Loan Modification, Bankruptcy Avoid Foreclosures & Save your Home
January 30th, 2010 by adminThe economy is facing recession and with it comes the struggle to keep up with the monthly mortgage bills. In such a case the strategy and ability to protect your home from foreclosure depends on where you are on the foreclosure timeline which one should be aware of to avoid foreclosure. The foreclosure timeline is-
When a borrower has missed several months of mortgage payments (generally about three months) the lender files a Notice of Default with the county recorder. The NOD identifies the default amount and the date by which the borrower must pay off the default.
When a Notice of Trustee Sale is sent after 90 days has elapsed after the NOD is filed when the lender has the right to file a Notice of Trustee Sale. It is done 20 days prior to the sale. It contains the date, time and location of the sale and posted on the property and in public location as well.
When Trustee Sale Auction held at the place and time as mentioned in the Notice of Trustee Sale. The successful bidder receives a trustee’s deed to the property once the sale is completed.
Now when you are aware of the time line, it is important to ascertain and come to a conclusion on saving your dream home from an unfortunate foreclosure. The most obvious way to save your home is to work out a mutually beneficial payment plan with your lender, or to revise the terms of your original loan agreement in order to make manageable mortgage payments to your lender. Lenders can help you out in the loan modification process but it can be frustrating for the borrower due to pressure of work on the lender. In such a case online law firms looks at all of the aspects of your loan agreement and gives you the best possible leverage when negotiating the terms of your loan with your lender.
Borrowers can also feel protected from engaging in unfair lending practices through a number of federal laws. Borrowers can be the victim of predatory lending practices without even knowing a bit about it. In such a scenario, a forensic loan audit is done on the original loan documents and if you have been a victim of predatory lending, you may have the right to file a lawsuit against your lender and to put a stop to the foreclosure process for the duration of the suit.
The next best option is to declare Bankruptcy which puts an immediate stop on the foreclosure process, hence providing with an opportunity to start fresh on your finances. It is the solution that you can resort to when you are the facing the difficulty in paying your monthly mortgage bills and getting into additional debts. The solutions are, therefore attainable to enter into a loan modification process and working out on a mutually beneficial payment plan, protection from predatory lending practices on the part of the borrower and declaring bankruptcy in order to avoid foreclosures. Online law firms have expert attorneys who specialize in loan modifications and foreclosure prevention to help out in moments of recovery.
Home Loan Modifications, Delinquencies, And Foreclosures Rose in The First Quarter
January 20th, 2010 by adminLenders and servicers were able to modify more troubled loans during the first quarter, according to a recently released government report, but the number of homeowners falling behind on their payments continued to increase as well, and at a faster pace.
The report by the Comptroller of the Currency and the Office of Thrift Supervision, the regulator for banks and thrifts across the country, stated that home loan modifications during the first quarter of 2009 jumped 55 percent from the last quarter of 2008 and 172 percent from the same quarter last year. The two agencies’ report represents data from 64 percent of outstanding first lien residential mortgages.
According to the report, most modifications decreased homeowners’ mortgage payments by lowering the interest rates and/or extending the maturity of the mortgages. Lenders and servicers are still reluctant to include principle reductions in loan modifications as witnessed by 1.8% of modifications that included a reduction. Principle reductions could increase dramatically since the passage in Congress of the Safe Harbor Bill in May. The bill gives loan servicers greater autonomy from mortgage investors in how they negotiate terms on home loan modifications, including principle reductions. It’s often been the case that the investors that own the mortgages prevent principle reductions from being granted.
The biggest negatives of the report were the disclosures that the number of delinquencies and foreclosure filings increased as well. Additionally, the number of seriously delinquent homeowners, who have missed at least two payments, is growing at an increasing rate as unemployment and reductions in pay are taking a toll on formerly solid borrowers. Post modification defaults also continued at high rates. “While I’m very concerned about the rise in delinquent mortgages and foreclosure actions, the shift in emphasis by servicers to more sustainable, payment-reducing modifications is a positive step that should show significant benefits in the coming months,” Comptroller of the Currency John C. Dugan said in a statement.
What stood out in the statistics is that the housing crisis is shifting away from risky borrowers in loans that were ticking time bombs to homeowners that have always been considered solid credit risks. The default and foreclosure rates in the risky subprime category are now being surpassed by those in the prime mortgage category. Prime borrowers, who are traditionally considered safer credit risks and compose the largest category of homeowners, are now falling behind on their payments faster as unemployment rises and home values drop.
