Foreclosure Trends

John Nazareno asked:


Foreclosure is a term many people may have heard of yet are unsure as to what the term means exactly. Foreclosure is something which affects homeowners who have a mortgage or lien on their home and do not own the house outright. There are a few things which homeowners should be aware of with regard to foreclosure in order to prevent this from happening to them.

What Is Foreclosure?

Foreclosure is when a lender who currently holds a mortgage on one’s home can come in and repossess the home due to a number of reasons but mainly for nonpayment of a mortgage. For those individuals whose home is less valuable than their current loan balance, they may also owe a deficiency judgment as a result thereof.

How Do Foreclosures and Deficiency Judgments Affect the Individual?

There are many ways in which foreclosures and/or deficiency judgments can affect an individual. First and foremost, when a home is foreclosed upon that individual loses their living quarters plus any money which they have already paid for the home. When one has a deficiency judgment issued against them they will find that they will owe varying sums of money in order to make up the difference between the value of the home and the outstanding loan on the home. Also, it is important to note that either one of these incidents can affect the credit of an individual and cause a blemish on their credit rating for years to come.

Ways to Prevent Foreclosure

There are a few ways in which homeowners paying mortgages can avoid foreclosure on their beloved home. The first way in which to do so is to pay the mortgage bill on time. This is the primary answer for those who ask how to avoid foreclosure. For those who have difficulty with doing so from time to time, there are other ways to prevent this from occurring.

The homeowner should always address letters from the lender which revolve around late payments. Within these letters the homeowner will find important information that tells the homeowner what to do if they are having trouble making payments. The letter will ultimately include phone numbers and names of contact individuals at the financial institution so that they can discuss their payment issues with a lender representative. It is crucial for the homeowner to speak with the lender and not bury their head in the sand to avoid it. Avoiding a problem such as nonpayment of mortgages will not make it go away and will only make it worse.

Individuals who are having trouble making mortgage payments should also be certain to stay in their homes and not abandon the property in any way. This will only hurt the individual in the long run and make foreclosure even that much more of a possibility.

Lastly, if the home is a HUD home, there are HUD counseling agencies which will aid the homeowner in preventing foreclosure issues from arising. The homeowner should contact HUD authorities to discuss ways in which to keep their home and make payments.

Possible Alternatives to Foreclosure

For those individuals who have trouble making mortgage payments on their home and fear foreclosure, it is important to know about other alternatives which may be recommended besides the dreadful foreclosure. Not all of these alternatives will apply to each and every individual but some may prove to be very handy when all is said and done. The first is called a special forbearance.

The special forbearance is something which may be arranged by the lender whereby the homeowner receives a payment schedule adjustment and may also receive a suspension of payments for a certain period of time. The representative of the lender will discuss options with the homeowner and after reviewing their situation decide if a special forbearance is warranted.

Another alternative to foreclosure is the mortgage modification. A mortgage modification is where the homeowner has the option to extend the loan period or refinance their current loan to get a lower rate and therefore have lower monthly payments. This is a wonderful option for those individuals who do not make enough each month at the moment to currently pay their mortgage.

A partial claim is another alternative for homeowners facing foreclosure to consider. The partial claim is available to those individuals who have HUD loans. With this payment alternative, the Department of Housing and Urban Development would help the homeowner bring their mortgage up to the current balance by paying the money which is overdue. This is a way to help the homeowner get out from under the mounting debt and then try to get them on the right payment schedule.

Some individuals may find that selling their home is the best bet and they can do so by way of a pre-foreclosure sale. This allows the individual to sell their home for an amount less than the total mortgage amount due prior to having it sold via foreclosure sale.

Lastly, one may be able to submit a deed in lieu of foreclosure. Although this still will not prevent the homeowner from losing their house, it will help them in the long run by not having a foreclosure on their credit history.

Summary

Foreclosure is a serious matter for homeowners to face. However, it is important to know that there are ways to prevent foreclosure and alternatives to foreclosure do exist should such a thing be necessary in the end.



REYNALDO

usmortgage42 asked:


Foreclosure:

At the advent of the credit crunch, it has been increasingly difficult for everyone to maintain payment of their debts.  This has been due to an escalation of interest rates and instability of jobs in the market.  Workers have been layed off everywhere. One of the sectors that were struck hard by the current financial crisis is the real estate sector.  Home buyers have been finding it more grueling now than ever to pay off their mortgages to the banks.  When the home buyer reaches the point wherein he can’t pay the mortgage anymore, the bank or the financial institution can seize the property and sell it to somebody else.  This is called as foreclosure.

