Category Archives: Foreclosures

The Best Way to Beat Foreclosure – Trust Yourself

Do homeowners take precaution to prevent their own foreclosure? Well one should always take precaution by hiring their specialized loss mitigation or trusted attorney; you can also go for foreclosure companies. You should also be aware of scams and other important aspects of how foreclosure works.

There are many stories about how people get into false home foreclosure. In this case you should always trust your instincts and do the research properly through web and also by reading the flaws of the agreement before you sign the documents. People many a times are carried away by the work of a company who is providing the home loan and does not bother to go deep into the flaws of the agreement and here they make mistake and land up in great trouble.

There are cases where people wants to consult the first person they talked to while their loan were sanctioned, however some how you feel that the person you spoke earlier seemed to be very intelligent and understands the situation that you are in and everything is going to fall in place without any problems. These are nothing but manipulation; they talk in such confidence that you don’t even realize that you are manipulated by the scammers false appearance of law.

That is the reason why you should trust your instincts when ever there is help offered by the loan companies. At times you are unaware of the fact that you are wasting time in false commitment which would later put you in great trouble. This can be very frustrating with no help because not only the money you are losing but also the valuable time which is also increasing the interest and the late fees.

Home foreclosure is a legal process, how can you prevent them? Simply trusting your intuition and following the basic procedures related to home foreclosure. Borrowers should know that lot of federal and state laws are involved in foreclosure, hence if any of the laws are not amended then the entire process might not be considered valid.

However there are borrowers who don’t even know the basic of foreclosure works. But they would trust the first person who seems to help the borrowers, there are lot of information on the book, papers, even in internet how you miss a payment of your loan and how you can deal with them. So it will be better if you take help of these free resources.

Helpful tips on how to avoid Foreclosures

Nobody plans it thus nobody wants it to happen. Just like unwanted events in family life, losing the house is considered as the most dreadful. Home foreclosure is the last thing you want because this entails auction of the property to recover the investment made by the lender. But it’s not always enough to cover for the total investment hence deficiency judgment could be filed against you.

Reasons for foreclosure: Too much debt obligation, medical emergency and sudden loss of a family member, marriage break up which resulted to loss of secondary source of income, unexpected employment, and the inability to settle adjustable interest rate which increased dramatically.

So here are some helpful tips to avoid foreclosure:

  • Repayment Plan: This is only applicable if there are few missed payments. If your lender agrees, through this you will be able to spread out missed payments for a longer term.
  • Note modification: This is applicable for adjustable loans. You can make an arrangement with your lender to modify the interest rate which will be more manageable for you.
  • Refinance: This is a way to increase your loan balance so you can add back payments then re-amortize your loan. This is applicable if you have enough home equity.
  • Take advantage of forbearance: This is a form of agreement between a borrower and a lender giving more time to wait for repayment. Talking to your lender explaining that you are going through hard times explaining your situation bad I hope if the house was acquired in good faith then there becomes some sort of good alliance between you and your lender. This is better than ignoring notifications sent by your lender which could signify your intention not to pay.
  • Debts forgiveness: Again good communication matters, although it rarely happens, this is a good way to ask your lender to give you more time to repay your mortgage loan. It simply requires that you make a commitment of making succeeding payments current.

Prior to foreclosure, the lender files a Notice of Default against your property. This is a form of public notification which could impair your good credit standing. Always remember to update your lender about the possible date of your repayment. In most cases, lenders become unwilling to negotiate once foreclosure procedures have initiated.

Some other means to deal with foreclosure include selling your property, considering a short sale. Be smart in selling your property by reaching out to expert sellers and obtaining some tips to get the best offers. Short sale applies when the price of your home is less than that of the money you owe. Whichever of these two remaining options you choose, you are bound to lose your home. Well, at least you are not ending up with bad credit.

Know more about Foreclosure from this article: http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure

Recession leading to continuous foreclosure and bailout

Due to the economic recession, foreclosure crisis and huge costs for the financial bailout, the federal deficit has shoved to a record high of the budget year’s first four months.

The treasury management announced that the deficit from October 2008 to January 2009 amounted to $569 billion and this is more than six times compared to the imbalance during the year age period. In January alone, the deficit amounted to $83.8 billion, which was worse than what the economists predicted. It was something close to $78 billion. The administration had to rush a surplus of $17.8 billion last January 2008.