The percentage of prime borrowers that have missed two payments on their mortgage rose 20.3 percent during the first quarter compared with the fourth quarter of 2008. It was up 163.7 percent compared with the same quarter a year ago. Prime borrowers make up approximately 67% of all U.S. mortgages. With 661,914 mortgages in serious delinquency up from approximately 250,000 in the same quarter of the previous year, industry watchers are wondering where the carnage will end in the category. In comparison, the percentage of subprime borrowers that were seriously delinquent rose only 1.5 percent during the first quarter. It was up 54.9 percent from the same period a year ago. As the first mortgage category to see massive numbers of defaults beginning in late 2006, most of the damage in the subprime category has already occurred, resulting in statistics that paint a relative level of stability.
The numbers reported by the Comptroller of the Currency and the Office of Thrift Supervision do not include any results from the Obama Administration’s “Making Home Affordable” plan due to its initiation at the end of the first quarter. The slow ramp up of the program has been a major concern for industry watchers, many of whom now think that the program by itself won’t have a major impact on the foreclosure crisis.
Sounding a more optimistic note, JP Morgan Chase announced that they had approved over 138,000 trial home loan modifications to date. A trial modification is one where the homeowner is granted lower payments for three months while a formal loan modification is finalized. The homeowner must stay current on payments for the three month trial period to see the modification through to its completion. JP Morgan Chase, through its purchase of Washington Mutual, is one of the largest lenders in the country.
“It has taken some time to put the resources in place to handle the extraordinary customer demand during this crisis, to incorporate each update to the administration’s Making Home Affordable Program, and then to properly evaluate each borrower’s situation,” Charlie Scharf, head of Retail Financial Services at JPMorgan Chase, said in a recent statement. “Over the last three months, we have made great improvements and we expect the numbers of approved modifications to continue to grow for some time.”
Another issue coming to light is that homeowners need assistance in navigating the loan modification process. The time needed, knowledge of the minutia in mortgage contract, and experience in negotiating terms for the most optimal outcome in a loan modification are proving to be beyond the purview of most homeowners. With foreclosure looming, it is becoming obvious that hiring legal counsel to negotiate new terms is the best single option for homeowners. With over 600 completed loan modifications, The Feldman Law Center has the experience to provide superior solutions tailored to the specifics of each homeowner’s needs. They can be reached at (800) 527 8497.
Author: Greg Feldman
Riding the 2nd Wave of Foreclosures
January 2nd, 2010 by adminDriving South on Interstate 75 in Marietta, GA everyone on their way to work looks up to see the big realty company sign that tells how many listings are on the market, waiting to be sold.
Getting a Real Bargain from Foreclosures
December 29th, 2009 by adminIf you are considering buying a foreclosed property for either investment or as a second home, you may be on the right path. However, buying a foreclosed home comes with inherent risks. You have to be knowledgeable regarding foreclosures, and this is the reason why I have put all these tips together.
The first thing to do is acknowledge these basic facts.
- The process will not be easy. It will take a lot work and research. Only in very rare instances will you find that perfect home for you and your family. More than likely, you will consume hours and hours in careful research and planning to locate the ideal foreclosure home that fits both your budget and the needs of your family. Remember, if it were that easy, everyone would do it.
- You cannot expect to find the perfect home that you are just going to move into right away. Bear in mind that the previous owner of this home may have been forced to leave and did not do so willingly.
- Note that you are only as good as the people you have helping you. You will not succeed with this endeavor without help from a GOOD foreclosure specialist as well as a GOOD contractor.
- When the process is done right, you will be the owner of a home that is worth more than what you purchased it for, regardless of the state of the economy is in. The property should also be remodeled according to your personal taste.
Now, once you accept the facts above, you are ready to begin your search. Here are a few recommendations.
- Get Pre-Qualified: It is important to secure financing early in the process. This will ensure that you are qualified to buy the home. A greater bargaining power also comes with being pre-qualified when the time comes to make an offer. Find a lender that has worked with a number of foreclosures and one who understands the details of the foreclosure process. This will save you a lot of frustration and may save you from missing out on a good deal.
- Know the Process: Learning about the foreclosure buying process is key to buying this type of property. You can purchase a foreclosed property at auction, directly with the seller of the property, or by working with a real estate firm that specializes in these types of homes. There are a number of these companies on the Internet.
