Your Debt Threat

Posts Tagged ‘Stop’

Most homeowners believe that foreclosure laws are designed to hurt rather than help them. Not so. The secret is that foreclosure laws have evolved to protect the borrower–not the lender. There, I’ve said it. The secret is out! Now listen closely and understand why I say this. The foreclosure process gives you, the borrower, specific periods of time in which to:

• bring your loan current by making up the missed payments (known as “reinstatement”), or

• pay off your loan in its entirety (called “redemption”).

If neither of these options is feasible, you will still have time to prevent your property from being sold at a public auction (the foreclosure sale).

You will get the most benefit out of the foreclosure process if you envision this secret as a “window of opportunity” to resolve your financial problems. During this window of opportunity, you have time to learn about the foreclosure process and implement a strategy to stop the foreclosure.

Another basic misconception about foreclosure is that lenders want to foreclose. Nothing could be further from the truth! Lenders are in the business of loaning money–not owning real estate.

They don’t want your house back for numerous reasons. Lenders are reluctant to incur the costs of a foreclosure. For example, if your lender is forced to foreclose, it will not only lose your back payments, but it will also incur foreclosure expenses, taxes, insurance, wear and tear while you (or your tenant) live in the

property, repair costs to refurbish the property for sale, and a real estate agent’s commission once the property is sold. As a result, many lenders will go out of their way to work out a resolution–short of actually foreclosing–if you give them the opportunity.

A. Communicate With Your Lender

The secret to stopping your foreclosure is communicating with your lender. With the sudden avalanche of foreclosures and defaults, lenders are more eager than ever before to workout a solution rather than foreclosing. Lenders will do almost anything to avoid increasing their overflowing REO inventory of foreclosed properties.

Don’t shy away because you’ve missed payments, concerned that you will miss some payments in the future, or that your property has already gone into foreclosure. Whether you communicate by telephone, letter, email, fax, or in person, you will have a much easier time stopping (or at the very least, delaying) the foreclosure if you talk to your lender rather than adopting a code of silence.

The secret is to negotiate directly with someone with “authority” at your lender’s office. The first step is to determine who your lender actually is. (This is no small feat these days with lenders selling their loans to other lenders like hot potatoes.) If your property has already gone into foreclosure, the first person you will be dealing with will either be the foreclosing trustee, or the attorney for the lender. If it is a judicial foreclosure, you will most likely be contacted by a process server, sent by the lender’s attorney. If it is a non-judicial foreclosure, the trustee is responsible for handling the foreclosure process. You will need to contact these people.

But the secret is that you will be more successful if you communicate directly with your lender, rather than the trustee or the attorney. So you should request from the trustee or the attorney, the name, telephone number, and address of the foreclosing lender. In the unlikely event that they refuse to disclose the name of your lender, you can look on the Notice of Default, or the summons and complaint, or telephone the customer service department of a local title insurance company.

Another situation may occur where you discover the name of your lender, but it turns out to be a servicing agent rather than the party that actually holds the deed of trust or mortgage. A servicing agent is a company (sometimes it can be a bank, mortgage company, or private corporation) that is hired by the actual lender to “service” the loan, (issuing mortgage statements, payment coupons and late notices, collecting payments, monitoring the impounding of insurance and tax payments, and handling foreclosures if necessary). Fortunately, most servicing agents will disclose the name of the lender. If they won’t, you may be forced to negotiate with the servicing agent.

In the interim, you will receive threatening calls from collection agents at the lender’s office. Do not under any circumstance ignore your lender’s contacts. Your goal should be to respond to every phone call or letter. Difficult as it may be to talk about your financial problems, be polite and cooperative. Follow up all telephone calls with a letter to the person you spoke to, confirming what was said. If you’re not in when a call comes, return it as soon as you can. Use these calls to collect information regarding your lender (i.e. lender’s name, address, phone number, fax number, email address, responsible department or individual).

When you receive a letter from your lender (always keep the original), immediately write a letter in response. The secret here is to establish a paper trail so you can prove to your lender (or a court, if necessary) that you have been cooperative, especially during the initial stages of the foreclosure process.

