Archive for the ‘Foreclosure Help’ Category

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Stop Foreclosure With These 3 Proven Strategies

Friday, May 1st, 2009

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.

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Facing Foreclosure? Here Are 6 Options to Keep Your House

Monday, April 27th, 2009

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.

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6 Ways To Sell Your House Fast To Stop Foreclosure

Tuesday, April 21st, 2009

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.

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Bankruptcy Vs Foreclosure: Which Is Better?

Monday, April 20th, 2009

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.

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