Posts Tagged ‘Foreclosure’

How Does a Short Sale Affect Your Credit as Opposed to a Short Sale or Late Payments?

January 26th, 2010

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No matter what you do, if you are in a situation where you are not able to pay your mortgage on time there will be dire consequences when it comes to your credit.

It is unfortunate and the situation is extremely stressful, however the sooner you bring yourself to the reality of the situation, the sooner you will be able to come to a solution with the most minimal consequences.

Hector Milla Editor of the “Best Loan Modification Companies” website — — pointed out;

“…A foreclosure on your credit record will probably lower your score around 260 points. That number is not definitive, however it is an approximate. Even if you have phenomenal credit it will lower your score to a negative number. There are very few situations where a foreclosure would be the best option…”

Here is a scenario where a foreclosure may be the best option: There was a young couple who lived and owned a home in Minnesota. They bought their home at the end of the housing boom so they paid top dollar for it. Then they were transferred to California at the beginning of the housing crisis and could not afford to sell their home as they would have to sell it for much less than what they owed.

They decided to rent the house, but again because of the housing crisis they were only able to rent it for $1000 less than their monthly mortgage payments. The husband, who was the bread winner, worked in the banking industry and was laid off a year later because the housing crisis infiltrated the banking industry. At this point the couple had to choose between paying a mortgage on a house they no longer live in, or pay rent so they have a roof over their head. They ran through all of their options with the mortgage company but their lender was not willing to let them do a short sale or loan modification and they had no choice but to foreclose on their home.

The above scenario is a very unique case of someone who has gone through all of the options and foreclosure was the best choice. However it will do the most damage to your credit score. If you are in this situation you should consider all of your options.

“…Contact your mortgage company and see if they will allow you to do a short sale. There is some debate as to whether a short sale will adversely affect your credit. Some say that as long as you stay current with your mortgage payments during the course of the sale you it will not show up on your credit record. However if you are in a situation where you have to put the house up for a short sale you may not have the funds to pay full mortgage payments. Mortgage companies also will not grant you a short sale if you cannot provide proof that a short sale is necessary…” H. Milla added.

Continued late payments will also adversely affect your credit report dramatically. Your best course of action would be to talk to your Mortgage Company As Soon As Possible and try to work out a solution before you are deficient on your loan. Ask them about doing a loan modification to lower payments.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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How Do I Find Who Has The Note On A Home That Is In Foreclosure?

January 25th, 2010

First determine which Assessor’s Office in your area has information on the property.

In my county we have two, one that serves the City of Cedar Rapids and then one for the County of Linn County, Iowa, where our city is. If the property is in town you would use the City Assessor, but if it is in the County, you would have to contact the County Assessor. The information that you get from that office, which we have online, as you may too, will give you a “Book and Page” for the recorded Documents on the property.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — — pointed out;

“…The Assessor’s Office may have information on who is the present owner of the property because they provide that information to your County Treasurer’s Office so the Treasurer’s Office can collect the taxes on the property, sending out the tax statement to the most current owner at their present address…”

Once you have the property owner’s name and possibly also the “Book and Page” of the recorded documents, then you go to your County Recorder’s office and search out the ownership information at the Recorder’s Office. In my county, all of this information is also online so it is relatively easy to retrieve.

At our County Recorder’s Office website, we put in the name of the owner on the search line and it will give you a link to all of the recorded documents on the property in question.

The recorded documents will have the documents you will need to find in order to see who has the note on the property. There should be documentation showing the chain of ownership with regard to the foreclosure first. Those documents should tell you who holds the note on the property. The lender that has started the foreclosure is likely the entity who had the note on the property. You will be able to read what the mortgage says about how much the people paid for the house as well and may clue you in as to how much money the lender needs to sell the house for in order to break even.

“…Keep in mind that once you track down what is owed on the property this may not be a true picture of what the lender needs to sell the property for. Lenders pay $30,000 and upwards to take someone through the foreclosure process for legal fees so don’t be surprised if there is a huge discrepancy between what is owed and what the lender is trying to sell it for through their agent…” N. Osorio added.

Once you locate who has the note, you are welcome to call that lender and ask about the status of the property.

Better yet, hire a Realtor and he or she will track down this information for you.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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How Can Foreclosure On An Investment Affect My Personal Finances?

January 25th, 2010

Sadly, the media is full of news of the economy’s turns, dips, and downward spiral. Given the domino-effect of such news, it is not unlikely to think that you may be affected.

A few years ago, buying a home or property was a smart investment. After all, you could buy a property, work on it, and then sell it for more. However, in today’s day and age, foreclosures are becoming more and more common.

