Stop Mortgage Foreclosure

  

Think about it. When someone is going out of their way to work with me, it makes me a little skeptical. Not that I’m going to turn down the help, but it definitely means I need to really get all the information first, before I make that phone call. I also need to know all my options first before I sign on the dotted line. Especially when it’s the same government and financial institutions, who created most of the problem in the first place.

Before you contact your lender, you may want to make a phone call first to an objective third party, someone that will go to bat for you, and truly understands what all the pitfalls and the various alternatives you may want to consider.The fact is that like most government programs, the underlying agenda ends up punishing the hard working taxpayer in the end. In fact, the new government program to stop foreclosures, which is supposed to help peoplerefinance their home while still in foreclosure, has actually created situations where the loan payment actually went up, not down, followed up by more double talk and confusion. That’s not good. The situation goes beyond the governments program however.

The housing market has not bottomed out yet, and who knows, it could even be another year before it does, maybe even longer. The economy is likely to experience severe Inflation, from the fact that we’re borrowing trillions of dollars from China, and printing money just like we could go out and print money. Oh yea…I said that twice didn’t I?If things go up in price, then that will eventually effect the housing market at some point. We’re already experiencing inflation but the government and not even the media are talking about it. You might have noticed it at places like the grocery store, or at your local hardware store. If more money is going out toward paying bills, and jobs are harder to come by, then “Houston, we have a problem”

The point is, not to paint a doom and gloom picture but to get “real” with homeowners. We all want to trust the government andbe good citizens, but history has shown that to be aninsane assumption. Ronald Reagan once said; “Trust and Verify”. That’s some good advice. I can’t sit around worrying all day, but I need to do something for myself so I don’t repeat the same mistake again.To know your legal options, hiring an attorney may not be an option, but there is legitimate help out there andadvocacy services available that truly bring value to thisprocess. Hiring an attorneycanbe cost prohibitive, sometimes costing thousands of dollars. You also need to look out for all those foreclosure rescue scams, but there area few do it yourself loan modification kits,whereby you can speak to athird party loss mitigation specialist (loss mitigation is a bank term that means to weigh the financial risks or rewards of doingaloan modification). This specialistdoes not work for thelender, but instead can give you the insidescoop of how theloan modification really works, and what type ofoptions youhave at your disposal that the lender won’t tell you. For more articles like this bookmark http://StopMortgageForeclosure.net

Author: Dale Merritt

You can stop mortgage foreclosure by working with your mortgage company, or working with a loan modification company.  Loan Modification Connection can help to save your home. Click Here.

However, if you have been unable to stop your foreclosure, you do need to understand how your foreclosure can and will affect your credit. 

There are two main reasons that we as a country are currently in this housing crisis. The economic crisis was started by borrowers taking out bad loans, and lenders selling the bad loans to the consumers. Most of these loans included arms which is where the payments were low for the first few years. After the first few years the payments would skyrocket. But, how does a foreclosure affect your credit rating?

There is no disclosed number of points that will be docked from your credit score by going into foreclosure; however an unofficial number has been rumored to be around 260 points. A good credit score is 700 or higher. An average credit score is around 600. Therefore if you’re current credit score is at 650 you can roughly expect your score to drop to around 390. Even if you have an excellent score of 800 your score will be dropped to around 540 which are still considered to be a negative credit score.

If you are in this situation there are a few things you can do to stop foreclosure. There are many foreclosure assistance companies that can help you go through your bills, consolidate your debts, and negotiate with your mortgage lender to get your monthly payments down to something you can afford. You can also contact your mortgage company immediately and try to work out a loan modification. You should also research options such as short sales, a deed in lieu, or cash for keys.

Undoubtedly, your scoring will be affected, however you should try doing everything in your hands to reduce the damage to the less.

Author: Hector Milla

Article Source: http://EzineArticles.com/?expert=Hector_Milla

You can stop mortgage foreclosure by filing bankruptcy, however, this should truly be your last option when all else has been attempted.  If you have more questions about whether or not this is the right step for you, you can contact a bankruptcy attorney for a free consultation.   There are also loan modification options that you can and should investigate.  Loan Modification Connection can help to save your home. Click Here.

