We buy houses Stop Foreclosure Articles: September 2009,Stop foreclosure articles

We buy houses Stop Foreclosure Articles

Wednesday, September 23, 2009

Refinance can stop foreclosure

What is Refinancing?:
Step by step guide to get refinance help:
Various Government Programs:

What is refinancing?

In simple terms, refinancing is a process wherein a borrower or homeowner takes a new home loan to pay off existing debts. Refinancing can help homeowners to stop foreclosure and settle the foreclosure process.

If you follow this step by step guide you can get refinance help

Contact your mortgage lender as soon as possible. The sooner you contact them, the more likely they will be ready to help you refinance.
If you're mortgage lender is unable to help you, visit U.S. Department of Housing and Urban Development Website. You can find information on legitimate housing agencies in your area who will help you refinance
Contact a local housing agency and make an appointment with a housing counselor. Tell the counselor that you want to apply for Hope for Homeowner's program or any other government program. This program will help people refinance during the foreclosure process.
Get all the documents that your counselor requests. Some of them are pay stubs, proof of mortgage and assets. Your counselor will tell you whether you qualify for any government program.
If you are approved for the program, talk with your lender or counselor about new loan terms. Once satisfied, sign the necessary paperwork.

Various Government programs

Making Home Affordable Program:

Federal government's plan, making home affordable program, helps those who are in need of refinance. This program is good for those homeowners who are struggling to make their monthly mortgage payment because of an interest rate increase.

Hope for Homeowners Program:

Federal government has another program named as Hope for Homeowners Program. This program helps homeowners to refinance their current mortgage to stop foreclosure. This program is basically designed for those who have FHA or VA home loans currently

Homeowner Affordability and Stability Plan:

Another federal program is the Homeowner Affordability and Stability Plan.

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Tuesday, September 22, 2009

General idea about foreclosure

Reasons as to why homeowner can't pay mortgage dues:
Ways to stop foreclosure:
Stages in foreclosure:

From past few months, many distressed homeowners are facing foreclosure crisis. There are a few happy homeowners who do not have any problem with their mortgage payments. But in case if problem arises, it is better to know how to solve the problem. Every borrower should know the procedure of foreclosure. How does a foreclosure work?

Reasons as to why homeowner can't pay mortgage dues

For beginners, foreclosure is the repossession of a property by a mortgage lender because the owner failed to fulfill his mortgage payment obligations. Some of the reasons why a homeowner is not able to pay monthly mortgage dues are as follows:

Loss of Job
Serious health problems
Divorce
Death in the family
More unwanted expenses

Ways to stop foreclosure

A homeowner can stop foreclosure if he does any of the following:

Refinance
Re-installment
Forbearance
Equity
Short Sale
Deed in Lieu of Foreclosure
File for Bankruptcy
Foreclosure Loans

Stages in foreclosure

There are different ways to avoid foreclosure. The homeowner can negotiate with the lenders. This basically depends on what stage of foreclosure the owner is. Generally there are three stages

Pre-foreclosure
Foreclosure at auction
Bank foreclosure

Do remember that borrower has a right to stop foreclosure till the last stage. Many homeowners or borrowers do not know their rights and so give up when they receive a Notice of Default from lenders. They refuse to speak with lenders.

Owners should comprehend the situation and make decisions realistically. A homeowner does not want foreclosure record in their credit history, so they should fight to avoid foreclosure problem.

Labels: General idea about foreclosure

Thursday, September 17, 2009

Various options to stop foreclosure

Refinancing:
Short sale:
Hard Money Lenders:
Bankruptcy:

When mortgage lenders call distressed homeowners they get worried and start panicking. Homeowners think they can’t do anything and so they wait for eviction notice.

But if they think properly, various options are available to solve this problem.

Refinancing:

Homeowners should not be worried about the letters that they receive from the lender. Instead, they should speak to lenders and convince them to refinance or restructure their existing mortgage loan. This can save homeowner’s house and avoid foreclosure problems.

Short sale:

This option is becoming popular. Lenders will agree to sell the home based on the current market value. If loan amount is bigger than the proceeds, difference would be paid by the homeowner plus corresponding taxes.

Hard Money Lenders:

You should be very careful while selecting a hard money lender. You may be charged higher-than-market interest rate and stricter payment terms. If you’re planning to choose this option, make sure you can afford it.

Bankruptcy:

This is the last resort which homeowners think because it goes down on your credit report. You should consult a bankruptcy lawyer in order to find out whether a Chapter 7 or Chapter 13 will address your needs.

You should choose these foreclosure options only after you have tried everything like cutting back on expenses, looking for extra income, borrowing money and also selling some of your stuff.

Labels: Various options to stop foreclosure

Tuesday, September 15, 2009

How to stop foreclosure lawfully?

Introduction:
Legal steps to stop foreclosure:

Introduction:

A distressed homeowner can face foreclosure problems due to various reasons. Whatever be the reason, his ultimate goal should be to stop foreclosure. Foreclosure laws can differ slightly due to the place you live. To stop foreclosure, you should find solutions that are both legal and effective.

Legal steps can stop foreclosure:

Here are some of the legal solutions that can stop foreclosure crisis:

Try to negotiate with the lender:

If you speak with your lender they will provide you several options to avoid foreclosure. Some options include refinancing, reinstatement or forbearance. Before speaking to your lender, do access your financial status. You will be in a position to negotiate with your lender in a better way if you know how much you can afford to pay in mortgage dues.

Consider selling:

If you know that you can no longer afford your house, the best solution would be to sell your property. After paying your mortgage debt, you might have some money to start off all over again. You can go in for short sale if your home equity is insufficient to settle your mortgage loan.

File for Bankruptcy:

If you don't have any solution, file for bankruptcy. Based on your financial conditions, you can choose between Chapter 7 and Chapter 13. But if you follow this method, bankruptcy record will appear in your credit record for nearly 10 years. In United States, credit records can be obtained from Equifax, Experian and Trans Union.

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Friday, September 11, 2009

Short sale can stop foreclosure

Introduction:

What is short sale?
Documents required for a short sale:
Other information:

Introduction:

One popular option to stop foreclosure is short sale. An agreement between distressed borrower and lender can stop foreclosure and save both parties inconvenience.

What is short sale?

When lenders agree to do short sale in real estate, it means the lender is accepting less than the total amount due. In simple terms, a short sale means that the lender is ready to accept an amount that is less than the homeowner owes in mortgage debt. A lender does not want foreclosure to happen but if he does not it means greater financial loss.

Documents required for a short sale:

Homeowners have to prepare necessary documents required for a short sale. Important documents required are as follows:

Hardship letter
Statement of Assets and Liabilities
Preliminary Net Sheet
Bank Statements
Purchase Agreement
Comparative Market Analysis
Listing Agreement

Other information:

If you're finding it difficult to prepare documents, hire a real estate agent. A homeowner cannot proceed with the sale if lender does not accept certain documents like termite inspection and home protection plan. Stop foreclosure means losing your home. Before choosing such an option, it would be better if you speak to the lender if loan modification or repayment agreement is possible so that you do not lose your home.

Labels: Short sale can stop foreclosure