Nick writes for the ForeclosureFish.com website, which provides homeowners with foreclosure help and advice they can use to save their homes on their own. Visit the site today to download a free e-book explaining how foreclosure works and how it can be stopped: http://www.foreclosurefish.com/
Archive for House Foreclosure
Dec
15
Selling your Home to Avoid Foreclosure
Posted by: | CommentsOne of the most effective ways for homeowners to find a way out of foreclosure is simply to sell their property on the open market. In the best of cases, this will allow them to stop the foreclosure process, pay off the defaulted loan in full, and leave the house with a little extra cash for moving expenses, bill payments, or to establish an emergency fund. If the house is sold early enough in the process, the homeowners may even be able to preserve enough of their credit to purchase a new, more affordable home. But even listing a home for sale should just be one of the homeowners’ options, and should not be solely relied upon.
The main drawback of listing a house for sale in order to avoid foreclosure is the lack of time. The foreclosure process will not simply stop just because the owners are attempting to sell the house, creating a race which will decide who and on what terms the property will be unloaded. If the foreclosure victims win, they can work with the new buyer and negotiate the price, closing costs, and every other part of the agreement. However, if the bank wins through the court process, they home will be forcefully sold at a county sheriff sale for whatever price is offered. The owners will be completely cut out of negotiating the terms of the sale.
Unfortunately, with the real estate market in such a slump, selling a house to stop foreclosure may be quite a challenge for homeowners. Houses now typically sit on the market for over six months to a year with no real offers. This almost guarantees that the foreclosure victims will have to request more time from the lender in order to locate a buyer. Although many banks will give the homeowners every opportunity to work out a solution by stopping the sheriff sale, an entire year is a long time for the bank to leave the foreclosure process on hold.
Of course, one of the ways to avoid waiting for long periods of time and hoping to stay in the good graces of the lender is for the homeowners to sell quickly. If they have a lot of equity in the house, many professional investors will be interested; their offers, though, will leave the homeowners with no real profits beyond a little extra cash to move out. Such bargain shoppers of the real estate industry can often be found advertising on billboards or in classified ads, with messages such as “We Buy Ugly Homes,” “Cash For Your Home Today,” and the like. There is nothing wrong with these investors, but they will leave homeowners with little to show for any equity they may have in the home.
A short sale is another possibility for homeowners who do not have time to sell the house through the open market and who may have little to no equity. Selling short will require the lender to accept a lower amount of a payoff than what they are owed on the loan, and each bank’s short sale procedures are a bit different. However, if they accept the offer, the homeowners will be able to sell the house and at least escape from the foreclosure nightmare. There is little chance of getting much equity out of the sale, but it is a much better outcome than watching the home sold at a foreclosure auction.
Selling the house should be considered by every homeowner facing the danger of foreclosure. Due to some of the drawbacks, though, such as the time required for an open market sale and the control that the lender can exercise over the sheriff sale and short sale processes, selling should only be one of many ways to stop foreclosure that homeowners examine. As we always recommend, having more than one backup plan is an absolute necessity when facing the loss of a home. Buyers back out at the last second, mortgage applications are rejected, or unexpected title issues come up that derail the process. But for homeowners who want to make a true fresh start after foreclosure, selling the house as one of the last resorts may allow them the second chance with a new home that they are seeking.
Dec
06
Tips On How To Avoid Foreclosure
Posted by: | CommentsForeclosure occurs when you fail to make your payments and the mortgage company takes legal action to repossess your home or property. Mortgage foreclosure may take place if a homeowner, who has taken out a loan, defaults on the mortgage payments. Through the process of mortgage foreclosure, the lender company can take possession of the defaulted home. In case the value of the home is less than the mortgaged amount, the borrower may have to face the ‘deficiency judgment’ to pay the balance amount. Mortgage foreclosure also has a negative impact on the homeowner’s credit score.
Even though you may be facing mortgage foreclosure does not mean you have to lose the house. There are many ways to stop foreclosure when you are faced with mortgage foreclosure on your home. Some ways to avoid foreclosures include forbearance, loan modification, mortgage refinancing, sale of the property, etc.
It is also important that you save your house from mortgage foreclosure in order to maintain a good credit rating. If you have trouble making your mortgage payments, the first thing you need to do is contact your mortgage company and let them know. Prepare all your financial information such as tax returns, bank statement, etc. and do not abandon the property to avoid mortgage foreclosure. You can even have an option to go for a ‘pre-foreclosure’ sale where you simply sell your home before the bank completes the mortgage foreclosure.
To stop foreclosures, there are several other things that a homeowner can do. Homeowners can try and apply for Special Forbearance to avoid foreclosure. This may lead to a revision of the repayment schedule and in some cases the payment may either be revised or suspended. Your lender is not in the business of taking homes through mortgage foreclosure; they make more money by lending your mortgage payment to other homeowners.