Will filing bankruptcy stop foreclosure? Yes it can. When you file a bankruptcy petition an automatic stay is granted. This stay means that all creditors must stop any collection action against you. You shouldn’t wait this long, but filing a bankruptcy petition can stop foreclosure up until the date of your foreclosure sale. Filing bankruptcy should be your last option. There are other alternatives that you should exhaust first.

Depending on the lender the foreclosure process can take between 4 months and one year. Understand that the bank does not want to foreclose on your home. Every house that they have on their books is considered a liability. They would ideally like to work out an arrangement so you can stay in your house and keep making payments - even if the payments are lower than originally set.

If you talk to your bank as soon as you realize that you will be having problems with your payments, you can work something out. If you’re reading this article you’re probably past that point. But make sure you try all the options available to you before filing bankruptcy. In some cases a bankruptcy will only postpone the inevitable. If you cannot keep up with your bankruptcy payments, the stay may be lifted and your case dismissed. In this case, the original creditors can once again start collection activities.

When filing bankruptcy to stop foreclosure you set up a repayment plan through the courts. You make arrangements to pay back all your arrears and any late fees up until the time of the filing. Usually the repayment term is 3 to 5 years. You also have to start back making your regular mortgage payments. If you are still not able to make the mortgage payments, you should think about reducing your expenses and selling your home to move into something more affordable.

If you have the opportunity to sell your home, even if it’s a short sale, it is better than walking away with nothing.

Author: Reese Evans

Article Source: http://EzineArticles.com/?expert=Reese_Evans

To stop mortgage foreclosure, you may be able to work with your lender to “short sell” your house.  In a short sale process, basically, the lender approves a sale of your home even if the sale price is less than what you owe on the home.  Sounds like a good option, right?

From my personal experience, it is an option, but one for which you must be well-prepared, informed and incredibly patient.  Some thoughts, from my experience:

1.  Depending upon where you live, you will have to know what your options are to stay in the home during the short sale process, or make arrangements to live elsewhere.   Know your rights, and have a back up plan.

2.  If you are able to live there, you will basically live rent/mortgage payment free as you will not be making any mortgage payments during this process.  I know of people who rented out their homes during this process, ensure that you fully disclose this to your mortgage company as you will run into fraud and other issues if you do not honestly and completely disclose ALL of your income.

3.  Be prepared for a complete and full disclosure of your expenses, your income, why you are unable to make the payments, etc.  You will need to write a hardship letter, explaining why you cannot make your payments.  I had to disclose all bank and/or investment accounts, provide the past two years of tax statements, disclose all income to include child or spousal support, etc.  It is a tough process, and I had to disclose this information at least four or five times during the year long process of trying to short sell my home.  In addition, they will do credit checks to ensure that your information is accurate.

4.  Be prepared for departments in your lending company to have no idea what the other department is doing.  Candidly, I turned it over to my listing agents to do the communication with my lender, by signing over authorization to discuss my loan with the lender.  It would take me hours to get to a live person, only to be told that I needed to call another.  Early on, I finally got someone in the poorly named “Hope Department” and was told that they may or may not approve the short sale because:

a.  They are not a non-profit (very, very true!)

b.  It is not their problem that I am not employed, I should get as many jobs as it takes to pay the mortgage

c.  I should get my family or friends to help me pay the mortgage

Trust me, I get that I entered into this mortgage, but due to variable beyond my control, found myself in a situation where I could no longer make the mortgage payments.  Instead of leaving the keys on the counter and walking out the door (which some of my neighbors did do), I did work hard to “do the right thing” and try to sell the house so I could make the best of a bad situation.  Get people’s names, and be prepared to still get a dozen different people dealing with your short sale.  I also was dealing with the fact that my lender was bought out by another bank, and that transition stalled my short sale, adding months to basically re-do and rework what we had already accomplished with the one lender.

