Posts Tagged ‘Money’

How Does A Person Go Into Foreclosure?

January 25th, 2010

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If you are facing foreclosure there are probably many questions that are racing through your mind. One of the most frequently asked questions are how a person actually enters into foreclosure.

Foreclosures do not start from the first missed payment. There really is no definitive answer as to when foreclosure starts as it is dependent on your state and your mortgage terms. In general most lenders will start foreclosure proceedings after your third missed payment. At this point most mortgage companies will not accept a partial payment; they will only accept payment in full for all of the missed payments plus late fees and any legal fees that may have been assessed.

Natalia Osorio Editor of the “Stop Foreclosure Loans” website — — pointed out;

“…After foreclosure proceedings start you will be given several notices as to what stage you are in the process. You will also be called daily from your mortgage company. The initial reaction is to ignore the call; however that is the worst thing that you can do. Mortgage companies hate foreclosures and when they call they are probably trying to help you figure out a solution…”

Generally after six months of non-payment they lender will schedule an auction or sheriffs sale. The date of the sale will mark the date of the redemption period. Your redemption period is different from state to state. For example Minnesota has a redemption period of six months. If you do have to go through a foreclosure you should definitely take advantage of the redemption period. During this time you will be able to stay in the house rent free. This will give you time to save money and look for alternate housing. Also if the property is being rented you can still collect rent from your tenants during this period. At the end of the redemption period you will be evicted and any of your belongings that are still in the house will be processed and brought to police storage, which you will have to pay to get out.

“…There are many other options to foreclosure. A foreclosure on your record will damage your credit report and will limit your ability to purchase a home in the future. There are many foreclosure assistance companies that can help through this tough time period. They will help you talk to your mortgage company and go through your finances to help you devise a plan so that you can save your house, and your credit score…” 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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How Bad Will A Foreclosure Hurt My Credit?

January 25th, 2010

A foreclosure will virtually destroy your credit which is why you should avoid a foreclosure any way that you can. There are so many things you can do to avoid foreclosure that it is always advisable to avoid it.

For instance, you can make arrangements with your lender so that you can sell the house on a “short sale” where your lender agrees to take whatever the house will sell for and then you would get a “release of mortgage” to record at your county recorder’s office to show the termination of your mortgage.

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

“…You will need to have a Realtor help you do this as it is not easy at all. To do a short sale, typically the lender will want you to have the property on the market for at least 90 days before they will consider giving you a “Deed in Lieu of Foreclosure,” following the short sale…”

Under certain hardship circumstances you can work out a “Deed in Lieu of Foreclosure” with your lender where you give it back to them. Clearly they do not want properties back in these hard economic times but there again, you may have a good reason to go in this direction.

You should contact a real estate attorney and find out if you have a “Right of Redemption” on your mortgage which will give you up to a year to get caught up on your mortgage.

You have some potential solutions to avoid foreclosure. When you default on your mortgage payments and go into foreclosure, you will not be able to buy another house for at least 4 years or more. Why would a mortgage lender lend you money for a house if you stopped paying your payments on your present home? In order to protect the roof over your and your family’s heads you must always pay your mortgage first even if it means not paying someone else such as credit cards.

After a bankruptcy sometimes you can get a house loan as soon as two years after its completion but this is not the case on foreclosure.

“…A foreclosure is the worst credit reference you can have and it will stay on your credit for ten years I believe. This negative credit reference could also impede your ability to get other kinds of credit when you need it as well, to purchase a car for instance or get credit for other needs…” N. Osorio added.

Do whatever you can do to avoid foreclosure even contacting your Senator or Representative for direction since this situation is being dealt with on a national level.

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 I Contest Or Postpone Sale In A Foreclosure With A Sale Date Pending?

January 25th, 2010

From the question, what you want to do is stop the foreclosure process even though there is a sale pending on the property. Then what you want to do is keep the property.

First you must cancel the transaction you are in if you can. The buyers may be very disappointed or rather infuriated at you for wanting to keep the property since you both want the house. The best way to get out of the transaction is to offer them some money to back out of their transaction. However if you are presently in foreclosure it is likely that money is the one thing you do not have. You can have your agent simply go to the buyers’ agent and be totally honest about your desires and intentions. You would have to be prepared to be sued for “Failure to perform” since you clearly have a binding agreement.

