If your property or home is on foreclosure, it doesn’t mean that it is no longer in your hand. There are still so many ways by which you can get out of this nightmare.
How to save your property from foreclosure?
Check out the following points to know how to prevent your property from the foreclosure sale:
- Once you get legal notice from your lender or bank, you should immediately contact the loan modification experts available in your locality for loan modification help. They will surely show you the way to overcome this difficulty.
- Arrange fund from other sources and pay the due installments, including taxes and other late payment charges.
- Talk to your lender or bank, since they may make your installment schedule more flexible with lower interest rates.
- Ask your bank for forbearance because your lender or bank may agree to stop or reduce your mortgage payment for a short period.
- Cut down your unnecessary expenses, stop using credit cards, stop eating out, start saving a little, adjust your standard of living, save money and pay your lender or bank the missed installments.
- If your financial situation has been changed permanently, you may try to negotiate with your lender regarding the restructure of the loan. You will have to show your bank statement to prove that you are going through a financial hardship. Your bank or lender don’t want to file for foreclosure, so they will surely keep faith on you and will help you modify your installment structure.
- If nothing works at all, you may go for bankruptcy. It will affect your credit score for ten years but your lender or bank will stop the foreclosure process and you will also get plenty of time to overcome the situation.
There are two types of foreclosure, judicial foreclosure and Non judicial foreclosure:
In this method, foreclosure occurs under the court lawsuits. Permission from court is needed for the foreclosure sale. In some cases, it can take from 6 months to 3 years to complete. So it will be the longest time for you to stay in your home but still it varies from state to state. In the meantime, you can take help from a loan modification expert to help you in such a difficult situation. Suppose you have missed your first mortgage installment on day 1. On day 16, the lender or bank will add up the late payment charges to your outstanding bill. Between day 45 and 60, your bank will send you a demand notice. On day 90, if you have not paid 3 installments in a row to the bank, they will go ahead and file a complaint to court for a foreclosure process. The court will then send you a copy of the complain and summons. You will have 28 days in hand to reply to the summons. After this period, your lender or bank will approach a sheriff to plan for a sale of your property on auction.
Non – judicial foreclosure
This is the method which most of the states are currently using. This process is also widely preferred by most of the lenders and banks. In this process, there is no need to take permission from the court. So, it happens very quickly. Usually, the lender or bank puts your property on auction in 2 to 3 months after sending the legal notice.
So the good news is that you can always slower the foreclosure process and you can also stop it. You must act quickly and should contact any loan modification consultant near you.
A mortgage loan modification is the process which happens outside the original loan agreement where the borrower can save their house or property from the foreclosure sale. There are many loan modification attorneys in the market that you can consult with and take help from.
Some loan modification companies must be there in your city or state. You should immediately consult them, and share your issues and strategies to repay the loan. Based on these, the loan modification attorney will make a plan to help you avoid the foreclosure sale on your property. You should hire only those loan modification attorneys who are well known in this sector.
Some misconceptions about the procedure
Many borrowers have too much confusion about the modification procedure because of the wrong conception and misleading news often displayed in the media. But they should not worry about these news. Instead, they should find the right loan modification attorneys. Since it is about saving your home and property, you should be aware of whom you are dealing with. Some forged companies offer you the necessary help, but they take upfront charges from you without providing any positive results in the end.
If you are not sure about whether a loan modification attorney is fake or genuine, it will be better to check their statuses on different social media, like Twitter, Facebook, Linkedin, Google+ etc. If you read other people’s review, you will easily be able to know what they are up to. There are so many groups on Facebook as well as on Twitter where you can raise questions about your issue and others will give feedback in no time.
How to escape from the foreclosure?
Foreclosure is a nightmare for those who are passing through this process. But there are many ways to overcome the difficulty and you can still save your property from the foreclosure sale. You have to just approach a loan modification lawyer in this regard.
Closing charges take place when you buy any property from a lender or a bank. These charges include the attorney’s fees, recording fees, escrow payments, appraisal fees, costs of title service and recording fees. You do not have to pay the closing charges for a loan modification. In most of the cases, it will not charge any payment to get a loan modification from the lender or the bank.
The loan modification costs will be charged to the borrower when they are not able to pay the installments of their home or property. So, they have to go through the foreclosure sale and pay fees to the loan modification companies for the procedure. Fees may be charged by the homeowner or by a loan modification professional who does the modification process.
