Foreclosure Trends

David Faulkner asked:


Georgia, with its southern climate and charm, its culture, its great entertainment, golf courses, and oceanside attractions, is one of the most desirable places to live in the United States.

Georgia, with its southern climate and charm, its culture, its great entertainment, golf courses, and oceanside attractions, is one of the most desirable places to live in the United States. It is also treasure trove of history; but in spite of its desirability, Georgia foreclosures are occurring at the second highest rate in the entire country.

Great Homes at Bargain Prices

The demand for homes in Georgia may have priced many of them beyond the means of many buyers. But the high rate of Georgia foreclosures does put some Georgia properties within the reach of less affluent buyers, and listings of Georgia foreclosures will let home hunters find attractive homes at attractive prices.

Georgia foreclosures listings present an opportunity for considerable savings to home buyers, and those who know the market and have some good luck can buy Georgia foreclosures at up to a fifty percent discount to market. Even better, there are a wide range of homes in the Georgia foreclosures listings.

Options for Buying Georgia Foreclosures

The available options for purchasing Georgia foreclosures are dependent on who holds title to the property. Government foreclosures in Georgia are available for purchase through bidding. Bank foreclosures can be bought directly through the banks, while some Georgia foreclosures are sold through auctions.

One good source for finding Georgia foreclosures is the Foreclosure Data Bank. It both lists homes in foreclosure and provides information on the best way for you to purchase the foreclosed properties of your choice.

Georgia foreclosures, in recent months, have moved to center stage in the consciousness of America’s educated real estate buyers. The number of homes on the market in Atlanta, in the past half-year, has risen nearly twenty-nine percent, and the Georgia foreclosures rate has nearly doubled in the past year. The glut of unsold homes in the market can lead to terrific bargains for qualified buyers.

One reason for the significantly increased number of Georgia foreclosures may be traced to the wide range of Georgia’s mortgage products. Because some of these products entice people into over extending themselves financially, homes are going to buyers who will soon go into default and lose them to foreclosure.

It is not uncommon for those facing foreclosure to become victims of predatory lenders, foreclosure counselors, and even realtors who will work the situation tot heir own advantage but will invariably cost the homeowners money and in the worst cases, their homes, without doing a thing to eliminate their responsibility for the mortgages on their properties.

Far too many unsophisticated homeowners have fallen prey to unscrupulous business practices as they have fought to save their homes. Any homeowners who think that they e could be facing foreclosure in the near future should talk to the lenders on their properties as soon as possible. They may be able to negotiate lower monthly payments until they are in a better financial condition.

For those interested in purchasing foreclosed properties, information on foreclosed properties is publicly available, and by getting it as early as possible, a buyer can do all the necessary research to make an informed decision about going ahead.



ANDERSON

Peter Baptiste asked:


(c) 2008 Peter Baptiste

Do you want to keep your home from going into foreclosure? Millions of people have foreclosed on homes across the nation. There are many reasons for this. There are ways to avoid foreclosure if you are serious about saving your home. These methods include loan reinstatement, forbearance, and a loan modification. The loan reinstatement is the most common way to save your home from foreclosure through the bank.

Many of the things you should consider when your home is going into foreclosure include: - The foreclosure process - Tips on Saving Your Home

The foreclosure process can take up to a year for some people. This is because there are many steps of the foreclosure process. Not every home forecloses in exactly the same amount of time. This process can take six months for some homes and a year for others.

When a foreclosure begins a bank will issue a statement of claim because you have missed at least three payments on your mortgage. Your ability to service the financing of your home will be questioned. The second phase of a foreclosure is when the statement of claim is served to you. The third step of a foreclosure is the bank demanding you sell the home. This will be stated inside of the statement of claim. The bank will give you time to try to sell the home. This timeframe can be up to six months. This period is usually called the redemption period. Toward the end of this period the fifth step is the Order of Sale. This documentation will be served to you as a homeowner. This will include a date when the bank is going to sell the home through an auction at the county courthouse in your local county. The final period is when the home is sold through the auction and you are required to move out of the home. This entire process can be very lengthy.

Some people are not serious about saving their home. Because of the length of time it takes before you will be legally removed from the home, some people live in the home for free right up until the day the home is sold at the auction. If you want to keep your home you should not let the home get past the third stage of the foreclosure process.

There are three primary methods you can save your home from foreclosure. These three methods include loan reinstatement, forbearance, and loan modification. If you are serious about keeping your home you should look at these three options and determine which method is right for you.