Recession has taken such a gruesome effect mainly because of the decline in the finances of the government that sliced into tax revenues, foreclosures, as well as huge amount of money being used from the Congress’ $700 billion financial rescue plan passed last October. An estimated 75 percent of the increase in deficit was attributed to the spending on the bailout program.

The budget year is going to happen in a few months from now, and the deficit has already exceeded the projected amount causing a disparity of $454.8 billion which is the full-year record.

The Congressional Budget office predicts that the deficit will strike up to $1.2 trillion. This is excluding the cost of the economic stimulus plan pushed by the US president guiding the Congress to immediately approve to fight the housing foreclosure and economic recession. Some private economists are forecasting that the deficit will go up to $1.6 trillion.

The Treasury secretary unveiled a revamp of the bailout plan, delineating changes on how the administration intends to utilize the second $350 billion. These initiatives would bind the bail out funds to assets at the private sector and the Federal Reserve to amplify lending initiatives by as much as $2 trillion. The administration is also planning to utilize the $50 billion from the bailout fund to release new government initiatives to fight the recurring mortgage foreclosures. New strategies have been initiated by the Housing and Urban Development Department with the help of housing group representatives and top bank executives to restructure the new programs and combat foreclosures.

Foreclosure listing as an investment opportunity

When discussing about foreclosure, there are two groups of people to be categorized. There is one who group is trying to stop or going through foreclosure. And there is another group who takes foreclosure as the best opportunity to do real estate investment.

No matter what category one falls in, everyone is aware about the scary and saddening part of foreclosure process. The foreclosure process is cruel and hard to believe. People who are in default in their mortgage payment lose their home in an overnight due to their imbalance financial status. Houses will get repossessed as it acts as collateral against the loan and banks will auction the property to the public to get their money back.

Foreclosure activities are growing rapidly throughout the country. People are getting panicked due to this situation and start thinking on the bad side of the economy. This is one way to think about this situation but there is always another way to think about this situation. This may be the good chance for investment. Foreclosures are happening all throughout the country and many good deals can be made out of it. The key thing in this scenario is to identify a good deal in this shaky market.

Most of the investors will go through the real estate listing where they will find list of all the foreclosed properties. Foreclosure listing will help to identify the condition of the property, tax history, exact location, loan information etc. You can easily access this information without having to go to the court house or the banks and pay a minimum surcharge for it.

You need to have a lot of skill in identifying a good deal in the foreclosure listing. Usually people will search a property in a wider scoop first. First they will search their kind of property in the state, then in that specific city and then scale down the search to the street name. The good deal comes where the foreclosure house is exactly located.

You can easily make a margin of 35% on the foreclosed house. Foreclosures are sold based on the remaining loan amount rather than the market price. Therefore, this is another consideration point in picking up a property. Try to find houses with lower debts owed. There are many theories about the foreclosure investments. It is easy to learn about the investment if you give a try. Browse through the internet and get more information. You may sign up one or 2 free trials of the real estate listings. You will get the feel of investing in foreclosure but do not get your head too hot as foreclosure investment does involve risk too. If you could make it for the investment, foreclosure will not be recession to you. Instead, a new stream of pipeline awaits you. Is foreclosure recession or a chance to invest? It varies people from people.

Effective ways to stop a possible foreclosure and save your home

If you are a homeowner and you have been missing your mortgage payments, thoughts of foreclosure can make you sick to your stomach. There are certain things you can do to stop a possible foreclosure. You need to act fast the moment you realize that you have started facing problems in making your mortgage payments to your lender. If you can act fast, you will find a number of solutions to resolve the problems. Call your mortgage lender or look online and search for the different ways to stop foreclosure.

One of the best ways to stop foreclosure is by going through a refinancing option. You will be able to refinance your mortgage if you have a good credit. You might get some added benefits if you are considering the refinancing option. You will see the mortgage rate going down and if there is a second loan, it can be added on to the new loan.

 

 

Another option to stop foreclosure is by going for a loan modification program. The remaining unpaid balance will be added to the end of your loan. The only drawback in the loan modification program is that your new monthly mortgage payments will get slightly higher. This will remain till your loan amount is paid back in full. You will see the benefits you are getting in the loan modification program depending upon the unpaid balance of the loan amount before the loan is modified.

