Category Archives: Foreclosures & Finance

How to find the best foreclosure attorney

Foreclosure attorney, ForeclosuresThere are certain qualities that are to be considered when you are looking for a foreclosure attorney. The attorney has to be talented. It is very important that the attorney you are hiring has courtroom skills that will help you draw the case to your favor. It is important the attorney has the ability of speaking persuasively.

The attorney must also be able to understand financial situations that are complex and he should be able to come up with solutions for those complex problems. A standard attorney would know that mortgage cases are different and each of them needs a different approach. Apart from talent, your attorney should also have enough experience. More the experience of the attorney, more are your chances of making the best of the case. There are going to be a lot of situations in the courtroom that can be handled only with ample experience. Try to get an attorney who has a good reputation in the industry.

Obama’s Foreclosure Plan

Property, Foreclosure, ObamaFor homeowners, it is not yet clear how Obama’s foreclosure is going to bring change in the housing industry. The plan comes with an executive summary of the problems that foreclosure plan is going to address. One of these problems is inability by homeowners to refinance homes whose values have plummeted due to low interest rates. The summary also recognizes that almost 6 million homeowners are faced with foreclosure due to recession. Due to the epidemic of foreclosure, property values are dropping

Obama’s administration has launched a stability plan that will enable nine million families being faced with the threat of foreclosure restructure all the mortgages that they are currently financing so as to avoid the eventuality of a foreclosure. Reducing the cost of refinancing these mortgages is the primary blueprint of this stability plan. There are also attempts to strengthen initiatives that increase the homeowner’s confidence in the government.

How bad foreclosure affects your credit rating

Real Estate, Foreclosure, HomeA foreclosure should only be considered as the last resort for it can drastically affect your credit rating. In fact, a foreclosure can affect your credit score by about 200 to 300 points. This means that a credit score of 800 can be lowered to 500. This results in a negative credit score. After a foreclosure, it is mandatory that you should not receive any financing from a creditor. This means that you will not be able to get loans, buy a car or any financing.

Your low credit rating may also affect your ability to get an apartment as most landlords use your credit scores as a way to determine your reliability as a tenant. This also applies to getting phone numbers or cable. However, these detrimental effects can be reversed only after the 24 months are over but a foreclosure will only be fully removed after seven years.

Help In Avoiding Your Home into Foreclosure

Foreclosures, Homes,The first step towards saving your dear home from foreclosure is making sure that you take a mortgage loan that you have the capacity to repay. There are creative ways through which you can determine whether you will be able to repay a mortgage worth a certain amount of money. There are different flavours that you may go for.

When you notice that the debts are accumulating and that you have already defaulted on paying for your mortgage, take a loan from elsewhere and repay the mortgage first. This is the best way to avoid high interest loans.

Take action the first time you smell trouble of an imminent foreclosure. Actually, even before foreclosure, you may notice that there are very telling signs that trouble could be somewhere on the way. One of these signs is inability to repay any loans. A home equity loan might be a perfect solution.

Find Bargain Mobile Home Foreclosure Deals

Mobile Home, Foreclosure, PropertyOwning a descent home is quite difficult today considering the economic constraint that we are facing. There are many people loosing their jobs and others approaching retirement and still don’t have homes. There is however a solution through the fore closure markets which have made it easier for people to find affordable homes. You can find great bargains of a home before foreclosure takes place; the advantage of this is that you can get a home at a very unbelievable low price.

Low down payments are a common phenomenon before a house faces foreclosure. It is however important to consider some things before settling for a mobile home. One is that you need to check the location of the home and whether it can be moved to another location. Most of these homes can be good places to live in if they are well kept. Get one at great bargains.

The reverse mortgage path

Reverse mortgageSup-prime meltdown has revealed darker truths and the buildings of trust have tumbled down one after another. How can a system live so long on an oversubscribed economy and boast of resources it did not have. How could it sign erratic loan decrees without finding out if a person was ever eligible to receive that loan? Well! Truth is that such things have been done and this is why sub-prime crisis is there in the first place.

