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Stop Foreclosure Options

October 5, 2010 By Homebackers

Stop Foreclosure Options

There are many options today for homeowners who are facing foreclosure to stop foreclosure proceedings against their home. The most important thing is to start seeking help early on before you get too far behind on your mortgage payments. Talk to your lender and explain your financial hardship.  Lenders want to help their customers keep their homes. It may also be a good idea to consult with a real estate foreclosure defense attorney, a short sale company or a certified HUD home counselor to find out what options are best for your financial situation. HomeBackers are expert short sale negotiators that can assist you with your options and negotiate a resolution with your lender. Their telephone number is 937-754-1111 , and our website address is http://www.HomeBackers.com.

 The following is an overview of stop foreclosure options that are available to distressed homeowners:

 Loan Modification 

A loan modification is a modification of your existing mortgage. The purpose is to lower your payment by reducing your interest rate and adding the arrearages to the back end of your loan. Sometimes the lender will also reduce the principal balance. Loan modifications take at least a few months to get approved so be patient. You must show you have sufficient income to make the new mortgage payment. So if you are unemployed, a mortgage modification may not be the best option for you.

 Refinancing

 For those homeowners who have some equity in their home, refinancing is a good option if you currently have a variable interest rate loan. By reducing your current interest rate at least 2%, you will substantially lower your monthly mortgage payment. There are fees associated with refinancing so check around before you choose a loan product.  Under the Home Affordable Refinance Program, you may qualify to refinance.  Highlights of the Program are referenced below:

 The Home Affordable Refinance Program

  • Homeowners with debt that exceeds their home value by 5% are eligible for refinancing.
  • No prepayment penalties either.
  • Loans must be backed by Fannie Mae or Freddie Mac.  

Homeowners Who are Not Eligible

  • Homeowners whose home values declined severely under 5%.

Homeowners with Jumbo mortgages, which exceed $417,000 are not eligible.

 Deed in Lieu of Foreclosure

  A deed in lieu of foreclosure is when you simply sign over the deed to the lender, walk away not owing any money and hand the keys over.

 Short Sale

  In a short sale, you must obtain your lender’s approval prior to selling your home. The lender writes off the remaining loan balance. Be sure to negotiate that the lender cannot go after you for a deficiency judgment.  Some states allow the lender to sue the borrower for a deficiency judgment after the sale closes.  A deficiency judgment is the difference between what you owe your lender on your mortgage and the sale proceeds.  Short sales take about 60-90 days or longer to get approval. It is a great way to get your home sold to avoid a foreclosure on your credit if you have no equity in your home and can’t afford your house payment.

 Sell Your Home

  Selling your home is an option if you have equity.

 Reinstatement

  The lender reinstates your loan when you pay all amounts that are in arrears including any fees and costs.

 Bankruptcy

  Bankruptcy has serious consequences and should be used as a last option to save your home from foreclosure. It is recommended that you consult with a bankruptcy attorney. You may be able to file either a Chapter 13 or Chapter 7.  The court automatically issues an order for relief staying or stopping your creditors from any collection activities.  This includes postponing any foreclosure sale during the bankruptcy proceedings.   

 It is important to under the different bankruptcy laws.  Chapter 7 wipes out all your debts. In a Chapter 13, you can keep your home, and you agree to pay your creditors via a payment plan.   

 Don’t despair if you are facing foreclosure, you do have options to save your home. Time is of the essence so act early on before matters get worse. HomeBackers is the leading Real Estate Company in the Greater Dayton Ohio Area and are available to  assist you. Our telephone number is 937-754-1111, and our website address is http://www.HomeBackers.com.

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Huge Myth about a Bankruptcies impact to a Foreclosure