5.  If your lender decides to work with you on the short sale, the paperwork process is glacially slow, frustrating and really at times almost amusing.  The same document would be faxed to one department, only to be told to fax it to another, and then again another.  Accept the fact that whoever is assigned your short sale has about 100 other short sales, and it can take weeks for them to respond to requests.  Know that there are no promises, even if an offer is accepted by your lender, there are other steps that will need to be completed that may or may not make that offer into a sale.    It is a very different process from a normal home sale.

6.  You need to have a great listing agent who is experienced in short sales to truly walk the potential buyers through this process.  It is a process that is slow for the seller AND buyer both.  I had two offers drop out due to the length of time that everything was taking.   Your listing agent will set the tone with the buyer to be patient and to play the paperwork game, and hopefully they will understand and want the home badly enough to stick it out.  Your listing agent can also be there to assist with inspections, walk throughs, etc., saving you a great deal of time.  I know some people who attempted this process on their own, and within weeks they were completely lost and simply walked away from their home.

7.  If you do indeed move out, or have to move out, you may need to keep on all utilities during the short sale process so that buyers can see the functionality of light switches, appliances, etc.  If you have a pool or spa, you may have to keep that pool or spa clean, fully functional and enticing for buyers.  That alone is a very expensive proposition.  It cost hundreds of dollars each month for me to maintain the lawn, the home, the pool and spa, etc.   Toward the end, I had to drain my pool and spa, as I simply could not afford to keep up with the cost of running a pool, the chemicals, etc.  In addition, home inspections will be done, and all utilities will need to be on for such inspections.

8.  You should obtain legal counsel, and know all of the variables of what a short sale can and will mean to you, your finances, tax implications, etc.   While a great listing agent that understands short sales can also provide you with this information, their information is not legally binding, and they are not attorneys nor CPAs and cannot and should not give you that advice.  I worked with both a real estate attorney and my CPA to go through every nuance of the sale, each piece of paperwork that I signed, anything that I had to submit, etc.  DO NOT do this alone, the small investment in legal advice is worth knowing that you are making the right decisions, doing the paperwork correctly and that you are doing your very best to make the short sale happen.

9.  You may be able to work with your lender on other options.  Candidly, after months of trying to make the short sale a reality, my lender began to send me letters offering to reduce my principal, reduce my interest rate.   And this was months after being told that they would NOT do this for me.  So, in an odd way, this process may push their hand to work with you, especially when you have not been making payments.  I do not advocate doing this, this is just my experience and my perspective.  Playing hardball with lenders typically is not a very good thing, and late payments will show up on your credit.

10. Stay positive, stay on top of paperwork, and know where you stand with frequent updates with your listing agent, your lender, etc.  I found that the squeaky wheel definitely gets the grease and by being positive and professional with everyone involved you get better responses and others working for you and with you.

These are simply my observations and experiences, and over a year later, I have not yet sold my home.  I hope for the best, am prepared for the worst, and want to help you successfully stop mortgage foreclosure by sharing my personal experience with the short sell process.    You are not alone, there are many homeowners out there trying to do the right thing and we can support and inform one another, empowering ourselves and each other in that process.

Do you have any short sell advice or input?  Please feel free to leave comments!

It is possible to stop mortgage foreclosure, and working with a legitimate loan modification company is a smart step.  Loan Modification Connection can help to save your home. Click Here.

Most foreclosure relief companies offer one, two, or maybe a handful of various options that homeowners can use to stop foreclosure. While receiving an immediate solution to the situation, the homeowners are not confronting the real problem, of which foreclosure is just a symptom. It is just as important that foreclosure victims start putting together a long-term financial plan to prevent the devastating effects of another financial hardship. Here we examine a simple five-step program to completely stop foreclosure and repair their credit and begin a long-term financial plan. This program gives foreclosure victims the resources to pursue every single known way to save their homes. If they end up facing the loss of their homes and have to rebuild, it will not be for lack of trying every method possible. And even if the worst happens, this simple process is designed to clean up their credit and put them back into a house within a year after foreclosure.

