Tony Barnes is the President of Barnes Investment Properties and is a Private Real Estate Investor. Tony looks for win-win situations where the buyer, the seller and Tony can all win. For more foreclosure information go to http://seller.barnesip.com
Archive for Forbearance
Jan
21
7 Steps to avoid foreclosure
Posted by: | Comments@2009 by Tony Barnes.
I am going to share some tips that the banks do not want anybody to know on how to avoid foreclosure. What is going on right now in this country is many banks made outrageous loans to just about anybody who could fog up a mirror. Now their strategy has come back to haunt them with the current foreclosure crises.
1. If you have not missed a payment yet but think you are going to, the first step is to contact the bank and try to make arrangements to pay, or get a forbearance that allows you to delay payments for a short amount of time.
2. Ask for a repayment plan where you add a portion of the missed payments to the next few payments. This will help in the event of a short term unexpected expense or sudden repair that may take you by surprise.
3. If you are two or three payments late, the lender may still make arrangements to repay, but you may have to put up to half of the outstanding balance to resume the loan. Never ignore the lender letters and notices. Always keep in contact with the lender to keep them aware of the situation. Ignoring the problem only makes the situation worse and increases the costs.
4. You may get a loan modification through the lender bailout programs from the government. If you qualify the lender will adjust the terms of the mortgage to make the loan more affordable. They can lower the interest rate, re-amortize the past due amounts into a new loan, or lengthen the time period of the loan to reduce the payments.
5. Some companies may offer a short refinance where the lender forgives some of your debt and refinances the rest into a new loan. The lender is able to get more money this way rather than foreclosing on you which creates a win-win for both of you.
6. Deed in Lieu of foreclosure is another possible step that can help. Basically you sign the paperwork to give up your rights to the home and give it back to the bank. Then the bank can skip the foreclosure process without having to foreclose.
7. This last step is negative on your credit and should be avoided if possible. You can file chapter 13 bankruptcy to stop the foreclosure process and can force the mortgage lender to accept a more friendly payment plan. A bankruptcy will affect your credit for 10 years.
If all the seven steps above fail, you may still have one option. You can sell the property up until a few days before the sheriff sale. You can contact an investor such as me and we may purchase your home and put money back into your pocket if your situation allows it. For more details or to hear a free recorded message with these steps you can call 888-442-2320 x9004.
Here is the information an investor will need to know about your situation to see if you qualify.
By using these simple steps you may keep a foreclosure off of your record, possibly receive some money back and give you piece of mind by alleviating part of your financial responsibility and burden.
Jan
14
Worried homeowners who are not able to make their monthly mortgage payments on time are facing foreclosure. It is a kind of legal process in which a borrower under a mortgage is deprived of his own interests in the mortgaged property. Millions of people wanted to avoid foreclosure and are looking for alternative foreclosure option that may save their dream home.
If you are facing foreclosure, then there are various methods to avoid foreclosure without affecting credit report:
· Loan Modification is the best way to avoid foreclosure. It is the most popular foreclosure option that is widely used by the homeowners. You can get your loan modified by adding new terms in it. A loan modification can save a lot of money and it may include certain features such as lowering principal balance, converting to a fixed rate, lower down monthly mortgage payments, reduce interest rate, etc.
· Partial Claim is another Alternative Foreclosure Option which you can ask to your mortgage lender. This option works with you to obtain a one-time payment from the FHA-insurance fund. To qualify for the partial claim, make sure that your loan should be at least 4 months delinquent but not more than 12 months. You need to sign a promissory note and a lien will be placed on your property until the promissory note is fully paid.
· Another Foreclosure Option is that you can avail is short sale. In this, the lender agrees to sell his property on the lesser amount than the outstanding loan amount that forgives any remaining debt.
· Special Forbearance has also been suggested by your mortgage lender which gives a permanent reduction on your monthly mortgage or postpones the payments for a few months. You need to prepare a file of documents including the financial statements which should be submitted with the lender along with a hardship letter to prove that you can pay your payment plan.
· Short Refinance is also provided to avoid foreclosure. In this option, the lender forgives some of your debt and get refinanced the rest into a new loan.
For more info please visit our site @ www.creditblogs.net
Jan
03
Sure. I assume that the foreclosure sale hasn’t taken place yet. The first way to avoid a foreclosure is to talk to the bank. Most banks don’t want to foreclose, and will negotiate a forbearance or a new payment schedule if it is halfway reasonable and if they think you are willing and able to perform. Call the bank and offer to negotiate. Second, some states (e.g., California) have rules that allow you to cancel the foreclosure sale and reinstate the loan if you cure the default and pay the lender’s expenses at some time prior to the scheduled foreclosure sale. You did not say where you live, so I don’t know whether you live in a jurisdiction that has reinstatement rules. Call a lawyer on this one. Third, all states will cancel the foreclosure sale if you pay off the loan before the sale. This option is often unavailable, since you would not have defaulted if you had that kind of credit. I strongly recommend option #1.
