Monthly Archives: May 2014

How Homeowners in Foreclosure Proceeding Can Effectively Rebuild their Credits After Short Sale

28 Wednesday May 2014

Posted by in Foreclosure Crisis, Foreclosure Defense, Judicial States, Non-Judicial States, Your Legal Rights

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Homeowners in recent foreclosure proceeding who wish to move on with their lives needs to start by rebuilding their credit worthiness.

Have you experienced a short sale? How big of a hit did your credit score take? What steps did you take to help rebuild your credit?

In a short sale, the mortgage lender agrees to let a homeowner accept an offer for their home that’s less than the amount owed on the loan. The bank takes all the proceeds, but the seller walks away with the remaining debt forgiven.

Choosing to go that route will put a serious dent in your credit score, but it’s not a fiscal death sentence. You can rebuild your credit and your finances after a short sale.

Immediately After a Short Sale of Your Home

In many cases, banks and lenders view a short sale as the equivalent to a foreclosure. Credit bureaus and future lenders consider it similarly to a default on your mortgage. The three major credit bureaus list it on your credit reports for seven years, but you can take steps immediately after a short sell to help restore your financial profile.

“You should regularly pull your free credit reports through AnnualCreditReport.com,” For someone who is rebuilding their credit, they could consider accessing one of their three available reports every four months in order to check for accuracy in addition to any unfamiliar or fraudulent activity.

Another critical task is to ensure that your loan balance has been forgiven. If it hasn’t been, you could find a collection company coming after you. Be aware, you also must claim the forgiven debt as income when you next file taxes.

Building and rebuilding credit is like the fable of the tortoise and the hare: Slow and steady wins the race. The short sale has less of an impact on your credit score each year after the event.

One to Four Years After a Short Sale

In those first few years, focus on small financial victories. “A simple and free way to begin the credit rebuilding progress is, first to ensure all utility, cell phone contracts and Internet provider payments are made on time and in full,” says Christensen. Ask these companies if they report your on-time payments to at least one of the three major national credit bureaus. He says they’re not typically required to do so, but they often will if asked.

The credit bureaus don’t give utility and cell phone payments as much weight as good credit card stewardship, but they will help move the needle. And every little bit helps.

You may also find that without notice, other creditors will lower your credit limit after your short sale. Wording giving them that option is often included in the fine print of the contracts and user agreements of credit cards and other debt. Don’t let that be a reason to make any more damaging credit moves.

Keep paying bills on time, avoid applying for new credit, and don’t close credit card accounts, You’ll want to keep the cards open so that as you pay down your balances, your debt to credit available ratio is lowered, which improves your score.

Good budgeting can be one of your most vital tools in the years following a short sale. With a damaged credit score, you may find yourself with little to no ability to depend on credit cards as a backup plan. So it’s doubly important that you work to build up a solid emergency fund and prepare a written monthly family budget.

Several Years After a Short Sale

If you do not have many open accounts after a short sale, you may want to try rebuilding your credit score by applying for a secured credit card. You may also be able to find a small loan offed by a bank or credit union in your area that specializes in helping to build up your credit.

“A secured card is one in which you put up a certain amount on deposit that you cannot access,”. “The Bank in turn gives the borrower a credit card with a limit in the same amount of the deposit.”

A secured credit card works just like an unsecured one. There is little risk to the banks and credit unions that offer these cards because your deposit acts as collateral and your self-imposed credit limit. These cards are a good way for a borrower to rebuild credit.

You’re not entirely out of luck if you’d like to try again as a homeowner, either. In many cases, you do not have to wait the full seven years it will take for the short sale to vanish from your credit report before you can buy another home.

“If you were current on your mortgage payments and also did not have a job loss, you can apply for a VA loan two years after selling a home in a short sale,” says Phil Georgiades, chief loan steward for VA Home Loan Centers. “You can also apply for a FHA mortgage three years after a short sale and a conventional mortgage four to seven years after your short sale.”

Homeowners who are still in their homes, but preferred to save their home rather than Short Sale should do one or two things.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

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What Are the Options for Homeowners in Foreclosure

28 Wednesday May 2014

Posted by in Foreclosure Defense, Your Legal Rights

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Many new homeowners are confused on the transactions involving their mortgage loans right after the close of escrow. In many cases, homeowners store their mortgage loan documents without reviewing them for errors that needed to be corrected immediately.

Most new buyers rarely knew about problems that mortgage document errors could create for them in the future if not corrected immediately either before or after the close of escrow.

This post is designed to address some of the questions that new homeowners usually encounter;

How do I know who my lender is and how to contact them?

Look at your monthly mortgage coupons or billing statements for the name of your lender and contact information.

I do not remember what type of mortgage loan I have, how can I find this information?

Look on the original mortgage documents or call your mortgage lender.

Do I need to keep living in my house to qualify for assistance?

Typically, yes, but call your lender to discuss your specific circumstances and get advice on options that may be available.

What type of information should I have ready to discuss with a lender?

Typical information requested by lenders in a workout package include:

  • Brief explanation of circumstances
  • Recent income documents
  • List of household expenses


My employer has already announced layoffs within the coming months, what can I do now?

Through this website you have taken the first step toward educating yourself about available options. Determine if the layoffs will cause a financial hardship that will make it hard for your family to make your mortgage payments. If so, consider other resources that you have available to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of consumer debt, consider contacting a non-profit, consumer credit counseling agency. Take advantage of any employer offered resources. If you still believe that you will have trouble making your mortgage payments, contact your lender right away.

Will there be any out-of-pocket expenses if I am approved for a workout option?

Some workout options do include expenses that the borrower is expected to pay, for example, recording fees for a loan modification. Because, every situation is different you should contact your lender for more information. However, if a lender has no contact with a borrower and has to start foreclosure, the legal fees that the borrower will be expected to pay can be very expensive. To avoid unnecessary legal fees, call your lender as soon as you realize you are in trouble.

