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Navigating The Steps Of Foreclosure

Michael — Tue, 13 Jul 2010 10:25:13 +0000

A foreclosure is something that your family will never forget. It can be traumatic, and it helps to know all the steps so that you’re not caught unsuspecting in the event that it happens to your family. Foreclosure follows a relatively simple and straightforward process that is pretty much the same from state to state. Herein you will find the steps of foreclosure and how to navigate them.

A foreclosure occurs when the money owed to a bank for monthly house payments in the form of a mortgage is interrupted, missed, or neglected so that the bank continues to receive no payments from you. You will have put up the house for collateral for the mortgage, and they can recover the house if you fail to make payments on it. They can’t just come in and kick you out of your house. They will have to get a court order for foreclosure, sell your house at an auction, and then the new owner will have to evict you. You may have a month to 6 months before you actually have to leave your home. So, if you think a foreclosure is going to happen to you, it is not the end of the world.

The first step is that the bank will send a sheriff or Notice of Intent to Foreclose through certified mail. The bank will simultaneously begin action in the court to make the foreclosure legal, valid, and binding. The legal notices must be published in the paper at this time, as required by law. Throughout this whole process, you will have attempts to make payments or settle with the bank unless they have demanded payment in full after a series of missed mortgage payments. This is called acceleration, and a bank is full within their legal rights to do this as stipulated by the contract. The court will then hold a hearing about the house that is to be foreclosed on. The court will then issue an order to foreclose on the house. After that, there will be a legal notice of actual foreclosure sale and advertisements will be simultaneously published in the papers. The house will then be sold to the highest bidder at an auction. Throughout this whole ordeal, you will have some opportunities to settle with the bank. They will usually try to contact you over and over again through phone or mail to work out some kind of deal to get you to make the payments because it is in their interest to get you to make the payments instead of having to foreclose on the home and re-sell it.

Sometimes, you will get phone calls from certain people after a foreclosure takes place. This is because the notice of foreclosure will be published in the paper, and all people can see it. Mortgage brokers, chapter 13 attorneys, private financiers, mortgage holders, crooks, and con artists will contact you – each trying to benefit themselves at your expense. Watch out especially for the crooks and con artists. Warn your elder parents if they are very old because crooks and con artists go after senior citizens especially that can’t hear, understand, or think very well. These people prey on the weak and helpless, and they are all too willing to exploit a foreclosure.

Buying Properties After Foreclosure

Michael — Sun, 11 Apr 2010 09:45:23 +0000

By Mel Ullman
Some people can become rather dramatic when it comes to buying foreclosed real estate, particularly when it comes to what happens after foreclosure. They keep on pointing out that buyers of such properties should not exploit the misfortunes of other people. However, you have to keep in mind that you cannot cause any greater trouble to the owner compared to the one they are already in. So, once you have cleared your conscience you can get down to business. Given the slump on the mortgage and real estate market you can find some great deals available at present. You should not miss the opportunity, but in order to make the most out of the bargain it is best to take advantage of a few useful tips on finding and buying foreclosure listings.

The internet is the most obvious place to start your search from. There are specialized websites that list foreclosures nationwide or properties only from specific areas and regions. You should definitely research both types thoroughly as they often have different foreclosure listings. Also, all properties with such a tag are present in the public records and if you have the time and effort you can do an even more comprehensive research. It is also a good idea to ask around or look at the local newspaper ads. A large number of the homeowners who face the threat of foreclosure of their property prefer to sell in advance and come out of the situation more quickly and with fewer negative consequences.

Once you have found foreclosure listings that you consider buying, you have to check who you are about to deal with – the lender or the owner of the property. Most first time foreclosure buyers are highly recommended to deal with a lender rather than with the homeowner. This type of deal has a smaller number of hidden traps that might come up otherwise. When dealing directly with the owner you have to check whether there are any hidden costs such as unpaid taxes and additional equity loans. Also, keep in mind that in some states the foreclosure listings include properties that are not free for the new owners to occupy. There are regulations that allow the homeowners to avoid eviction for some time when there are court proceedings going on for the lender to gain ownership rights of the property. The time between the foreclosure and the actual eviction can be up to four years in some cases.