The forbearance agreement is a common way a homeowner can save their home. This agreement is made between the bank and the homeowner. The homeowner commonly has an emergency in the household that prevents them from making the monthly payments. They make an agreement with the bank to catch up on the arrearages by making larger monthly payments on the home loan until they are caught up. The bank will usually give the homeowner a six month period. This could double the payments in some cases and may not even be affordable for you. When you agree with the bank on a forbearance agreement it does not stop the foreclosure process. This puts the foreclosure on hold until you are entirely caught up with your payments. If you do not make the promised payments your home will go through with the foreclosure process.

A loan modification used to be the most common method of resolving the problems of foreclosure in the past. This method allows the lender to issue a new home loan agreement with you where all of the arrearages are added to the end of the loan. This would extend the life of the loan but the homeowner can continue making their payments as if they were never behind and everyone wins. This is not a common solution anymore and banks rarely agree to allowing a homeowner have a loan modification.

The loan reinstatement is the third way you can save your home from foreclosing. This method is when the lender has initiated the process of foreclosure and you find a way to pay back all of the missed payments, late fees, attorney costs, etc. These amounts must be paid back in full and zeroed out in order for it to be valid.

There are many positive sides to the loan reinstatement you might consider. These include being able to keep your home without the worry of losing it to a foreclosure. You are back at square one with your monthly mortgage payments. You are not behind and you don’t owe any additional money for late fees or anything else. This is the best method and banks are usually willing to accept this method if you can come up with the payments to catch up.

There is a downside to the loan reinstatement that you might want to consider. The downside is that if you have to borrow the money to be able to pay the bank all of the money you now owe someone else. This may be another monthly payment for you. If you are in the foreclosure process because your monthly payments are difficult to be able to afford you might have a hard time making payments on an additional loan too.

The loan reinstatement method of saving your home from a foreclosure is the most expensive way to save your home and be able to keep it. It is important to remember that if you take a loan out to save your home then you must give the bank the entire amount you owe them including the fees. Do not just pay back the monthly payments you missed or the home may continue to go into the foreclosure process. A bank will not work with you on the loan reinstatement unless you zero the balance out.

You should be sure you can afford to come up with all of the money in this process also. If you really cannot afford to do this you might be digging an even bigger hole than you expected. It may be inevitable that your home goes into foreclosure but you are denying that you really cannot afford it. It is important to know for sure that you really can afford to save your home through the loan reinstatement program.

A loan reinstatement is the most commonly accepted method of saving your home if the bank has started the foreclosure process. It isn’t common for banks to agree to other methods because they want their money. You should be sure that you really can afford your home if you can get out of the hole you are in before you decide to pay off the entire debt.



JERROD

Tom Noonan asked:


All too often, someone thinks that they can get rich in foreclosures without much effort at all. They figure the first step is to find a foreclosure through some sort of foreclosure listing website, and that will be their key to unlocking fortunes in the foreclosure market. They are too cheap to pay for some sort of premium foreclosure listing service, so they decide to go for the free trial or just use sites that list foreclosures for free. They are planning to make thousands per house, but are not willing to pay the few bucks it usually costs to find them.

There are several costs of trying to save on foreclosure listings. Let’s go through them from least costly to most costly. The first is if they think they are getting a great deal by signing up to some trial offer for a buck. A buck is worth it to find that foreclosure that will make you thousands. But you need to be very careful when signing up to free trail offers that require you to enter your credit card info. Most people forget to read the fine print. You are actually signing up for their monthly billing, but they are just giving you a free week at the start. You must cancel your account before that free week is up if you don’t want to be charged the monthly membership fee automatically. Most people sign up, look at a few foreclosures, realized that it is going to be a lot more work and risk than they thought initially and forget the whole thing. They also forget to cancel their account and end up getting billed a few hundred more than they expected.

The next way that people get burnt is when they try to use some sort of foreclosure listing service that is 100% free. These listing services are often times full of mistakes, outdated information and incomplete information. Most of the free foreclosure sites that I have seen have 1 to 2% of the listings that the paid foreclosure sites have. All too often, people who are serious about foreclosures try to save a buck by using free services and end up forgetting about foreclosures and moving on. They can’t even get a start on a single property because the information is so incomplete or outdated. If you are actually serious about investing in foreclosures, make sure to get yourself a decent foreclosure listing service.

Another way that hurts potential investors is trying to read the legal notices section of the local newspaper. All foreclosure auctions have to be listed for a certain amount of time (varies by state) in a local paper. The unknowing investor picks up the paper and thinks it will basically just be a classified for foreclosed homes. Wrong! All they see is legal jargon and figure you have to be some sort of professional to do foreclosures. It’s too hard for them so they just give up right there.