A loan modification is a long-term agreement for those borrowers who are not able to settle their loans. There are so many loan modification firms in the U.S. from whom you can take help.
A loan modification charge:
Normally, the loan modification companies charge $0 to $3000 as upfront and take 1% to 2% of your loan amount after approving the loan. While choosing a loan modification company, you should keep in mind that the companies which offer $0 upfront sometimes become costlier later than those that offer $3000 initially. However, the rate varies from company to company. If the loan modification company is expert in this sector, they may take more charges from you than usual. But they will assure you to complete this process without any hassle.
Many people want to know if they are eligible for HAMP. Before answering this question, we should first know what HAMP means.
What Is HAMP?
HAMP stands for Home Affordable Modification Program. It was founded by the Federal Government in the year 2009 and has been funded by them since then. HAMP provides benefits which help get a person back to shape so he could pay off his mortgage and also save his home. The benefits attached to HAMP include the reduction of monthly payment, the reduction of interest rate, etc.
Who Is Eligible For HAMP?
To qualify for HAMP, you must meet the following requirements:
- You must have gotten the mortgage prior to 1st January, 2009
- The home loan balance is $729,750 or less. This is applicable for only a single unit rental property or primary residence.
- The home loan balance is $934,000 or less. This is applicable for only a 2 unit rental property
- The home loan balance is $1,129,250 or less. This is applicable for only a 3 unit rental property
- The home loan balance is $1,403,400 or less. This is applicable for only a 4 unit rental property
- The property which is under your ownership is not condemned yet
- You could show proof that you are experiencing financial hardship. Furthermore, you are not able to make more payments on mortgage or you make payments which are not completed
- You have enough income which is able to manage a modified payment arrangement on the loan of your home. Furthermore, you have to prove this with a written document of your income
- You have never been convicted of theft, felony larceny, forgery, fraud, tax evasion or money laundering. These have to be connected to a transaction on real estate or mortgage in the past ten years.
For any kind of information on loan modification help and loan modification testing, you can visit www.loanmoddepot.com. We are here to help you out.
A loan modification is a process in which the original and authentic terms of your mortgage undergo a modification via a new agreement. In most cases, it involves reducing your interest rate and monthly payment and also spreading the due amount. There are some modification programs that derive their outcomes via “re-amortization.” So, what is “re-amortization?” This means that the your payment plan’s length will be extended so that you can make lesser payments as the time passes by. There are some loan modification plans that could cost more later on, since they serve as a way to make the ongoing payments more affordable.
There is a loan modification program, known as Home Affordable Modification Program (HAMP). This program was created in 2009 by the Federal Government. Apart from establishing this program, the Federal Government also funds it. The guidelines of HAMP offers many benefits that are designed and created to help you get yourself back with your mortgage and also save your home. Some of the benefits attached to this program include reducing the monthly payment you make to 31 percent of the gross income of your family and reducing the interest rate which you have to pay.
Who Are Eligible for HAMP?
A benefit attached to HAMP is that the lenders are obligated to consider every borrower on terms of the federal guidelines. These federal guidelines are uniform. Hence, the process is straightforward, as your loan is modified as per the guidelines as long as you meet the criteria for eligibility. For you to be eligible for HAMP, you must:
- Be in default or in danger of default
- Possess a documented financial hardship
- Successfully finish a trial period. This trial period usually lasts for 3-4 months.
For any kind of information on loan modification attorney and loan modification options, you can visit www.loanmoddepot.com.
When one loses his home due to foreclosure, it is quite devastating and heartbreaking. However, this does not mean this is the end of his ownership of the houses if he can still play his cards right. There are different state laws which may vary, but there are some states that give an opportunity for one to buy his home back or even cure the loan after the home has been auctioned. Now the question is, can you get your home back after it has been foreclosed? The answer is, yes. But how can you get your home back? The answer to this question is given below:
Steps to getting your home back:
- Right to cure: in some states, you would be given time after the foreclosure of your home to either pay the money owed in full or to cure the loan. If you could secure another mortgage, you could have the original loan paid off and re-secure the ownership of the house. This could take just a few days after the auction had occurred. However, this depends on the law of the state you reside in.
- Right to redemption: there are some states that permit judicial foreclosure. Here, the court would get involved to attend to the foreclosure issue. You could have one year after the auction to purchase your house back. Judicial foreclosure aids the lender to acquire a deficiency judgment in his favor against you. This means you would still be indebted since you would owe the difference between the mortgage and the price of the auction.
