Foreclosure and Short Sales News

Archive for the ‘Foreclosure’ Category

When a home owner is in default and their home is going to be foreclosed on, having exhausted all other options, the last resort would be a Deed In Lieu. A Deed In Lieu Of Foreclosure is a transaction in which the home owner grants ownership of the property back to the lender as their mortgage payment. The equity of the property serves as a mortgage debt payoff. The home owner no longer owes anything to the lender.

A Deed in Lieu is specifically designed to allow a homeowner to give a clear title back to a lender. This is allowed by a lender if a homeowner cannot afford to go forward with the payment of their mortgage. The deed-in-lieu however, may be better than a full foreclosure process because it shows that you are willing to work with the lender. It gives a future lender some evidence that they can negotiate with you. That is not much, but it is like making a good first impression.

Is a Deed In Lieu a good way to go?

A Deed in Lieu can be a Win/Win situation for both the lender and the homeowner. A lender spends thousands of dollars to obtain a foreclosure, such as title reports, advertising, legal fees, sheriff fees, and the list goes on and on. If the property does not sell at a foreclosure option, the property must be assigned to a Realtor to sell and the fees just keep adding up, along with the fact that the lender is not receiving any money during this time. If the lender decides to accept a Deed in Lieu, they may be able to save a great deal of these costs, thus being able to have a clear title at a much earlier stage in the process. When this type of solution is accepted by the lender, this allows them to have a clear title to the property, which means they do not have to foreclose.

A homeowner can also benefit greatly from a Deed in Lieu. If a Deed in Lieu is accepted by the lender and clear title is achieved, the lender is not able to sue the homeowner for any fees or deficiencies they may not have collected from the homeowner. In a large number of states a Deficiency Judgment is allowed by law. Technically speaking this means that if a homeowner owes more on a home than a lender is able to obtain in a foreclosure sale, they can sue the homeowner for the difference

Example: A homeowner owes $150,000 on their mortgage, $20,000 in back payments, and another $10,000 in legal fees. Now they owe $180,000 and the lender has foreclosed. The home sits on the real estate market for six months before being sold again racking up another $10,000 to $20,000 in interest lost to the lender.

Also, the lender may have had to spend money to refurbish the property before putting it back on the market. Those costs vary and can drive the costs far above the market value. Before you request a Deed In Lieu from your lender visit ShortSaleHoldings.com and see what a short sale can offer you.

Is your home in foreclosure? Do you need help to stop the foreclosure?

Is your family suffering from a foreclosure on your home because you are behind on your mortgage payment? Most foreclosures are a result of the inability to make your mortgage payments, caused by an unexpected life event such as:

• losing your job
• expensive medical bills your never thought you would have
• increased utility and gas prices
• a natural disaster

Whatever the difficulties you are having, all you are wanting is to save your home. You have talked with the lenders but there not wanting to help you and they are wanting to much money the you don’t have. You have tried the loss mitigation program but you were denied the help that they offer and now you are wondering where do you go now. and how can you get help on not only saving your home but also saving your credit as well. thats where short sales come in at it a great way to save your home and your credit.

What is a Short Sale?

You ask yourself, “What is a short sale?” Well let me tell you about short sales. A short sale is typically faster and less expensive than a foreclosure. Short sales are a way to stop foreclosure on your home. What we do is contact the lender and buy your home for less then what is owed on the mortgage. The lenders will be willing to go with a short sale because banks don’t like to have bad loans on their books such as a foreclosure. So when they see an opportunity where they can get rid of these loan(s) without a huge loss they are going to go for it. Lenders know that they can lose a lot of money.

How Do I Get a Short Sale?

You ask yourself, “When should I get help with short sale?” Once you have received a notice that your home is going into foreclosure, this is what you you call a pre-foreclosure. The first thing you do is contact your lender to see if there is a way to get back on track with the payments that you have to make on the mortgage. If they will not let you, then the next step would be loss mitigation, which is a third party negotiating with the lender on your behalf. If you get denied for loss mitigation services, that is when you would turn to the short sales.

For a no-obligation, personal analysis of your situation, register to speak with our short sales specialist at Short Sale Holdings.

While the general population looks at foreclosures being a bad thing, new home buyers and investors are reaping the benefits. Housing prices have increased sometimes 3 or 4 times the property value in previous years and sometimes even more. That drove prices up to unreasonable levels.

Now since the recession started, housing prices are falling to more respectable levels. Many homes are being priced closer to their actual value. This reduction in value increases property sales because more home buyers can afford to purchase the homes.

While you may be going through foreclosure, keep in mind that you will move into more affordable housing. Your loss is a gain for our struggling economy by keeping others spending and putting money back into the system, helping it to continue moving. When an economy stops moving, fewer people buy large items like automobiles, factory upgrades, farm equipment and real estate.