One last final way that investors get burned is when they go to some sort of auction and start bidding trigger-happy on foreclosures they know nothing about. They might buy a house that needs more repairs than is worth. They might be buying a worthless junior mortgage instead of a senior mortgage. There might be property tax leans up the yin yang on the home you just bought. The property might even get bid well above fair market value by unknowing investors.

Dealing with foreclosures is risky business. It is best to study, read and learn, then take action once you are comfortable. Know the game before you get into it.



KARL

Shane Barker asked:


Are you having trouble with selling your home? Has it been a month to a year since your property has been listed? Moreover, has the value of your home differed from what you have expected or determined?

Well, here is the reason why, Research has shown that foreclosure filings in the State of California have dramatically increased since September of last year. As an effect of the increase in the number of foreclosed homes, prices of homes newly listed in the open market have dramatically declined as well. This inevitably affects the number of home sellers in California who are looking for quick sales. Apart from that, this increase in foreclosure listings also affects an entire neighborhood’s prices bringing down an entire block’s value. .

So how can a family stooped in financial problems manage to stay afloat if property sales are hampered by the dramatic rise in foreclosure listings? How can couples settling their divorce find a way to divide their conjugal assets? How can a family who has recently lost a loved one cope up with debts and future expenses? Moreover, and most importantly, how will they be able to avoid foreclosures?

One thing is for certain. Applying for mortgage loans is not the best way to prevent foreclosures. On the contrary, an application for mortgage loans can land you that dreaded possibility of a foreclosure. Mortgage loans may give you the quick cash you need at the meantime but can surprise you with foreclosures at the long run. With interest rates on the rise, many mortgagors find it harder and harder to settle their mortgage bills each month which caused the rise in foreclosure listings. Along with the rise in foreclosure listings, comes the increase of homes being repossessed each year.

But there is no use crying over spilled milk once you have already done so. Fortunately, there is a way of stopping foreclosures. That way is Cashout Options. Cashout Options is a company that invests in single-family homes and multi-family homes in whatever state or condition. Research has shown that most foreclosed homes or homes in danger of foreclosure are the ones that are dilapidated, rundown and or are found in marginalized neighborhoods. Cashout Options does not care where or in what condition the house is in. Through the years, it has saved a lot of homes facing repossession and has purchased these homes from their owners for a reasonable amount that both parties were content with.

Foreclosures do not only lead to repossessions but may damage long-existing good credit reputations. It takes only one instance of a foreclosure to make for several years of bad credit history. Cashout Options, throughout its operation years, has provided foreclosure help to many people who have encountered such problems. People who are deeply immersed in the foreclosure spiral can rely on genuine foreclosure assistance from Cashout Options. The company’s experts are very approachable and transparent when it comes to vital foreclosure information that will help you in preventing foreclosures from destroying your credit and repossessing your home.

Cashout Options provides its clientele with various negotiable foreclosure options such as mortgage modifications and mortgage short sales. The company is able to maintain excellent customer relations by engaging them in a personal discussion of their situation, understanding what each situation calls for and guiding the customer in the short sale process.

The key to stopping foreclosures is simple. Just fill out the online sellers form found in the company’s website. In 48 hours to seven days, you can expect the company’s local affiliate to respond to your application. A local affiliate or one of the company’s personnel will contact you and engage you to discuss your situation. Cashout Options forms foreclosure solutions on a case to case basis so that each solution fits each different situation. You are assured of a clean, safe, and quick sale if you engage Cashout Options as your buyer instead of putting up your home for sale or auction.



RALPH

David Done asked:


The property investment market represents one of the most stable investments available. Real estate values will undoubtedly continue to rise over time meaning almost any property investment will eventually be profitable. Property foreclosures represent a special opportunity because typically speaking these properties can be purchased for less than their worth. Orange County is an excellent place to invest in a property foreclosure. With patience and flexibility you can find a number of property foreclosures that have the potential for serious profits.

Orange County is a collection of lovely communities wherein you will find all kinds of properties - beach front properties, luxury estates, and well maintained neighborhoods with single family homes. Finding an Orange County Property Foreclosure is a definite bonus. As an investment, you can feel confident that you will be able to sell a property foreclosure you have purchased in Orange County. There are so many communities here where people genuinely want to live. The impeccable California weather, long, sandy beaches, and cool Pacific Ocean breezes are all reasons why more and more people are choosing to live in Southern California. Plus, for anybody who is working in Los Angeles but wants to get away from the city at the end of the day, Orange County is full of cities within easy commuting distance of both LA and San Diego. More and more Californians are choosing to relocate to smaller towns and communities so they can experience what true California living is all about: an easy-going, carefree approach to the stresses of daily life.