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

“…Be prepared to hire an attorney because you may have backed yourself into a corner, considering that the purchase agreement is a binding legal agreement. All you can really do is be completely honest about the whole situation and hope and pray they will be gracious and understanding. But don’t count on it; this kind of situation is the stuff of very ugly legal battles…”

Next you must get on the phone with your lender and clue them in to your intentions. Right now there are so many lenders that are trying to bend over backwards to help people keep their homes especially with regard to the way things are happening with the economy and initiatives in Washington to help people keep their homes.

Check with your attorney with regard to your rights under your mortgage. It is likely that you have a “Right of Redemption” under the mortgage where you can mend your history with your lender in order to keep your house. Typically you may have up to a year to correct whatever situation brought you into foreclosure.

You have so many options in this state of the economy. You can request a loan modification or ask that your missed payments be added onto the end of your mortgage. You have to be rather tenacious and fearless so buck up for the process.

“…It is by far better for the lender and for you to keep you out of foreclosure. It costs lenders a terrific amount of money, $30,000 and upwards in legal fees to take you through foreclosure. So anyway you can stop foreclosure is the very best way to deal with this…” N. Osorio added.

None of this is easy but it is possible. Be sure to document your communication with anyone involved in this with you. If you do end up in court, your documentation may save you untold heartache.

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 to Postpone Sale in a Foreclosure

January 25th, 2010

Postponing the sale of your home during foreclosure can buy you time to find yourself a new place to live or even perhaps come up with the means to make payments worked out with the bank.

There are a few things you can do when you’re going through foreclosure to stall the process. The first thing you should do is ask the lender to postpone the sale of your home. This is often granted because the lender is hoping that you will be able to find your way out of foreclosure and come to a payment agreement. You may be asked to do a loan modification to show that you’re willing to renegotiate your loan.

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

“…Next you can petition your county court for more time to stop the foreclosing of your home. This will often work when the lender itself is not willing to do so. You’ll have to give the county proof that you’re working to stop the proceedings completely however, such as a program or loan modification…”

If these methods fail to work you can file for a Chapter 13 bankruptcy, which is a last resort. This option will allow you to save your home by making payments under the bankruptcy payment plan. Although bankruptcy is a lengthy and credit-damaging process, it may provide you the ability to save your home. You should consult with a lawyer to decide if this last option will help you.

The last suggestion to postpone foreclosure and sale of your home is asking for the original note proving that you owe the money. Having the original contract is a legal requirement for a bank to foreclose on your home and prove that you do indeed owe the loan they’re claiming you’ve defaulted on. This isn’t a sure way to postpone foreclosure but it may buy you time.

“…At least one of these methods may buy you the valuable time you need to stall the sale of your home and give you the chance to make a loan modification and keep your house. While the first two options cost you nothing, consider carefully whether filing for bankruptcy is going to help you and is worth it to you…” H. Milla added.

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

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

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Dealing with Foreclosure

January 23rd, 2010

With the economy in state that it is currently in, many people are dealing with the threat of foreclosure. From personal experience I can tell you that nothing is more gut-wrenching and nausea inducing then the possibility of losing your home. Their is is no magic bullet solution to avoiding foreclosure; just your rights within the law, and the actions that you take as a homeowner to deal with, and prevent the process.

Step 1: Communicate.

The bank does not want your house; they want your money. A house might be a valuable asset, but to bank, it is a lose of liquidity and a hassle. This means that if you communicate with your lender as soon as you realize you might not be able to make a payment, they will be willing to work something out with you. Though they are perfectly willing to begin the process and take your home, banks would rather work out some sort of plan that will you in your home, and your cash in their pocket.

Step 2: Educate Yourself.

Though many foreclosure laws are universal on a national level, each state has specific laws governing the exact procedures surrounding the process. The only way in which you are helpless is if you do nothing. Contact local government counselors who will offer free, effective strategies for dealing with foreclosure. They will also inform you of your legally mandated rights, and what the bank can and cannot do to you during the foreclosure process.

Step 3: Be Proactive.

Stop feeling sorry for yourself and do something about your situation. Help is available to you if you are willing to step up and seize the situation. Yes, the situation is frightening and rustrating. Yes, you feel helpless, but that is a state of mind that you chose. The government will help you; your bank will work with you, but you have to educate yourself and become active. You are your greatest ally.

If you have questions about the foreclosure process look here for additional specific information.
help here.

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