It is also important to send copies of all of your letters to:

• the lender’s CEO

• the branch manager (if applicable)

• the loan officer who helped you obtain your loan, and

• any other person you know by name at your lender’s office.

B. CONTACTING PEOPLE YOU KNOW AT THE LENDER’S OFFICE

Make sure your letter indicates you are sending copies by typing “cc:” and the name of the person(s) below your signature. Please don’t be hesitant to send copies of your letters to these individuals, as they can’t do anything to help you if they aren’t aware of your predicament. There is a secret to sending copies to other people and showing the “cc” at the bottom of your letters. At the very least, the person you sent the letter to won’t be able to ignore your letter because he or she knows that supervisors have received copies.

Typically, in their initial letters and telephone calls, your lender will state that they have not received your payment(s) and inquire innocently whether or not you have mailed a payment. What you say in response to your lender’s inquiry is another matter. If you already mailed your payment, give your lender the date. If you have not, tell the truth. Your lender in turn will want to know why you haven’t paid, and what date you will be sending a payment. Acknowledge that you are having temporary financial problems and that you won’t be able to make the payments for the next couple of months. Provide a good explanation of your financial difficulties (i.e. layoff, medical emergency, death in the family, loss of business, divorce). Contrary to popular belief, sharing this information will not speed up the foreclosure process. What you say may make the lender more sympathetic to your situation and may delay the foreclosure. At the very least, it will foster a positive atmosphere for negotiations later in the process.

Your lender may warn you that if payments are not made, your loan will go into default. It may also threaten to start foreclosure proceedings unless you bring all of your payments current immediately. Don’t be intimidated. Stay calm and understand that the person you’re dealing with is simply doing his job. At this point, write a letter explaining your financial problem and request an appointment with a senior loan officer to discuss your loan.

People around the world are getting more service oriented and the service sector is going through a period of high demand. The demand for specialized services is on an all time high especially in the currently rising sectors like real estate, petroleum, fast moving consuming goods etc. One such important line of business is the foreclosure services. The foreclosure services are on important aspect of the legalities of almost all kinds of business involving the loans and properties. The foreclosure services act as a source for people to deal with the changing conditions and the variations of the market and the ups and downs of the property market.

The foreclosure services have been taken up by the financial and legal experts and are ready to offer solutions that cannot only help you to understand the system of operation but also aid in using these foreclosure services for the benefits in trying to pay the regular payments and hence plan out a structure of payment plans that can suit their budget and also be acceptable by the lender.

Today, keeping up pace with the rest of the world is an absolute necessity; many people take loans on expectations of future earnings. Sometimes development of certain situations and the sequence of some unexpected events, like the loss of jobs or the accident of the sole earning member etc, can occur. These seriously impact the monetary condition of a family or an individual. Here they might not be able to live up the financial obligations they have and hence the foreclosure services come into play. Stop Foreclosure services are of great importance here as they not only help to simplify the process of dealing with the lender but also bring in solutions to the customer about how to clear the debts or payable amount. These foreclosure services do demand a price which at times can be too much for an individual to incur at the times of crisis but when you have nothing going your way professional assistance from foreclosure services is always helpful.

Time is of uttermost importance when people face foreclosures and foreclosure services need to provide homes for rent the reasons and the solutions in the shortest possible span of time. If you do not deal with these kinds of problems day in and day out you will find it very challenging and difficult but foreclosure services providers are experts as they deal with different cases as a part of their daily routine. To ensure that you do not waste time in trying to find solutions for your problems as in these cases time can be money as well as foreclosure services consultancy always pays off well.

Foreclosure services have a lot to offer to the modern customer. With the credit system getting more complicated by the day and the importance of a person’s credit rating being so very high it is highly significant that foreclosure services are made use of correctly. By getting into a foreclosure and not seeking help from foreclosure services the person can ruin his/her credit and not only loose a property but also it becomes difficult for that person to get a loan or any form of credit in the future.

