Stop Foreclosure Blog » Foreclosure Help

Free Foreclosure Counseling In Florida, California, Nevada and Other States

Dean — Mon, 13 Jul 2009 10:22:19 +0000

There is no single way to prevent all home foreclosures. Everyone’s situation is different due to their circumstances and how they financed their home as well as their home’s value.

Should you be looking for specific answers to your situation, don’t just sit around and read a lot of information consult with a professional who can answer your questions based on your specific situation. The Homeownership Preservation Foundation provides such assistance.

The foundation’s counselors have enough training in mortgages and credit counseling to gain HUD approval and professional certification. They are also authorized and able to gain access to mortgage lenders, which is often difficult for homeowners acting on their own (though I provide a list of numbers in my free foreclosure book, link above).

You can reach them at 888-995-HOPE. Tell them StopForeclosureBlog.net sent you there.

You may also visit their website at www.995hope.org

It’s free so you should take advantage of their services.

Have you called HOPE? Share your experiences below or those with other counseling services!

Stop Foreclosures in Florida — Helpful Points to Help You Get Started

Stop Foreclosure in Texas – Take an Active Approach to Foreclosure

Dean — Wed, 20 May 2009 17:00:00 +0000

One of 10 homeowners in Texas faces the risk of a mortgage risk default or an imminent foreclosure, according to Mortgage Bankers Association of America. A foreclosure can be a dreadful, devastating and stressful thing to happen. With the law being on the homeowners’ side recently, it is really up to the homeowners if they want to do something about stopping foreclosure in Texas.

Reach out to Texas Counseling Agencies: Texas homeowners who are currently facing foreclosure lawsuits can take assistance from various U.S. Department of Housing and Urban Development approved foreclosure intervention counseling organizations. These organizations provide free counseling to homeowners.

Be open to communication from your lender: Understand that lenders — even though notoriously short on patience and time apart from facing the ever increasing instances of foreclosure — are still your best friends and they would do all they can to help you resolve your financial situation. So contact them and talk to them. Open all correspondence and read up. Be armed with documented information that will be required before you even contact your lender.
Bring Your Mortgage Current: Try to pay up the pending mortgage amounts by whatever legal means possible. Raise money by taking up an extra vocation, apart-time job or some other way to try to salvage your debilitating financial situation and use that money to bring your mortgage payments current. Stay away from taking further loans to pay off your pending mortgages, except for some special low-interest credit extensions which your lender might give you. See if you can budget and save, jettison unwanted expenses and stop the foreclosure from happening.

Find a Buyer for your house: If you realize that it is completely out of hand and you just can’t seem to bring yourself to do what was stated above, you may look to sell your house. Seek a well-qualified, experienced and trust-worthy Texas based realtor who can do this for you. A previously written post titled “6 Ways To Sell Your House fast To Stop Foreclosure“, should help you in this regard.

Stop Foreclosures in Michigan – Will You Let a Foreclosure Destroy You?

Dean — Mon, 18 May 2009 17:00:00 +0000

Save The Dream is the proud initiative the Michigan State Housing Department Authority and it is one of those states that takes active interest in trying to sort of the financial problems homeowners might face due to sudden events that set them back financially – the common ones include getting fired from jobs, injury or disability or anything severe that affects a homeowner’s monthly mortgage paying capability. Taking proactive action is necessary is critical times like these since it isn’t just you who is going to be affected. Apart from the fact that your home is at the risk of getting frisked away, your family might be affected too. Follow the steps below if you would like to stop the foreclosure process and save your dream.

Avail Loans to help save your Home: The MSHDA has plenty of financial plans like secondary mortgages rescue loans to help you stop foreclosure in Michigan and save your home.

Pick up the HELP loan: If you have a non-recurring situation or a temporary problem due to which you are unable to make your mortgage payments, you can contact a Homeownership Counseling Agency in Michigan to avail their HELP loan. This is to be used for temporary emergencies only and is limited to maximum of $3000 and is a non-interest bearing loan.
MSHDA Assist finance Program: If you currently have an adjustable mortgage loan or a high-interest fixed rate loan MSHDA mortgage, MSHDA allows you to pick up another loan at much lower interest rate, based on certain qualifications and subject to approval, of course.
MSHDA Rescue Finance Program: This is the other kind of loan MSHDA provides for homeowners who are qualified but are currently already due to pay their mortgages and are late by 30 days. They may pick this loan and refinance their mortgage by making it into a low-interest, fixed-rate loan.