We can stop foreclosure on your home by purchasing it and passing that property on to someone who can afford it. You will start again with a lower-cost home, then advance once again when your personal finances rebound. Foreclosure is a minor setback from which you can recover. When you do, you feel good about yourself again.

Take the first step to let us help you start your journey to financial recovery. Request a free consultation at ShortSaleHoldings.com.

As soon as you know your mortgage payments will be late, call your lender right away and request to speak with someone from the Loss Mitigation Department. This is the department that particularly handles foreclosure properties. Explain why you have missed on your monthly payments especially if you’ve been through difficult circumstances.

Know your options

Usually, you may request for some options to stop foreclosure. One option would be to ask for Forbearance. This is where your lender can waive some fees on your debts to help you keep up with the payment.

Loan Modification

Another option would be Loan Modification. A Loan Modification is much like Loan Refinancing but instead of going through the re-application process, your lender can grant you a new loan without re-applying. This can save you money from application costs and it greatly speeds up the loan processing.

Loan Reinstatement

If you want, you can also request for a Reinstatement. With a reinstatement, your lender will give you an extended period to submit all the payments you’ve defaulted. However, a reinstatement requires you to pay your debts in full.

These are just some of the adjustments on your mortgage loan that you can ask from your lender. Of course, it would depend on your lending company which one of these options they would prefer. Just remember that these are just temporary options to buy you more time for repayment before the actual foreclosure. See to it that you’ll be able to come up with the solution to secure the payments you need.

Sell your home

If you see that there is no way you can afford the amount you need to repay your mortgage in time, you still have the choice to sell your home before your lender forecloses it. You need to be aware about the risks of dealing with foreclosure scammers or home buyers who are simply out to take advantage of you.

As much as possible, make sure that the purchase price you will put into your property will be fair enough for its market value and that you would have enough money to pay off the debts you have defaulted on. If you are going to sell your home, it is better to begin with as much time as possible before your lender files foreclosure. This way, you will also have more time to come up with a better deal from a buyer.

Study contracts carefully

Before you sign up any agreement, especially if you are selling your home, remember to scrutinize every detail included in the contract. Do not sign a document that has blank spaces or blank lines.

If the buyer promises to pay back your default, saying that all you have to do is sign over your property title, do not sign the agreement. That puts you at great risk of the buyer not submitting any payment to your lender at all. He can lease your property to someone else and keep the money until your lender forecloses on your home. Also remember that you do not pass accountability for your debts just by signing over your property.

The Short Sale Option

If you are unable to stop foreclosure within a few weeks before the sheriff sale is scheduled, you may be eligible for a short sale. An investor will offer to buy your home. Once the purchase agreement is signed, the foreclosure is stopped. You will of course, still have to move, so start packing.

Short sales are a better option than having a foreclosure on your credit record. They can save you the embarrassment of having a foreclosure sign in your front yard too. Get a free consultation and speak with a short sales specialist to discuss your options.

To learn more about short sales and request to speak with a specialist about your options, visit ShortSaleHoldings.com

Article inspired by Meadow Free Press

Home owners who are hopeful about having their delinquent mortgages renegotiated to stop foreclosure may have to wait. Instead of losing a large portion of the loans, lenders are delaying the resolutions in hopes that they will get more of their money back when the government

Lenders are misplacing or “losing” paper work, changing case managers and finding other excuses not to negotiate.

The problem is speculated to be the lenders believing that President Elect Obama, in his desire to help homeowners in trouble, is going to do something that will help the lenders and investors get more of their money from properties threatened with foreclosure. For example, the Obama administration could decide to buy up the mortgages at a rate as high as 80 cents on the dollar.  That would produce some losses for the lenders, but not as much as they might get from renegotiation.

The general opinion is that the new administration will start with a six-month moratorium on all foreclosures while they decide how to stop foreclosure. That will help stall evictions temporarily. While these delays help home owners facing foreclosure, it is only a temporary delay and one that will continue to force loss mitigation companies out of business.

After the delay, the foreclosure proceedings will resume and depending on the package our new administratin puts together, may or may not help some home owners. Many will still be at risk of losing their homes. If the income is not there, or is insufficient to cover the mortgage payments, then the home owner will lost the house anyway.

After all the waiting, a short sale may still be the best option for those whose income is insufficient to make the mortgage payments, even after the arrearages are either renegotiated or purchased.

Think about that a second. If the government buys the mortgage, they will own the home, giving them even more control over you. If you will have to sell or let the home go to foreclosure, do yourself a favor and sell it short now. You will save your credit rating so you can still get another home that you can afford.

To speak with a real estate consultant about your options, visit ShortSaleHoldings.com