What happens when I miss my mortgage payments?

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your lender or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your lender or HUD an additional debt.

Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future. So you should avoid it if all possible!

What should I do if I miss mortgage payments?

Do not ignore the letters from your lender. If you are having problems making your payments, contact your lender immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.

Stay in your home for now. You may not qualify for assistance if you abandon your property.

Contact a HUD-approved housing counseling agency. They have information on services and programs that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

If you bought your home with a Veterans Administration (VA) guaranteed loan, call the VA office nearest you.

What are my alternatives?

Your options include the following:

  • Special forbearance: Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
  • Mortgage modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
  • Partial claim: Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current.

You may qualify if your loan is at least 4 months delinquent but no more than 12 months delinquent; your mortgage is not in foreclosure; and you are able to begin making full mortgage payments.

When your lender files a Partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.

Pre-foreclosure sale: This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.

You may qualify if the “as is” appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value; the loan is at least 2 months delinquent prior to the pre- foreclosure sale closing date; and you are able to sell your house within 3 to 5 months (depending on what your lender agrees to).

An additional benefit to this option is the assistance you will receive with the Seller-paid closing costs.

Deed-in-lieu of foreclosure: As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it will help your chances of getting another mortgage loan in the future.

You can qualify if you are in default and don’t qualify for any of the other options

your attempts at selling the house before foreclosure were unsuccessful; and you don’t have another FHA mortgage in default.


How do I know if I qualify for any of these alternatives?

A housing counseling agency can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your lender.

Should I be aware of anything else?

Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you’re selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Equity skimming: In this type of scam, a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to him or her. The “buyer” then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Phony counseling agencies: Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself, for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services call a HUD-approved housing counseling agency. Do this before you pay anyone or sign anything.

Are there any precautions I can take?

Here are several precautions that should help you avoid being “taken” by scam artist:

  • Don’t sign any papers you don’t fully understand
  • Make sure you get all “promises” in writing
  • Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale
  • Check with a lawyer or your mortgage company before entering into any deal involving your home
  • If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state’s Attorney General, the State Real Estate Commission, or the local District Attorney’s Consumer Fraud Unit for this type of information.


What are the main points I should remember?

  • Don’t lose your home and damage your credit history if you can help it
  • Call or write your mortgage lender immediately
  • Stay in your home to make sure you qualify for assistance
  • Arrange an appointment with a HUD-approved housing counselor to explore your options
  • Cooperate with the counselor or lender trying to help you
  • Explore every alternative to losing your home
  • Beware of scams
  • Do not sign anything you don’t understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation
  • Act now. Delaying can’t help. If you do nothing, You will lose your home and your good credit rating


What is the Best Way to Avoid a Foreclosure?

The best way to avoid home foreclosure from the get-go is to understand that the purchase of real estate is one of the biggest transactions most people will face in their lives. Given such great importance, it is essential that a potential home buyer enter the process with both eyes wide open and educated on how to correctly go about buying the right property for them so that foreclosure never becomes an issue.

What is the Best Way to Avoid Foreclosure Once the Process Has Begun?

Once the foreclosure process has run its course, it is too late. Foreclosure leaves a black mark on the homeowner’s credit history that may stay with them for as many as 10 years, making it harder and more expensive to obtain credit and to purchase things for anything other than cash.

Mistakenly, many homeowners facing foreclosure wait until the 11th hour to try and do something about it in order to avoid the after effects of home foreclosure. Once in default, the homeowner faces the real possibility of losing his or her home. Fortunately, there are a number of things that can be done to avoid home foreclosure:

  • Cure the default by paying the loan current; in other words, pay up the back payments owed along with any penalties and interest
  • Redeem the property by paying off the entire loan amount owed before the property goes to auction (this is the only option once the period to cure the default has expired)
  • Refinance the property, if the lender will allow it
  • Sell the property outright; depending on whether the current market climate is a seller’s market or a buyer’s market this may not be as easy as people think
  • Request a short sale from the lender; this option to sell the property for less than the amount owed on it also depends on the lender’s cooperation
  • File for bankruptcy and seek a stay of the foreclosure.

When Everything Fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

Why Financial Planning is the Key to Saving Your Home from Foreclosure

28 Wednesday May 2014

Posted by in Bankruptcy, Foreclosure Crisis, Foreclosure Defense, Pro Se Litigation, Your Legal Rights

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Many homeowners who found themselves in the unfortunate situation of mortgage loan default often wonder, if they could have prevented it.

The best foreclosure prevention takes place before you purchase a property — whether it be a primary residence or an income property. Proper financial planning, including creating a budget and performing disciplined research, should enter the equation long before escrow even opens.

Many people learned this valuable lesson much too late during the most recent market cycle and bubble burst. They bought more house than they could rightly afford, signed on using questionable financial instruments to pay for it, and as a result faced the possibility — and in many cases the eventuality — of foreclosure.

From the loss of a job or the drain of equity in the property (going negative or “underwater”), to divorce or a major medical crisis, an individual’s or family’s funds can be depleted rather quickly, forcing them to make a choice between which bills to pay and which ones to hold off on. In many situations the ultimate choice comes down to a decision between paying the mortgage, the credit cards, or keeping food on the table. In any case, it’s not an enviable position to be in.

While many of these situations are unforeseeable, the best thing to do with what is many people’s most costly asset is to be proactive and try to prevent the possibility of foreclosure ahead of time.

There are a number of reasons why a property owner could be facing foreclosure. Given the correct set of circumstances, any one of them could lead to financial hardship, causing the owner/borrower to miss making mortgage payments and leading to the lender initiating the foreclosure process.

