The Mindset Of Homeowners In Foreclosure

Let me set the stage for what we are going to talk about in regard to foreclosures. In order to help people stop the foreclosure on their home you need to understand their position and their mindset. What are they thinking, what are they feeling, and how are they reacting to the stress of foreclosure?

When a person is in foreclosure, they are under stress and are probably frightened and worried. They are not sure what they should do to handle their problem. When someone stops paying on their mortgage, they have already stopped paying on all of their other debts. These other debts usually include credit cards and personal loans; the mortgage is always the last thing they stop paying.

Some people, when faced with foreclosure, try to look at every possible scenario. In doing so, they may experience “paralysis by analysis.” The homeowners get so caught up in looking at every detail that they end up doing nothing at all. The next thing the homeowners know, their house has been sold to an investor and they are being forced to move.

Others in foreclosure get confused and fearful because they do not understand the legal process. Unaware of their options, they do nothing. This is a terrible waste because the homeowners end up losing their house, when there was a chance that the house and the homeowner’s credit rating could have been saved.

How You Can Help

You have the unique opportunity to help homeowners solve their problems by avoiding foreclosure. Americans need your help today more than ever.

You have the unique opportunity to help homeowners solve their problems by avoiding foreclosure. Homeowners need your help! The demand for assistance for homeowners who are in trouble with their mortgage (home loan payments) has never been greater than it is today! Entrepreneurs who follow this concept and our suggestions with the proper energy, personal drive, desire, and effort will no doubt earn well above average income.

Operating any kind of business requires some hard work and the discipline to do whatever it takes to meet your customers’ needs, including working nights and weekends, if necessary.

Losing Sleep at Night Due to Foreclosure? You Have Alternatives

There are many people facing foreclosure today. And statistics show there could be many more foreclosures coming in 2010 and 2011 throughout the United States.

The next wave of mortgages that are expected to create more foreclosures are the Option ARMs. These are loans that were issued to homeowners, giving them an option of the amount they would pay each month. They have a choice of paying the interest only payment, the principal and interest payment, or an option payment. The option payment is the lowest monthly payment and is less than the interest payment. The difference is then added to the back end of the loan, causing the balance due to increase each month. The result is that many homeowners now owe more on the mortgage than they originally borrowed.

Many of the Option ARMs had a 5 year period before the loan would become an amortized loan. At that time, the payment will increase. So when you think about it, if the homeowner was making the option payment, the lowest amount, they are going to facing much larger monthly payments when the option period expires. In some cases, their monthly payment will double.

Many of these homeowners now owe much more than the house is currently worth. And when they stop making payments, the home is heading toward foreclosure.

So, what can you do if you are facing foreclosure or think you will be in the coming months? You have to look at your alternatives and work with a professional to decide the best solution based on your individual situation.

Let’s look at some of the alternatives.

1. Loan Modification

A loan modification is a negotiation with your lender to create new terms for the existing loan. In some instances, the lender may adjust the interest rate, lower the monthly payment, or reduce the principal amount. In order to qualify for a loan modification, the homeowner must prove they have the income to support the new monthly payment.

2. Short Payoff Refinance

A short payoff refinance means the homeowner is going to refinance the mortgage, creating a new mortgage. They need to negotiate with their current lender, asking them to accept a payoff of less than the amount that is currently owed on the mortgage.

3. Short Sale

A short sale occurs when the house is sold for less than the amount owed to all lienholders. This involves a negotiation with each lien holder, asking them to accept less than what is owed. A short sale will not occur without agreement from all lienholders. Keep in mind that with a short sale, there is a sale of the house and the homeowner will have to find a new place to live.

4. Bankruptcy

Many homeowners will file bankruptcy to avoid foreclosure. When a bankruptcy is filed, this will stop the foreclosure process and the homeowner will be able to stay in the home. Many bankruptcies fail because the homeowner is unable to make the court required bankruptcy payments and the home ends up back in the foreclosure process.

5. Sell the House

Not all homeowners in the foreclosure process owe more than the house is worth. There are many homeowners who owe less than the house is worth and are facing foreclosure due to loss of a income, illness, death in the family, divorce, and many more reasons. These homeowners can sell their home before the foreclosure sale and may be able to pull out some of the equity when the house is sold. This allows them to avoid foreclosure and move on with their life.

Keep in mind that there are alternatives for foreclosure. Contact a local Distressed Homeowner Specialist to find out what choices you have and determine the solution that is best for your situation.

The Pain of Foreclosure – Ways to Help Ward Off the Humiliation of ‘Kicked Out From Your Own Home’

An increasing amount of householders dealt with property foreclosure resulting from past due mortgage repayments. Perhaps your very own property is in danger being taken away as result of foreclosure? Often the question of “How can I avoid the foreclosure process right now?” may loom ominously inside your mind. Think about the home you love so much, and worked so hard for. You must save it, but how?

Obviously, as long as you pay you mortgage installments on time, you don’t have any problem. But what happens if the economic slowdown or different unavoidable factors made you default in some of your payments?

In this event, foreclosure would have to follow at the end (if you don’t find a way to get back on track, which is exactly what I’m going to show you how to do!). What else could you do? You are in need of some good and proved methods to avoid or cease foreclosure, and here they are:

First, Use the Part Claim Option

This can be an effective way on your way to avoid foreclosure. It gives you the option to re-finance the mortgage loan by advancing some cash on behalf of the provider. These claims will not include interest payments, and will be paid only till the home is no longer owned by the lender, or up to the stage where you repaid the 1st house loan.

