Category Archives: Foreclosure Knowledgebase

Home Loan Modification – A Life Boat For Families Who Are Sinking

Losing a home can be very devastating especially when you realise you might have been able to stop it. Just like a life boat coming to the rescue, home loan modification service can provide timely rescue for homeowners who can no longer afford to make their monthly payments.
Benefits
The advantages of home loan modification are enjoyed the homeowner as well as the mortgage holder. Homeowners can avoid a foreclosure and get to pay an affordable amount monthly. On the other hand, the lender avoids going through a lengthy and sometimes expensive process of foreclosure.
Modification of certain terms of the loan agreement with the loan provider can allow you choose ba more flexible and comfortable payment option, you could even get a relief from making payments for a particular lengthy of time if your financial hardship is temporary. With loan modification, you can reduce the interest rate for your loan or even extend length of time for the loan to reduce the payment amount.
Apply Early
Do not wait until you miss a few payments before you begin to seek a loan modification. Once you realise you are in a difficult financial situation, start to seek help. It’s a lot easier to save your home if you start loan modification process early.
Seeking loan modification early prevents your lender from suing for payment default and helps you reach a legal agreement on new terms. Reaching out early before your debts accumulate and your credit score gets so bad will also demonstrate your capability to continue to payments.
Loan modification plans have helped a lot of families prevent the loss of their their homes. Experts at Loan Modification Depot can help you in times like these, you don’t have to go through the difficulty situation alone. They provide affordable loan modification help and services to homeowners who need assistance and help them choose the best available option. Visit loamoddepot.com to get help now.

Step by step process of Real Estate Foreclosure

If you are facing any financial troubles, foreclosure and eviction are probably on your mind as the worst case nightmare. However, it does not necessarily have to come to that since there are many ways to deal with the situation. In order to do so, it helps if you understand how the real estate foreclosure process really works.

Pre-foreclosure

The process begins if you miss 3-6 instalment payments, the exact will be mentioned in the terms of your loan. In order to begin the process of foreclosure, the lender will send you a Notice of Default (NOD) and also file the same with the local records authority. A Lis Pendens may also be filed, which is a notification that the estate is pending litigation. The notice will list all the dues and fees along with the deadlines to be paid in order to prevent foreclosure.

Foreclosure

If the deadlines are not met, then you will get a Notice of Sale, which will also be posted in the local records authority and published in local newspapers. The notice states a date for auctioning the house. The bank repossesses the estate and tries to sell it in a public auction. The starting price of the auction is set to cover all the remaining debts and any extra fees and expenses associated with the foreclosing process itself. This is an attempt to quickly sell the asset and recover the money that is owed to the bank. If the bank is not able to auction off the property, it remains in possession of the bank and is deemed Real Estate Owned (REO).

Stopping foreclosure

You will get several opportunities to stop foreclosure. You can pay all the dues mentioned in the Notice of Default and bring the loan current during the pre-foreclosure period. This period usually lasts for about three months, though the actual duration will be mentioned in the Notice of Default itself.

Another option is to negotiate for a loan modification. In this regard, seeking assistance from loan modification company like www.loanmoddepot.com will be enormously helpful. A loan modification specialist will help you renegotiate the terms of the original loan so that you can pay it back affordably.

Last option you may have is to declare bankruptcy. It will put a temporary halt to the foreclosure process and buy you some time to gather funds or negotiate mutually agreeable options with the lender.

Foreclosure Basics: How many different types of Foreclosure are there?