Be careful if you intend to buy foreclosure listings trough auctions. This process of purchase might seem appealing for the lower property prices that buyers have to pay, but in fact they are only slightly smaller than the market ones. Furthermore, the rules of some auctions do not allow a preliminary tour of the foreclosures. This means that you have to go pretty much in the dark with what you are buying. Given the fact that the homeowners have not had enough to repay their mortgage debt, they probably have not done any maintenance and repair works. In this way you might end up incurring much larger costs than you have initially expected.

Avoiding The Steps Of Foreclosure With A Mortgage Loan Modification

Michael — Thu, 08 Apr 2010 19:02:49 +0000

One way to avoid the steps of foreclosure is by utilizing a mortgage loan modification. A mortgage loan modification is when the loan of a homeowner is renegotiated by the lender to make it more affordable for the homeowner to pay. Mortgage loan modifications are a good idea for people who are having trouble paying their mortgages and are unable to lower their mortgage payments through other means such as refinancing. A loan modification changes the payment amount so that the homeowner can afford the payments and the bank will still be able to make money off the loan which would not happen if the home went into foreclosure.

There is a process when applying for a mortgage loan modification. One of the first steps is proving financial hardship by writing a financial hardship letter. Lenders want proof that you are having a difficult time paying your mortgage and they want to know why. The hardship letter is basically your chance to let the lender know the severity of your situation and why a mortgage loan modification is the solution for you. In some ways you are basically selling your hardship to the lender so that they will approve your application for a loan modification.

Next you will also have to be prepared to submit financial documents. Having updated copies of pay stubs and proof of all incoming monies to present to the lender is helpful. Likewise, it is preferable to produce a budget detailing your incoming monies and outgoing expenses including what you can afford to pay for a mortgage payment each month. Presenting a budget to a lender for a mortgage loan modification shows that you have taken the initiative to analyze your finances and offer a feasible financial solution to your mortgage problem. There is also an official application depending on which lender or bank that your home loan is with that needs to be completely fully. Failure to complete the application fully could delay the processing of your loan modification so it is necessary to avoid omissions.

It is very much in your advantage to apply for a mortgage loan modification, not the least is avoiding the steps of foreclosure. There are many different banks and lenders that are willing to work with homeowners to help them keep their homes. The earlier you begin the process of a loan modification the sooner it can be processed and the sooner you can begin making affordable monthly payments on your home. With the ongoing mortgage crisis there are even some banks that are being paid by the federal government to restructure loans! Thus, it is definitely in your favor to take advantage of the chance to save your home with a mortgage loan modification.

Steps Of Foreclosure

Michael — Thu, 03 Sep 2009 02:18:19 +0000

Educating Yourself In The Steps Of Foreclosure
By Brenne Meirowitz
If you are a homeowner, it may be wise to give yourself a brief education in the steps of foreclosure, whether you are in financial trouble now or not. If you are not, you may know someone who is, and therefore with a basic amount of knowledge gained in this article, you may be able to help that person. While I don’t claim to be an expert in real estate, nor am I an attorney, I do have over ten years of experience working in the real estate and mortgage banking field. Unfortunately, I been involved with both buyers and sellers of foreclosures, negotiated sales of foreclosed properties, and counseled owners in the pre-foreclosure process.

Please keep in mind that the following is only an overview in the steps of foreclosure, as laws and procedures vary from state to state, including the timeline from the first notice of sale to the actual date of eviction. Additionally, because lender foreclosure procedures and policies vary, it is advised that you contact your lender or loan servicer even before your first payment is late or missed, particularly if you anticipate having long-term difficulties keeping up with your regular payments. Your lender employs credit counselors who may be able to reduce your payments temporarily or even renegotiate your mortgage to better suit your situation. The key is to contact them before you miss your first payment.

Also, as laws vary from state to state, you would do well to research and know your homeowner rights on a foreclosure.