If you are familiar with the foreclosure listings in your area, it will make things easier for you when you discuss with your lenders. Foreclosure listings are the lists of foreclosure homes, with comprehensive information and details geared towards potential buyers interested in buying a foreclosure property. Foreclosure listings provide detailed description on various aspects such as the property details, foreclosure information, neighborhood information, sales history, tax information and also the contact information. To find out more on foreclosure listings, the internet is a good place to learn more on the subject.
For more on Foreclosures visit Avoid Foreclosure and Stop Foreclosures. Susan also writes at Education and Reference.
Oct
31
Avoid Foreclosure – Refinancing Your Home might be the Answer
Posted by: | CommentsMost people think a good way to avoid foreclosure is to start over…..refinance the mortgage and just start over.
The problem is most people cannot refinance.
Stopping foreclosure is very difficult. Unfortunately, you will run into all kinds of mortgage brokers and lenders out there who will tell you what you want to hear and waste your time. Time is something you can’t afford to waste when you are trying to avoid foreclosure. You only have about 4-8 months after missing your first mortgage payment until you lose your house. The foreclosure process varies by state and lender.
Mortgage brokers and lenders have always preyed on people in trouble. There is no way they can get you refinanced but they tell you they can help stop foreclosure. Why would they do that? They don’t get paid if you don’t close so why would they take your application and keep you from looking at other options? Mortgage brokers are trained to just bring in the business…..get as many applications as they can. Some companies even have sales meetings to enforce getting applications even if they don’t close. This would surprise you but mortgage companies live by the rule “throw everything against the wall and see what sticks”. You are in a very scary situation and you are treated like everyone else. You were never going to “stick” in the first place but now a month or two has gone by and you are even farther behind on the mortgage payments.
Some mortgage brokers or lenders make money off of you by taking a fee up front. They know for a fact no one can refinance your mortgage buy they tell you for a fee up front they will start working on your loan. Quite a nice business model don’t you think? They tell you everything you want to hear when you are trying to avoid foreclosure. They collect a fee because you believe them and they move on to the next unsuspecting person. Not another minute will be spent on you after they get your money.
Who can refinance to avoid foreclosure?
You need equity in your home. Depending on how far you are in the process, you need at least 10% to 25% equity in your property. The farther you are in the foreclosure process, the more equity you will need. If you are more than 2 payments behind and you don’t have at least 25% equity, it is almost impossible to refinance. Make sure when you are calculating the equity you factor in all the late fees and legal fees.
Speaking of how far along you are in the foreclosure process, that makes a huge difference when refinancing. Once you are more than 90 days late on your mortgage, everything changes. The rate will dramatically change if you can even refinance at all after that point. That is why it is so important to pick the right mortgage broker or lender because if they are not experienced in these types of loans, they can take too long and you will pass the point of no return.
Some private party lenders may be able to refinance you to avoid foreclosure. These are typically known as hard money lenders. They decide if they will lend you the money personally. There are no underwriting guidelines. It is a case by case basis. These can be very expensive. The rate and fees will probably be so high you won’t be able to afford it.
That brings up an important point. Even if you can refinance, what is your new payment going to be? If you are having trouble making the payment now, the payment is guaranteed to be more because you are trying to avoid foreclosure by refinancing. Any loan you get will be expensive.
If you do not have equity in your property do not even consider refinancing your home to avoid foreclosure. I hope this article has helped you and you have learned something about stopping foreclosure. If anything I hope you have realized that very few people can help stop foreclosure. You will end up wasting valuable time and money to find out no one can help you.
Good Luck!
Oct
30
Avoid Foreclosure – Market Your House For Sale By Owner
Posted by: | CommentsWhen facing foreclosure you can attempt to market your home For Sale By Owner or FSBO as it is said in the real estate industry. This will allow you to not pay real estate agent fees and still be open for a foreclosure real estate investor to purchase your home if need be.
When marketing your “for sale by owner” home, there are three essential elements for a successful marketing campaign. The first is headline that will grab the attention of your prospects. When writing your headline, use the features of your home in the headline, such as “Split Floor Plan, The Kids Won’t Hear!” (that’s if you are daring) or something a bit more conservative “Beautiful Home Needs Loving Family” You want your headline to be explosive enough to catch the potential home shopper’s attention. You want them to read your ad about your home. By being different than the other headlines you will more than likely have more readers.
Another element is to highlight one of the properties best features, such as an ocean view, recently remodeled or within walking distance of schools. You want to give reason for the prospect to actually want to see your home. If you have space, show the benefit as well. “Recently remodeled so you don’t have to” Or, “Walking Distance of Schools, You can sleep in” This will give them even more reason to want to look at your home before making a final purchase. Having witty headlines again, will allow you to stand out and above the others.