Real estate agents throughout Orange County specialize in property foreclosures because they know their potential for investment. Commercial properties, industrial properties, and residential properties all come up from time to time as a property foreclosure. Astute investors know how promising the Orange County real estate market can be and keep a close eye on property foreclosures in the region. See from California foreclosure property listings Inc.

In the real estate industry, Foreclosure Trackers Inc refer to the time-consuming and expensive process of gathering this information “due diligence,” and at Foreclosure Trackers Inc, they do it for you. Located conveniently in Orange County, California, their team boasts several years of experience in performing the legwork to allow investors both the raw information and financial backing necessary to purchase California foreclosures for an astonishing 20-50% below their fair market values.

Whether you’re a novice or an experienced real estate investor, you’ll appreciate Foreclosure Trackers Inc system, which is easy to use, understand, and implement. Foreclosure Trackers provides Foreclosure Training both individual coaching and group classes for those interested in learning more about the foreclosure process, and we aim to demystify its innumerable complexities.

This Article is Originally Published here: Orange County Property Foreclosure

Foreclosure Trackers - Real Estate Investing Tools - Make profitable investments in Orange County Foreclosure Real Estate, CA.



KERRY

Thomas Bladecki asked:


A foreclosure is the process by way of which a lender can take over the property of a person who has taken a loan. There are many reasons for the owners inability to pay the loan; death of an earning family member, divorce, loss of job and employment, mental illnesses, alcohol or drug addictions and many more.

Foreclosures happen when banks, credit agencies or any other financial institutions repossess property. You can find foreclosure listings for properties that include homes, condominiums, residential properties and commercial properties. The foreclosure process begins when for some reason; the owner of the property fails to pay back the loan amount, the mortgage amount. The lender then takes the property back and forecloses the lien on the property that the lender had placed. Investors find foreclosure listings on website that specialize on finding, listing and maintaining foreclosure listings. You can also use real estate agents that specialize in foreclosures.

To find foreclosure listings is relatively easy these days, as foreclosures are increasing very rapidly in today’s market. Most experts think that this year foreclosures will reach record highs. An investor can find foreclosure listings for all parts of the country on foreclosure websites that have a nationwide database.

Traditionally April is considered a month where the new home sales pick up. However, the real estate market is very slow as potential buyers are on edge about buying real estate. New sales are down compared to the number of foreclosures. Since foreclosures are nearing an all time high in the United States, an investor or a buyer can make money when they find foreclosure listings.

When an investor can find foreclosure listings and make money, they can buy at discount prices; many of the homes are available at 10-50% below the current market prices. To do this they find foreclosure listings for such homes. There is also a glut in the market and this is the right time to buy and this is true for the entire country. Investors find foreclosure listings as there are more and more properties that are been foreclosed.

You find foreclosure listings at websites that list information about foreclosures and the current real estate market. The first thing to know is where to find the properties that you can invest and make money. These properties are available with various agents and a growing number of resources on the internet. In order to find foreclosure listings where you live find a website that has a nationwide database. This means that you can find foreclosure listings about all the foreclosed properties in the various cities and states in the United States.

For the investor, buying at these low prices will enable them to make money in foreclosures, since they can resell the properties later when the market comes back up. While the home owner can benefit from buying the property and save money too. They can use the money for other purposes such as renovating the property or even fund the education of their children.

You can also find foreclosure listings for Bank foreclosures known as REO’s (Real Estate Owned); properties that are owned by the bank. When bank foreclosures take place, the prices are typically set at the remainder of the amount of the debt or the loan amount. Find foreclosure listings for them on the websites too banks are sometimes willing to take less then what is owed, this is called Short Sale. Depending on which state you are in, the foreclosures deals can take 6-12 months.

You can also find foreclosure listings through the county office these lists are also available on many of the foreclosure websites. It can be difficult to find a reliable source where you can find foreclosure listings giving complete and vital information. Make sure the website where you find foreclosure listings that are updated daily.

For many homeowners it can be an investment in second homes too, when they find foreclosure listings for the right property. Many websites also gives useful tips about when to purchase properties and how to purchase the properties.