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — — pointed out;

“…In the event that you can no longer make your payments on a home or property, a bank or lending institution is bound to take it back. Thus, you lose your property and your investment. When this happens, this is called a foreclosure. Sadly, people around the world have to deal with this kind of loss. However, a foreclosure has many more effects on a person. It could affect everything from your credit rating to your personal finances. The following are some things that people do not always know about foreclosures and their effects…”

A foreclosure directly affects a person’s credit score. Whenever you can’t make a payment, this is reported to credit agencies. Thus, if you end up not being able to keep up with a mortgage or with payments on a property, this will show up. If a lending institution ends up seizing and placing a home in foreclosure, this too will be reported and will show up on your credit history. Everyone from prospective employers to landlords can see this document. Thus, the effects of a foreclosure can definitely affect other areas of your life. Thus, you should do everything in your power to avoid such a situation. If you do end up with a foreclosure on your hands, be prepared to explain this in the future.

“…In the future, if you look for a mortgage, car loan, or even a credit card, your foreclosure will affect not only whether or not you approved but the rates you have to deal with. A foreclosure shows a lending institution that you have not been able to keep up with your payments in the past. Thus, it shows banks and other organizations that you are a risky investment. No lending organization wants to end up losing money on you. Thus, even if you are approved for a home or auto loan, you may have to deal with high interest rates…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by

Hector Milla runs his corporate website at where you can see all his articles and press releases.

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Screw the Banks

January 23rd, 2010

I met a business associate at a meeting this morning.  “I lost my business over a year ago and haven’t found any steady employment since,” she told me after the meeting.  “My 401K, my investments and what little savings I have are almost gone.  The first three year adjustment on my ARM kicks in this month and I will be unable to make a payment on a house which is worth less than I owe. What am I supposed to so?  I think it would be best if I just walk away and let the bank foreclose on it.  Screw the banks and the usurious Visa and Master Card.  First they sell the rope to hang us and then they get rewarded by bailouts and bonuses.  I’m tired of being a patsy; I’m just going to walk away from the house and let the bank figure out what to do with it.”

By coincidence, I had met a man a few days before who was in business of offering alternatives to foreclosure and bankruptcy.  His answer is called Short Selling.  “That’s right, just like the stock market,” he replied to my questions   “It’s also a chance for you to get your share of the bailout money,” he explained, using his index finger to try to drive the point across. At no cost to the borrower, his firm of Professional Negotiators would get the best deal from all the Lien Holders, who also paid his fee.  The beauty of this result was that the borrower could lease a different property for lower terms.  The reduced living expense would allow him or her to buy down existing debt while saving for a down payment on a conventional mortgage a few years in the future.   

If  you are out of work or out of money you may miss mortgage payments while the short sale transpires, but after finalization your mortgage will be satisfied and your credit rating will immediately rise.                                                   

Short Sales allows a borrower to sell a home or investment property for a sales price less than the amount owed to their lender, giving the borrower relief from possible future legal actions and judgments.   It lets the lender get the highest price for a quick sale at a market price if they agree to the sale.  In order for this to take place the lender(s) must accept a discounted payoff meaning the bank(s) get paid less than the full loan amount owed but much more than they get in a foreclosure.   In a short sale, the homeowners get complete relief from all of their mortgage debt.

In any case, before a person considers foreclosure, bankruptcy, or Short Sales, they should contact an Attorney.

Jim Flynn is active in E Commerce and likes using his experience and education as part of a problem solving team. Visit his newest site at and save time and save money but mostly have fun shopping.

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Get Home Mortgage Refinance Approval from Obamas Stimulus

January 22nd, 2010

Many homeowners are considering a mortgage refinance to take advantage of the near record low interest rates and President Obamas stimulus plan. However, many people have no idea what huge benefits the Obama housing stimulus plan can provide. Here are some of the biggest advantages to refinancing a mortgage right now with Obamas stimulus plan.

Since so many people are struggling to keep their home and are facing financial problems, the Obama stimulus plan provides some really bug benefits to homeowners. Some of the biggest things include:

-Easy eligibility requirements for every homeowner who needs help. Even homeowners who owe more than their home is worth, have bad credit, or who are facing other financial problems, can get approval from Obamas stimulus plan for a refinancing or mortgage modification.

-No closing costs or fees for a mortgage refinance or modification. These fees and costs are generally cost thousands of dollars the most homeowners do not have.

-Homeowners with a mortgage from Fannie Mae or Freddie Mac can get a mortgage modification no matter what their financial or home loan situation is.

Never before has lowering your home loan payments and preventing your home from being lost been this easy. The Obama stimulus plan is designed to help nearly any homeowner who is at risk of foreclosure or defaulting on their loan. Millions of people are able to use this program for themselves and see huge savings.

Homeowners should contact a mortgage lender or bank today and see what options are available to them from Obamas stimulus plan. This program will help people like no other program has before. It is truly easy to get approved for a mortgage refinance or modification with Obamas plan.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

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