guided them in what to do about the summons on their own, and was just there to facilitate the short sale or other deal to stop foreclosure. Realtors already represent the homeowners if they are listing the house for sale or attempting to locate buyers — owners do not need to give them even more power to represent them in court, as well.
Short Sale for the home owner and the lender is one way to settle most of you debt with the bank. It consist of you putting the house up for sale at the current market value. In today market for many home owners that means selling your home for less than whats owed to the bank.
You will benefit from this foreclosure guide if you are…
- Facing foreclosure or you are currently in foreclosure,
- Concerned about the lender suing you for your mortgage balance,
- Attempting to workout your mortgage problem yourself,
- About to have your Adjustable Rate Mortgage reset to a higher rate,
- Burdened with an IRS tax lien on your real estate,
- Trying to sell your home but you don’t have any equity,
- A Realtor has listed your property but they are not getting results.
Until now, most homeowners have been lost regarding their number one investment. Well, I’m here to lead you down a path of truth on the subject and eliminate the mystery that appears to force so many borrowers down the incorrect path.
You have the choice of either hiring a loss mitigation company to represent you in negotiations with your lender, which can cost $1200-2500 or more, attempt to resolve your mortgage problems on your own and risk the lender moving forward with the foreclosure anyway, or do nothing and hope the Sheriff doesn’t knock on your door and tell you to vacate your property in the next 24 hours!!!
Or, you can take matters into your own hands and follow the easy program I have developed in Foreclosure Defense Secrets that will help you to keep your home!!!
Most foreclosure victims only “allow” the foreclosure to happen because they feel they have no other options. Homeowners have more options than they realize to prevent foreclosure, which is why it is important to get the most relevant foreclosure advice possible, and examine which options, besides refinancing, putting together a bank workout plan, or selling the property, would result in them being able to keep their homes and begin repairing their damaged credit. Find out more about Foreclosure Defense Secrets
Paul Rodgers specializes in marketing online
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To understand the foreclosure process one must know what it is first. So what is the definition of foreclosure? Simply put, the foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”.
Within the United States and many other countries, several types of foreclosure exist. Two of them – namely, by judicial sale and by power of sale – are widely used, but other modes of foreclosure are also possible in a few states.
The process of foreclosure can be rapid or lengthy and varies from state to state. Other options such as refinancing, alternate financing, temporary arrangements with the lender, or even bankruptcy may present homeowners with ways to avoid foreclosure.
The number of households in foreclosure increased 79 percent in 2007, and that number is increasing for 2008! So how does the foreclosure process end? Well it can end in one of four ways:
1.The borrower/owner reinstates the loan by paying off the default amount during the grace period.
2.The borrower/owner sells the property to a third party during the pre-foreclosure period The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
3. A third party buys the property at a public auction at the end of the pre-foreclosure period.
4. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure, via a short sale foreclosure or by buying back the property at the public auction.
Remember that understanding foreclosures is the first step for homeowners to stop foreclosure. As long as real estate prices, which are pretty much dictated by real estate buyers, continue to decline, there will be increased numbers of defaults and foreclosures.
Few choose to go into foreclosure voluntarily. It’s often an unpredictable result from one of the following: Laid-off, fired or quit job. Inability to continue working due to medical conditions. Excessive debt and mounting bill obligations. Squabbles with co-owner, divorce or job transfer to another state.
So how do you avoid foreclosure?
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. That is why it is better for you to call your lender before falling behind on your payments, because lenders are often reluctant to work out repayment schedules after foreclosure proceedings have been commenced. You will be given a certain time period to bring the payments current, pay the costs of filing the foreclosure and stop the foreclosure.
No one expects to lose their house to foreclosure, but by understanding the foreclosure process and what may lead up to it, you can be in a better position to recognize and address potential problems that may impact your ability to make every mortgage payment on time.
Learn to recognize the warning signs of foreclosure. Know what early steps you can take to avoid foreclosure. If you are in the midst of a foreclosure, know the dos and don’ts. Know where to get help in dealing with issues that could lead to foreclosure. The time to develop a backup plan is not when things have gotten so bad that you are facing foreclosure, but when things are going well and you can prepare for the unexpected “what if’s” that happen in life.
Nearly four out of ten sub prime ARM loans are a month or more late, or in foreclosure. And sub prime ARMs account for 39% of the loans that fell into foreclosure during the quarter. Prime fixed-rate loans, which are considered very low risk, have also seen sharp increases in their delinquency and foreclosure rates, although they are performing far better than the riskier loans on the market.
There are 431,000 prime loans in foreclosure. This marks the sixth straight quarter in which a record percentage of loans went into foreclosure. Nearly half of the homes in foreclosure are concentrated in six states. Those four states have nearly 400,000 homes in foreclosure, or a third of the nationwide total. Ohio has about 61,000 homes in foreclosure, while Michigan has about 54,000. The rate of homes going into foreclosure in Ohio and Michigan was narrowly lower than it was in the fourth quarter, and 18 other states also saw a decline in that rate.
Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible.
If you are facing foreclosure than you need to click here to learn how to stop or prevent it now.
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