Dec
28
The Foreclosure Series Part 3: What Your Lender Can Do to Help You Avoid Foreclosure
Posted by: | CommentsYou’ve got to act fast the moment you feel that you are at risk of foreclosure. One thing you must prevent from happening is the filing of a Notice of Default. This notice is basically a shout out to everyone that you are behind your mortgage payments, and if not dealt with accordingly, lenders can seize your home.
As soon as you see trouble looming ahead, call your lender and work out some home-saving methods. You don’t have to be scared or embarrassed because lenders are more than willing to help homeowners figure out a way to avoid foreclosure, as long as you let them know early. Lenders can give you options according to the kind of financial situation you’re in like:
• Forbearance – gives you more time to settle your mortgage payments. Lenders or mortgage companies will, for the meantime, allow you to pay less than the full amount of the mortgage. If you’re lucky, they may even allow you not to pay anything at all, as long as you prove to them that you will have the resources (salary bonus, tax refund, etc.) to pay them sometime in the future. • Repayment plan – you can ask your lender to allow you to carry over unpaid amounts to your monthly payments. Let’s say your monthly rate is $1,000, and you’ve been delayed for two months already, you can add $100 each month until you pay the amount in full. • Loan modifications – as the name implies, you make certain changes in the agreement. Here, lenders can freeze or adjust the interest rate to make it more manageable for you. You can extend the number of years in which you are to pay them; go from an adjustable-rate mortgage to a fixed- rate mortgage; or add neglected payments to your current loan. • Refinancing – if you meet certain requirements from your lender, they can help you increase your loan balance so that you can include back payments to it. • Partial claim – as long as you meet the specific criteria, lenders can help you get an interest-free loan from the Housing and Urban Development that you can use for delinquent payments. • Debt forgiveness –simply means that the lender waives your obligation to pay, which is something that happens very rarely. With the numbers of evicted people continually rising, more people are putting the blame on lenders, when ironically, these are the first people who can help you save your home.Next on the Foreclosure Series: Fight for Your Homes, Stop ForeclosureHousing Assistance Network ( http://new.housingassistancenetwork.com ) – is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing, help in acquiring a new home, or grant programs from both state and non-government institutions.
Freelance writer, part-time photographer and editor.
Dec
21
6 Proven Strategies To Avoid Foreclosure And Save Your Home
Posted by: | CommentsIf you are one, two or three payments behind on your mortgage then you would be wise to take immediate action regarding the following information. Homeowners, just like you, are often caught in unexpected hardships such as divorce, death in the family, job loss, or medical emergencies that lead them to falling behind in foreclosure. The good news is that there are ways to avoid foreclosure and save your home.
To avoid foreclosure you must prevent a Notice of Default (NOD) from being filed against you by the lender. A NOD is a public notice that states a homeowner is at least 60-90 days behind on mortgage payments and unless payments are made current the lender will seize the home. Lenders would much rather not file for foreclosure, it is a costly process for them (~$30,000 – ~$40,000) and they are not in the business of owning homes. However, most lenders will file a Notice of Default to protect their interests. If you feel that you will be unable to pay your mortgage due to hardships or an ARM-reset then you should consider the following solutions.
If contacted in a timely fashion a lender may be willing to reach an agreement that involves one of the following:
Forbearance agreement
A lender will give you time to get your finances in order before requiring you to make up back payments and bring your mortgage current.
FHASecure refinance or lender finance
The government provides FHA-insured refinancing loans to qualified homeowners who may be facing foreclosure due to adjustable-rate mortgages or interest-only mortgages that are set to reset. This program is available to anyone who has a non-FHA insured loan, regardless of their payment history. You also have the ability to roll your first and second mortgage into a single FHASecure loan. To find out more information about this program you should visit: http://portal.hud.gov/pls/portal/url/page/fha/fhasecure
Your lender may also be willing to refinance your existing mortgage, depending on your situation.
Repayment plan
Here, the mortgage company will let you payback missed payments over time by adding it to your mortgage bill. For instance, if your mortgage is $1,000, the lender will add $100 over the course of 12 months to repay a missed payment.
Partial claim
Under a Partial Claim the mortgage company will loan you the amount necessary to reinstate your loan. Currently, partial claims loans are interest free and not due until the homeowner pays off the first mortgage or sells their home. To qualify, you must meet certain criteria and have a government-backed loan.
Note modification
Under situations that involve adjustable-rate mortgages, the lender will freeze a homeowner’s interest rate to a more manageable rate. Alternatively, the lender may extend the amortization period, allowing you more time before the interest rate reset.
Debt forgiveness
This is very rare, but it does happen on occasion. Under this agreement the lender will waive your obligation for the missed payments so long as you make payments on time going forward.
To learn the 20 other ways you can stop foreclosure solutions and how to go forward with the ideas presented just visit: http://www.foreclosure-help-book.com.