Seb Frey is a Capitola, California Real Estate Broker specializing in Santa Cruz Real Estate. He is fluent in Spanish and enjoys helping people find their piece of the American Dream in Santa Cruz. You can find Seb’s blog at SantaCruzHomeBroker.com/blog.
Archive for December, 2009
Dec
25
Avoiding Foreclosure by Selling your Home First
Posted by: | CommentsForeclosure is not something that anyone plans. It often happens as the result of unexpected circumstances, such as a job loss or prolonged illness. Or there may be a variety of factors involved. The end result is that you are faced with losing your home and all that you have invested in it . . . but there is a solution.
Selling your home before the bank forecloses can be a way to avoid foreclosure and to recover some of your losses. Though obviously not the option you would choose if you had another, it may be your only chance to move on without major damage to your credit history. Having a foreclosure on your record means that you will most likely have problems qualifying for credit in the future, so selling your home before that happens can be a way to salvage your credit.
You use credit for just about everything these days, from buying a house to leasing a car and qualifying for cable TV! With a foreclosure on your record, you could face serious problems in the future.
Giving up your house is the best option if you find that you simply cannot keep up with mortgage payments. You can then pay off the mortgage and save face with the bank. Until your lender (usually a bank) files a Notice of Default, you may still have other options, but once that notice is filed, the next step is foreclosure, so you need to take action fast.
The lender probably doesn’t want to foreclose, they are more interested in getting their money back and a home sold by a bank often doesn’t recuperate the amount of the loan. It is in their best interest to give you a warning and let you try to solve the problem. Since you will essentially lose everything if you let the bank take your house back, it is also in your best interests to find a solution, not just to save your credit but also your standard of living. Starting over again after a foreclosure is not easy.
Time is of the essence when you are attempting to sell your home before the bank takes it. You will most likely have to price it fairly low because of this, but look for a real estate agent who is confident that they can sell your home fast. Otherwise, you may need to talk to a discount broker who can get the job done quickly, though you won’t make a lot of money. At this point, you may be focusing mainly on paying off the bank and getting a fresh start in your life, without losing all your equity and ending up with a lousy credit report.
If you know that foreclosure is in your near future, you need to start thinking about how to get out of it and save your credit so future home purchases won’t be in jeopardy. Selling your home first, before the bank forecloses, could be the best solution.
Dec
24
I Need $1000.00 To Avoid Foreclosure Any Ideas?
Posted by: | CommentsI doubt the lender will go through the cost and aggravation of foreclosure over $1000.
Dec
24
Avoiding Foreclosure
Posted by: | CommentsIt isn’t news to anyone that widespread foreclosures are a large problem in our current real estate market. For many families, it can be unavoidable. However, what many people don’t know is that there is help out there for those facing foreclosure. Here are some things to keep in mind:
•Stay Home – When facing foreclosure, stay in your home. If you vacate your property and something happens to it – whether it be vandalized, struck by lightning or broken into – the bank will likely hold you financially responsible for the damages.
•Stay in the Loop – Talk to your lender. If you feel like you’re going to have trouble making next month’s mortgage payment, let them know. Whenever you phone them, follow up your contact in writing. If your lender is more informed of your situation, they will be better prepared – and perhaps more willing – to work with you.
•Stay Realistic – Remember that lenders are a business and they are always interested in making their money back whenever possible. Ironically, banks are less willing to work with those who have made payments for years and built up equity on their home. In those cases, the lender can simply keep the payments they’ve already received and sell the house quickly for considerably less than it’s worth and still turn a profit. If you haven’t been in your home for very long and you haven’t built up a lot of equity, then your lender might be more willing to come to an agreement that benefits you both.
•Stay Safe – Unfortunately, this market has attracted a slew of dishonest scammers and con artists that prey on desperate home-owners. Always – always – do your research whenever you think about getting help from a company or program. Watch out for anyone who insists on being paid upfront. Don’t pay somebody to do something that you could do for free, such as dealing directly with your lender. The Department of Housing and Urban Development keeps track of legitimate foreclosure-prevention programs. Get a list from them.
•Stay Practical – Not all foreclosure-prevention programs will be the answer to your prayers. Many programs offer one-time solutions, often for a single month’s payment. Carefully think about your situation and make sure that such a temporary solution will really make a difference in the long run. It may just be delaying the inevitable.
Sometimes foreclosure is simply unavoidable but there are many times when help can be found as long as you know where to look. Do your research, call an expert, and find out as much as you can about your options for possibly avoiding foreclosure on your home.
Lee Cameron is a professional REALTOR® serving the Orlando real estate market. Lee has consistently proven his talent and knowledge in the real estate business and is known to his flair the business and the care with which he treats his clients. For more info on homes & properties in Orlando contact Lee today.