If the above options don’t work, then you may put your home in the market for a short sale. The mortgage company will need to do this for you. The lender will reduce the price of the home dramatically to make it very hard to pass up for potential buyers. Foreclosure will say away from your credit report, but you might end up owing the remaining unpaid balance.

You will have to look into your financial situation and analyze which option works the best for you to stop foreclosure. The key to success is to act fast and figure out the best possible option at the required time. Research and compare the best possible foreclosure services in the market. You will be able to find the best possible option that works according to your present situation, plus you get cheaper and quick options. You may need to consult a specialist who can work in your case and stop foreclosure. This way you will get specialized advice and better results in a short span of time.

Is it possible to make money in the foreclosure business?

Yes, it is possible to make money in the foreclosure business. The key is to know the strengths and weaknesses. First time investors will more often face the problems in assessing the market value of the property towards which they are interested. Experienced investors do not run through the same problems because they usually have all their property valued close to the same amount (3% variance). They will use local multiple listing service comparable sales, Title company comps and experience and experience to come to that value. It is important to know the value of the property. Because if you are not aware of the price it will be sold for on the open market, you will hardly do anything with that property.

The second important issue is to know the laws in your state. If you are interested towards purchasing a property but due to not knowing the laws fairly of that state, you might fall into serious legal troubles due to structuring an illegal deal. Every state has its own laws that determine what you can or cannot do if the borrower has defaulted in his monthly payments. Do your homework and know if the particular state uses mortgages of trust deeds and the legal time frames and implications of each.

Third issue is the money. It certainly helps to make a good deal if you have the monetary back up. But what happens if you are falling short of finance and you don’t want to miss the property that is getting sold. It is important that you have a strong financial back up to be able to find properties and keep track of it, cover on going office type expenses etc. Even if you don’t have the money but you know someone who is ready to invest, that’s also a good deal.

The fourth issue is the knowledge. Federal tax liens, partial interests, leased land, property information wrong, unpaid property taxes and wrong common descriptions are all things that have hurt investors. You should not be investing in foreclosures if you don’t know how to check the following things.

Making money with foreclosures

Most of us have always heard about this hype of making huge amount of money with real estates. If you are really interested on this, the difficult part is to know how to separate the hype from the reality. Perhaps, you might have heard about making money from buying property that are foreclosed or repossessed by the bank. You think of buying it for a lower amount and then wish to sell it at a higher profit. The question comes whether this is a feasible way of making money in the real estate market? Yes, absolutely. It’s a nice way to get started.

Never buy this idea of going into a business of buying a foreclosed property with the thought that you can put a coat of paint on a house and sell it at a high profit. Think of the fact that when a house is going through a foreclosure, the reason behind it would be that the owner of the house was not able to keep up with the mortgage payments. It might also mean that the owner could not meet up with the costs of home repairs and regular maintenance. Before you buy a foreclosed home, check the condition of the property and think whether its worth to put your money on it. You may be able to buy a foreclosed property at a very low price but consider some other important facts like the maintenance costs when you are trying to sell, repair costs, and the neighborhood the house is in. What seems to be a great deal in the beginning might turn out to nothing more than a money pit after some time.

The other thing that you might want to consider is whether you should sign up for the services that will keep you updated with the list of foreclosures on a regular basis, or you want to do the research by yourself only. A reputable company that offers you the list of foreclosed properties will save you enough time but they are not going to offer such services for free. “Reputable” is the keyword here. There are several online advertisements, promotions in the newspaper or even on the television that will say that you will become rich through their foreclosure programs or lists, but the unfortunate fact is many of these companies do not deliver what they promise. It takes a lot of time, patience and tremendous amount of investigation to find a reputable company. Most of the time, you will find out that the list provided by these companies are outdated and after giving a considerable thought, you will realize that you could have found these foreclosed properties on your own in a much more timely, and less expensive, manner.

The best thing will be to call your local banks or mortgage companies and ask if they have the list of their foreclosures. You may find that everyone will not be willing to offer you the list because they don’t know anything about you. But if you present yourself in a professional manner, they will be happy to work with you.