The first step in this process is to reverse the foreclosure process. Homeowners who have not been paying their mortgage need options to stop foreclosure and they need to be working on as many options at once. This may include looking for a private investor, working with the mortgage company to put together a repayment plan or loan modification, or going through our list of foreclosure loan specialists. But the first goal for homeowners is to stop the foreclosure process from running them over before they are out of options and out of time.

Recovery from the devastating affects of foreclosure is the second step for homeowners. This includes putting together a short-term plan to begin an emergency fund and a long-term plan to make sure that any financial emergency can be survived without a disaster. Regardless of being able to stop foreclosure or not, families who have faced the loss of their homes should have a comprehensive financial plan and budget that outlines their spending habits and provides structure to their monthly budget. That way, they may never fall behind on their debts again.

Cleaning up negative information on their credit reports is another important step to repair their finances completely from the foreclosure situation, and is the third step in this process. Homeowners should take the chance to repair their good names and credit histories by using the resources available to them either through self-help resources or by using a reputable company for assistance. This step includes removing negative information from their credit reports, as well as establishing a positive, on-time payment history again, regardless of past history. Within a few months to a year, previous foreclosure victims can raise their credit scores by 50, 100, or more than 100 points, allowing them to qualify for competitive interest rates without relying on confusing Adjustable Rate Mortgages or interest-only loans.

By the end of a year or so, the fourth step in the process will be ready. This involves refinancing the current home or repurchasing a new home. After a year of sticking to a budget, planning for any emergencies, and repairing their credit, the foreclosure victims will be in a situation where they can qualify for some of the best rates for home mortgages. They may end up lowering their payments by several hundred dollars a month, or they may qualify to consolidate all of their monthly debt payments into one cheaper, more manageable mortgage obligation. This is when homeowners transition from the short-term financial recovery phase into the long-term financial independence plan.

The fifth and last step in the process to be rewarded with the feeling of having become financially independent. This may mean having established a significant emergency fund and consolidating all debts into one payment, and it may mean having paid off the house completely and being able to retire early due to a wise retirement plan. But at this point, homeowners will never have to worry about any financial hardship again, as they will have the tools and knowledge that will allow them to survive any emergency. Whether it is a loss of job, medical disability or death, or divorce/separation, the family’s emergency fund will be able to get them through any problem.

Completing these five steps, from the plan to stop foreclosure to the plan to become independently wealthy and financially stable, should be the mission of any homeowner currently facing foreclosure due to a financial hardship. Every single homeowner, whether they are living paycheck-to-paycheck or are financially independent, is currently in need of a comprehensive financial plan to insure against the loss of their homes to foreclosure. From learning how to stop foreclosure, or how credit repair works, or how to retire early and never work another day in their lives, homeowners can come out of their current financial difficulties with a long-term solution and start living the life they have always dreamed of.

Author: Nick Adama

Article Source: http://EzineArticles.com/?expert=Nick_Adama

You can stop mortgage foreclosure with a legitimate loan modification company. Loan Modification Connection can help to save your home. Click Here.

There is a lot of questions right now concerning Loan Modification Companies and the legitimacy of loan modification. Loan Modification is a reality and it is possible to do many things with it. Killer mortgage payments? Contact Loan Modification Connection today!

1) Lower your payments

3) Lower your overall principal

2) Lower Your Interest Rate

4) Stop yourself from being foreclosed on

Those are just a few things there. Not to mention because the value of homes has decreased and more than likely yours has too, you can often save money on taxes. What you need to do is contact your county tax accessor office and speak to them about home values in the area decreasing and find out about lowering your taxes based on the decrease. The good thing is if you get your taxes on the property lowered you will more than likely maintain that accessed value for some time.

Many people today are attempting to do loan modifications for their mortgage on their own. But I do not recommend that as the paper work can be tricky unless you have some type of real estate background. The money you save doing it yourself could be a devastating result in the future by misinterpreting the paperwork involved. So please make sure you seek out a reputable company to handle your modification. Loan Modification Connect is such a reputable company that can work with you to modify your mortgage.