- Research the Area: Once you have identified the prospective properties, your research is not complete. You then need to begin looking into the benefits of the surrounding area, the availability of public and private schools, the number of residents, average property values, the rate of property value growth, and the availability of career and recreational opportunities. Some online companies can help you with all of this information.
- View the Properties: Visit the site, get a feel for the house, and see through the current mess. THE KEY TO GETTING A GREAT DEAL IS THE ABILITY TO SEE THE POSSIBILITIES OF THE HOUSE, NOT WHAT IT LOOKS LIKE TODAY!
- Get the right contractor: You need help now. Bring in a good contractor to walk the home with you in order to find all the repairs you will need to make. Talk with him about the changes that you may want to make. Once that is done, ask for a firm cost to make the required improvements. REMEMBER, if it is a good deal, time is of the essence. A number of good contractors can be located on the Internet, as well. They will do the inspection for you and get you a firm cost within a 24-hour period.
Make an offer that works for you. Once you have your financing in place, found the right home, have all the cost of repairs for the house, you are now ready to make the right offer. Once accepted, you are on your way to a home that is totally remodeled to your taste and at a great price. It is important to get the right partner to help you find and get that great deal. They can help you take the risk out of buying a foreclosure and make it easy to get a great deal.
Billions Flow out to Banking Institutions as Foreclosures Increase
December 28th, 2009 by adminIn an announcement made on tax filing day, the U.S. Treasury Dept. announced that it was ready to deliver billions of dollars to six major mortgage lenders as they announced their participation in the Obama administration’s “Homeowners Affordability and Stability Plan”. The program’s lofty goal is to save 4 to 5 million at risk homes from foreclosure but separate announcements today detailing a rapid rise in foreclosures during the first quarter of the year could be telling a different story.
The irony here is that two of the banks, namely J.P. Morgan Chase & Co. and Wells Fargo, are supposedly collecting billions to help homeowners avoid foreclosure. These are the same banks that said, along with FNMA and FHLMC, that they have increased foreclosure activity in recent weeks as they let self-imposed foreclosure moratoriums expire.
In addition to J.P. Morgan Chase & Co. and Wells Fargo, the other recipients are CitiMortgage Inc., GMAC Mortgage Inc., Saxon Mortgage Services Inc. and Select Portfolio Servicing. The total to be divided among the six lenders is $9.9 billion.
Scottsdale, Arizona DC Ranch, Grayhawk, and Silverleaf Foreclosures / Short Sales
December 24th, 2009 by adminA short sale occurs when the owner of a home is no longer able to make their mortgage payments, and the mortgage payoff is higher than the market value of the home. In this case, it is imperative to hire an experienced Realtor that will represent your best interest. A foreclosure occurs when the owner of a home stops making their mortgage payment, and does not hire a Realtor. In this case, the bank will re-possess the home and either auction the property off, or they will hire a Realtor to see it for them.
You can view all short sales and foreclosures by clicking on the website associated with this article in Scottsdale, Arizona. Free Arizona MLS access is offered to the public by clicking on the website associated with this article. If you, or anyone you know is thinking about buying or selling property in the Scottsdale area, your referral is greatly appreciated. Experience goes a very long way in Real Estate.
The responsible thing to do is to hire an experienced Realtor. This may benefit the owner by being able to stay in the property while not making mortgage payments. Every case is situational, but banks would rather have someone in the property maintaining the home rather than leaving it vacant. When the property is vacant, the yard usually becomes very unattractive, and the property will become dirty making it less desirable to prospective buyers.
You can not conduct a short sale if you have not stopped making your payments. Once you have stopped making your payments on your mortgage, that is the time to contact a Realtor to help you. Once your home is on the market for sale as a short sale, it will be much like selling your home as if it were a normal transaction. Most people that have to put their home up for sale as a short sale do not like being inconvenienced by showing it every day, so the best way to do it is to set up showing times for one hour a week during the weekend. This way, the owner can still live in peace. While the short sale is being negotiated by the bank and the Realtor, contracts on the property should be coming in.