First 30 Days:

Your lender or loan servicer will contact you by mail alerting you to the fact that your payment has not been received. Generally, a lender will not call before a full month has passed. Being late, or missing a single payment does not automatically trigger a foreclosure ticket. Situational circumstances do occur, such as a mail delay, lost coupon, or clerk error, and can usually be resolved quite smoothly. Once such an issue has been addressed and your payment as well as any late fees and penalties have been satisfied, you are no longer at risk of foreclosure. However, be aware that lenders usually will report to credit bureaus if your payment is received 30 days after the due date.

60 Days:

If your lender has not received your mortgage payment as well as any late fees and penalties beyond 30 days from the due date, but less than 60 days, they may step-up their collection efforts with at least one phone call, as well as send you a warning letter. If you have already missed a second payment and are 60 days or more behind in your mortgage payment, lenders will generally accelerate their collection efforts. At this point, your delinquency will probably be registered with at least one if not all three of the major credit bureaus.

90 Days:

Collection efforts are stepped-up by your lender or loan servicer. In addition to phone calls, a “Demand Letter” or “Notice to Accelerate” will be mailed, warning that foreclosure proceedings may begin if you do not bring your mortgage current within 30 days. In essence, the “Demand Letter” or “Notice to Accelerate” means that the lender can call the entire mortgage due and payable if you do not bring your loan current within 30 days. Partial payments without a pre-arranged written agreement with your lender or loan servicer will most likely not deter foreclosure proceedings. Therefore, as noted earlier, it is best to try to renegotiate your loan prior to missing any payments.

120 Days:

Your lender’s attorney will contact you. At this point, you are held financially responsible for the lender’s legal costs in addition to your loan balance, fees, and penalties. Even if you bring your mortgage current, you must still pay legal and court costs incurred by your lender or loan servicer.

120 + Days:

Your lender’s attorney will file a foreclosure hearing, specifying a sale date in court. Once the notice of sale is filed, you will be notified by mail or with a notice taped to your door advising you of the exact day of foreclosure and subsequent sale of your home. Depending upon the laws of your state and court calendar, a Sheriff’s or Public Trustee’s Sale can take place as soon as 2-3 months after the “Demand Letter” or “Notice to Accelerate” is filed and a foreclosure date is set. If you cannot bring your mortgage current, pay all incurred attorney fees, court costs, interest, and penalties, your lender then has the right to take legal possession of your home.

Post Sale:

Depending upon the legal steps of foreclosure in place in your state, even after your home is foreclosed, you may enter into what is called a redemption period, which will again allow you the opportunity to pay all monies due within a specified period of time prior to being evicted from your home. The redemption period is specified on the same notice advising you of the scheduled Sheriff’s or Public Trustee’s Sale.

How Does Foreclosure Work?

Michael — Fri, 07 Aug 2009 19:10:38 +0000

How does foreclosure work? Going into foreclosure is a fairly simple process to understand even though it does take some time for this process to be completed. Foreclosure is the process by which a piece of property in many cases a building or home is sold off because the owner fell behind on the mortgage payments. There are laws that apply to the foreclosure and they vary from state to state so if you are in the pre-closure status or in the midst of a foreclosure it is important to contact a housing counselor or an attorney to find out what your rights are when it comes to foreclosure. In general, there is a basic foreclosure process.

One of the first steps of a foreclosure is the pre-foreclosure incident of missing the first mortgage payment. This is one of the critical times where a homeowner has the chance to contact their lender or mortgage company and try to reach an agreement to bring their mortgage current. Usually during this time the lender is sending the homeowner notices advising that the homeowner is in default and should contact them to bring their mortgage current. This is a very critical time in which a homeowner can contact qualified housing counselors to assist with resolving this issue.

Most homeowners in this situation want to know how does a foreclosure work. If a homeowner fails to seek help for their mortgage difficulties and continues to miss payments then the mortgage company or lender can then begin the official process of foreclosure which results in issuing a Notice of Default. This default notice is usually issued after failing to pay three to six months worth of mortgage payments. During this period a homeowner again has the chance to contact their lender to make arrangements to bring their mortgage current. Failure to do so will result in the next step which is the auction.