- Hidden fees: when you are trying to purchase your home by making use of right to redemption, you would have to pay more money than that of the auction price. You would have to pay the foreclosure cost of the bank, the outstanding lien on the property (if there is any), and for upgrades or repairs that have been done to the home by the new owner who purchased the home at the auction.
Apart from these steps, you can also get your home by buying it at auction.
For any kind of information on loan modification service and loan modification restoration, you can contact www.loanmoddepot.com.
In a situation where you have missed 3 or more mortgage payments and your lender has written and filed an NOD, you may think you are going to lose your property soon. This is actually wrong, as the good news is there are some strategies you can use to stop the foreclosure on your property. Those steps are:
Foreclosure workout: till the day when your home would be auctioned, lenders would prefer to find the means to place you back on the track so that you could continue making your mortgage payments instead of taking your home through a foreclosure sale.
Short sale: when your lender has written and filed an NOD and an offer is made to you by a buyer, it must be considered by your lender. This can only happen before the day of the auction. If your home is being foreclosed, your lender would just turn around and resell the house. If you provide a short sale offer that is reasonable enough, this could be seen as preserving the effort, trouble and time which they would use in getting a qualified buyer. Hence, even if your house is placed on the market, you should continue looking for a buyer to buy it. Even if your lender has commenced the foreclosure process, this should not deter you from seeking a buyer.
Bankruptcy: the foreclosure process can be stopped through bankruptcy. When you file a petition for bankruptcy, your lender would not be able to continue the collection activities. This federal law stops any debt collector from continuing any collection activities.
Deed in lieu: when you are facing foreclosure, you would have to sign the deed with the bank which must be done voluntarily.
For any kind of information on loan modification specialist or loan modification expert, you can contact www.loanmoddepot.com. We are here to help you out in this regard.
You are the owner of your home till the day it is sold by the lender through an auction. Your home belongs to you whether it is valued to be less than the amount you owe on mortgage or the equity has created more than the mortgage amount. Due to the fact that you are defaulting in your mortgage payments, your lender is triggered to start the action of repossessing your property which is serving as collateral. In most cases, the whole process could take a long period of time. This is not in favor of your lender; hence, he would prefer having a short foreclosure sale.
Your home is valuable than the amount you owe on mortgage. But because you are experiencing a hard time financially, you cannot make the payments on mortgage anymore. When the lender begins a foreclosure, just act fast and put up your home for sale in the market. This must be done before the main foreclosure occurs. You would sell your house, the lender would receive his payments and you would still have some money in your pockets. Furthermore, you would not experience any credit damage. As a result, you would not lose at all.
When to Sell?
When it is certain that you cannot afford the mortgage payments anymore, this is the time to put your home on a short sale. A short sale means that you are selling your home for less than the amount you owe on mortgage. When your lender approves based on the financial hardship you are facing, you would list your home with a specialist on short sale from a real estate brokerage. You can do this before even missing out your first payment.
For any kind of information on loan modification lawyers and loan modification companies, you can contact www.loanmoddepot.com.
There are some cases where the homeowners, in a state of unrest, evacuate their houses after missing out on making some mortgage payments or when a foreclosure is commenced. However, there is a legal right which you possess to enable you remain in your home till the whole foreclosure process is concluded. The process could take few months or in some cases, it could be up to a year or even longer than that.
When you begin to miss payments
You don’t have to evacuate your home just because you missed out a few mortgage payments. In a situation where you have missed making your payments, your lender would send you a couple of letters to remind you. When you miss 3 or more payments later on, the lender would most likely send you a letter to inform you that you need to bring in the loan current. This letter would inform you that the whole foreclosure process would start if you don’t cure or attend to the default by settling the amount stated in the letter by a particular period of time. This period usually remains for 30 days.
Foreclosure gets started
When you are unable to cure the default by settling the amount that has been specified in the letter, the lender would formally begin the foreclosure process. It could be either judicial or non judicial. This is based on the state you reside in and also your circumstances.
When you are given a notice to leave your house, the notice would tell you the number of days you have in hand to leave the property. Usually, you would have 5-30 days. This is what is common in most states. In most states, you could still legally remain in the property after the deadline. You could be in the house till a sheriff lawfully asks you to leave.
For any information on a loan modification firm, you can visit www.loanmoddepot.com. We are here to help you.