Other ways to stop foreclosure in Michigan
If you contact an attorney or an MSHDA approved foreclosure prevention counselor, they might be able to asses your personal situation better and might be able to suggest a loan modification, reinstatement or cure, a forbearance agreement or a partial claim.A foreclosure can have devastating effects on your financial holdings, credit reports and credit records. It leaves a permanent scar on your reputation and hence you must try to avoid it all costs. Kick your finances back to life and take some pro-active action to revive your finances and bring your life back into your hands.

Stop Foreclosures in California — Don’t Let Your House Slip From Your Hands

Dean — Fri, 15 May 2009 17:00:00 +0000

When homeowners face foreclosure due to myriad reasons like loss of job, disability/injury, ill health, unexpected expenses, marriage or even relocation, they inevitably have to battle the reality of a foreclosure. It is necessary for you to be aware of your primary and secondary options to stop foreclosure in California.
Also called as Early Delinquency Intervention, this process involves an expert intervention right at the early stages of your financial crisis such that you could make the most of the options the lenders might have for you.
One of the first things you have to do as a part of EDI is to submit three-stepped, standardized, accurate and documented information: A Statement of the problem, in which you identify what exactly your problem is while you prioritize your problems (starting with the most serious ones); secondly, you have to submit a personal financial assessment form which takes a snapshot of your financial health and allows the lender to make better judgments about your paying abilities before chalking out a plan for you; and finally, you will be made to take stock of your equity on your home (your need to own your home and the lengths you should go to secure your home depends on this). Needless to say, being honest, accurate and up-to-date is very crucial here.
Primary Options for Stopping Foreclosures in California
Based on the steps taken above, your lender will be better placed to provide one of the many options available for you. Some of them have been listed out for you here.

Re-instatement of your loan: An obvious and easy way to bring your payments current is to pay the dues and bring your mortgage current. Bringing your payments to current would include paying up the due mortgage, late fees and any other fees the lender might charge you. The time available for you to do this in the state of California is usually 5 business days from the time your home can be put up for sale by a trustee.

Deed-in Lieu of foreclosure: Using this option, you may want to hand-over the deed back to the lender. By taking this approach you save your lender time and you get to stop foreclosure which harms your credit report.
Forbearance Agreement: Your lender typically allows you certain amount of time – 3-6 months in California – during which you make lower mortgage payments or no payments at all. The missed payments will add up with the payments that are due during the later part of your loan term.

If you are unable to make any payments whatsoever, lenders will foreclosure and snatch your home away from you. The exact time it takes to get to this stage is state specific in the U.S. In California, however, it takes about 4 months from the time the Notice of Default has been issued to you. Also, note that the lender is not allowed to float a deficiency judgment – which is a motion a lenders make when they lose money due to the property getting sold for a much lesser value on the market than its worth.

Stop Foreclosure With These 3 Proven Strategies

Dean — Fri, 01 May 2009 23:56:48 +0000

Introduction
When all else fails, a homeowner facing foreclosure isn’t without a few resources up his sleeve. While these last minute efforts shouldn’t be used until there aren’t any other choices remaining, many homeowners have found them invaluable for stopping foreclosure and saving their homes. Some are more commonly known than others, and this list is not all inclusive. Your situation may differ from those that find these methods successful options. Still, they are options and can be used to save your home.

Deed-In-Lieu of Foreclosure
It is possible to get a deed-in-lieu of foreclosure, but your lender will probably want to see that every effort has been made prior to agreeing to this option. The lender doesn’t want to be a real estate owner and doing this will make him one. However, he will be willing to accept this when all other options are exhausted because there are a few benefits for the lender. The loss on the loan for the lender will be less with a deed-in-lieu. It doesn’t cost the lender as much as the pursued foreclosure and it takes less time to see a recuperation of funds for the lender than a foreclosure does.