Dec
23
Foreclosure Info – Tips For Avoiding Foreclosure Scams
Posted by: | CommentsAs foreclosures are on the rise, so are the scams that commit to “rescuing” the homeowner from losing their home to foreclosure. These scams just steal your hard earned money, destroy your credit record and eliminate any equity you might have in your home.
These foreclosure con artists use people who are dire financial straits. They know these people are desperate and are grasping at straws for answers to their foreclosure situation. People to target for these scams are not hard to seek out as mortgage lenders publish notices before foreclosing on homes. These con artists read these notices then contact their victims quite often even in person but more commonly by mail, phone or by email. They even go so far as to advertise their services on web sites. They make themselves sound official by giving them impressive titles like “foreclosure consultant” or “mortgage consultant.” They may call their services “foreclosure service or “foreclosure rescue agency.”
If you are facing foreclosure, contact your mortgage lender or any legitimate financial counselor to help you find legitimate options to avoid foreclosure. It is imperative that you carefully check the credentials, reputation and experience of anyone offering to arrange to stop or delay your foreclosure for a fee. The following recommendations can help protect you:
WATCH OUT FOR THESE FORECLOSURE RESCUE SCAMS
Lease-Back or Repurchase Scams – Someone offers to pay off your mortgage and rent you residence back to you. This usually involved signing over the deed of your home to the individual. This will give the person the ability to evict you, raise the rent, sell the house or steal your equity. You are still responsible for the mortgage so if the individual doesn’t make the payment, your house still gets foreclosed on and you face the legal consequences.
Refinance Fraud – Someone acts as a mortgage broker or lender and offers to refinance your loan to a lower payment. They make you believe you are signing the documents for a new loan when in actuality you are signing over the ownership of your home. This opens you up to the situation as above.
Bankruptcy Schemes – Several scams try to abuse the bankruptcy laws. These are complicated schemes, so it is important to always thoroughly investigate anyone offering to help you with your bankruptcy. Anytime someone wants you to sign over ownership of your home, be very cautious.
HOW TO PROTECT YOURSELF FROM SCAMS
Always know what you are signing – It is important that you thoroughly read and understand what you are signing. Obtain advice if a document is too complex. Do not sign anything with blank spaces, errors or incorrect information even if someone promises to fix things later.
Get everything in writing – Verbal agreements are usually not legally binding. It is important that you get any promises or agreements in writing to protect yourself. Be sure to keep copies of anything you sign.
Make your mortgage payments directly to your lender or the mortgage servicer – Do not trust anyone else to make mortgage payments for you.
Be cautious about signing over your deed – Scams quite often require you to sign over your deed. Always get the advice of a lawyer or financial advisor before doing so. You do not want to lose your rights to your residence and any equity that you may have.
Report any suspicious activity to the Federal Trade Commission and to your state and local consumer protection agencies – This helps to prevent others from becoming victims.
HOW DO I FIND LEGITIMATE HELP FOR YOUR FINANCIAL PROBLEMS
Contact your lender as soon as you think you are unable to make your mortgage payment.
Contact a legitimate housing or financial counselor to help you work through your financial problems.
For more information about foreclosure and how to potentially stop loan foreclosure, visit www.stoploanforeclosure.net.
Dec
21
Between Countrywide and Bank of America’s exchanging loans, and whatever they did, my hardship letter that i was instructed to write, was never answered, and yes, I got more and more behind, sent them a reg payment that I knew would be applied to oldest date, but month later, they said BLAH…blah, can’t accept at this time because it is not the total amount due. I get welcome letter fro Bank of AMER., and see the warm, homey commercials now, and my date of sale has been set,…I don’t want to be ugly, thats for sure, but why in the world wouldn’t they want what hadto have been 1/3 (?) of the money back then, and 5 months 3 months later, tell me I am in foreclosure…And this letter was not from Countrywide or Bank of America, Recon Trust, I think…who do I need to call? Websites won’t let me in…I have phone numbers, but not sure who is handling what, or who would be willing to help, or who is gonna be ugly to me. I KNOW, i owe the money,..but I just need to spend time I’ve got left, doing the right thing with the right folks. Date of sale is 2 weeks from today. Help, me…please with knowledgeable answers, I am single Mom after 17 years of marriage, 2 kids, basically living on SS benefits, and caregiver benefits…..the same income I had when I let them talk me into using my equity, 40,000…when al I need to borrow was 5,000. Payments only went up 20.00 bucks, but I was solicited thru mail for the loan, and talked into it by Countrywide. Help.ideas?