So, you’re facing foreclosure on your home… So what? Examine the circumstance without letting your feelings cloud your judgment. If you approach the problem entirely from a business perspective, you’ll be better able to evaluate the various solutions and determine which would work best for you. Take prompt action to ensure you have enough time to finish the selected process since time is of the essence. There are more than fifty options available to prevent foreclosure on a home. Listed below are just a few examples:
A homeowner can do one of two things: (1) do nothing, in which case they will likely lose their home in a foreclosure auction, or (2) take action. The question of whether or not the applicant has been foreclosed upon appears routinely on loan applications. This negative information can also be seen in credit reports.
Paying off or refinancing a debt means paying off the loan balance, including any accrued interest and fines for default. Refinancing existing debt is the typical means of doing this. Because of the recent bankruptcy, the interest rate on any new loan will likely be higher, and there may be a prepayment penalty. There must be some equity in the house for this to work.
Payment of the whole amount due plus interest, attorney fees, late fees, taxes, missed charges, and reinstatement fees is required for reinstatement.
Option 4: Refinancing or extending the loan terms with the current mortgage lender. If they are eligible, the homeowner may be able to get caught up at a manageable rate.
The homeowner’s financial circumstances may allow the lender to set up a forbearance plan. Lenders may even be willing to lower or waive payments altogether temporarily. Lenders will need proof that you can handle the additional terms of your repayment schedule.
FHA “Partial Claim” Loan: Second Loan with Back Payments, Fees, and Costs Financed by the Federal Housing Administration.
You may be entitled to some privileges and should know about them. HUD released guidelines in January 2001 stating that all borrowers with FHA loans subject to HUD regulations must be informed of their eligibility for home loan modification programs. Check out HUD ML2002-12. Many Veterans can avoid foreclosure thanks to the benefits provided by the Veterans Affairs (VA) Department. To prevent foreclosure, your lender may give legally mandated FHA/HUD or VA loss mitigation aid if you:
Some options include: * negotiating a lower interest rate * extending the term of your loan * adding late payments to the principal balance * selling your home for less than you owe the bank * giving the house to the bank or the government in exchange for what you owe.
If you want to know if you qualify for the free stop foreclosure hotline, send an email right now.
Deed instead of Foreclosure, or DIF, is a way to avoid foreclosure by returning property to the lender. In addition to current mortgage and tax payments, banks typically require the property to be in good repair. This question is standard on many loan applications.
Chapter 8 bankruptcy can be used to discharge debts and buy extra time. I know a good bankruptcy lawyer that I can recommend to you.
Liquidation under Chapter 7 is used for final debt settlement.
Plan for Wage Earners, Section 13. Debts are being paid off over three to five years.
Section 11 (Corporate Reorganization) For companies needing a debt resolution.
A historic number of Americans have filed for bankruptcy since the passage of the new bankruptcy legislation. Some of the modifications are listed below.
The potential need for a means test If your household income is over the regional median and you file for bankruptcy, you will be required to take a means test to determine whether or not you qualify for a debt repayment plan. If you don’t, you can seek bankruptcy relief under Chapter 7 and have your unsecured debt, such as credit card and medical expenses, written off.
However, you will be forced into a Chapter 13 repayment plan if the means test determines that you have the financial resources to repay some of your debts.
Credit counseling sessions are necessary for filers, but the counselors claim they don’t help much.
Basic filing costs have increased by around $200, and the time it takes for attorneys to prepare a case has increased by at least 50%.
Basic filing costs have increased by around $200, and the time it takes for attorneys to prepare a case has increased by at least 50%.
According to the Littlefield ruling, the bankruptcy reform act, as currently drafted, mandates putting the needs of creditors ahead of a debtor’s religious obligations.
In a traditional sale, you can sell your home without getting your lender’s permission. The homeowner will receive a lump sum from the home’s sale if there is equity (value remaining after all debts against the property have been repaid). If the amount owing is greater than the value of the property, your real estate agent may be able to arrange a short sale with the lender, also known as a pre-foreclosure sale.
When a Lender agrees to accept less than the amount owed to pay back a loan as an alternative to foreclosure, this is known as a “short sale – negotiated settlement” or “short pay.” Even if the Lender forecloses and takes back the property, it will incur a loss if its value exceeds the outstanding loan balance. We can often persuade the Lender that they will come out ahead if they accept less than what is owed now rather than repossessing the property and trying to sell it at a loss.
Eleventh, verify the debt by having the lender supply documentation. Lender has 30 days to provide documentation, after which the debt and any unfavorable remarks must be deleted from your credit report. Foreclosure proceedings can be delayed by at least a year using a variant of this strategy. This strategy has put foreclosure proceedings against many homeowners on hold for years.
Please visit my blog at http://save-your-home-from-foreclosure.blogspot.com/ to sign up for your free copy of “How to Save a Home from Foreclosure” and your free copy of “How to Improve Your Credit in 90 Days Without Spending a Dime,” as well as to receive free updates.
P.P.S. You might be wondering if you can contact Tony Bellenger (The Money Doctor) for seminars, speaking engagements, investor training, personal consultations, business funding, and hard money loans. Yes, send him an email at [email protected] right now with your wishes.
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Written by “The Money Doctor,” Tony Bellenger.
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