Experienced short sale Realtors should be able to back up the auction date by requesting the bank to submit an extension on the auction date. Some short sales take 6 months, others 3 months, and others up to a year. It might be a good idea to ride the short sale wave as long as possible, if you can stay in your home for up to a year with out making a mortgage payment that may allow you to come up with money to re-negotiate your loan, or make arrangements with the bank to get the property out of short sale position. No body wants to be foreclosed on, and no body wants to put their home on the market as a short sale. We understand that. We make the process as easy as humanly possible and take on all of the work on your behalf. Helping people buy, sell, and lease property in Scottsdale, Arizona every single day. Click the website associated with this article to get more information.
Loan Modification- Serves Fruitful in Reducing Mortgage Payments & Avoiding Foreclosures
December 21st, 2009 by adminA loan modification reduces monthly mortgage payments and makes them more affordable for you. Loan modifications can be done whether or not a person is behind in the loan payments, based on his or her financial situation, current hardship, and ability to make smaller payments. Loan modification is a permanent change to the terms of your mortgage or home loan. A loan modification can result in a lower monthly payment through an interest rate reduction, increasing the length of the loan, lowering of the principal balance, setting up payments for back-interest owed, or a combination of these options, lowering or fixing interest rates.
Loan modifications avoid foreclosure and this option is gaining in popularity as lenders realize that keeping homeowners in their home actually might save them money. Foreclosure is an expensive process for banks, and with the current downturn in real estate values, lenders do not want millions of dollars getting into foreclosures. Since the cost of modification can be much less than the cost of foreclosure, banks and lenders are often willing to negotiate reasonable terms and modify existing mortgage payment terms.
So you have made the right decision to go for loan modification according to what is discussed above. But filing it on your own can make you wait longer for things to get into shape and your loan modification to take place. Given the present housing crisis, banks and lenders have been overwhelmed with loan modification requests and are very difficult to work with. Consulting attorneys can help you through this ordeal and take the burden off of your shoulders. Attorneys know the way things are and they are in constant negotiation with many of the major lenders in the country. This enables us to negotiate the lowest rate for your loan modification in the most expedient manner possible. Most of the banks are already involved in predatory lending lawsuits, and want to make loan modification process run smoothly for our attorneys. Working with attorneys enables you to use progressive tactics to accomplish aggressive solutions. The attorneys can then examine your financial statements, income and expenses, as well as the lender’s expenses and terms, and negotiate to get you the best loan terms that fit your present financial situation.
How can I access that I need to go for a Loan Modification?
The first and foremost condition which can make you think about loan modification is the inability to refinance due to loss of equity, owing more than your home is worth. Next comes the inability to refinance due to late or irregular mortgage payments, then if you are facing financial hardship arising out of loss of job, loss of income due to divorce or a sudden death of a earning family member or due to medical expenses and a financial condition leading to foreclosure.
In any of the above cases loan modification can be applied for and doing it on your own could be trouble some for you to stick to your phone explaining your case again and again. There is a constant run for you from pillar to post including wastage of valuable time and in such a scenario, consulting an attorney can serve worthwhile for you to get loan modifications done that will reduce mortgage payments considerably and avoid foreclosures.
Loan Modification- Serves Fruitful in Reducing Mortgage Payments & Avoiding Foreclosures
December 19th, 2009 by adminA loan modification reduces monthly mortgage payments and makes them more affordable for you. Loan modifications can be done whether or not a person is behind in the loan payments, based on his or her financial situation, current hardship, and ability to make smaller payments. Loan modification is a permanent change to the terms of your mortgage or home loan. A loan modification can result in a lower monthly payment through an interest rate reduction, increasing the length of the loan, lowering of the principal balance, setting up payments for back-interest owed, or a combination of these options, lowering or fixing interest rates.
Loan modifications avoid foreclosure and this option is gaining in popularity as lenders realize that keeping homeowners in their home actually might save them money. Foreclosure is an expensive process for banks, and with the current downturn in real estate values, lenders do not want millions of dollars getting into foreclosures. Since the cost of modification can be much less than the cost of foreclosure, banks and lenders are often willing to negotiate reasonable terms and modify existing mortgage payment terms.
So you have made the right decision to go for loan modification according to what is discussed above. But filing it on your own can make you wait longer for things to get into shape and your loan modification to take place. Given the present housing crisis, banks and lenders have been overwhelmed with loan modification requests and are very difficult to work with. Consulting attorneys can help you through this ordeal and take the burden off of your shoulders. Attorneys know the way things are and they are in constant negotiation with many of the major lenders in the country. This enables us to negotiate the lowest rate for your loan modification in the most expedient manner possible. Most of the banks are already involved in predatory lending lawsuits, and want to make loan modification process run smoothly for our attorneys. Working with attorneys enables you to use progressive tactics to accomplish aggressive solutions. The attorneys can then examine your financial statements, income and expenses, as well as the lender’s expenses and terms, and negotiate to get you the best loan terms that fit your present financial situation.