Create a Budget and Stick to It

It may be an old saying, but living within your means is the most prudent way property owners can protect what is in many cases their most expensive asset. Too many property owners went into foreclosure during the last cycle because they treated their home or income property as an ATM, pulling cashing out their equity to buy cars, pay for vacations, buy furniture, renovate their home, or to pay college tuition for their children.

When you’re borrowing hundreds of thousands of dollars to purchase property, you need to make sure the financial numbers add up before you move forward. A proper budget creates a structure that prioritizes your monthly finances so that you spend your money on what is most important. It protects you from wasting your cash on whims and ending up short on the items that are critical, like your monthly mortgage payment.

Financial planners typically recommend a six-month savings cushion, meaning you should be able to continue to make all your financial commitments for six months if your income is completely cut off. That’s a great rule of thumb, but many people find it tough to get there because their monthly income is already stretched to the limit.

Still, if you want to drastically lower the risk of ever defaulting on your mortgage payments or losing your home to foreclosure, it’s critical that you build some savings into your budget. Even if it’s just a few dollars a month, be disciplined about setting aside cash for that rainy-day fund. If you end up saving enough for six months, funnel those monthly savings toward paying down extra principal on your mortgage (assuming your mortgage does not have a pre-payment penalty).

What can be done to avoid foreclosure?

Even the best planning and budgeting can’t always stave off unforeseen circumstances. Whenever a property owner finds him or herself in a position where those circumstances turn to financial hardship, the best thing to do is to call the lender right away. Report the circumstances to the lender (not the company servicing the mortgage since all they are is a debt collector).

Ask the lender what can be done to avoid going into foreclosure. There may be alternatives to foreclosure available that could make a difference in terms of to what extent the owner/borrower’s credit history is affected, if at all.

From a loan modification and principal reduction, to the lender approving a short sale or accepting a deed in lieu of foreclosure, the option chosen can make a difference as to the future availability of credit to the borrower.

DON’T file for bankruptcy protection

Many people are under a false impression that they can save their home and other assets simply by filing for bankruptcy protection. Nothing could be further from the truth.

The bankruptcy laws were not put in place to shield people from anything bad happening to them. To the contrary, one must think long and hard about filing for bankruptcy before hiring a bankruptcy attorney and proceeding with the process. Like a foreclosure, bankruptcy stays with you on your credit report for years to come, so it is not a step to be taken lightly.

Most importantly, bankruptcy does NOT either prevent or avoid foreclosure, it can only delay it…at best. At worst, the foreclosing lender could convince the judge to allow the foreclosure to proceed right away without granting even a temporary stay. In any case, all the defaulting borrower has done is delayed the inevitable.

Foreclosure Prevention

The biggest lesson to take away from the most recent foreclosure crisis is that many of the foreclosures that took place from 2007 through 2012 could have been prevented with proper financial planning. And the best plan to start with is a proper budget.

There are plenty of budgeting software programs out there for tech savvy consumers to upload to their computers. And for those who aren’t into computer programs, there’s nothing wrong with a legal pad and a pen to start outlining a family budget. Put down your monthly gross income, your monthly expenses, and leave plenty of room for unexpected expenses which will most certainly arise.

It’s never too late to get started!

However, if you have already found yourself in the unfortunate foreclosure proceeding, your best option at this point is to defend and protect the equity in your home!

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

How Michigan Homeowners Should Avoid Foreclosure

27 Tuesday May 2014

Posted by in Foreclosure Defense

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Foreclosure

As Homeowners already know, foreclosure is a legal process spanning 150-415+ days, by which a creditor (bank, mortgage company, etc..) takes ownership of a property to satisfy a debt (mortgage, second mortgage or home equity loan).

What Are the Timelines?

Foreclosure Process Timeline
DAY
1 16-30 45-60 90-105 150-415+
STEP
Borrower misses monthly payment.
Mortgage servicer assesses late fees & attempts to
contact owner, concerning missed payment.
Letter sent to homeowner stating they have breached terms of
mortgage due to continued non-payment.
Servicer refers loan to foreclosure department. Attorneys are
hired to initiate foreclosure proceedings.
House sold at sheriff’s sale and sheriff’s deed is filed at
Register of Deeds. In some States, Michigan Homeowners have 6 month period
of time redeem their property after the sheriff’s sale.

Types of Loans/Mortgages

Conventional, Rural Development, FHA – Federal Housing Administration, VA – Veterans Administration, MSHDA –  Michigan State Housing Development Authority, Option ARM Loans – Adjustable Rate Mortgage, Variable Interest Rate Loans, Fixed Interest Rate Loans, Balloon Payment Loans, and Interest Only

The type of loan or mortgage you have will determine the options available to you during the foreclosure process

   How Can Michigan Homeowners Keep their Homes?

Advancement of Claim:
On a conventional mortgage (insured with private mortgage insurance), the insurance company can advance the
money needed to cover the missed payments, sometimes without interest charges. You can defer the repayment of this advancement until after the mortgage has been paid off.

Forbearance:
The lender increases the monthly payment amount (often 1 ½ original), so the homeowner will become
current with their payments, sometimes, in 12-18 months. Lenders will often require a large payment upfront before agreeing to this new payment schedule.

Modification:
A lender may agree to change the terms of the mortgage to reduce the interest rate and/or extend the
term of the loan to lower your monthly payments.

Partial Claim:
Similar to an advancement of claim in a conventional mortgage, the mortgage servicer can make the
homeowner current with their payments by adding the amount past due to the loan as a “sleeping lien”, which the homeowner will repay once the current mortgage has been satisfied.

Refinance:
This lowers your monthly payment by changing the terms of your loan. The cost effectiveness of this
depends greatly on your payment history, equity, terms of your original mortgage, and the type of refinancing your choose. Many lenders do not inform borrowers of the additional, long-term costs that can be incurred from some methods of refinancing.