Foreclosure is the legal process of taking possession of a mortgaged property when an home owner is unable to fulfill his payment for the property. The owner thus loses all rights to the property.
Types of Foreclosure
There are 3 general types of foreclosure.
In many countries including the U.S., the most common types of foreclosures are foreclosure by judicial sale and foreclosure by power of sale or non-judicial foreclosure. Another not so popular type of foreclosure is strict foreclosure.
Judicial Foreclosure
Judicial foreclosure involves the sale of the mortgaged property under the supervision of a court. A law suit is first filed against the mortgager when they fail to keep up with their loan payments. Loan modification depot is one agency that specialises in helping people deal with foreclosure problems
Non-Judicial Foreclosure
This is also known as power of sale forfeiture. It is applied when a power of sale clause is included in the loan agreement. A notice of default is raised against the mortgager when there is a default in making payments. The sale of the property in this case is not supervised by a court and is not as expensive as the judicial foreclosure process.
Strict Foreclosure
This is regarded as a minor type of foreclosure and is only available in few states of the U.S. including Vermont, Connecticut and New Hampshire. It is a method adopted from old British foreclosure practice. If the debtor is not able to continue his payment after a stipulated time granted by a court, the property is seized and claimed by the lender until payment is made. There is no foreclosure sale in this system it is applied where the property value worth more than the debt.

It is always a wise decision to seek professional counsel from loan modification lawyers before entering into any mortgage agreement. You can find more about affordable loan modification service by visiting loan modification depot.

How Can I Avoid Property Foreclosure and Prevent the Nightmare of Ejection

The housing market has been unstable at times and you may be aware of many cases of owners facing eviction. It is quite natural that you may feel nervous about facing the same. We shall discuss a few ways in which you can avoid property foreclosure and prevent the nightmare of eviction.
Be proactive
You don’t need to have financial disaster staring right at you before you act. Recognise the possibilities of financial troubles and plan ahead. If you are living paycheque to paycheque, you are doing it wrong. Any unexpected bills such as medical bills or car repair will exhaust your finds and leave you with insufficient money to pay instalment. Hence, cut back on expenditure if you have to, but maintain a substantial saving, preferably about two to three times your monthly income.
Explore loan modification options
Sometimes the value of your house which you have purchased by debt decreases significantly. Also, the interest rated in the market may significantly decrease. In such conditions, it can be said that you purchased the house at just the wrong time. However, you can hire a loan modification company such as www.loanmoddepot.com to help you negotiate with the lender and cut down your losses. A loan modification consultant can help you re-negotiate the terms of the original loan to get better terms.
Time is of the essence
As earlier said, you need to be proactive. But the earlier you act, the better you will fare. If you are building your savings, starting earlier will let you build up slowly. Similarly, even if you face financial trouble, you need to act quickly. For example, if you meet an accident or lose your job, you should contact your lender as soon as possible rather than wait till you exhaust your savings. With more time, you will be able to negotiate or work out some better solutions.

12 Tips to Avoid Foreclosure & Save Your Home

Instability in the housing market has caused disturbances for many people, even if they are not in financial trouble right now. Many people are worried that they may face potentially face foreclosure in the future. Here are 12 tips to avoid and save your home in time:
1. Act early. The more time you have, the more options you have available, and the easier it will be for you.
2. Maintain substantial savings. Do not live paycheque to paycheque. In such a lifestyle you will be highly likely to miss out occasional mortgage instalments due to unexpected expenses. Even if it does not lead to foreclosure, it will lead to fees and penalties.
3. Cut down your expenses. If you cannot build up savings or pay instalments on your normal finances, you need to cut down your regular expenses by changing your lifestyle. Cut lose any frivolous subscriptions and memberships. Plan your groceries smartly.
4. Explore alternative options to raise money. Consider selling redundant items such as cars if you have easy public transport. You can also explore options such as unemployment or disability insurance if it applies to your situation.
5. Contact your lender early. Contacting your lender before any of your financial troubles begin is often a good option. For example, if you just lost your job, you can contact the lender your lender right now instead of after running out of your savings.
6. Seek loan modification. This may be an option if the interest rates in the market or the value of your house have significantly reduced. You can hire a loan modification firm or loan modification attorney from services such as www.loanmoddepot.com to assist you with the negotiations.
7. In case of natural disasters, seek proper relief. In such cases, many lenders may voluntarily suspend late fees or offer to modify term. Some government relief measures may also be useful.
8. Private mortgage insurance. While this will cost you initially, you will have some financial assistance if you fall behind on your instalments. This assistance is usually in the form of low interest or very low-interest loan to bring your payments current.
9. Reamorize. If you miss out on your instalments, this option will add the missed instalments to the balance debt and will effectively bring your payments current. But it may increase your instalments or increase term.
10. Forbearance. This is an option which you may negotiate which allows you to skip or pay a small instalment for a set amount of time, after which normal payments resume. The missed out payments may be adjusted by increased instalments or term.
11. VA take over. If your debt is guaranteed by the Department of Veterans Affairs (VA), then you have the option to have the debt bought over by the VA. You can then work out a repayment arrangement with VA.
12. Bankruptcy. If your lender has begun the process of foreclosure, declaring bankruptcy will allow you to buy some time by bringing about a stay on any foreclosure proceedings. You can use the time to work out some funding source or negotiate with the lender to facilitate repayment.