How can I access that I need to go for a Loan Modification?
The first and foremost condition which can make you think about loan modification is the inability to refinance due to loss of equity, owing more than your home is worth. Next comes the inability to refinance due to late or irregular mortgage payments, then if you are facing financial hardship arising out of loss of job, loss of income due to divorce or a sudden death of a earning family member or due to medical expenses and a financial condition leading to foreclosure.
In any of the above cases loan modification can be applied for and doing it on your own could be trouble some for you to stick to your phone explaining your case again and again. There is a constant run for you from pillar to post including wastage of valuable time and in such a scenario, consulting an attorney can serve worthwhile for you to get loan modifications done that will reduce mortgage payments considerably and avoid foreclosures.
Foreclosures Grow in Mortgage Market’s Top Tiers
December 10th, 2009 by adminNew data suggest that foreclosures are rising in more expensive housing markets. About 30% of foreclosures in June involved homes in the top third of local housing values, up from 16% when the foreclosure crisis began three years ago, according to new information from real-estate Web site Zillow.com. The bottom one-third of housing markets, by home value, now account for 35% of foreclosures, down from 55% in 2006. The report shows that foreclosures, after dying earlier this year, began to accelerate in the late spring and that more expensive homes have more recently accounted for a growing share of all foreclosures. “The slope of that curve in recent months is much sharper than it was recently,” said Stan Humphries, chief economist for Zillow. Rising foreclosures among more-expensive homes could create added pressure for a housing market that has shown signs of stabilizing in recent months as sales of lower-priced homes pick up. The Zillow research compared homes against the median values for their local market and broke each market into three tiers by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade. Foreclosures are rising in more expensive markets as home values in those areas fall, leaving more homeowners with mortgages that exceed the value of their properties.
Prime loans accounted for 58% of foreclosure starts in the second quarter, up from 44% endure year, according to the Mortgage Bankers Association. Subprime mortgages accounted for one-third of foreclosure starts, down from one-half last year. The prime classification includes so-called exotic mortgages that were increasingly derived to buy more expensive homes, including interest-only mortgages that allowed borrowers to defer principal payments during an dawning period. Borrowers often aren’t able to refinance out of these products because the drop in household values has departed them with little equity in their homes. Default rates are particularly high and expected to rise on option adjustable-rate mortgages, which allow borrowers to dig out minimum payments that may not cover the interest due. Monthly payments can grow to sharply higher levels after five years or when the outstanding balance reaches a definite level. A study by Fitch Ratings discovered that 46% of option ARMs were 30 days past due last month, even though just 12% of such loans have reset to higher monthly payments. Zillow estimated that nearly one in four homes with mortgages was desirability less than the value of the home at the end of June. Mr. Humphries said he didn’t expect to view foreclosure volumes level off until later in 2010.
Foreclosures Grow in Mortgage Market’s Top Tiers
December 8th, 2009 by adminNew data suggest that foreclosures are rising in more expensive housing markets. About 30% of foreclosures in June involved homes in the top third of local housing values, up from 16% when the foreclosure crisis began three years ago, according to new information from real-estate Web site Zillow.com. The bottom one-third of housing markets, by home value, now account for 35% of foreclosures, down from 55% in 2006. The report shows that foreclosures, after dying earlier this year, began to accelerate in the late spring and that more expensive homes have more recently accounted for a growing share of all foreclosures. “The slope of that curve in recent months is much sharper than it was recently,” said Stan Humphries, chief economist for Zillow. Rising foreclosures among more-expensive homes could create added pressure for a housing market that has shown signs of stabilizing in recent months as sales of lower-priced homes pick up. The Zillow research compared homes against the median values for their local market and broke each market into three tiers by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade. Foreclosures are rising in more expensive markets as home values in those areas fall, leaving more homeowners with mortgages that exceed the value of their properties.