Chapter 7 Bankruptcy
Chapter seven bankruptcies may be an option for the desperate homeowner. However, be careful with this option and fully understand your state’s individual laws concerning chapter seven bankruptcies as you may or may not be able to keep your home by choosing chapter seven bankruptcy. It all depends upon the limitations of each individual state has in place for this type of bankruptcy. If your equity is more than the allotted amount, more than likely you will be forced to sell the home under the provisions of chapter seven bankruptcies.

Chapter 13 Bankruptcy
If the goal is to keep your home and there are no options left, chapter 13 bankruptcy may be for you. This type of bankruptcy allows you to pay off the back amount owed over time, which can be up to five years. Just be aware that you must also make your current mortgage payments at the same time. If all payments are made and the conditions of the proposal for repayment under chapter 13 are fully met, you will be able to stop foreclosure and hold onto your home.

If your house has dropped in value due to depreciation, it is possible that a chapter 13 bankruptcy can eliminate a second and third mortgage. This can happen when your first mortgage has all value of your home tied into it and there isn’t an adequate amount of equity left to secure the second and third mortgages. If this is the case, then your second and third mortgages will be reclassified as unsecured debt. Unsecured debt is the lowest priority in a chapter 13 bankruptcy and often doesn’t have to be paid back at all.

Facing Foreclosure? Here Are 6 Options to Keep Your House

Dean — Mon, 27 Apr 2009 23:48:33 +0000

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. For more information on this and other possible ways to keep your home when facing foreclosure, visit www.foreclosure-help-book.com.

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.

6 Ways To Sell Your House Fast To Stop Foreclosure

Dean — Tue, 21 Apr 2009 23:33:26 +0000

For some homeowners facing foreclosure, selling is the way to go. The reasons are varied and each homeowner must decide which route is best for their financial situation. If the sale is handled in a timely manner and produces enough revenue, then there will be no foreclosure on your credit report. If selling is the option you choose, there are several ways to go about it. Here are just a few of them:

Real Estate Agent Selling with a real estate agent is most beneficial if you are aware that you are in danger of foreclosure in the coming months. It isn’t the best option if you’re already in the midst of foreclosure, but it can be done. A realtor understands the market and the condition and pricing of competing homes. Top it off with the fact that realtors have a buying customer base, and you could see higher returns with more protection from a judgment for amounts over the selling price still owed to the original lender should the lender not write off and forgive the original loan in the case of foreclosure.
For Sale by Owner (FSBO)
Again, while selling your house yourself is an option, there are some things you should be aware of before deciding that this route is for you. Some self selling homeowners are successful, but statistics show that only those who have done extensive research and understand the world of real estate enjoy such success. Still, it’s an option. If you do choose it, be aware that your home may not bring as much as you think it should and that it won’t be getting much exposure on the multiple listing services as these are reserved for realtors only. Since many home buyers use an agent to assist in locating a home, it is possible that your home will not be on the list to investigate for the buyer as payment to the agent usually consists of a commission written into the contract that does not include homes sold by owners. The situations for this option to be most viable include when the home is to be sold to a relative or close friend with whom arrangements for sale price and payments have already been made between the owner and the buyer. Otherwise, putting a sign out in the yard and an ad in the newspaper probably won’t bring quick enough results if you are in foreclosure.
Lease-Option A lease option may give some relief during foreclosure for those wanting to sell their home rather than keep their home. In this type of transaction, the buyer pays the seller money for the right to later have the option to buy the house. The lease option payment may be a substantial sum or it could be as little as one dollar. Then, a term is set up for the option to be able to be exercised. So, if the buyer and the seller agree to a one year option term, then no one but that buyer may purchase the property during that time frame. If the buyer doesn’t purchase at the end of the option term, it expires. Money exchanged in the agreement is nonrefundable unless other provisions were made between the two parties. Usually, option money doesn’t count for a down payment. A portion of rent typically applies toward the purchase price, as this agreement is similar to a lease purchase in many cases, but the buyer is under no obligation to purchase the house.
Selling to a Investor Selling to an investor is a very good option for selling your home to avoid foreclosure. While the price offered may be a little lower, investors are typically looking to gain access to the home almost immediately. This is due to the fact that investors are looking for a turnaround in which a profit can be made. Investors specialize in business transactions and making a profit. Often, the investor will offer enough to satisfy the loan on the house and to release the home owner from financial responsibility. The investor option is one of the quickest and most flexible methods of selling your home.
Deed Your House Deeding your house to another transfers ownership of the house, but not responsibility for the loan in most cases. In times when deeding your house becomes necessary to avoid foreclosure, the deed is normally signed to the lender. Most lenders will want you to try all other viable options first. Lenders aren’t real estate agents and don’t want to be. They would rather the loan be paid or satisfied in ways other than deeding a house to them.
Short Sale Short sales can be an extremely good choice for selling a home headed for or in the middle of foreclosure. This type of sale is really a negotiated settlement. It’s the best option if you find yourself owing more than the market value of your home and in the throes of foreclosure. There are no qualifying requirements of a short sale; and it is an easy process to begin yourself.

