What is Foreclosure?

Originally posted 2009-02-11 11:04:33. Republished by Blog Post Promoter

Foreclosure takes place when the deed is foreclosed through court action. It takes court action to <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> on a home. 

 

The borrower uses his or her home as security or collateral for a mortgage. If the lender does not pay as agreed the lender can accelerate the mortgage and then places a lien on the property. Along those same lines, however, when the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage. The satisfaction of mortgage removes the lien on the property.

 

The <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> progress begins with the lender’s attorney filing a summons and a complaint to the borrower and any other parties that may have rights in the property.  A trial is held, but once the borrower is notified the borrower has twenty days to respond to the complaint.  The borrower can challenge the lender on the foreclosure lawsuit.  If the borrower challenges the foreclosure, the court has 40 days to respond back to the borrower.  Each challenge must be related to the mortgage <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a>.  This process can go back and forth between the lender and the borrower as long as the borrower finds something incorrect information in the complaint. This, of course, slows the <a href=”www.taylorbrownrealestatetalks.com”>foreclosure</a> proceedings because it must be hear in court.  By virtue of the back and forth of this procedure many homeowners can stay in their homes for months often years after they have stopped paying their mortgage.

 

A Loan Modification is Within Your Reach

Originally posted 2009-04-10 11:00:44. Republished by Blog Post Promoter

If you are facing foreclosure, you have options.  First you must dismiss the common myths about loan modifications:

The common myths are:

• One myth is the bank does not want me to keep my home.  The bank does not earn any money if it forecloses on your home so if you are able to make the payments the lender is willing to work with you.
• Another myth is having bad credit will keep me from qualifying for the loan modification.  Your credit does not preclude you from qualifying for a loan modification.  Your credit score does not influence your loan modification only your ability to pay and the amount of your income influences the decision to modify your loan.
• Still yet, another myth is I am not late so I don’t qualify.  This statement was true at one time.  However, lenders are willing to renegotiate adjustable rate mortgages to keep the home from going into foreclosure due to the homeowner’s inability to pay the higher adjustable rate mortgage payment.
• Another myth is walking away and filing bankruptcy is my only option.  Modifying your loan instead of walking away keeps the lender from filing a deficiency judgement against you. 
• The last myth is it is too late to do a loan modification.  A loan modification can be done right up to the sheriff’s sale as long as you can prove you have the income and the ability to repay the loan.

Contact your lender today and asked for the loss and mitigation department to begin your re-negotiation of your loan.

Other Reading

In another post I answered that question What a Loan Modification .  

Next you may want to read about Loan Modification with Indy Mac Is Made Simple.  This post explains Indy Mac’s loan modification program and how you qualify for it.

Get Your Copy of “Should I Short Sale My Home”

Originally posted 2009-03-16 16:50:31. Republished by Blog Post Promoter

 

 

 

 

Click this link http://www.lulu.com/content/paperback/shouldisalemyhome/6381193

From: The Desk of Serena Brown, 4:33pm

 

If you are interested in selling your home using a short sale then learning an effective and efficient way to accomplish that goal is a much needed skill.

 

The single biggest complaint homeowner has is knowing how the short sale process works, and if the short sale will stop the foreclosure process.

 

As a homeowner who is facing the scariest and worst market for selling a home in decades it is important to have a guide along the way that help you understand what will or will not happen when and if you get a buyer for your home. 

 

As a homeowner, it is reasonable to want to understand the tax laws to avoid capital gain or loss.  It is equally reasonable for a homeowner to want to be able to sell his or her home before the sheriff sale. 

 

As a homeowner, the short sale and the pending foreclosure can become overwhelming.  In order to make the short sale an easier process it is important to understand the process and the options and choices that the homeowners have during the process. 

 

There is an amazing new book “Should I Short Sale My Home.”  It covers nearly everything you need to know about the short sale process and the effects the sale has on your federal income taxes.

 

Imagine having knowing how to get your home sold before the sheriff’s sale.  Would that be nice?  And can you imagine how great you’ll feel to have a clear and precise package to present to the lender to get the home sold before it is foreclosed on. 

 

Just a few weeks from now you will understand what a short sale is and what happens if you are an insolvency homeowner who sold your home in a short sale.

 

Did you hear that sold your home in the short sale?  Some homeowners list his or her home and it does not sell before the foreclosure, and the homeowner does not understand why the home did not sell.

 

And it’s not like any book you may have read on short sale of home before foreclosure, the book gives you all of the recent changes to the law that helps the insolvent homeowner and helps the homeowner understand the process of the short sale.

 

Why?

 

Simply, every section in the book is there because you asked for it.  Well, not “you” really.  But from real live questions.  Questions from people who have tried to sell their properties and sold their properties using a short sale, and the homeowner wants to make sure all the capital gain or loss is not going to negative affect him or her at tax time.   Questions from homeowners who wanted to know if they can ever own a home again after selling their home using a short sale.  A face to face question and answer section was completed.

 

And imagine the selling your home before the sheriff sale.  You can definitely do that.  Imagine being in control of selling your home.  Some homeowners are able to buy a home in 4 to 6 years after the short sale.  Not bad just for selling your home before the sheriff sale, huh?

 

·        You can save your family from the embarrassment of the foreclosure process

·        You can save on federal income taxes by proving that you are insolvent due to job loss, medical bills, etc.

·        You could take save your credit from the foreclosure

 

Would that be a great lifestyle or what?  That’s what this brand new book gives you the knowledge of the short sale process and the hope of selling your home before the sheriff’s sale and being able to purchase a home in the future. 