Foreclosure:

Foreclosure is the legal process by which the lender revokes (forecloses) the borrower’s right of redemption to a property that is still under mortgage to the lender normally due to delinquency.  A court order (specifically called a foreclosure order) is required in foreclosure of a property. The borrower is given an opportunity by the court to redeem the property by payment of the entire loan including the foreclosing expenses.  However, if the home owner was not able to pay the whole amount within the prescribed time, the court will proceed with the court order. Thereafter, the mortgaged property can be put on sale by the lender.  Sales proceeds will go to the lender and will give the remainder to the borrower (if any). If the sale is not sufficient to cover the whole debt, the borrower is still liable to the lender of the shortfall.

Disadvantages of Foreclosure:

It is a sad situation when one’s home has undergone foreclosure.  Of course every home owner would want to stop home foreclosure now more than ever since the value of the real estate is plummeting.  Chances are that people would be buying the mortgaged home in a value which is lower than its “real” value.

How to stop home foreclosure?

The next question would be how we can stop foreclosure? Specifically how can we stop home foreclosure?  With today’s typical financial crisis and economical juncture, everybody is faced with a risk of encountering unfortunate situations may lead to foreclosure of one’s home.

One way to stop foreclosure is by availing loan from financial institutions.  The homeowner can use the proceeds from the loans to pay off their debt to the real estate lenders.  This is to avoid losses by selling the property at a lower value.

Avoid Foreclosure:

Of course it is still best to avoid foreclosure rather than remedy it.  Home owners should look at their credit standing first before going to a home mortgage.  They should also check their capacity to pay the loan. The financial crisis should give a clear message to everyone to not live beyond their means.

Monthly payment for loan should be up to date so they will not pile up and become a burden later on.  Delinquency starts with a month of not paying the loan that later on bloats up.

These are only some of the ways on how we can stop foreclosure now.

Help yourself and let us stop foreclosure now.



ALFONSO

Charlotte Foreclosure Attorney - Zellers Rudd asked:


There is no doubt that it is entirely possible for you to work on your own with the bank to come to a mutually amicable solution to your foreclosure problem, but you must also keep in mind that time is of the essence in dealing with loan modifications.  While you are trying to deal with the lender or servicer precious time is slipping away. 

Most lenders and servicers continue on with the foreclosure process while you negotiate a modification or other alternative.  Your denial of a modification may not occur until the day before the foreclosure sale.  And if you do receive a modification offer, the offer might be unfair or possibly contingent on you giving up important rights. 

There are no hard and fast rules on what lenders and servicers are willing to do, so it would be very helpful to have a skilled attorney represent you and present your situation in the best light possible. An attorney can review your financial information and help you devise a strategy to reach your end goal whether it be to modify your loan to a fixed or lower rate, add back payments to the principal, temporarily reduce payments, or just to help give you enough time to sell your home or negotiate a short sale, deed in lieu, or other alternative.

An attorney can also review your loans and servicer/lenders’ actions to see if there are any violations of HOEPA, RESPA, Reg B, the Fair Debt Collections  Act,  the Fair Credit Reporting Act,  acts regarding subprime loans, predatory lending acts or any of the other consumer/borrower protections found in North Carolina and/or Federal law.  There are many rules and regulations out there that protect borrowers and consumers that you may be able to take advantage of. 

Additionally, an attorney often has contacts in Loss Mitigation, Short Sale, and other departments within servicers and lenders which can increase the efficiency of you loan modification review and so that you don’t have to spend your valuable time on hold with servicer or lender departments just to have your modification paperwork lost or to be juggled from one department to another. An attorney can make these calls, negotiate your position, propose many alternatives, advise you at each juncture and keep you updated throughout the process instead of you spending large amounts of time in limbo wondering if you are doing everything possible and whether you have explored every option to reach your goal whatever that may be.  

You may only have one shot at a loan modification or other alternative and by employing the services of an attorney you can feel assured that all possibilities and avenues have been explored. 

For more information on loan modifications and other foreclosure alternatives, please visit:  http://zellersrudd.com/areas_of_practice/charlotte_foreclosure_alternatives.aspx 

 



ELVIS