Foreclosure and Short Sales News

Posts Tagged ‘prevent foreclosure’

Police officers in Georgia are being encouraged to find foreclosed houses to buy. This initiative aims to prevent crime by placing officers in areas severely affected by the foreclosure crisis. Read More...

Selling your home is a sure way to stop foreclosure pure and simple. The problem is that selling a home in the traditional manner takes time and that is the one thing many of us don’t have. That is why using a lease option is a prime way to satisfy your eminent time situation. It works. It’s safe. But…there is something to consider.

With a lease option, a home can be sold in days and not weeks. That is the beauty of selling with this tool, however, if the current situation is that you are behind on payments, you may be running out of options to use this valuable tool. Here is why.

Unless there is an amount of cash set aside to make back payments, the option consideration can and usually is used for this purpose. Since the option consideration is based on the sales price there is a limit on how much immediate cash can be obtained. That means if the amount of back payments exceed the amount that can be collected from option consideration, then the outstanding balance must come from the homeowner’s pocket. How much can you spare?

The thing to take away here is that time is the essence. If a homeowner waits too long in hopes that something changes financially for them, they will lose any saving option for their home and their financial future. Facing a foreclosure is a stressful time, and inaction based on hopes often leads to disaster which is why selling that home becomes imperative. A decision needs to be made and quickly.

This article is not intended to breed fear. Far from it. The intent here is to show that there are options and the lease option can come to the rescue if action is taken in time. The trick here is to take charge now and utilize the lease option in a directed and safe manner that will ensure your home does not go into foreclosure while you are putting money in your pocket. Not only is it possible, but it is done all the time.

You can save your home from foreclosure. If you need to sell, then make that decision and look over your options. With the right information and quick action, you can turn a bad situation into a winning one for you and your prospective buyers. A correctly executed lease option can be the saving option you need!

Steven Morse an expert in Lease Option strategy and is the co-founder of SelfBailout.com where he is the resident real estate expert and the driving force behind the Home Selling Advantage Course. This invaluable course shows how homeowner’s can sell their homes quickly, safely, and profitably…even in today’s tough economy. http://www.selfbailout.com

Stop Foreclosure with Short Sales. These take a bit longer than Lease Options, but are very effective in preventing foreclosure. Visit Short Sale Holdings to learn more.

Source: Articles Garage

An increasing number of home owners are requesting short sales before receiving a Notice of Default from their lenders. They do not want to wait for the foreclosure proceeding before selling their home when the home owner is so far behind on payments that there is no way they can catch up.

Short sales can take a long time to complete, with those processing times increasing as the number of requests escalates. We have seen applications take up to 1 year to be completed.

That may change soon with the U.S. Treasury Department plans to offer incentives for servicers to pursue short sales and deeds in lieu of foreclosure for troubled homeowners who do not qualify for the Obama administration’s loan-modification program.

The Treasury Department plan is expected to be announced this month. According to short sale experts who have been briefed on the policy, servicers would get a $1,000 “success fee” when a short sale is completed. The home seller would receive up to $1,500 to assist with relocation expenses, similar to the “cash for keys” programs that some servicers offer.

One of the issues holding back the plan is how to handle second liens. An advisory committee is working with the Treasury Department to determine how to compensate second lien holders. They may receive either a fixed amount, or a percentage of the short sale price.

“Second liens have been a considerable problem for short sales,” said Matt McCabe, the president of Loan Resolution Corp., a Scottsdale, Arizona company that helps lenders work out defaulted mortgages.

Currently there is no uniform policy for banks to accept a payoff for a second lien in order to complete a short sale, McCabe said.

Meg Reilly, a Treasury spokeswoman, confirmed Thursday that a directive on short sales will be issued this month, but she declined to provide details.

The announcement will send many more home owners scrambling to submit short sale applications to prevent foreclosure before it starts. Real Estate investors are gearing up to handle the extra case loads.

Short Sale Holdings has increased its staff in anticipation of the Treasury Department announcement, ready to handle the increase in short sale applications. You can learn more about short sales and how to prevent foreclosure, by visiting Short Sale Holdings.

By the end of the year, as many as 1.5 million jobless Americans will exhaust their unemployment insurance benefits, increasing the need for them to seek help to prevent foreclosure. Even though calls are rising for Congress to pass another 13-week extension this fall, it will only affect states with exceptionally high unemployment.

Economists say that even if the recession begins to ease, jobs will remain scarce for some time to come.

“If more help is not on the way, by September a huge wave of workers will start running out of their critical extended benefits, and many will have nothing left to get by on even as work keeps getting harder to find,” said Maurice Emsellem, a policy director of the employment law project.

Read More at New York Times…

Learn how Short Sale Holdings helps prevent foreclosure

If you are having trouble paying your mortgage, throw a party and let your friends help out. You can provide music, snacks, refreshments and use your imagination for activities. The cost to you will be minimal, while the benefits can help prevent foreclosure on your home.

In the first half of the 20th century, rent parties were used to help apartment dwellers pay their rent. Now in the 21st century, that idea has blossomed into “mortgage parties”.

The rent party concept was conceived in Harlem during the early 1920s. A 1946 film called “House-Rent Party” was promoted to show how people paid the rent by having parties and charging for access.

At $12 admission, house parties cost revelers less than an evening spent in a bar. “Even during happy hour that’s what, two drinks?” said Christina Dunham, 27, a guest who was laid off from Morgan Stanley in February. “You may as well spend it with your friends who can use the help.”

Having a cause made it more appealing, not less, she said. “It’s not just scenesters looking for the next big underground party,” Ms. Dunham said, “It’s people who care that you have a place to live.”

Source: New York Times