Bankruptcy Vs Foreclosure: Which Is Better?

Dean — Mon, 20 Apr 2009 18:00:00 +0000

Decision making is something you just can’t avoid no matter what kind of situation you are in. Tough decisions are even harder to make. Sometimes, as a homeowner, you might be in a dilemma as to what to choose among bankruptcy and foreclosure of property. Perhaps the information given below might help point out the right direction for you and help you make a better decision, with regards to your circumstances.

No matter which option you choose, here are a few things that might remain the same – you will still lose your home; you will damage your credit rating severely while your credit score would plummet by about 200-300 points. The effects of either of these options are long lasting and have severe implications on your future credit availability, reputation and other financial matters worthy of consideration.

Choosing between bankruptcy and foreclosure is like choosing how you would like to die – use an aspirin overdose or just get shot. You must realize that any bankruptcy event will linger on your credit report for more than 7 years. While Chapter 7 bankruptcy is strictly for unsecured loans, the way it links to your home loan is when you might be in a position to pay off your mortgage when you file bankruptcy with your unsecured loans like cards and bank overdraft. Chapter 13 bankruptcy is another option you might like to consider; the big brother of your Chapter 7 version.

When you file a chapter 13 bankruptcy, the courts will mandate you to pay your remaining debt in an easy, payable manner within a stipulated, pre-set time – the priority is usually to pay off your protected and secure loans and at least 25% of your unsecured ones within 5 years. The amount is usually set to be additional to the mortgage payment and when you can’t do the same, the lender will request for a stay request and proceed for a foreclosure process. An individual applying for a bankruptcy in his or her name and that wouldn’t affect the credit ratings of his/her spouse, unless the property is a joint-ownership.

You will also do well to remember that in the event of a short-sale approach to the foreclosure, there is a likelihood of have to pay up a mandatory deficiency balance if the lender so decides. It is best if you leave the entire fact gathering to competent professionals like agents and attorneys, but take the decision which best suits you.

How Foreclosures or a Short-sale Can Rip Your Credit Rating To Shreds

Dean — Sun, 19 Apr 2009 18:00:00 +0000

Irreparable damage is done to your credit rating when you experience a foreclosure or some of the other related possibilities– not as bad as foreclosure or bankruptcy, but are damaging nevertheless. However, most of the agencies and people of less repute wouldn’t take the trouble to tell you the far-reaching consequences of foreclosure, short sale, etc.

A foreclosure, as you would have sensed, is the mother of all of those things that can damage your credit rating with the effects killing you each day for over 10 long years and also setting you back by a whopping 200-300 points on your FICO score. A short sale of your property, as a response to avoiding foreclosure, can cause your credit rating to drop considerably and can set you back about anywhere from 855 to 125 points on your FICO score – this might show up as “foreclosure arrangement”, or “debt settlement”. Additionally, a deed-in-lieu might just be as lethal as a foreclosure itself since it entails a transfer of ownership.

Foreclosure is always best avoided. It might allow you to stay rent free for a while until you will be asked to leave, but the negative consequences a foreclosure has on your credit rating – which implies that your ability to avail credit for important things like student loans and car loans etc is severely affected because that’s how severe FICO along with potential lenders take this event to be.

