prevent foreclosure

Foreclosures, Short Sales, Tax Foreclosures
1

I need help!!!

I am about to get my house foreclosed on and am looking for any information/loopholes on how to prevent this from happening??

Where can I go, what can I do?

2

Hi! What state is your house located? Is the auction date set, for when? Do you have equity in the property or is it upside down?
Do you have more than one mortgage on it?

3

Do you want to stay in your home? How did you get in this predicament?
Have you talked to the lender? Try a loan modification?

4

Hi John, sorry to hear of the news… foreclosing is a sad, ugly process. I had to foreclose/shortsale on two properties last year. In retrospect there are many things I would have done differently. I went the route of a shortsale to avoid a foreclosure on of my properties but in the end wish I had foreclosed on it as well.

I dont know if you can save your house, but i have heard from some (Occupy Movement) that you can go to the courthouse steps during the day your house is being foreclosed on to ensure it is being called out by the banks for auction. Supposedly if its not called out you could sue to get your house back. Can anyone confirm this?

5

John,

How far in default are you?

6

I actually used to work for a foreclosure company. There are a lot of grey areas, but this is somewhat true. We used to get fined up to $1,000 per house we did not auction off. Sometimes there just wasnt enough time in the day to cry out all of them. If you are there and don’t hear your house being called out, you may be in luck.

7

You have options. Here are a few of them:

LOAN MODIFICATION: This can help underwater mortgages and hardship cases (lost job, disability etc). A lender is not supposed to be able to foreclose on your property if you are working on a loan modification.

SHORT SALE: If a loan mod will not work, then another option is to sell the property during the foreclosure process but before the date of the auction. If the offer is less than what you owe, you will need to get lender approval. Putting the property in a short sale can lengthen the foreclosure deadline.

AUCTION: If the property goes up for auction, you do have the opportunity to buy it from the bank on the courthouse steps. But, usually it is for the amount owed and you have to have the full amount right then and there (and if you had that kind of cash lying around you would not be in the foreclosure situation).

REDEMPTION PERIOD: Most states offer some sort of redemption period after the auction. You can still sell you home during this period. Or you can payoff the auction amount and reclaim the home.

If you will not be able to get a loan modification and money is scarce and you believe that foreclosure is the only option - then you can stop paying the loan and living in the property for only the price of the utilities, taxes and insurance. It will create a nasty hit on your credit, but if the property is in foreclosure, that will already happen. Meanwhile you can live “free” until they evict you sometime after the redemption period passes.

8

I think the best options you have are loan modification or short sale.Otherwise if you go through a foreclosure, it is not the end of the road you can still fix your credit and qualify for a mortgage in future.

9

Continue your search for a home loan modification agency that can work as a facilitator between you and your lender. A home loan modification specialist is focused on the hardships you are facing and how they can help you keep your home. If you are having trouble finding a home loan modification agency to provide you with assistance to prevent foreclosure, hire an attorney to help.

10

Speaking of loan modification: On March 27, 2013, the Federal Housing Finance Agency (FHFA) announced a new loan modification program for Fannie Mae and Freddie Mac loans. It is called the Streamlined Modification Initiative and it begins July 1, 2013 and will end August 1, 2015. It is designed to help borrowers who are at least 90 days delinquent on their mortgage payments. This program looks to be much more effective and simpler than HAMP.

Eligible loans must have be owned or guaranteed by either Fannie Mae or Freddie Mac and be at least 12 months old. The loan must be delinquent by at least 90 days but not more than 24 months and have a loan to value greater than 80%.

The main modification is an extension of the term to 40 years and a reduction in the interest rate. There are other loan features that can additionally lower the payment if the borrower is willing to document income and/or financial hardship (which is not required in this program).

Reference: http://www.fhfa.gov/webfiles/25068/StreamlinedModInit32713Final.pdf

11

There are different ways you cant avoid foreclosure. You may consider these options:

Refinance
Replacement of an existing mortgage(s) with a new home loan.

Loan Modification
Lender agrees to alter the terms of the loan so that you can better afford the payments.

Short Sale
A carefully agreement upon sale of a property for less than the amount of the mortgage balance. It’s basically executed as a means for both a homeowner and a mortgage lender to cut their losses.

File for bankruptcy
Once you file a bankruptcy petition, federal law prohibits any debt collectors, including your mortgage lender, from continuing collection activities.

12

Hi,
Foreclosure is a very painful situation, but you can stop it with the help of following tips:-

  1. Mortgage Modification: - It is the case when your lender is willing to change the terms of the loan to make it affordable for you. It can be the lowering of the interest rate or adjusting the missing installment in the next installments.

  2. Short Sale: - A short sale is another option to avoid foreclosure. It is an agreed upon sale of the property in which it is sold at the price less than the mortgage balance. Actually, it is taken as a mean by which both the borrower and lender can cut their losses.

Thanks!!