Repayment Plan:
If a homeowner experiences a period of financial trouble, a repayment plan may be scheduled to prevent foreclosure. This will schedule a future period of higher payments, to cover the payments missed.

                                                                       Tax Foreclosure

YEAR 0 1 2
STEP      A – B – C

YEAR 0
A.  Homeowner fails to pay
property taxes. Delinquent tax
notices mailed to homeowners.

YEAR 1
B. Property goes into Forfeiture. Fees and interest
are applied to the amount due. Notices of
forfeiture mailed to homeowners. This is the
beginning of the forfeiture process.

YEAR 2
C. Final notice of delinquency delivered in person. Property goes into foreclosure on
the 31st of March in the second year of delinquency, following a circuit court
judgment, and the county takes legal ownership. The property and all structures
upon are slated for sale at public auction. There are no redemption options at this point.

                                                                  Foreclosure Scams

– Offers involving a fee, membership, or subscription charge prior to service. (illegal in Michigan)
• Calls asking for you SS#
• Signing any contract by anyone other than a HUD or MSHDA approved organization/counselor
• Claims to immediately stop/end the foreclosure process.
• If you have been a victim of such a scam Call 877- FTC-HELP and file your complaint online at
http://www.michigan.gov/ag or call 1-877-765-8388

Do not deed your property to anyone offering you foreclosure assistance
• Do not make loan payments to anyone but your lender
• Do not pay money to a foreclosure counselor before receiving service
• Do not sign any documents from private companies without reading them or having them examined first
• Only speak to HUD or MSHDA certified counselors and confirm their certification.

                                                                     Financial Counseling 

– You do not need to pay for adequate counseling or assistance.
There are many non-profit organizations in mid-Michigan, approved by the United States Department of Housing and Urban development (HUD) and the Michigan State Housing Development Authority (MSHDA), which provide counseling to the public free of charge.

                                                          Speak to Your Mortgage Servicer

If you become unable to make your monthly payments, immediately contact your mortgage servicer. Do not wait to receive past due notices.
• Be polite and explain why you are, currently, unable to make your payments.
• Respond to all communication from your mortgage service and try to cooperate with them.
• Inform them that you do not intend to default on your loan and are working to become current with your payments.

                                                                  Foreclosure Counseling

– A foreclosure counselor will want to see: a complete copy of your primary mortgage and any secondary mortgage or home equity loan, proof of current income (pay stub, W-2 form, social security statement), and you current household budget (all expenses including billing statements).

-Ask the counselor to call your mortgage servicer with you after reviewing your situation.

    Mid-Michigan Resources

  FINANCIAL HELP IS FREE IN MICHIGAN
                                                                             CALL 211

– Center for Financial Health
2400 West Road
East Lansing, Michigan 48823
517-319-1309

• Franklin Street Community Housing Corporation
618 Seymour Street
Lansing, Michigan 48933
517-482-8708

• Lansing Affordable Homes, Inc
6810 South Cedar Street
Suite #15
Lansing, Michigan 48911
517-694-6284

           Legitimate Resources

U.S. Housing and Urban Development
(HUD) Interactive Voice Response
System: (800) 569-4287

For information on buying a home, renting,
loan default, foreclosure, credit issues,
fraud reporting, FHA loans, and a list of
HUD approved counselors
Visit: http://www.HUD.gov

The Michigan State Housing Development Authority (MSHDA)
735 E. Michigan Ave
P.O. Box 30044
Lansing, Michigan 48909
(517) 373-8370
http://www.michigan.gov/mshda

• Financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing.

Tips For Avoiding Foreclosure

Don’t ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.

Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open
the mail will not be an excuse in foreclosure court.

Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes by contacting the State Government Housing Office.

Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found at
http://www.HUD.gov.

Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing
counselor near you or call (800) 569-4287.

Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships,
entertainment-that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that
you are willing to make sacrifices to keep your home.

Avoid foreclosure prevention companies.
You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead.
Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and
services your lender or a HUD approved housing counselor will provide free if you contact them.

Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

– FBI studies have ranked Michigan #3 out of the top ten states affected by mortgage fraud since the subprime mortgage crisis began.

– For the top ten cities affected by this fraud, Detroit was ranked #3 and Dearborn #10.

  How Identity Theft Can Cost You Your Home!

– Individuals obtain a homeowner’s personal information through various means (dumpster diving, phone/mail scams, etc..)

• This information is used to obtain new forms of ID and use them to transfer ownership of the property for profit or take out a second mortgage (pocketing the money).

– The legal owners of the home are completely unaware of this proces, as it goes on behind the scenes.

– The FBI recommends homeowners, periodically, check the status of their property with their local register of deeds.

Property Reporting System

The Ingham County Register of Deeds is developing a Property Reporting system that will notify registered users (via email) of any new activity involving their property.

This will allow you to track activity concerning your property and notify you of any tax or construction liens filed against you. Property owners will have to sign up for this free service at ingham.org.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

 

What Homeowners Needs to Know About “Pro Se” Litigation and Settlement With Lenders

26 Monday May 2014

Posted by in Foreclosure Defense

≈ 1 Comment

Mortgage payment collectors at companies are agreeing to ease the terms of borrowers’ underwater mortgages, but they are increasingly demanding that homeowners promise not to insult them publicly. In many cases, they are demanding that homeowners’ lawyers agree to the same terms. Sometimes, they even require borrowers to agree not to sue them again.

During the past few years, loan servicers have been renegotiating mortgage terms with borrowers who have fallen behind on their payments. Since the housing crash, there have been about 1.3 million loan modifications done under the government’s Home Affordable Modification Program, according to the U.S. Department of Treasury. Servicers have done an additional 5.6 million modifications in-house.