Foreclosure Solutions – Is it Possible the Loan Modification Process to Stop Foreclosure?

If you are behind on your instalment payments or if you are currently going through some financial troubles and expect to have trouble paying instalments, you may face the risk of foreclosure. While the possibility eviction is not something take likely, there is no need to panic. There are various solutions available to deal with the situation. One of the great options is a loan modification. So, let us take a look at how is it possible to use loan modification to stop foreclosure.
What is loan modification?
Loan modification is, put simply, modification of the initial terms under which the loan was granted. It differs from loan refinancing. In case of loan refinancing, a new loan is issued and a part of it wipes out all the previous loans. But in loan modification, the existing loan’s terms are adjusted to favour more feasible and affordable repayment. Loan modification is a matter of reaching a common ground between the borrower and the lender. Hence, it relies on your negotiation skills and how effectively are you are able to convey your financial hardship to the lender. In this regard, getting help from a loan modification firm like www.loanmoddepot.com will be of great help for you.
When is it feasible and what to expect?
This is a suitable option for you if you can demonstrate your financial hardship and are ineligible for refinancing. It is more feasible if the value of the asset mortgaged has reduced significantly or the average interest rates in the market have decreased significantly. A loan modification specialist will be able to help you get a grip on the situation.
You can expect modifications such as lowering instalment amount in exchange for a longer term, lowering of interest or lowering of the principal amount in accordance with your needs or changed market conditions.

Can You Buy Your Foreclosed Home Back?

If you can not prevent the foreclosure and the house ends up being put up for sale, you can also attend the auction and bid for the property. It is very possible and legal to buy back your home at perhaps even a discounted price during the foreclosure auction.
Right Of Redemption
You can also reclaim a house already in the process of foreclosure. However only houses mortgaged through judicial foreclosure are eligible to be redeemed. Even still, it is recommended you act very fast as you may be allowed only a limited time to redeem your home. Judicial foreclosure usually takes quite some time to process and this can be an opportunity to catch up on loan payments before the mortgage is accelerated. A loan is accelerated when the lender refuses to accept less than the contracted amount. In some cases an homeowner is given up to a year to redeem their home but in some other instances if the winning bidder in the foreclosure auction offers to pay the full price of the property, only about 3 months may be allowed for the right of redemption.
However, financial and legal experts argue that the money being used for buying the house at the auction should have been used to prevent the foreclosure in the first place.
Loan Modification
Rather than panicking and making wrong decisions, you can seek loan modification with your lender, one of such firms that can help you with the loan modification process is Loan Modification Depot. Loan modification services are available for homeowners who are in the process of losing their homes. The lender can agree to modify certain terms in the contract if the mortgager is unable to keep up with the payments thereby preventing loss of the house.