 

To get your paper back copy today for only $15.00 click on this link or get a downloadable copy for only $8.00 of  “Should I Short Sale My Home”  http://www.lulu.com/content/paperback/shouldisalemyhome/6381193

 

 

 

 

At Last…Indiana Has Recognize Troubled Homeowners Plight

Originally posted 2009-07-29 10:53:03. Republished by Blog Post Promoter

In an effort to curtail home foreclosure in Indiana, state officials signed in to law a regulation that require lenders to notify homeowners 30 days prior to filing a foreclosure notice.  The law also gives homeowners a chance to renegotiate terms and interest rate to allow the homeowners to keep their homes. 

The state also have 700 attorneys and mediators trained to defend homeowners who want to renegotiate their mortgage terms and rate.  Do not think that you will not be paying for the renegotiation.   The attorney and mediators will also defend low income homeowners for free. 

With more than 5,500 homes in some state of foreclosure and the fact that Indiana is rank 13th in the amount of foreclosure, it is about time that Indiana has taken action to help trouble homeowners.

Residents facing foreclosure can contact the Indiana Foreclosure Prevention Network at 877 GET-HOPE.  The counseling received by homeowners who take advantage of it is free.

Under this new law if a homeowner request a conference to discuss the terms or interest rate on his or her mortgage, the lender can not continue the foreclosure proceedings.

It is interest to point out that a similar law has enacted in Ohio has resulted in fewer foreclosure, so it is hoped that Indiana has similiar results with fewer foreclosures.

Your Credit and the Home Equity Line of Credit

If you are like most homeowners you have considered using a home equity line of credit to get out of debt with high interest rate credit cards. There are at rate credit cards. There are at least two schools of thought to consider if you want to get a home equity loan for such a thing.

One thing is that using your home as collateral to get out of debt is risky. Why? If you fail to make the home equity payments you can lose your home. Still yet, the days of your home equity high are gone. Remember, equity is the difference between how much you owe on the mortgage and how much the home is worth. For example, let’s say your home is worth $57,000. In today’s market, it may be worth $65,000. The difference, equity, is $8,000. If you decide to take out this loan remember you now are adding another bill to your already overloaded expenses, so make sure you can handle this before doing it so you will not be facing foreclosure, as a result.

Another option would be to cut up the high interest rate credit card and pay more than the minimum until you get the card paid off. Do not close the account when you are paying it down because that can affect your credit negatively.

Insider Information – On Getting a Successful Loan Modification (Part 1)

In the next couple of days, I will share with you tips that will increase your chances of getting a successful loan modification.

If you are facing foreclosure, there is hope.  Even if you received the foreclosure documents, there is hope.  Yes,a pending foreclosure can be scary, but don’t go it alone and by all means do not do nothing.

If your problem is temporary, you may be able to get a temporary forbearance, a reinstatement, or a repayment plan.

A forbearance is when the lender allows you to suspend or reduce your payment for a specific period of time.  Once that time has been completed, you will be contacted to determine when you will be able to bring the account current.  An important note is that a forbearance is often used in conjunction with a reinstatement because the homeowner knows that he or she will be able to bring the account current because he or she may be waiting on a lump sum.  The lump sum may be from an insurance settlement, tax refund, hiring bonus, or investment.

A repayment plan, on the other hand, is an agreement between the lender and the borrower for the borrower to resume making regular payment and portion of the past due amount.

If the borrower financial problem is long, a mortgage modification may be needed.  An example of long term may be a reduction in income due to reduction in work hours or temporary job loss. 

A loan modification can consist of:

• adding the missed payments to the back of the loan
• adjustment of the interest rate from adjustable to a lower fixed rate
• adjustment of the interest rate from a higher fixed rate to a lower fixed rate
• extending the number of years to repay the loan

Another little known loan modification applies to FHA/VA loans.  If you have this type of loan, you may be eligible to get an interest free loan from the mortgage guarantor to bring the loan current, and the repayment may not start for years to come. 

Tomorrow, we will discuss what is required by the lender to determine if you qualify for a loan modification and tips on how to present the information to increase your odds of getting your loan modification approved.

FREE Foreclosure Prevention Workshop in Northwest Indiana

There will be three foreclosure prevention workshops held in three different location throughout Northwest Indiana.  The workshops are FREE.  The workshops will be conducted by The Consumer Credit Counseling Service of Northwest Indiana.  The schedule is as follows:

• Monday, May 28, 2009  6:30 TO 8:30 PM Lake County Public Library 1919 West 81st Avenue Merrillville, IN 46410
• April 22, 2009  6:30 TO 8:30 PM Lake Station Public Library 2007 Central Avenue Lake Station, IN 46405 
• May 27, 2009  6:30 TO 8:30 PM Lake Station Public Library 2007 Central Avenue Lake Station, IN 46405 

Come out to learn ways to save your home while reducing expenses and maximizing your income. 

For more information contact The Consumer Credit Counseling Service of Northwest Indiana at 219-980-4800.

Does Governor Daniels Have A Reform for This?

Indiana is finally taking steps to help homeowners that are dealing with foreclosures.

What prompt the state to consider legislature for homeowners facing foreclosure is the alarming increase in foreclosure in Marion County.   The foreclosure rate in Marion County increase by 13 percent to a record high of 10,116 properties.  Consequently,  this is only one county statistics it states to reason that the rest of the state’s foreclosure rate has increased by that much or more. 

Even though it seems to be late in the game the state is taking a strong and forceful stand against further damage from the exponential amount of foreclosure through the state.  The state is proposing changes such as,

• notification timelines for renters of properties that are undergoing foreclosure
• avoid companies that acting on the behalf of the mortgage company to foreclosure
• enforcing mediation between the homeowner and mortgage company before the property goes to foreclosure

The above changes to legislature is a welcome and much needed change to help homeowners stay in their homes.  The changes in and of themselves will not solve the problem overnight it will take alot to turn this crisis around.