After a long period of not making mortgage payments a lender will eventually issue a sale of home notice which is recorded through the legal system and issued to the homeowner by mail or by physically placing this notice on the property. This sales notice will include the date and time that the property will be auctioned off. At the auction the highest bidder for a particular home will put down a deposit to “hold” the home and will then pay the remaining balance within a certain time frame.

The amount of time a homeowner has to leave their home after the official foreclosure and notice of sale varies by state. A legal officer, usually a sheriff, will post the eviction papers on the property. This can be a very harrowing experience. To avoid this unfortunate event it is imperative that you contact your lender or a qualified housing counselor as soon as possible to get help with keeping your home. There are solutions for homeowners who take action quickly.

Needless to say, rather than ask how does foreclosure work, property owners should try to avoid the process altogether.

Your Rights As a Homeowner in Foreclosure and Pre-foreclosure

Michael — Sat, 11 Jul 2009 12:21:03 +0000

I have been doing a lot of research on the American Nightmare known as the Foreclosure crisis. In my search to find out what the consumer rights were, I found that there are many of refinanced mortgage loans in the past 3 years have TILA (Truth In Lending Act) violations. Not only are the TILA violations in the mortgage industry there are TILA violations also on the credit card companies and there are possibly more companies that give credit (local stores that offer credit). Now do not start thinking you can get away with not paying your bills, please. This is here so you know your rights and can renegotiate with those companies or be able to seek legal help and let them do the process.

Concerning mortgages, Federal laws like TILA (Truth In Lending Act), HOEPA (The Home Ownership Equity Protection Act), and RESPA (Real Estate and Settlement Procedures Act) are being used by homeowners with Lawyers. They are fighting back against mortgage lenders and those so called servicers. These laws are being used by smart homeowners with their lawyers in the foreclosure process and even in pre-foreclosure. As long as you have refinanced your home within the last 3 years, you may qualify.

Simply review your loan documents and see if there are any violations that can help you. There are many laws that must be implemented when dealing with TILA, one of them seems to be most violated by many of the lenders – Notice of Right to Cancel – also known as the, 3 Day Right to Cancel provision. Here are some laws that must be followed by the lender: Each borrower must receive two copies of the Notice of Right to Cancel at closing.

The notice must clearly inform the consumer of their right to rescind the transaction and must also explain how to exercise the right.

The notice must also disclose the exact date on which the rescission period expires. Congress felt so strongly when they enacted TILA, that even a minor technical violation with the Notice will provide the borrower an additional 3 years within which to exercise the right to cancel the predatory loan.

The important duty of filling out the vital information on the Right to Cancel notice is left to a notary and the lender reviews the final loan docs, to ensure the borrower was provided with lawful and accurate information. But, in hastiness to get many loans done as soon as possible, many of the lenders failed to review the loan docs, they failed to provide an effective notice to the borrower. You as the borrower then have a powerful right to cancel or rescind the loan for up to 3 years after the closing.

Any homeowner who is facing foreclosure or an interest rate adjustment should look through their loan documents to see if they were provided with a Notice of Right to Cancel and if so, look to see if the dates were filled in correctly to disclose the three day right to cancel. If the borrower was provided with a notice that did not contain the correct expiration date for rescission, that borrower is likely the victim of a predatory loan and they may sue their lender under TILA .

Some of the tactics these mortgage brokers and lenders use are back dating the Right to Cancel so when they are recording them you have already given up your 3 day right to Cancel. This is a VIOLATION.

Now here is your leverage! Any consumer harmed by a violation of Truth in Lending Act may bring a civil suit against the lender. Generally, TILA provides for the following civil remedies: (1) actual damages; (2) damages twice the amount of any finance charge in connection with the transaction; (3) damages not less than $200 or greater than $2,000; and (4) Reasonable Attorney Fees. 15 U.S.C. § 1640(a).

Now what you need to do: if you feel you have been a victim of Predatory Lending tactics or any of the information above contact an experienced mortgage lawyer or lawyer who is experienced in mortgage law and discuss your legal rights and remedies right away – know your homeowner rights on a foreclosure!

Carolyn Roome
http://getyourlifebackonline.com
http://mountaingirlllc.com

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Michael — Wed, 24 Jun 2009 20:39:25 +0000

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