The 2012 National Mortgage settlement, which covered Ally Financial Group, Bank of America, Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co prohibited the use of waivers during the course of offering normal loan modifications—though it did allow for waivers in the event of litigation. Waivers were also forbidden under HAMP modifications.

That still leaves plenty of room for servicers to try to block borrowers from suing, or to use gag clauses. The gag orders often pop up after borrowers think deal negotiations have been completed.

These clauses can hurt borrowers who later have problems with their mortgage collector (Servicer) by preventing them from complaining publicly about their difficulties or suing. If a collector, known as a Servicer, makes an error, getting everything fixed can be a nightmare without litigation or public outcry.

It was only a matter of time before it became common knowledge. Tens of thousands of homeowners have successfully litigated their foreclosure cases only to come to a fork in the road where they must make a decision: (1) finish the case at trial or (2) accept an incredibly “generous” offer from the pretender lender. My choice is option #1. But Homeowners understandably most often choose option #2.

By way of example, and not to disclose any of the details in the hundreds of cases I know have been settled to the satisfaction of the homeowner, pick a number. Let’s say you have a mortgage and note that you are successfully litigating — i.e., showing that the origination was false, that the payee and mortgagee were falsified, and that the assignment was fabricated based upon a fictitious sale of the loan because no money ever exchanged hands.

Let’s say the original note and mortgage was for $500,000 and the property was only worth $300,000 and now the property is worth $250,000. The foreclosing pretender lender sat on the case and now is claiming that the total owed, with accrued interest, fees, costs etc. is now $700,000. Assume you know you have them right where you want them.

Suddenly the attorney for the bank or someone from the back of the courtroom whom you didn’t realize was there, proposes that the case be settled. The settlement terms are that the balance due will be $100,000, the interest rate 2% fixed, and the term is 40 years. So your choice is getting rid of that last $100,000 or accepting a mortgage and note of dubious legality for $100,000 and taking the risk of title problems later when you try to sell or refinance.

Most people, faced with the possibility of losing even when they are confident of success, take the deal. And the fact that it comes with all kinds of confidentiality and gag clauses doesn’t stop them. But lawyers and homeowners take note: if you are well informed and litigate aggressively, these results are frequently and most likely in reach.

The reason why you don’t hear about success in defeating the banks is because people are under gag orders not to talk about it.

Gag orders and bans on suing are appearing when borrowers use litigation to settle foreclosure and loan modification cases. But they are also popping up when the Servicer modify loan terms outside of the courts, known as “ordinary loan modifications.

So what options does the struggling Homeowner have in order to protect his/her rights and the equity in their homes?

The Answer is;

“Pro Se” Litigation (Self Representation – Do it Yourself) – for Mortgage Fraud using foreclosure defense package found at http://www.fightforeclosure.net homeowners preserved their equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for mortgage fraud amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

9 Options For Homeowners Facing Foreclosure

26 Monday May 2014

Posted by in Banks and Lenders, Federal Court, Foreclosure Defense, Judicial States, Loan Modification, Non-Judicial States, Pro Se Litigation, State Court, Your Legal Rights

≈ 2 Comments

Many Homeowners facing foreclosure often wonder what are their best possible options. This post is designed to let homeowners struggling with mortgage payments what their best possible options are.

Option #1: Renegotiate with the lender

Step one is to contact your lender as soon as you know you can’t make a payment. The faster you move the more options you’ll have to fix your financial future. Borrowers may have the option of renegotiating their loan with the lender. Try to negotiate a plan that will enable the loan to be back in service. Lenders don’t want the property back; they want to keep their loan portfolio full of performing loans — not defaulting loans. Lenders say that the sooner they hear from a delinquent borrower in trouble, the easier it is to negotiate a solution.

Option #2: Reinstatement

Prior to a foreclosure sale, borrowers have the right to reinstate a delinquent loan. The reinstatement option gives homeowners the opportunity to make up back payments plus any incidental charges incurred by the bank such as filing fees, trustee fees and legal expenses. Paying off the reinstatement amount will cancel the foreclosure and enable the homeowner to continue to live in the home as if no default occurred. For many delinquent borrowers, however, reinstatement is not an option because they are deep in debt and cannot make up back payments, plus other expenses. Consult with a real estate attorney or an experienced real estate broker because reinstatement laws vary from state to state.

Option #3: Forbearance

One of the most overlooked foreclosure options a borrower has is forbearance. Forbearance is the postponement for a limited time of a portion or all of the payments on a loan in jeopardy of foreclosure. Partial or full payment waivers had their origins in the Great Depression. A lender expects that during the moratorium period the borrower can solve the problems be securing a new job, selling the property or finding some other acceptable solution.

Depending on your lender, you may be able to restructure your loan. For example, delinquent mortgage payments may be added to the backend of the borrower’s scheduled payments or the borrower could be given more time to bring the late payment current. Some mortgage companies are able to arrange a repayment plan based on your current financial situation. You may qualify for this option if you recently lost your job. Call your lender and inquire if you meet the requirements for forbearance.

Option #4: Redemption

To redeem a loan, the borrower must pay off the loan in full. Borrowers may accomplish this by refinancing (with a family member cosigning perhaps) or by a friend or relative bailing out the borrower in exchange for equity or some other financial arrangement. Again, redemption rights — like reinstatement rights — vary from state to state. Most states permit redemption up to the foreclosure sale.

Option #5: Sell the Property

For owners who don’t care to save the property, or who have no other choice than to let the property go, selling the property may be a smart choice. If you have enough equity in the house to allow you to pay off the mortgage in full, then a sale is usually your best option. This option preserves your equity and what’s left of your credit score. Selling also leaves you in a much better financial position should you want to buy another home in the future. Even if you don’t have equity, you may be able to arrange a short sale, where the bank agrees to forgive the mortgage debt for less than the total amount owed on the mortgage if you sell the property to a third party. The advantage to the lender is that it does not have to deal with costly foreclosure proceedings.