Many times the need for foreclosure services arises as people are not aware of the kind of options they have and the alternatives they have so that they can deal with the payments for the loans they have taken.

Foreclosure services are also important for people who give away the loans as they can help the creditors to ensure that the money that is given away can be collected in time. Also in some occasions when the creditors are fighting against a foreclosure services for a debtor they would rather prefer to deal with foreclosure service professionals to handle the case for them as well. The increasing shortage of time is another factor that people avoid falling in such matters and prefer that the foreclosure services are made use of.

There are many kinds of foreclosure services that are being provided by different companies, these include consultancy for the debtors and the creditors, handling personal and company cases for the debtors and creditors and at times the foreclosure services are also hired by the government to decide on certain legal issues in regards to acquisition of land or property. Often, an investor will simply buy the property to satisfy the loan so an important service can be finding the right real estate investor to help relieve your burden.

Advice for Homeowners That Want to Save Their Home

Facing a home foreclosure can be a very scary experience. While foreclosure laws differ from state to state, good foreclosure advice can help almost anyone in this terrible situation. In this article we will explain 5 of the most commons things you should know if you plan to stop home foreclosure and remain in your home.

Five Tips to Avoiding Home Foreclosure

1. Do Not Avoid Your Lender

It is human nature to avoid any situation we feel we are not equipped to deal with. However, if you are behind on mortgage payments and need to stop home foreclosure to remain in your home, avoiding the situation is only counterproductive. Once the foreclosure process has begun, the only thing that will stop the foreclosure process is for you to do something. If you choose to avoid your lender and do nothing to stop the foreclosure, then the foreclosure process will inevitably take your home. Stay in touch with your lender, and provide them with current and accurate contact information.

2. When You First Fall Behind on Your Mortgage Payments, Write Your Lender a Hardship Letter

Lenders are people just like you and I. If some owed you money and could not pay, you would feel much better if they communicated with you and explained their current situation and when they may be able to repay you. Lenders are no different. Many homeowners who refuse seek foreclosure advice do not realize that by writing a Hardship Letter and sending it to your lender, you may me able to delay or even avoid foreclosure. If your financial situation will be improving soon, your lender may decide to give you some additional time to catch up your payments. The best way to stop home foreclosure is to avoid foreclosure altogether.

3. Ask Your Lender if They Can Offer You About Any Foreclosure Advice or Foreclosure Alternatives

You are not the first person to fall behind on mortgage payments, and you won’t be the last. Many lenders have Workout Departments that can give free foreclosure help that can help you stop home foreclosure or avoid foreclosure altogether. Before you talk to an attorney or consider filing bankruptcy to stop foreclosure, find out if your lender can offer you free foreclosure advice and get you back on track.

4. If You Get Foreclosure Advice From a Third Party, Avoid Foreclosure Scams At All Cost

The big problem with a scam artist is that they look and sound like legitimate business people! There are more “Avoid Foreclosure” and “Pay Us To Stop Home Foreclosure” scams than ever more. As foreclosure rates rise and more and more owners seek foreclosure alternatives to help stop home foreclosure, the number of scams will only increase. The best way to avoid foreclosure scams to make sure you are dealing with a company that will at least provide an initial free consultation, references, and has been in business at least two years. Avoiding foreclosure scam artist that can ask for large amounts of money up front or promise to stop home foreclosure as soon as they receive payment can save you time and money.

5. If Possible, Keep Your Other Bills Current

There are many legitimate companies that offer financial help or loans for people in foreclosure. They can help stop home foreclosure by loaning the money you need to catch up on your mortgage payments or by refinancing your property with a new loan, thus paying of your lender and avoiding foreclosure. If you are behind on all of your bills, your credit score will most likely be too low to qualify for this type of loan, called a Foreclosure Bailout (a special type of loan designed specifically for people in foreclosure). I have seen consumers with a mortgage and several other small monthly payments (less than $20) lose their home because they stopped paying all of their bills. Avoiding foreclosure with a loan is one of the best ways to save your home, so if you can stay current on your other bills this is a viable option to stop home foreclosure and is some of the best foreclosure advice anyone can give you.