Private lenders, financial institutions and banks, sure of the paying power of borrowers gave home loans at reduced rates, reasonable mortgage structure and lesser down payment. Today, they find themselves at the receiving end of these home loans and unfortunately, in the absence of collaterals, and most of the time, not being backed by FHA or other such organizations, they find that the defaulter’s line is a hell-hole out there.

The only possible option with the banks to compensate for lost funds is Foreclosure or Short Sale but because the Obama administration promised moratorium, stop foreclosure, loan rewrites and loan modifications, the banks cannot even come up with these plans.

But, the home owners deserve it just as well. Think about them, they are short of disposable income. Global recession has taken the wind from beneath their sails and they are suffering great budgetary constraints. In such a time, they can hardly afford the mortgage structure. This is where loan modification actually helps.

In the event when a homeowner cannot keep up with the monthly mortgage, Foreclosure begins to loom large. Short Sale is another painful process. (Short Sale is more favorable than foreclosure as it ends the obligation of the borrower and gives the proceeds of the discounted sale to the mortgagee). In all such cases, the Stop Foreclosure team comes to the fore and looks into the situation.

If it’s extremely distressful then the team can do no wonders but if in case, the situation is redeemable then the Stop Foreclosure unit suggests the unique Loan Modification plan. Such plan is useful in altering the mortgage structure and also reduces interest rates. Sometimes, if the bank or the private lender is lenient, the borrower or homeowner also gets payment deferring facility or Moratorium.

Such modification saves the home for the borrowers and also gives the lender some kind of a breathing space in terms of compensating finances. The lender always looks for the FHA or some such organization to secure the loans. It acts as semi-collateral mentally as the organizations take part of the pressure when the borrower defaults. This is why, the lenders are ready to provide the FHA approved loan at lesser interest rate and more lenient down payment structure.

Another superb idea that’s doing the round today is Reverse Mortgage. Reverse Mortgage is fundamentally the exact reverse of a normal loan. In a normal loan, you take a lump sum from a bank and keep paying it as equated monthly installments. While in a Reverse Mortgage, you pledge a property that you own and ask the bank to keep paying you series of monthly revenue for a particular period of time. Senior citizens can avail the loans and they are eligible to get the annuity for 15 years (in most of the cases) after which there is no further cash flow but they can choose to be in the house. Another relief option is the VA loan clause. VA loans for veterans and service personnel have also been given a fillip by the government and its limit is being raised to $ 7, 29,000.

Yes, there is a global liquidity crunch but then there are initiatives just as well. These are not dark times, come to think of it.

Buying foreclosure on a bank property

Foreclosures & PropertyYou know about the secured loans that the banks offer against any property which is placed as collateral. This serves as a security for the bank that it can recover its money even if the borrower defaults. The property which is placed with the bank is auctioned to recover the money owed by the borrower.

There are many cases wherein nobody comes forward to buy the property above the minimum amount for the property given by the bank. Thus, these properties remain with the bank. You can later approach the bank to buy this property at a lower rate.

Banks are not interested in keeping assets with them. They need cash. If an auction does not fetch it more than the announced minimum value, chances are the bank keeps the asset with it. You can approach the bank to buy the foreclosure. In most of the cases, the bankers will agree as they need to recover at least a part of money they lent to the borrower.

This method of approaching banks and offering a little more than what the bank proposed at the auction helps you get a property very cheap. If you are able to convince the banker and get the property, you can make some additions to it and sell it at much higher price.

How to stop foreclosure?

ForeclosureIn order to receive their money back from the borrowers who took secured loans and could not pay the installments on time, the moneylenders go for foreclosure of the asset placed as collateral. This means a very bad mark on your credit report. You can never go for a loan for years after the foreclosure is marked on your credit report. Though there are online moneylenders who can help you in times of need, you still carry the black mark of the foreclosure.

There are two ways to stop foreclosure. Both are risky but are sure to save your reputation. The first one says that as soon as you sense foreclosure, try to sell off the property you placed as collateral quietly so as to get an amount which can be used to repay the debts. Though this step saves your reputation, you lose your house or other property that you placed as collateral.

Another method which strikes me is to go for an online loan. As the local banks will not help you as the property is already placed as collateral, you can apply for loan with these internet based moneylenders. You will have to take a second mortgage loan, which may carry higher interest but will save you from the humiliation of losing your property to the money lenders.