Remember that you may also speak to your lender however they are more than likely backed up because of the number of people desperate to save their homes. So if you have another company handle the paperwork you can save yourself some time before the situation becomes unrepairable. Your home is your dream so use a real company to keep the dream alive. Get Your Loan Modified. It may SAVE your home. Click Here.

Author: Chris Steele

Article Source: http://EzineArticles.com/?expert=Chris_Steele

It is possible to stop mortgage foreclosure by using a foreclosure services company, just make sure that you truly do your research.  Unfortunately, scam artists have also preyed on home owners desperate to keep their homes.  It is best to first try to work with your mortgage lender, if that is not working, you can also contact a real estate attorney for more options and assistance.    There are legitimate loan modification programs, Loan Modification Connection can help to save your home. Click Here.

When faced with foreclosure, its important to seek help as quickly as possible. Every state is different, and has its own laws and regulations, so find a foreclosure services company, located in that particular area. Be sure to go over the laws for foreclosure for that state. This will establish the time frame the courts need to complete a foreclosure proceeding. Armed with this knowledge seek out the help of a qualified foreclosure services company. There are many well qualified companies, but there are also others that are not as concerned for their customers.

Before looking for a company that specializes in foreclosure issues, check with the bank that currently holds the note on the home. Often, banks have solutions for people who need to avoid foreclosure, but, they usually don’t offer these services unless asked.

If the mortgage holder is not helpful, and offers no solutions, then its time to look for a qualified foreclosure services company, one that has had success, and one that is very reliable. Be sure to focus on reliability, and success, before focusing on the company’s rates. Check with the better business bureau to make sure the company doesn’t have any complaints filed against them. Be sure to check the staff’s credentials to make sure they are competent at helping people facing foreclosure issues. After you have verified the company’s reliability and success rate, then it’s time to focus on the rate being charged.

If, there are other people that have undergone this type of problem, consult with them, and ask them for a referral. In most cases this is not possible, but it should be considered. More importantly, research the foreclosure services company thoroughly.

Author: Hector Milla

Article Source: http://EzineArticles.com/?expert=Hector_Milla

Stop mortgage foreclosure to not only work on your financial health, but also your physical health.  Consumers and home owners are stressed out beyond belief, I hear it everywhere I go, and candidly feel it myself.  I have seen the pain in friends and others who have had to deal with a mortgage that has gotten the best of them.

It is hard, heart-wrenching, and simply devastating to think of the potential of losing your home.  Home owners lose sleep, and the stress can take a toll on their ability to work, even their relationships and marriages.   There are companies out there that can help you, you are not alone, and you do not have to face this process on your own. Get Your Loan Modified. It may SAVE your home. Click Here.

The housing bubble created a big mess in the global economy when it burst. Many homeowners who did not exactly qualify for a home mortgage based on income and credit were given loans by banks that were more than ready to make a quick buck as long as the housing market allowed. The number of foreclosures on homes and rental properties has been going up steadily since 2007 and one wonders if the end is in sight. One consequence of losing a home to foreclosure that doesn’t get much coverage these days is the affect on the health of the people involved.

Dealing with a foreclosure can cause the following health issues:

Stress
Poor diet

Depression

Sleep deprivation

The stress involved with people facing foreclosure starts well before the actual foreclosure process. Many people have to make tough decisions prior to losing their home. Many people prioritize keeping the home and let other expenses like dining out, entertainment, and travel lapse. The normal stress relieving activities are replaced with the added stress of the unknown. Even if you know that you are going to be evicted from your home and you have come to peace with that reality, you have the added fear of moving to a new place to live. And in many cases you don’t have a place to go.

Depression would seem like a natural result of losing your home and for many it is. Mental health declines as people feel embarrassed and ashamed of their situation. Many people try to hide the fact that they are hurting financially. And in some cases they even hide their situation from friends and even family members. As people pull away from their normal “support” system of family and friends depression is all too often the result.