Prime loans accounted for 58% of foreclosure starts in the second quarter, up from 44% endure year, according to the Mortgage Bankers Association. Subprime mortgages accounted for one-third of foreclosure starts, down from one-half last year. The prime classification includes so-called exotic mortgages that were increasingly derived to buy more expensive homes, including interest-only mortgages that allowed borrowers to defer principal payments during an dawning period. Borrowers often aren’t able to refinance out of these products because the drop in household values has departed them with little equity in their homes. Default rates are particularly high and expected to rise on option adjustable-rate mortgages, which allow borrowers to dig out minimum payments that may not cover the interest due. Monthly payments can grow to sharply higher levels after five years or when the outstanding balance reaches a definite level. A study by Fitch Ratings discovered that 46% of option ARMs were 30 days past due last month, even though just 12% of such loans have reset to higher monthly payments. Zillow estimated that nearly one in four homes with mortgages was desirability less than the value of the home at the end of June. Mr. Humphries said he didn’t expect to view foreclosure volumes level off until later in 2010.
Foreclosures Grow in Mortgage Market’s Top Tiers
December 7th, 2009 by adminNew data suggest that foreclosures are rising in more expensive housing markets. About 30% of foreclosures in June involved homes in the top third of local housing values, up from 16% when the foreclosure crisis began three years ago, according to new information from real-estate Web site Zillow.com. The bottom one-third of housing markets, by home value, now account for 35% of foreclosures, down from 55% in 2006. The report shows that foreclosures, after dying earlier this year, began to accelerate in the late spring and that more expensive homes have more recently accounted for a growing share of all foreclosures. “The slope of that curve in recent months is much sharper than it was recently,” said Stan Humphries, chief economist for Zillow. Rising foreclosures among more-expensive homes could create added pressure for a housing market that has shown signs of stabilizing in recent months as sales of lower-priced homes pick up. The Zillow research compared homes against the median values for their local market and broke each market into three tiers by value. Zillow then looked at the share of monthly foreclosures in each tier over the past decade. Foreclosures are rising in more expensive markets as home values in those areas fall, leaving more homeowners with mortgages that exceed the value of their properties.
Prime loans accounted for 58% of foreclosure starts in the second quarter, up from 44% endure year, according to the Mortgage Bankers Association. Subprime mortgages accounted for one-third of foreclosure starts, down from one-half last year. The prime classification includes so-called exotic mortgages that were increasingly derived to buy more expensive homes, including interest-only mortgages that allowed borrowers to defer principal payments during an dawning period. Borrowers often aren’t able to refinance out of these products because the drop in household values has departed them with little equity in their homes. Default rates are particularly high and expected to rise on option adjustable-rate mortgages, which allow borrowers to dig out minimum payments that may not cover the interest due. Monthly payments can grow to sharply higher levels after five years or when the outstanding balance reaches a definite level. A study by Fitch Ratings discovered that 46% of option ARMs were 30 days past due last month, even though just 12% of such loans have reset to higher monthly payments. Zillow estimated that nearly one in four homes with mortgages was desirability less than the value of the home at the end of June. Mr. Humphries said he didn’t expect to view foreclosure volumes level off until later in 2010.
Foreclosures Resume
December 6th, 2009 by adminArticles posted in both the Wall Street Journal and the Washington Post confirmed that, despite government efforts to keep people in their homes, banks have resumed their ramp up in foreclosures. The spike in foreclosures hit hardest in March as banks let moratoriums on foreclosures expire. According to RealityTrac, an Irvine, Ca. company that compiles statistics on and lists foreclosed properties, there were 341,180 filings across the country, an increase of 46 percent from March and 17% from April of 2008. The numbers represent the highest monthly total since RealityTrac began collecting foreclosure data in 2005. The filings can range in severity from default notices being sent to families being removed from their homes due to bank repossessions.
Foreclosures in the first quarter of 2009 increased by 9% over the last quarter of 2008 and by 24% over the same January through March period of 2008. Daren Blomquist, a RealtyTrac spokesman confirmed that “many of the latest filings represented lenders starting the foreclosure process on delinquent homeowners”. Many banks let their self-imposed foreclosure moratoriums expire once the details from the Obama administration’s “Homeowner Affordability and Stability Program” (HASP) were announced. With the details of the program in hand, the lenders could accurately calculate the foreclosure risks and determine whether struggling borrowers would be able to consistently make their mortgage payments after modifying their loans according to the guidelines of the HASP initiative. It’s likely that a high percentage of the most recent foreclosures were targeted at the homeowners perceived as the highest foreclosure risks, even under best case scenarios of a potential modification or refinance.