Find foreclosure listings from such websites that enable you to locate and find the brokers and agent information as well. When you find foreclosure listings that give you every detail about the foreclosures it will make it much easier to research and purchase the property. The process of buying the foreclosed property is not very difficult. It just takes a bit of research, time and effort to find foreclosure listings that are reliable. Then the prospective buyer or investor can give a written contract to the lender such as the banks or any other credit institutions to start the process of purchase.

Depending on the policies of the banks or the credit institutions, down payments can range from as low as $500 or up to 10-20% of the total amount of the outstanding mortgage amount.

This means that if the outstanding mortgage amount is $156,000, then the investor would need to deposit $15,600 in order to start the purchase process. The remainder of the funds and the financing needs to be worked by the investor. The mortgage rates currently are extremely low and can range from 6% - 6.8%. Depending on your credit history, date, price terms and conditions, great deals can be worked out between the lender and the investor.



WELDON

Julio Martinez-Clark asked:


Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage. If you attack it from a legal standpoint, you must be able to find a flaw in the foreclosure lawsuit to dismiss it. I don’t see any other way of stopping foreclosure.

If you are facing foreclosure at this moment, you are inundated by letters from foreclosure assistance companies that charge outrageous amounts of money to negotiate with your lender; the majority of these companies are a scam.

You also get creative letters from so-called “investors” offering free advice and with the intention to make you sell your home to them at a deep discount using deceptive kitchen table closings in which they make you sign mysterious paperwork (land trusts, etc) that basically transfer the title/deed of your home to them sometime taking over your mortgage payments and leaving the loan liability on your name. Some of this “investors” also offer very deceptive “lease-back” arrangements in which they let you stay in your home as a tenant, and they pray that you stop paying rent so that they can evict you so that they can take possession of your house. You also get letters from Realtors® who are trying to make you list your home for sale and paint a rosy picture of the real estate market and the value of your home (Read National Consumer Law Center’s report “Dreams Foreclosed;” one of the best studies recently written about the rampant theft of American’s homes through equity-stripping foreclosure rescue scams).

Last but not least dangerous, you get letters from nice attorneys offering free consultations to make you file Chapter 13 bankruptcy; what these attorneys don’t tell you is that based on research (see studies: The Realities of U.S. Personal Bankruptcy under Chapter 13, and Chapter 13 Bankruptcy: Successful Versus Unsuccessful Debtors) the overwhelming majority of Chapter 13 filers do not complete their payment plans and are not discharged.

You will also find on the internet a proliferation of eBooks that promise to stop foreclosure magically with names such as “Foreclosure Free Zone,” “The Fight Of Your Life: How To Beat The Foreclosure Demons Smart Solutions For Saving Your Home,” “Avoid Foreclosure And Fix Credit Problems,” ”Foreclosure Help - Don’t Let The Bank Take Your Home!“ In my research, I’ve even bought some of these type of eBooks just to see what’s so magical about them, and found that they don’t have any information that isn’t common sense and readily available for free online. All the advice in these books fall into these categories: 1) Talk to your lender, 2) Sell your home, 3) File for Chapter 13 bankruptcy protection, and 4) Refinance/Get a loan. None of these books, nor the Chapter 13 attorney, nor the Realtors®, nor the “investors” in their white horses tell you about your legal rights and how you can defend yourself from the abuse of the debt collector attorneys.

Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage regardless of negotiating a payment plan with your lender yourself or through a foreclosure assistance/consulting company. Bear in mind that when negotiating a payment plan with your lender (sometimes called Forbearance Agreement) , you may be required to come up with a lump sum (usually half of your past-due payments) and proof of income. It’s very simple; if you have sufficient cash and/or income to pay your monthly mortgage obligation, it’s very likely you can negotiate something with your lender to stop foreclosure. If you don’t have the cash and/or the income, you will have to attack the issue from a legal standpoint.

If you attack the issue from a legal standpoint, you must learn about your legal rights and, preferably with the help of a consumer protection attorney (www.naca.net), find a technical or legal flaw in the lawsuit to have it dismissed. These flaws could be hidden in the lender’s debt collection attorney not following your state’s rules of civil procedures (for instance: You were served improperly) or by digging into the foreclosure complaint and court docket to see if there is an actual plaintiff’s proof of ownership of the promissory note, or if the original promissory note has been filed in the court records, or any of the other twenty-something reasons that that could render a judgment void or invalid.