December 4, 2009 By Homebackers

Huge myth about a Bankruptcies impact to a Foreclosure

This is the #1 myth that people think when they call our office at HomeBackers.
Typically when a person goes into foreclosure they will turn to people that they trust and love for help and advice. We see that the most people get misled by attorneys and other professionals trying to get them to just file bankruptcy and they think that will make their foreclosure just go away. That is false false false.
At HomeBackers we can’t tell you to file bankruptcy or not file because we are not practicing attorneys, however I can tell you what happens to your foreclosure if a attorney does advise you to do so.
Here’s the thing:
When a house is in foreclosure and the homeowner also files a BK there is a “STAY” granted. This means that creditors cannot go after the homeowner, bug them, call them or pursue the payment of the money. This “STAY” is granted because the BK system is working its way through and while the BK trustee is trying to figure out if there’s any money to pay the creditors they don’t want the creditors hounding the homeowner. So a “STAY” is granted. BUT when the property comes out of BK, either through the BK being dismissed, discharged or the “relief from stay” is granted then the banks can pick up the foreclosure process where they left off and foreclose on the homeowner damaging their credit even more.
You have to understand that even though people that have a professional in their name or even the word attorney in their name that they are a business too. They still need to make money just like everyone else does to survive and might mislead you in some ways so they can pad their wallet a little bit more. So here’s what you do, if you are in a foreclosure situation and thinking about filing a bankruptcy ask your attorney these two questions.
What will happen to this foreclosure if I file Bankruptcy? Does it go away or will the lender still go through with the foreclosure after my bankruptcy gets discharged?
Hopefully you will get a straight up answer like I mentioned above or if you notice that they dodge that question a little bit; you might want to go to someone else to get some advice. I am not saying anything bad about attorneys, at HomeBackers we actually love working with knowledgeable attorneys in our line of work I just want you not to be misled in any way and understand that they are a business too and you do have options when in Foreclosure. Call HomeBackers for all of your options 937-754-1111 or visit http://www.HomeBackers.com.com.

Filed Under: Stop Foreclosure Tagged With: ,

Stop Foreclosure Options

December 3, 2009 By Homebackers

Stop Foreclosure Options
There are many options today for homeowners who are facing foreclosure to stop foreclosure proceedings against their home. The most important thing is to start seeking help early on before you get too far behind on your mortgage payments. Talk to your lender and explain your financial hardship. Lenders want to help their customers keep their homes. It may also be a good idea to consult with a real estate foreclosure defense attorney, a short sale company or a certified HUD home counselor to find out what options are best for your financial situation. HomeBackers are expert short sale negotiators that can assist you with your options and negotiate a resolution with your lender. Their telephone number is 937-754-1111, and their website address is http://www.ImBehindOnMyHousePayment.com

The following is an overview of stop foreclosure options that are available to distressed homeowners:

Mortgage Modification
A mortgage modification is a modification of your existing mortgage. The purpose is to lower your payment by reducing your interest rate and adding the arrearages to the back end of your loan. Sometimes the lender will also reduce the principal balance. Mortgage modifications take at least a few months to get approved so be patient. You must show you have sufficient income to make the new mortgage payment. So if you are unemployed, a mortgage modification may not be the best option for you.

Refinancing
For those homeowners who have some equity in their home, refinancing is a good option if you currently have a variable interest rate loan. By reducing your current interest rate at least 2%, you will substantially lower your monthly mortgage payment. There are fees associated with refinancing so check around before you choose a loan product. Under the Home Affordable Refinance Program, you may qualify to refinance. Highlights of the Program are referenced below:

The Home Affordable Refinance Program

• Homeowners with debt that exceeds their home value by 5% are eligible for refinancing.
• No prepayment penalties either.
• Loans must be backed by Fannie Mae or Freddie Mac.
Homeowners Who are Not Eligible
• Homeowners whose home values declined severely under 5%.
Homeowners with Jumbo mortgages, which exceed $417,000 are not eligible.

Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is when you simply sign over the deed to the lender, walk away not owing any money and hand the keys over.

Short Sale
In a short sale, you must obtain your lender’s approval prior to selling your home. The lender writes off the remaining loan balance. Be sure to negotiate that the lender cannot go after you for a deficiency judgment. Some states allow the lender to sue the borrower for a deficiency judgment after the sale closes. A deficiency judgment is the difference between what you owe your lender on your mortgage and the sale proceeds. Short sales take about 60-90 days or longer to get approval. It is a great way to get your home sold to avoid a foreclosure on your credit if you have no equity in your home and can’t afford your house payment.

Sell Your Home
Selling your home is an option if you have equity.

Reinstatement
The lender reinstates your loan when you pay all amounts that are in arrears including any fees and costs.

Bankruptcy
Bankruptcy has serious consequences and should be used as a last option to save your home from foreclosure. It is recommended that you consult with a bankruptcy attorney. You may be able to file either a Chapter 13 or Chapter 7. The court automatically issues an order for relief staying or stopping your creditors from any collection activities. This includes postponing any foreclosure sale during the bankruptcy proceedings.