Often overseen, but a critical aspect that should help you choose between a foreclosure or a short-sale, is the tax part of it all. IRS considers any discharged debt as an income and hence you will be taxed on that. For instance, if you declared bankruptcy due to foreclosure of a property worth $300,000, this debt which is now discharged by bankruptcy is considered income and you will now have to pay tax on that amount. A short sale, on the other hand, causes your debt to be forgiven – the difference between the mortgage amount and the amount the lender sold it for. This forgiven debt is also taxable.

Another aspect to consider when choose from a foreclosure vis-à-vis a short sale is how long a homeowner can wait before buying another home or being able to avail a new home loan. Most homeowners think that short sale will let them avail a new home loan in a short time period, which is unfortunately not the case. A set of guidelines from Fanny Mae, stipulate that individual home owners must wait out for at least 24 months before they would be considered for new home loans. It might also help to remember that in the event that the short sale generates much lesser an amount than the mortgage due, the lender can proceed to file a deficiency judgment which is like a thorn in the would and something the homeowner has to battle with again.

Nothing is as easy as it might first sound and a homeowner must look into all possible options before settling with any one option. Heresy and casual advice should never be paid attention to. Think creatively and take help from competent professionals to arrive at customized solutions that would bail you out of this problem fully. You might want to transfer ownership to an investor by signing a deed but bring your mortgage payments up to current from the proceeds that came from dissolving your equity. More such solutions are possible when you approach it the right way.

6 Incredibly Accessible Options to Avoid Foreclosure

Dean — Sat, 18 Apr 2009 18:00:00 +0000

The prospect of losing your home could be quite an overwhelming and sad situation for any homeowner, but is now increasingly common with many homeowners who are unable to pay the mortgage payments. The reasons for not being able to make the payments can be anything from losing a job to an unforeseen medical emergency. Foreclosure, though, can be avoided if action can be taken promptly and initiate one or more specific steps which we will discuss in this post.

In the event that lenders deem it is necessary to go ahead with a foreclosure, they issue a standard notice called as a Notice of Default (NOD) when you already up to 60-90 days due to pay the mortgage. Failure to make payments will automatically lead to the foreclosure which is incidentally expensive for the lender to follow through and use. Hence, lenders always look to see if you could utilize one of the many options available for you to work on and settle for something better than a foreclosure – better for both the parties. Here are some of those options:

Partial Loans

By availing a partial loan from a mortgage company, homeowners can have access to interest-free loans which needn’t be paid until the homeowner is able to make the first few mortgage payments off or liquidates the property in a sale.

Forbearance Plan

In a simple act of giving you more time to consolidate your finances and help you make the necessary payments, at its simplest level, lenders might just agree to forbear some time. This can give you some time to raise cash and arrange for alternative funds.

Repayment Plan

Yet another way, lenders can think of getting their missed mortgage payments back is to divide the total sum of missed payments and have you pay it in increments in each month. For instance, if you owe $3000 until now, it can be divided into 12 installments of $250 each. These little installments can be paid along with the actual mortgage payment. This allows you to catch-up with your payments in case you’ve missed them.

FHA Secure

The FHA has a few programs on its shelf which can be used by a homeowner to prevent foreclosure. FHA secure, one such program, grants FHA insurance for a loan picked up from an FHA approved loan vendor. This allows the homeowner to pick up an additional, loan which he could use to pay up the mortgage payments he missed.

Interest Rate Modification

Since the increase and decrease of the mortgage payments primarily occurs due to the maddening fluctuations of the Interest rates, especially in the case of adjustable- rate loans, lenders might consider locking the interest rate at which the rest of your mortgage payments have to be made. This helps when interest rates fluctuate too much or when there is economic uncertainty.

Debt Forgiveness

Allowing you to scrap all the pending payments and then let you start paying from now on – a rather rare occurrence but still a possibility, depending on many factors of course – is a wonderful option if you manage to get it, that is. This really depends a lot on the lender, your relationship with the lender and needless to say, your credit history.