Second, Apply for modification of the mortgage terms (Also regarded as mortgage loan modification)

A. You can also pick the Indy-MAC Program. This also will be based around thirty eight percent of the HTI (House to Income) proportion, and lowered to only 31%. In this type of program, the interest rate is lowered to three percent and the time frame of repayment may be expanded up to forty years. This can ensure it is a lot easier for you to cope with obligations and prevent foreclosure. You need to pay one payment due before this plan is started. You could only utilize this plan in case you are still residing in your home.

B. The Freddie Mac Program (AKA The Fannie Mae Plan)is much the same technique as SMP however it is fast-tracked. The goal it to enable property owners to make their own mortgages affordable by decreasing interest levels to 3% or less, and extending the repayment time period. In order to utilize this program and prevent foreclosure you must qualify.

C. You are able to get a streamlined loan mod program (SMP) by which you will pay the provider 38% from the gross cash-flow. This is definitely one of the foreclosure remedies. In order to convert your personal mortgage to the SMP plan, you have to pay at least 3 sequential payments on time. This really is one powerful way to evade and halt foreclosure.

There are other means that are just as effective as the above for stopping foreclosure. Forbearance, for instance, is one of them. Considering the fact that different ways to stop foreclosure are offered to home owners who’re currently not capable of making payments due to job loss (possibly), demotion, or god forbid – passing away of someone in their family, you only need to pick out carefully the means that can work for you.

Now that I shown you that remedies and solutions are around – Take Action Right Now And Get Rid Of That Dread Associated With Foreclosures!

Last Resort to Stop Foreclosure – You Will Still Lose Your Home But it Will Be Kinder to Your Credit

If you have tried everything to stop the foreclosure on your home and failed, this article will show you how to use the “last resort” to stop the foreclosure. But the question is – even though it works, should you do it?

In case you haven’t previously heard, the absolute last resort, in lots of cases, to stop foreclosure is a dead in lieu of foreclosure. This enables you to voluntarily “give your home back” to the creditors. In this case you would be offering the deed to your home in lieu of foreclosure.

Of course when you do this, it won’t allow you to keep your home. You will still lose it, but here’s what’s good – it will do far less damage to your credit. This is far better than allowing the foreclosure to pull through.

But of course, this is the last resort and by that it means it should only be contemplated as the absolute last resort, when all else have failed. It’s not the best choice you have but it’s certainly the last-resort that will be more kind to your credit records. Other options include – selling your home outright, refinancing, repayment or even mitigation plan.

Also, it’s important to get the help and guide of an experienced lawyer before going ahead with any option to stop foreclosure. No matter how much you have read or how much you think you know about the entire process, you certainly need the expert guide and advice from the professionals, especially those that have successfully helped other people to stop the foreclosure on their homes.

Avoid the Post-Foreclosure Nightmare

Thousands of Americans who lost their homes in the housing crash, but have since begun to rebuild their finances, are suddenly facing a new foreclosure nightmare: debt collectors are chasing them down for the money they still owe by freezing their bank accounts, garnishing their wages, and seizing their assets.

Deficiency Judgments

Often, the proceeds of foreclosure sales are not enough to completely pay off the loan, plus penalties, legal bills, and other fees. Using a legal tool known as a “deficiency judgment,” lenders can come after borrowers for any amount not covered by the proceeds of the foreclosure sale.

Before the housing crisis, banks often refrained from seeking deficiency judgments because they were costly and invited bad publicity. But the housing crisis saddled lenders with more than $1 trillion of foreclosed loans, leading to unprecedented losses. One way lenders are trying to minimize those losses is by putting pressure on borrowers to pay post-foreclosure deficiencies.

Collection

Once a lender secures a deficiency judgment, it may have years to collect on the claim. In Maryland, for example, lenders have as long as 27 years to collect. Lenders can also charge post-judgment interest, averaging around 4.75% a year, on the deficiency amount, which can drive borrowers deeper into debt. Collection can be extremely unpleasant, as laws give lenders aggressive tools to go after borrowers, including freezing bank accounts, garnishing wages, and seizing assets.

Borrowers are usually astonished to find out they still owe thousands of dollars on homes they haven’t thought about for years. Many of those who went through foreclosure have since gotten new jobs, paid off old debts, and sometimes bought new homes. Now, years later, the nightmare of their foreclosure is returning to haunt them.

Avoid Foreclosure

In many cases, this nightmare can be avoided. When it comes to foreclosure, a common response is for borrowers to feel overwhelmed and powerless to prevent it. They become victims of their own inaction and unnecessarily accept the often devastating negative consequences of foreclosure. We’ve all seen and read the stories of individual hardships, heart-breaking family struggles, and nationwide economic recession that unnecessary foreclosures have caused.

Help is available! Do not accept foreclosure as the final result of your mortgage delinquency. There are resources available on a nationwide, state, and local level. You can try getting free help, or you can pay for more professional representation. The key is to be proactive, search out available resources, communicate with your bank, and do everything you can to avoid foreclosure. Lenders and government programs offer refinance options, loan modifications, temporary forbearances, and a number of other mortgage assistance options. If, despite your best efforts, keeping your home is no longer a possibility, you can still avoid foreclosure through a short sale or deed-in-lieu of foreclosure.

Avoiding foreclosure improves the lives of individuals, of families, and improves our nation as a whole. By avoiding foreclosure and resolving your mortgage delinquency, you can put foreclosure behind you for good, without worrying about a deficiency judgment years down the road. You can save your home and obtain a mortgage that is affordable and sustainable. You can immediately begin rebuilding your credit and establishing stress free personal finances. You can go on living your life and focus on the things that are truly important.