'Foreclosure' Category

Although analysts expect an improvement on the economy soon, the mortgage crisis is delaying our economic recovery as more homeowners lag behind their payments. But the large number of homeowners who are in default or in danger of foreclosure will have a lasting effect on the wider economy. Last Wednesday, the Mortgage Bankers Association said that more than 10 percent of homeowners with a mortgage failed to pay in the period of January to March. [...] Read More

There is a big difference between Foreclosure and Pre-Foreclosure. Foreclosure is the time after an auction or sale has taken place and the bank owns the property. Pre-Foreclosure is the period of time before the sale or auction and the homeowner still owns the home. [...] Read More

Your lender gave you a mortgage when you took out your home loan. So if you fail to pay your loan according to the terms of the mortgage, the lender has the right to start the foreclosure proceedings. One of the ways to avoid or delay the foreclosure of your home is by seeking bankruptcy protection. Bankruptcy may help if you are facing foreclosure and cannot work out a deal or any other alternative with your lender. The foreclosure process as I have already discussed in my past posts doesn't happen overnight. The process typically starts after you fall behind on your payments for at least two months. So that gives you time to try some other measures like reinstatement, forbearance, selling the home to a cash buyer or a short sale. But if you have tried and failed with these other measures then now is a good time to consider bankruptcy as a possibility for stalling or avoiding foreclosure. [...] Read More

If you owe more than your home is worth and don't want to face foreclosure or declare bankruptcy, then a short sale of your house is the best option. Short sales are a way for homeowners to avoid foreclosure of their homes and still be able to pay off their loan by settling with the lender. The catch though is that in order to successfully conduct a short sale, the lender that is foreclosing has to agree to it; in essence agreeing to accept less money than it is owed on the loan secured by the house. Selling a home by a short sale is a legitimate method for stopping the foreclosure process, allowing the homeowner to get on with life without much damage to the credit record. [...] Read More

A quick sale to a cash buyer can help you avoid the foreclosure and all the hassle involved with a foreclosure, if the property is worth more than the amount owed on your mortgage. Losing a job, medical bills and other life-altering occurrences can happen to anyone, causing homeowners to fall behind on loan payments. Each day that passes makes it harder to work out an agreement that you and your lender can live with. As time goes by, thousands of dollars in penalties and legal fees can be added to the balance you already owe. And extra interest is added every single day! [...] Read More

Another way to stop foreclosure is by working out a forbearance plan. A forbearance plan (also known as a workout plan) is an agreement a borrower makes with the foreclosing lender to repay the arrears or the amount of money the borrower is behind. It means you are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. If in agreement, you lender will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced income loss or a sudden living expense increase. [...] Read More

There are a lot of strategies out there for stopping foreclosure. And in my next posts I am going to show you 5 powerful strategies to stop foreclosure in 48 hours or less. As I have stated in my past posts, a foreclosure is what happens when you have gotten behind on your mortgage payments. But if you already have the money to meet your mortgage balance and also make up all of your back payments then you are able to stop the foreclosure. Again, the important thing that you have to do throughout this process is to stay in contact with your lender and to be honest with them about your current situation. [...] Read More

Financially, foreclosure is one of the most traumatic things that can happen to a family. Foreclosure is the forced sale of your home (or any other property) due to the fact that you no longer have the resources to pay for it. If you have a mortgage already or if you are looking into buying a new home and would like to avoid foreclosure, one of the best strategies is to get your finances in order. There are many homeowners who are facing foreclosure right now and they dread dealing with the facts that got them to that state. Looking back when they first bought the home, foreclosure was probably the furthest thing from their mind. [...] Read More

In the real estate world we always hear and use the term foreclosure. In the current state of our economy, foreclosure is all over the news. In simple terms, you know that it means losing your house because of not paying the mortgage. But actually, foreclosure is the last step of a long process where the lender tries to get the money you borrowed from them. So what happens during the foreclosure process? It all starts with pre-foreclosure. The lender will send a late payment notice once a person misses the first payment. If the homeowner ignores this notice then continues to miss another payment without contacting the lender, then another payment request will be made. The lender may then make a demand for a payment in full if the homeowner still does not contact the lender. In most standard mortgage contracts this is stipulated under the acceleration clause. The homeowner will not only owe the balance of the mortgage but also any late payments, legal fees and late fee penalties. The bank will not accept anything other than full payment once the acceleration clause has been evoked. And then the formal foreclosure process begins. [...] Read More