Spending habits change when people are facing prospect of foreclosure. The healthy lunch at a more expensive restaurant is replaced by the more economical and often times unhealthy fast food. The dollar menu items are a great place for someone who is watching their pennies to get the most satisfaction for their buck. These empty calories fill the stomach but make people more over weight, which combined with the stress, and depression can cause greater health issues.

If you are having trouble sleeping while facing an imminent foreclosure, you are not alone. It is very common for people to “lose sleep” in these tough economic times. Loss of sleep is especially common for those who will be faced with moving to an unknown location. Just think, in a normal move how much sleep you would lose as you try to keep everything under control. It is much worse when you are moving and you have little control.

Author: J Dulas

Article Source: http://EzineArticles.com/?expert=J_Dulas

It may be possible to stop mortgage foreclosure if you have been the victim of predatory lending.  There are options to stop mortgage foreclosure, however, you need to take charge and work with your lender, possibly even an attorney, to avoid foreclosure and try to stay in your home. 

Have you fallen behind on your mortgage payments and has your lender started foreclosure proceedings against you?

Can you be considered a victim of a predatory lender?If you are, you might be able to get the foreclosure stopped.The attorney general of your state may have filed suit against your lender which will aid you in stopping the foreclosure and keeping your home.

In the 1990’s and up to 2007 many mortgage lenders took advantage of home owners who were having financial difficulties.Frequently these people had quite a bit of credit card debt.They were looking for ways to lower their monthly payments.Mortgage lenders told them that they could refinance the mortgages on their homes.With the refinance, they could get cash to pay off the debt they had.The new monthly payment on their mortgage was lower than the current payment on their mortgage and the payments on their credit cards.

The interest rates on these new mortgages were higher than on their old mortgages.The home owners were never told that the rates and the monthly payments were only fixed for the first 2 to 3 years.After that the interest rate and payment would adjust every 6 months or year and that the initial adjusted interest rate could go up as much as 5 to 6%.

First time home buyers with poor credit were frequently steered to these lenders.Many had little or no money for a down payment. If their income was not sufficient to qualify for the mortgage, the loan officers frequently falsified the income.With the overstated income, they got the mortgage and were able to buy the home.

On these mortgages for the first time buyers, the scenario was the same.The interest rate was high and they were never told that the rate and payment were only fixed for the first 2 or 3 years and would adjust every 6 months or year afterward.The initial adjusted interest rate might be 5 or 6% higher that the starting rate on their mortgage.

If they didn’t have enough income to qualify for the original mortgage, how were they ever going to make the mortgage payments after the interest rate adjusted upward?It was a disaster waiting to happen.That’s what we’re seeing now - one of the reasons for the high rate of foreclosures.

When the attorneys general of many states became aware of the deceptive practices of these mortgage lenders, they filed law suits against them.Some of the mortgage lenders against whom these suits have been filed are Ameriquest, Accredited Home Lenders, BNC Mortgage, CitiFinancial, Countrywide Financial, Encore Financial, Fremont Investment & Loan, First Horizon, First Franklin, GMAC, Household Finance, JP Morgan, Long Beach Mortgage Company, National City, Option One, Suntrust, Washington Mutual, Wells Fargo and WMC.

If you are in the foreclosure process or if you feel foreclosure is imminent and if you obtained your mortgage through one of these lenders, check to see if the attorney general in your state has filed a law suit against them.You can start by doing a google search on the internet.If your attorney general has, check with their office to find out the status of it.

Private attorneys may also have filed suit against your lender for predatory lending.You may want to check with your County Bar association to see if they can help you determine if any suits have been filed.

If the attorney general of your state or if any private attorney has filed suit against your mortgage lender you should contact and discuss your situation with an attorney specializing in foreclosure in your area.If you cannot afford an attorney, call your county Bar Association and find out if an attorney will represent you for free.

An attorney will be able to tell you if you can get the foreclosure stopped.The attorney will also be able to tell you the likelihood of having your loan modified and the amount of your monthly mortgage payment reduced.

Author: Mark Elkins

Article Source: http://EzineArticles.com/?expert=Mark_Elkins