It is important to under the different bankruptcy laws. Chapter 7 wipes out all your debts. In a Chapter 13, you can keep your home, and you agree to pay your creditors via a payment plan.

Don’t despair if you are facing foreclosure, you do have options to save your home. Time is of the essence so act early on before matters get worse. HomeBackers is a Real Estate Solutions Company and are available to assist you. Their telephone number is 937-754-1111, and their website address is http://www.ImBehindOnMyHousePayment.com.

Filed Under: Stop Foreclosure Tagged With: , , , ,

Negotiating a Short Sale that won’t Fail

December 1, 2009 By Homebackers

Negotiating a Short Sale That Won’t Fail

Sellers who are facing foreclosure and have opted to choose a short sale as the method of saving their home from foreclosure are facing two challenges. The first is successfully negotiating the short sale with a buyer that is qualified and willing to wait through the approval process. The second is getting the lender to approve the short sale. By breaking the process down in two parts, and hiring the right short sale experts you will be able to get your lender’s approval, sell your home and avoid foreclosure.

PART ONE

Attracting the Right Buyer
You will need to work with a short sale Realtor who is experienced with the short sale process and knowledgeable about selling real estate in your area. Here is how the process works:

1. List Your Home with an Experienced Short Sale Realtor and Price it Right
It is important to list your home with an experienced short sale Realtor that understands the short sale process because they have sold many short sale properties. Price your home at or below market value. The lender will be obtaining a Broker Price Opinion on your home’s value so you need to price correctly so the lender will approve the sale. Your Realtor can help you by giving you a comparable market analysis of similar homes that have sold in the area to determine the right sales price for your home.

2. Market Home to Buyers/Investors Who Understand the Short Sale Process
Avoid wasting time with the wrong buyer. Time is of the essence to save your home from foreclosure.

The short sale Realtor will market your home to attract the right buyer by advertising the property in the MLS, the Internet and other media such as newspapers, magazines, etc. as a short sale, subject to third party lender approval, so buyers are aware that the property is a short sale. This way there are no surprises. As a result, you will be dealing with serious buyers/investors who understand the short sale process and are willing to wait for the home. This increases your odds that your buyer will not walk away during the approval process.

3. Negotiate Short Sale Contingency With Buyer
Your Realtor will use special language in your contract to make sure that all parties understand that the closing is subject to third party lender approval. All contract contingencies start from approval by the lender. Because of this reason you should only deal with cash buyers. Once your lender approves the transaction, the lender expects the buyer to close in about two weeks from approval. Cash buyers can do this. Buyers who are obtaining financing normally cannot meet such a deadline.

PART TWO

Hire a Short Sale Company to Negotiate With the Lender?
It is crucial to hire a short sale company.

HomeBackers are expert short sale negotiators that can assist you with your short sale negotiations. Their telephone number is 937-754-1111, and their website address is http://www.ImBehindOnMyHousePayment.com.

While some Realtors also negotiate short sales with lenders, it is recommend you use a short sale company who specializes in negotiating short sales and has established relationships with lenders. The short sale company performs the following functions:

Submits all the required short sale package paperwork to your lender so that there are no delays. The short sale package includes your financial information, tax returns, W-2’s or 1099’s and recent bank statements, a financial hardship letter, authorization letter, copy of your purchase and sale contract, and your broker’s listing agreement. The lender must approve the contract and the broker’s commission agreement for the sale to close.

  • Communicates with your lender until a negotiator is assigned and your transaction gets approved. The short sale company has systems in place to speed the short sale process up for you. Generally a short sale takes about 3 – 5 months to get approval or longer. The short sale company communicates with your lender on a regular basis, sometimes daily until the job is done.

The functions of your Realtor and short sale company are completely different, but both need to communicate with each other on a regular basis for your short sale to be successful. The Realtor must also communicate with you and the buyer to keep everyone informed of the status of the short sale process. Many deals fall apart because the buyer is not kept up to speed on the process.

Successfully negotiating a short sale process is a team effort. By hiring a qualified short sale Realtor to market your home to the right buyer and using an expert short sale company such as HomeBackers, who will successfully negotiate the short sale with your lender, you will save your home from foreclosure and your credit. To reach HomeBackers, call them at 937-754-1111 or visit their website at http://www.ImBehindOnMyHousePayment.com. You can then move on to other important matters in your life.

Filed Under: Stop Foreclosure Tagged With: , , ,