Option #6: Deed in Lieu of Foreclosure

For homeowners who have no opportunity to reinstate, redeem or even sell their property and just want out of the property, a deed in lieu of foreclosure may be viable option. Essentially, a deed-in-lieu of foreclosure is a transfer of title from a borrower to the lender, which the lender accepts as full satisfaction of the mortgage debt. With this option, you as a borrower voluntarily “give back” your property to the mortgage company. You won’t save the house, but you do avoid the trauma of foreclosure and reduce the negative impact on your credit.

Option #7: Bankruptcy

Filing bankruptcy is not a permanent cure for foreclosure, but it can temporarily halt the foreclosure process. Once a borrower in default files a petition for bankruptcy, foreclosure proceedings stop immediately. A homeowner, however, must hire an attorney in order to file bankruptcy, which can be expensive. Before considering this option, a homeowner should consult a real estate attorney.

Option #8: Foreclosure

Allowing the foreclosure to proceed to the auction is generally the worst choice. By doing nothing, homeowners will lose their home and any equity they have earned. Plus they will damage their credit at the same time. Moreover, some states allow lenders to go after borrowers in court for any deficit between what the house eventually sells for and what the homeowner owes. This is called a deficiency judgment. Unfortunately, many homeowners chose this option, putting their heads in the sand and hoping they’ll win the lottery and avoid foreclosure.

Option #9: “PRO SE” LITIGATION

“Pro Se” Litigation (Self Representation – Do it Yourself) – for Mortgage Fraud using foreclosure defense package found at http://www.fightforeclosure.net homeowners preserved their equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for mortgage fraud amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

Six Most Effective Ways For Homeowners to Stop Foreclosures

25 Sunday May 2014

Posted by in Bankruptcy, Banks and Lenders, Federal Court, Foreclosure Defense, Judicial States, Litigation Strategies, Loan Modification, Non-Judicial States, Pro Se Litigation, State Court, Your Legal Rights

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In recent years, many homeowners found themselves in difficult financial situations that requires serious round the table decision making.

Anytime a homeowner runs into financial trouble dire consequences can enter into the equation. That is especially true when it comes to foreclosure of the home that was used to secure the debt owed to the lender who is now foreclosing to get title to the property back.

However, there are several methods that homeowners in financial distress can use to stop foreclosure fast. Some methods require money, while others require agreement to forgo money by the lender or through the court system using the complete foreclosure package found at http://www.fightforeclosure.net

Here’s 6 steps to take that can help stop the foreclosure process dead in its tracks:

Step 1: Don’t Panic.

Most households have a surprising array of assets that can be used to make payments and delay foreclosure. Unemployment insurance, disability insurance and savings are each potential cash sources. Household budgets can be slashed. Big, expensive cars can be traded in for cash. Retirement funds are often available — but be aware that withdrawals may result in penalties and additional income taxes.

Step 2: Late and Missed Payments.

If problems cannot be delayed or deferred, and if mortgage payments will be late or unpaid, then you MUST contact the lender as soon as possible.

At this point your goal is to help the lender create a “workout” agreement that effectively modifies your mortgage so that the foreclosure can be stopped before going to completion.

Step 3: Look at Workout Options.

Once you enter into discussions with a lender or a “servicer” — the company that services the loan for an investor — any number of options are open. While lenders are typically NOT required to modify loan arrangements, many will. The usual choices include:

Loan Modification: “This option should be considered when the borrower experiences difficulty making regular mortgage payments as a result of a permanent or long-term financial hardship,” says Liz Urquhart with AIG United Guaranty, a leading private mortgage insurance company. “Reducing an above-market interest rate to a market rate and/or by extending the original terms of the note may enable the borrower to continue making payments. Permanent interest rate reductions appeal most to borrowers, but even a temporary rate reduction of one to three years can provide substantial help.”

 

  • Repayment plans: Say you must miss a payment and that each payment is $1,000. With a repayment plan you might pay $1,075 a month until the missing money is repaid.
  • Reinstatement: Imagine you missed two or three monthly payments. With a reinstatement, or what is also known as a “temporary indulgence,” you bring your loan current, pay late fees and other costs, and the loan continues as before.
  • VA Refunding. If you have a loan backed by the Department of Veterans Affairs, the VA may buy the loan from your lender and take over the servicing. If you have the ability to make mortgage payments, but your loan holder has decided it cannot extend further forbearance or a repayment plan, you may qualify for refunding, according to the VA.
  • FHA loans: If you financed with a loan guaranteed by the Federal Housing Administration, call 1-800-569-4287 or 1-800-877-8339 (TDD) to reach a HUD-approved housing counseling agency for assistance and advice.
  • Forbearance: This is a temporary change in mortgage terms, such as the right to skip a payment or make smaller payments for a year or less.
  • Private mortgage insurers. Mortgage insurance companies typically require lenders to begin foreclosure proceedings once a delinquency reaches 150 days or when a sixth missed payment is due. However, such requirements may be waived in areas impacted by natural disasters and for other reasons.
  • Claim advance: If you bought with less than 20 percent down then either the loan is self-insured by the lender or you have private mortgage insurance (PMI). In some cases PMI companies will provide a cash advance to bring the loan current — money which is sometimes interest free and need not be repaid for several years.
  • Disasters: Most lenders, but not all, will provide substantial relief in the face of hurricanes, earthquakes and other terrible events. Typical measures include a suspension of late fees, no late payment reports to credit bureaus, a pause in foreclosure actions and modified payment schedules. To get such benefits you must contact the lender as soon as possible after the disaster.
  • Re-amortization: In this case your missed payment is added to the loan balance. This brings your account current. However, says Saccacio, “since your debt has increased, future monthly payments may be larger unless the lender agrees to lengthen the loan term.”
  • Deed in Lieu: The deed-in-lieu would allow you to sign over legal ownership to your home for the lender’s agreement not to foreclose.
  • Short Sale: An arrangement where the lender accepts less than the mortgage debt in satisfaction for the entire loan amount. Also called a “compromise agreement” with VA loans. Be cautious: Saccacio says in some instances money not repaid may be regarded as taxable income. Also, lenders in some cases may sue to recover any shortfall.
  • Bankruptcy: When all other options are exhausted many homeowners consider bankruptcy as a last resort to save their home. Unfortunately, in most cases bankruptcy only delays the inevitable; in the  worst case it can actually speedup the process.
  • Full Blown “Pro Se” Litigation (Self Representation – Do it Yourself) –for Mortgage Fraud using foreclosure defense package found at http://www.fightforeclosure.net which will allow you to stay in your home for 3-5 years for free without making a red cent in mortgage payment.