There is no magic in foreclosure. If a homeowner doesn’t pay his or her mortgage, the lender will foreclose on their homes. There is no magical negotiation with a lender that can be done without cash at hand and/or ability to pay supported by proof of income. There is a lot of literature on the internet and in bookstores about the debt collection industry, on how to stop foreclosure negotiating with the mortgage lenders, about how debt collections works, about what to expect from debt collectors, etc, etc. However there is little information about how to navigate the legal system, on how to file pleadings and motions and on how to execute the steps necessary to win the debt collection/foreclosure battle in court. Almost nobody explains to homeowners in simple terms how the legal system works and how they can use it to your advantage to win debt collection lawsuits.



LAZARO

Robert Lam asked:


Pre-foreclosure lists: What they are and why you need them

Tens of thousands of foreclosed homes are sitting on the market. It’s easy enough to find them, but how do you find the real gems — the homes that are on the brink of foreclosure? Turns out it’s easy to find them, too. Just use a pre-foreclosure list!

What is pre-foreclosure?

Pre-foreclosure is the initial stage of the foreclosure process. The lender posts official notice that the homeowner is in default on their loan payments. It’s a serious warning from the lender, but the homeowner can still avoid foreclosure by catching up on their payments.

The benefit of pre-foreclosure lists

Pre-foreclosure lists are exactly what they sound like. It’s simply a list of many area homes in pre-foreclosure. The benefit of pursuing properties in pre-foreclosure are that the homeowner and the lender are highly motivated sellers. Both parties are anxious to avoid foreclosure. You can get the best deals by snapping up a house before it’s actually been foreclosed on. In fact, the price can be dropped by as much as 50%!

Pre-foreclosure lists contain thousands of homes. If you keep your pre-foreclosure list up to date, you’ll have time to research the property before buying it. These lists are a valuable, reliable resource for real estate investors.

Where to find pre-foreclosure listings

The best pre-foreclosure lists are the product of elbow grease and solid research. There are at least four good sources of pre-foreclosure listings you can access at little to no cost. You can seriously miss out on a great opportunity if you rely on just one source. Combine the results from each of the four sources for a top-notch list.

1. Public records: Lenders post public notices when a house is going into pre-foreclosure. Hoof it over to your county record office to access these notices. These records are freely available to the public, but expect to pay a few cents to have copies made.

2. Pre-foreclosure websites: The old standby: surfing the net. A quick search will turn up numerous websites that specialize in pre-foreclosure listings. Some sites are free, and others charge a per listing or monthly/yearly membership fee. At the very least, you’ll be able to turn up the basic contact information (name, address, telephone number) of the homes listed.

3. Newspapers: Pick up your local newspaper to read “Notice of Sale” advertisements. Be sure to get your copy hot off the press, so you can be the first to jump on a promising opportunity.

4. Lenders: Because it’s to their benefit, many lenders will provide you with a pre-foreclosure list if you simply ask.

Different types of pre-foreclosure properties

Each type of property comes with different challenges and benefits. Find a listing that’s divided up into sections so you won’t waste your time looking into a government foreclosure if you’re only interested in bank foreclosures. You can focus solely on your specialty.

Obviously there’s the standard bank foreclosure, but there are also different government foreclosures, such as HUD and VA foreclosures. You can also check out impending court auctions. If you prefer to work directly with the homeowners, look into “for sale by owner” properties.

An accurate pre-foreclosure list can help you hone in on the opportunities that fit your resources and knowledge. Rather than hunting around through stacks of newspapers or bookmarking twenty Internet listings, combine them all into one well-organized list, and you’ll be way ahead of the game.

For other helpful foreclosure information, check out the http://www.ForeclosuresUnleashed.net ebook.



JIM

Igor Mosyak asked:


Receiving notice that your house is about to be foreclosed upon is one of the most traumatic things you can go through. However, when you sign your mortgage or deed of trust at the real estate closing and it is recorded in your County’s Land Records office, you give your lender the right to foreclose on the property if you default on the loan or fail to repay the loan according to the terms of the loan.  A new foreclosure law went into effect in Maryland on April 4, 2008 and any foreclosure action filed after that date must comply with the new law.  The foreclosure process and your rights in that process under the new law are outlined below.

What Will Happen if my Property is Going Into Foreclosure?

Before the foreclosure is filed

Before a foreclosure action is filed, you as the borrower and property owner should have received notice from the lender that there is a problem with your loan account and from the lender’s attorney that there is a default under the terms of the loan. Many mortgages require the lender to give notice of the default and of your right to remedy the default before filing foreclosure. Do not ignore or delay in responding to any written communication from your mortgage lender. The sooner you contact your lender, the greater the chance you can work out a solution to your situation.

In Maryland, before the lender can file a foreclosure case against your property, the lender must:

-Wait 90 days from the date that your loan is in default; and -Send you a Notice of Intent to Foreclose 45 days before the foreclosure case is filed.