Purchasing Foreclosures: The Basics
November 12th, 2009 by adminIn this challenging economy there are many homes coming available due to foreclosures. As buyer, there may be opportunities to buy in your area as a result. You can purchase homes in foreclosure at different stages in the process. Properties can be bought before the foreclosure procedure is completed, at bank auctions, or homes that don’t sell at auction as REOs. All these types of sales can be complex to complete so be sure to hire an agent who has experience with your particular type of situation.
To avoid foreclosure, sometimes a home owner will accept a buyout on their property for less money than is owed to their lender. This practice is called short selling because the owner is selling their property for an amount short of what is owed on it. Sometimes this happens to avoid foreclosure, though it can also happen in the case of fallen property values. Be aware that short sales can take longer than regular sales to close.
Other ways to buy foreclosures are to buy at a public auction or buying bank owned or REO properties. These properties are often priced for less than what is owed on them because the bank does not want to hang on to a bunch of properties. These bank owned properties cost the bank money, so it is in their best interest to clear them out as quickly as they can.
In some cases when these kinds of properties are bought, they may come with tenants who have refused to move or angry tenants who expressed their anger with property destruction when they vacated. Be aware that these are your responsibility to deal with as the buyer, if these possibilities are more than you want to deal with then foreclosures might not be the best option for you.
Do not think that buying distressed or foreclosed properties means easy money. There can be many stresses in purchasing real estate, particularly if you are not prepared for the possibilities that may occur. The best way to make your way through purchases of distressed properties is to ensure that you are as informed as possible and that you have an agent or lawyer working on your side.
Spend Less of Your Hard Earned Money When You Buy A Bank Owned Property
November 11th, 2009 by Lewis CulbreathToday’s economy has changed our lives in many ways. Most of us have had to cut back on the things we were accustomed to having and doing. Many people have lost their jobs, their homes, their cars over the past few years. Unfortunately for many, this has meant moving into a rental property or finding another living arrangement. While this has been terrible for so many families and individuals, many have been able to afford buying a house for the first time in their lives. Bank owned homes are providing buyers with great savings.
Bank owned properties were once owned and lived in. For some reason, the owners were unable to make their monthly mortgage payments and the bank had to take the house back. This is a very long process for the bank to have to mess with and when they have to foreclose on a home, they want to get it back off of their hands as quick as they can.
When people can’t make the payments on a property, there is typically a list of things that happens. When one payment is missed, typically the bank will begin sending letters and making phone calls to the property owners to find out why payment has not been received. If no contact is made in a relatively short period of time, the bank begins to get concerned.
Depending on how long the home has been under a contractual agreement and payments have been made may have something to do with how long the bank will go without payment on the property before beginning foreclosure proceedings.
If the issue is longer going, they will work to try to get a home refinance loan for the owners so that they can get current on all mortgage and other debt payments. This will extend the loan but may actually reduce the monthly interest rate.
When this can’t be accomplished, the bank has no other alternative but to start foreclosure proceedings. It’s the very worst thing that can happen to you as a homeowner and the bank is not very fond of this either. It costs them a lot of money to deal with the logistical and legal issues involved with foreclosure. Many times, when a homeowner knows they are going to be foreclosed, there may be issues with destruction of property, as well. The bank will then lose more money, getting the home back in order.
You as a prospective homeowner could not find a better time to purchase a home. The banks that have to take possession of a home again are in a hurry to get the property off of their hands. Time is money, especially when it comes to having a foreclosed property on their hands. They will deep discount the houses just to get them off the market, most of the time. This is your time to wheel and deal.
If you’re going to buy a bank owned property, make sure that you hire your own home inspector to go over the house thoroughly. Make sure it is worth the asking price and don’t be afraid to bargain with the bank!
If you are looking for a cheap home that you would love to buy for your family, you should look at bank owned homes. These house are all bank owned homes, foreclosures, bank owned property listing, and are really cheap.
Florida Foreclosure Fraud Protection Law Enacted – Foreclosures / Mortgage Loan Modification
October 25th, 2009 by adminFrederick A Neustein, an attorney with the Law Offices of Charles L Neustein PA and www.StopForelcosureLawyer.com respectfully submits the following:
Florida Foreclosure Fraud