 

Step 4: Refinance the Loan.

Since 2001 millions of loans with new formats have been issued, permitting low monthly payments for the first several years of the loan term and then much higher monthly payments thereafter.

If you have a loan where soaring payments are a certainty, don’t wait to refinance. Do it now while you have a strong credit profile and no missed payments.

Step 5: Sell the Property.

In some situations there is no workout or refinancing option which can save a property. If a job is lost, medical payments are overwhelming, or mortgage payments are rising to the point of bankruptcy the only plausible choice may be to sell the property.

If the situation is getting worse every month, you have to protect your interests and sell the property. This is a hard choice  but if you sell before foreclosure you will get a better price for the property and preserve your credit standing.

Most importantly, remember that there still are options, but you have to act quickly. Also, never rule out seeking out foreclosure assistance like using the package found at http://www.fightforeclosure.net to fight the lender for mortgage fraud among others.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will help you challenge these fraudsters and save your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

What Can Short Sale Do For Struggling Homeowners

25 Sunday May 2014

Posted by in Foreclosure Defense

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Many times, struggling Homeowners who lost their jobs or found themselves in a situation that made it difficult to meet up with mortgage payments often wonder what their options are with Short Sale. This post is designed to address just that.

For distressed homeowners facing foreclosure one possible option is the short sale. Selling a home in a short sale is a legitimate method for stopping the foreclosure process, allowing the homeowner to get on with life and without the ding to the credit record.

What’s the catch? By definition a short sale is literally the sale of a home for less money than is currently owed the lender on the outstanding mortgage being foreclosed on. In other words the home is “upside down” from a financial aspect. Therefore, the catch is that in order to successfully conduct a short sale, the foreclosing lender has to agree to it, essentially agreeing to accept less money than it is owed on the loan secured by the house.

A short sale is not a vehicle normally seen during a seller’s market when multiple offers are lining up at the door competing with each other for the house. Short sales are most widely accepted during a buyer’s market when home sales are dragging, home values are declining, and inventories of available properties are growing to the point that the lender basically is just throwing up its hands and saying some money for the house is better than no money at all.

Lenders are not in the business of owning real estate. They get upset when they have too many properties on their REO (real estate-owned) books instead of out in the market making it a profit through monthly mortgage payments. Plus, the foreclosure process is not free. Every house they foreclose on costs them thousands of dollars. So, in some instances, agreeing to a short sale is in the lender’s best interest.

And it is up to the homeowner to convince the lender that this is one of those circumstances where it’s better to fish and cut bait. It’s a matter of numbers and economics. The homeowner needs to demonstrate to the lender hard numbers that will lead the lender to conclude that selling via a short sale is going to benefit them more than the amount they would garner from foreclosing on the property and then selling it as an REO.

Keep in mind there is one major downside to a short sale, however. As much as the lender wants to keep the property off its books, it also wants the money it’s owed. In many situations the lender will make it a condition of agreeing to a short sale that the homeowner sign a promissory note to make up all or part of the difference between the proceeds from the short sale and the amount owed on the original debt.

Also, an important aspect most homeowners don’t realize when they decide to go the short sale route, is that any amount of the debt that the lender forgives is considered to be taxable income by the Internal Revenue Service. The lender must submit a form to the IRS stating the amount of debt forgiven, so the tax man can be waiting for the homeowner when April 15 rolls around next year —if any of the debt was indeed forgiven.

So for homeowners looking at all their options to stop foreclosure and save their home, the first step should be to contact their lender right away to try and negotiate a workout plan to temporarily lower payments, or to refinance to a fixed-rate loan.

After those and all other options have been exhausted, the next step might be attempting to get the lender to agree to a short sale. If so, then before going too far it is advisable to seek the assistance of a real estate professional who is well versed in short sales. Not all real estate brokers or sales agents know how to conduct a short sale or how to work with lenders in negotiating one.

Bottom line: don’t be afraid to ask a real estate professional if he or she has any experience working short sales. If not, move on and interview until you find one who has. Possessing a real estate license does not make them an automatic expert in short sales. It calls for extra training not all real estate professionals have.

Remember: you are paying them to represent your interests and you want the most qualified representation possible when it comes to stopping foreclosure and saving your home.

In alternative;

If you find yourself in an unfortunate situation of losing or about to your home to wrongful fraudulent foreclosure, and need a complete package that will help you challenge these fraudsters and save your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

What Homeowners Needs to Know About Deed in Lieu of Foreclosure

25 Sunday May 2014

Posted by in Banks and Lenders, Foreclosure Defense, Judicial States, Mortgage Laws, Non-Judicial States, Note - Deed of Trust - Mortgage, Your Legal Rights

≈ 1 Comment

Homeowners faced with mortgage foreclosures often opted for Deed in Lieu of Foreclosure. However, is it the best possible option for the struggling homeowner?