-The Notice of Intent to Foreclose will provide you with important information about why your loan is in default, the amount you owe to bring your loan current, the last payment received, contact information for the lender or secured party, for the mortgage servicer that collects your mortgage payments and for the department that can help you work out your default (the loss mitigation department).

Filing the foreclosure case

To begin a foreclosure case, the lender must file the foreclosure with the Circuit Court in the county in which the property is located.  The lender must file the following documents with the court:

-Statement of debt, under oath, which itemizes the entire amount the lender claims is due under the loan. This will usually include principal, interest, late charges, attorneys’ fees and all other charges that the borrower is responsible for under the mortgage;

-Certification that the property owner is not a member of the military service. Under a federal law, commonly known as the Soldiers’ and Sailors’ Civil Relief Act, members of the military service have specific rights when lawsuits are brought against them (including foreclosure proceedings) since they may not be in the U.S. due to a military assignment and unable to adequately defend their interests;



If you are a member of the military service and find a property owned by you is the subject of a foreclosure action, you should ask an attorney what additional rights you may have as a result of this federal statute.

-Statement, under oath, that indicates the date of default, the nature of the default and the date the Notice of Intent to Foreclose was sent;

-A copy of the Notice of Intent to Foreclose;

-Original or certified copy of the mortgage or deed of trust;

-Copy of the debt instrument and an affidavit of ownership;

-Original or certified copy of the assignment of the mortgage if applicable;

-The mortgage lender and originator’s license number if applicable; and

-A uniform Notice regarding the filing of the foreclosure action

Serving the Property Owner

The lender must personally serve you with all the papers filed when the case was docketed with the court.  If the lender is unable to serve you after two good faith attempts on two separate days, the lender may file an affidavit with the court describing the attempts made to serve you and the lender may then serve you by sending you a copy of the court papers, by both certified and first class mail AND by posting the court papers on the property.

Before a Foreclosure Sale can be held

Before a foreclosure sale can be held, the lender must:

-Wait 45 days from the time the defendant was served.

-Publish a Notice of Sale for three successive weeks in a newspaper of general circulation in the county where the action is pending. The first advertisement should be published not less than 15 days prior to the date of sale and the last advertisement should be published not more than 7 days prior to the date of sale.

-Send a notice of the date of sale to the homeowner by certified and first class mail of the time, place, and terms of the pending foreclosure sale. This notice must be sent no later than 10 days prior to the scheduled sale date. Failure to receive the notice or to sign for it will not stop the foreclosure.

-Accept from the homeowner payment of the funds due to cure the default up to one business day before the sale.  Payment of this amount which includes missed payments, late fees and costs will stop the foreclosure sale if it is made one business day before the sale.

-Note: The secured party or the agent must provide, upon request, the amount necessary to cure the default and reinstate the loan and instructions for delivering the payment

IS IT TOO LATE TO PREVENT THE SALE OF MY PROPERTY?

When you are facing foreclosure, it does not mean that all hope of saving your property is lost.  If you have not spoken with your lender, contact your lender immediately and ask for the loss mitigation department of your lender to determine if your default can be cured under a plan.

Before the sale occurs, you have the right to go before the court to prove that you did not default on your loan and stop the sale. You may also go before the court to ask that the sale be stopped if you can prove that the lender committed fraud in obtaining the mortgage or they have violated certain laws when your mortgage was made.  You may also have rights and defenses if the lender fails to follow the requirements of the foreclosure law.  You should consult an attorney for advice and assistance if you believe you have a defense to the foreclosure.

If your lender is unwilling to work with you, filing a Chapter 7 or 13 petition in bankruptcy may be beneficial. A bankruptcy filing before the sale will stay or stop the sale.  Filing bankruptcy after the hammer comes down at the auction will lose the house unless the sale was improperly conducted and you timely object to ratification. Generally, a Chapter 7 filing will provide you with a three-month opportunity to cure your default and, if you can afford your mortgage and a plan payment, a Chapter 13 filing will give you up to five years to bring your mortgage current and pay other debts once the plan is confirmed. Filing a bankruptcy petition is complex; credit counseling is required and most attorneys need three or four days to do so. 

If someone approaches you to help stop your foreclosure, have any documents given to you reviewed carefully before you sign them or before you give any money to anyone.  If you need help, contact the State’s HOPE hotline at 877-462-7555 to get help from its foreclosure prevention assistance network and nonprofit housing counselors throughout the state.