Effective ways to stop foreclosure fast to save your home

If you have a missed out your mortgage payments for 3-6 months, you will receive a Notice of Default (NOD) from your lender. This is often when most people panic. But you should know that even at this stage there is plenty that you can do to address the situation. Here we shall take a look at 7 ways to stop foreclosure fast:

  1. Get in touch with your lender, present your financial difficulties and offer to negotiate. Note that foreclosing on your home would cost the lender extra money and also keep the asset locked up for quite a bit longer. Hence, most would be willing to negotiate.
  2. Seek loan modifications options. If you are unable to pay higher instalments, you may try to negotiate for a loan modification to reduce the above-market interest rate or increase term in exchange for lower instalment. Hiring a loan modification consultant from www.loanmoddepot.com would help you get the required guidance.
  3. If you were not intending to stay in the home and were trying to sell anyway, you can try to get a buyer for short sale and negotiate with the lender to agree to accept the sale amount and wipe your mortgage.
  4. You can get a buyer and negotiate with the lender to let the buyer assume all of your remaining debt related to the mortgage.
  5. You can lease out your home and add the rent towards your mortgage payments. Ensure that the rent and any advance or deposits are enough to sufficiently cover for instalment and your cost of living elsewhere.
  6. You can file for bankruptcy, which will impose a temporary stay on any recollection or foreclosure attempts by any lenders.
  7. If you believe that your lender is not following the proper regulations required for foreclosure, you can file a lawsuit and have the court impose a stay on the foreclosure.

Is It Possible To Avoid Foreclosure?

Yes, it is possible to avoid foreclosure but the easiest way still remains by simply paying your mortgage when due. Reviewed and improved government and financial policies are also increasing the possibility for homeowners to save their homes and prevent foreclosures.
Typically, a mortgagee or lender will file a Notice Of Default (NOD) after 2 or 3 missed payments. Even after receiving the notice, at this stage it is still very possible to stop the process of foreclosure.
Bankruptcy
Some people consider declaring bankruptcy as a means of avoiding foreclose. Suing for bankruptcy only stops the process temporary, and gives more time for other feasible options to be put in place, nevertheless sooner or later the motgage holder will be back.
Sell The Property
The option of selling the house yourself is also available. It is possible that the value of the house have appreciated since it was purchased. The proceeds from the sale can the be used to pay off the lender. In cases where the value of the house is less than the debt, a short sale is agreed where the homeowner authorizes the lender to sell the home for less than the mortgage amount.
Foreclosure Workout
You can contact your lender to find out if any options are available for preventing foreclosure. Most lenders are actually happy to help contrary to popular belief that they just enjoy depriving people of their homes.
Loan Modification
However, when for one reason or another it becomes impossible to meet up with your mortgage payments, the best thing to do before the situation worsens is to seek try to modify the loan with the lender. There are loan modification companies that can provide loan modification attorneys for you. These lawyers can help you better analyze the situation and provide more comfortable options. Firms like Loan Modification Depot are specialised in handling issues like that.

Loss Mitigation – Home Mortgage Options to Stop Foreclosure

Financial hardships can cause a person to miss out on multiple instalments and default on his mortgage. He or she may face foreclosure and eviction from their home. However, there are various ways to address this. Let us take a look at loss mitigation, a home mortgage option to stop foreclosure. Loss mitigation is a process wherein the lender and the borrower come to a mutual compromise and prevent foreclosure and allow him to make smaller instalments by reducing interest or increasing term.

Why would the lender compromise on the money that is owed to them?

It is clear that foreclosure is tragic for the borrower. But it is no good news for the lender as well. If the borrower defaults, the lender has to bear the extra cost of repossessing the house, making it appealing for the next buyer and then actually managing to sell it. Recovery of all the owed money is highly uncertain, especially if the real estate market is not doing well. Hence, it may decide not to risk it and instead place its bets on the existing borrower repaying it if he or she is given more favourable terms. This changing of the terms of original terms is also called as a loan modification.

How does it work?

Loss mitigation in terms of the home mortgage is often referred to as loan modification. In order to achieve it, the borrower has to negotiate with the lender and demonstrate his or her financial hardship and the circumstances which led to default. Getting assistance from loan modification specialists like www.loanmoddepot.com will help you present your case in a better manner. The assistance from loan modification professional can really help since the actual favourability of the terms achieved will depend on how well the borrower presents his situation and negotiates for his demands.