“Can’t we negotiate? There must be a way to work this out so we can stay in our home!” This is one of the most common questions homeowners facing foreclosure ask themselves. We will give you some answers in this post.

Some Options are Better Than Others

Some — like going through the entire foreclosure process —will leave a black mark on your credit report for probably 10 years. Others — like simply walking away from the property — aren’t necessarily wise ways of dealing with the situation either.

Sometimes you’re out of options. Short of filing for bankruptcy (which only delays the inevitable, and does not STOP foreclosure in its tracks), sometimes your lender just isn’t willing to negotiate a loan workout or accept a short sale (agreeing to take less money on the sale of your property than the balance due on their underlying mortgage).

Then again, the lender MIGHT be willing to accept a deed-in-lieu of foreclosure. Depending on how severe your financial hardship is, and other factors, the deed-in-lieu would allow you to sign over legal ownership to your home for the lender’s agreement not to foreclose.

You are in effect giving up all claims and rights to the property in exchange for the ability to walk away from it without having to make another mortgage payment — and, possibly, without a mark on your credit report.

At the very most, maybe a light gray mark instead of a black mark, if any mark at all depending on whether the lender reports your mortgage as paid in full or not. Plus, once agreeing to the deed-in-lieu, the lender will likely have to waive its rights to any deficiency judgment, which saves you from having to pay off any deficiency amount awarded the lender by a court of law. However, should you find yourself in this situation where there may be a deficiency judgment involved, the best thing to do is to consult with a real estate attorney about possible options. You should contact a real estate attorney anyway if you are considering a deed-in-lieu because it involves you giving up some legal rights. However, if you suspect mortgage fraud on your real estate transaction or feel that laws where not followed by your lender during the foreclosure process, even after the home has been sold; you can take the “BULL BY THE HORNS” using the foreclosure defense package at http://www.fightforeclosure.net for a full blown litigation to save your home from mortgage fraud.

For further details about a deed-in-lieu, the U.S. Department of Housing and Urban Development (HUD) has both a detailed fact sheet about the deed-in-lieu option and frequently asked questions about disposing of a property this way.

Bottom Line About Deed in Lieu

A deed-in-lieu is a potential way out of foreclosure for distressed homeowners who are hard pressed to find their way back to financial solvency. It may not always be the best way, but it can be much better than going all the way through the foreclosure process or filing for bankruptcy unless you can muster enough courage to fight the Bank with the all inclusive package found here at http://www.fightforeclosure.net before it is too late.

If you find yourself in an unfortunate situation of losing or about to your home to wrongful fraudulent foreclosure, and need a complete package that will help you challenge these fraudsters and save your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

Caution to Homeowners About Bankruptcy Foreclosure

25 Sunday May 2014

Posted by in Bankruptcy, Federal Court, Foreclosure Defense, Judicial States, Loan Modification, Non-Judicial States, Pro Se Litigation, State Court

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Many Homeowners sometimes wonder about what their options are when they defaults on their mortgage loans and what possible options they might have with Bankruptcy.

There’s not enough money at the end of all the bills you have to pay. You need one more paycheck to make ends meet. Costs of living keep going up and your monthly paycheck isn’t keeping up with the price of gas, the cost of food and everything else you value in your life. You can’t save anything because all your money goes to paying bills and supporting yourself and/or your family. And then . . .

One day you receive a piece of paper in the mail called a “Notice of Default” or a process server hands you a “Lis Pendens.” Either way, both are bad news because they mean your lender has initiated foreclosure proceedings against you (in either a non-judicial or a judicial foreclosure state respectively) because you owe back payments — typically three months worth. . . or more.

And then you start thinking, “Maybe I could cheat fate by filing for bankruptcy. That will wipe out all my debts. I can stop the foreclosure, keep the house, and the lender can’t do anything about it.” Well, think again!

If you file for personal bankruptcy under Chapter 7 a so-called “automatic stay” is placed on all your creditors, including the foreclosing lender, by the court. HOWEVER, the stay is only a temporary fix to the situation.

Chapter 7 never permanently stops home foreclosure. It only gives you relief from unsecured creditors like credit cards and prevents certain creditors from pursuing collection action against you. It does NOT discharge debts such as taxes, child support, alimony or student loans, nor can it give you relief from other secured creditors — like your lender — whose debt is secured by the home you’re living in.

In fact the “automatic stay” is only effective so long as the court wants it to be in place. At any time the court can grant your lender’s motion for “relief from the automatic stay.” Once the court grants that motion the foreclosure against your home can proceed to conclusion.

One viable exception does exist, however, by filing for a Chapter 13 bankruptcy. Under Chapter 13 you are allowed to sit down with your creditors and arrange a payment plan to pay back what you owe them over a given length of time and usually on a lower payment schedule. Once accepted, the creditors, like your lender, must abide by the terms of the plan.

Call it financial reorganization or a workout plan, any way you look at it Chapter 13 is a good way to save your home from foreclosure, and can indeed stop foreclosure so long as you continue to make the payments agreed to under the plan until all debt owed is totally paid off.

In essence, then, through a Chapter 13 debt reorganization plan you can cure the default and save your home. However, you must realize up front that not everyone qualifies to file for bankruptcy. There are certain threshold qualifications that must be met which were tightened up when the U.S. Bankruptcy Code was revised a few years ago.

Additionally, there are court costs to be paid, AND, of course, the homeowner must hire an attorney who is going to want to get paid too!

If you find yourself in an unfortunate situation of losing or about to your home to wrongful fraudulent foreclosure, and need a complete package that will help you challenge these fraudsters and save your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net