SALE OF THE PROPERTY

If a sale does take place, the property will be sold through a public auction open to anyone who desires to make a bid. Public auctions are usually held on the property or at the courthouse in the county where the property is located.  The trustee must make a report regarding the sale to the court including an accounting of the sale.  After the sale has taken place, but before the court has ratified the sale, you may file objections if the sale was improperly conducted.  Only after the court ratifies the sale can the new owner petition the court to have you evicted from the property if you are still living there. 



RICH

Dave Dinkel asked:


On May 28, 2008, Governor Crist of Florida signed into law Statute 501.1377 (HB 643/SB 992) or so called Anti-Fraud Legislation. The real estate investing community has labeled the new legislation as anti-investor, despite the statute formally being called “Foreclosure-rescue Transactions”. The legislation targets certain types of foreclosure-related transactions including any action or method that postpones or stops a foreclosure transaction, the purchase of a foreclosure property, and the lease optioning of a foreclosure property back to the homeowner.

There are two types of individuals covered by the statute, the first of which are called Foreclosure-rescue Consultants. These individuals may or may not be investors and their efforts are focused on stopping or postponing a foreclosure for the homeowner whether or not they collect a fee. Before this legislation took effect, an individual could charge a homeowner an upfront fee for loan modification, short selling his home, or any service that would stop or postpone the homeowner’s foreclosure. As of October 1, 2008 any person deemed to be doing foreclosure-rescue consulting can no longer collect any fees before all services are complete as specified in a contract between the homeowner and the consultant. This means that if a consultant spends 10 to 30 hours on a case, and the end result is exactly as proposed in the contractual agreement with the homeowner, the consultant may not be able to collect his fee after all. It depends on whether the homeowner decides to abide by the terms of the contract or not.

There are literally thousands of legitimate foreclosure consultants who for many years have saved homeowners from foreclosure or eased the burden of their foreclosure and charged a reasonable upfront fee to do it. The well-meaning sponsor of this legislation was focused on a few scam artists who took foreclosure victims’ money and never made an effort to complete the services promised. Ironically, the true victim in this legislation will be the homeowner who now can only seek the very expensive help of an attorney to do the same work a non-attorney can easily do.

Originally included in the legislation were bankruptcy attorneys who have to charge a fee before the bankruptcy filing. However, attorneys were later exempt by the State’s Attorney General who explained he would not enforce it against attorneys. So every attorney in Florida is now exempt from charging upfront fees for loan mitigation, foreclosure postponement, short sales, and any other service that stops or postpones a foreclosure. This has created a new and vast market that was formerly unprofitable for attorneys in most cases. This legislation now gives attorneys a whole new client base to work on.

When real estate investors realized what the legislation meant to their careers and independent small businesses, they reacted in the only way they knew – to try and find “loopholes” by which they were exempt from the severe penalties of this statute. As with attorneys or wannabe attorneys, if you get five together, you will get five opinions. In this case many were trying to escrow the payment(s) for services rendered or charge in small increments as the work was completed, such as an application fee, submission fee, and other “step-by-step” fees. These are illegal under the statue and subject to fines of $15,000 per incident and possible jail time.

Also included in this legislation was specific wording about contract clauses and the requirements of the foreclosure consultant interacting with a homeowner including:

1.) The homeowner must have the contract for at least 24 hours before signing it and this right cannot be waived or modified, as are the waiver rights for the maximum fees that personal injury attorneys can charge. 2.) The homeowner must receive from the foreclosure consultant a copy of all documents that he signed within three hours of signing them. 3.) The homeowner has a three-day right of recession or cancellation of the contract without penalty and any funds collected by the foreclosure consultant must be returned to the homeowner within ten days. 4.) The date of the agreement must be shown as well as the name and address of the foreclosure consultant and it must be signed and dated by the homeowner and the foreclosure consultant after the date the homeowner received the original contract for review. 5.) The contract must be in 12 point or larger “Upper Case” print which we believed must have been a mistake but after speaking to the Attorney General’s Office, they confirmed the entire contract must be in upper case letters. 6.) The contract must explain the exact nature of the proposed services to be provided, the total charges for each. 7.) The contract contains very specific language that cannot be modified in any way and recommends that the homeowner contact his lender or loan servicer since they may do the same service as the foreclosure consultant for no charge. 8.) No upfront fee, money, property or other form of payment may be accepted by the foreclosure consultant until all services are completed.

This is a brief overview of the first part of Florida Statute 501.1377 and is not meant to be a legal opinion advice and is for educational purposes only.



HOUSTON