A good closing line will prompt the potential buyer to call. You will want to appeal to their desire to own a home, or maybe as a good investment, or even their sense of urgency. “See it Now, before it is gone!” or “Don’t pay your landlord another dime!” are just some examples. Once you have your ad completed, you will submit it to your local newspaper.
Another effective method of marketing is by having an “Open House”. In order to have the best open house, be sure to have your home clean and clear of clutter. Take down the personal pictures so others can imagine themselves living in the house. Being that you are avoiding foreclosure, I understand that money may be tight, but if you are able complete any minor repairs that are visible.
Make up flyers so everyone who attends your open house will get a flyer before they leave. The flyers should be an 8 1/2 x 11 inch fact sheet describing your home, the asking price and numbers on how you can be reached as well as your website if you are marketing on your web page with pictures. The flyers should also list your price and describe the property. Also be sure to have the local schools and other amenities in the area listed on the flyer.
You can also attach these flyers under windshield wipers of cars, and attach flyers about your “Open House” to neighborhood mailboxes. Do Not Place Anything Inside a Mailbox! It is against the law.
When you schedule the “Open House”, be sure to schedule it for a Saturday or Sunday between 11 AM – 5 PM. Also be sure to check your calendar to ensure your “Open House” is not competing with any kind of major sports playoffs or any major religious holidays.
You might want to place an “Open House” sign in your front yard with balloons attached. If you are on a street with not a lot of drive by traffic, you may want to use some signs on prominent corners with arrows pointing the direction to your house.
Ensure you have a guest book so you can get the names, phone numbers and emails of every person who attends. If you can, make sure to take notes, and write down every positive impression and comment made by those who attended. Also write down anything that’s constructive that you can change to make the house show better. You will want to be able to keep in touch of people who show an interest. This could be especially important if you reduce your asking price or change the terms of the sale later on.
Another finishing touch for your Open House is to have cookies and water or lemonade available. It may sound hokey, but folks will feel like they are home, which is what you want.
Again, if you are facing foreclosure and want to sell your home, selling it “For Sale By Owner” may be the route to go. If you find that time is of the essence you can always contact a real estate investor that likes to purchase home that are facing foreclosure. Usually, they are able to move fast and offer a fair price.
Angela Karolyn Scott bought her first home at the age of 22 as a single mother with no money down. She is now on a mission to teach others how to create wealth by way of Real Estate. She is giving away a $300,000 house, a Mercedes C Class and a Mercury Mariner SUV Hybrid. You may learn more by visiting www.ForeclosuresMakeYouRich.com
Oct
29
Avoiding Foreclosure Tips-Saving Money On Home Maintenance
Posted by: | CommentsWhen facing foreclosure, it comes down to one main thing; you need money in the bank, to pay your bills. Sometimes saving your home from foreclosure comes down to having an extra thousand dollars at the end of the year. By learning to cut expenses down, you can have that extra money and more.
This is my fourth article on money saving tips to avoid foreclosure. The first article tells you how you can save several thousand dollars a year on grocery’s, article number two tells you how to save on clothing, the third is how to save money on car repairs and this particular article will deal with saving money on home maintenance. Having a house can get expensive and you don’t want to put money into it, just have the bank take it away from you because you can’t pay the mortgage. Spend your money wisely and you can keep your house from foreclosure and have it in good shape.
Prioritize what needs to be done If you feel like home repairs are just becoming too overwhelming, it is time to make a priority list. This means you need to write down everything that needs to or you want to fix up in your home. After you make this list go through it and see what really needs to be done right away and approximately how much it would cost.
Then you really should separate the list into what must get done and what you would like to have done. The stuff that must get done needs to move to the top and things that you would just want to have done, goes to the bottom. You may have to put off those things until you truly have extra money and just get the things done that really need to get done, such as your roof is leaking. By the end of the year, you will be glad that you waited on repairs that weren’t quite necessary at the time and that you have the extra money.
Pay Cash for Home Repairs If you have hired someone to do the repairs on you home. Offer to pay them cash in exchange for a discount. Most people will say yes to this. After they quote you the price, ask them for a possible discount, if you pay with cash. Remember to pay them half when they start and half when they finish. Never pay it all up front, because you want them to come back and finish the job. Or just try and pay them all at the end of the job, if they don’t say anything about being paid up front.
Buy Second Hand If you making repairs in the kitchen or bathroom, try buying any appliances or cabinets you may need second hand. Look in your local classified list or go to a second hand store. This can save you several 100 dollars, depending on what the item is.
Choose Your Contractor Wisely If you are working with a licensed contractor, go with one that has fixed-price bids for there work. This way you won’t get ripped off by someone, just throwing a price to you, with no rhyme or reason behind it. Working with a trustworthy contractor is very important, finding one that explains everything they are doing, before they do it, is helpful as well. Never pay them in full until you have inspected and approve the final job.
Replace Appliances Wisely If you have to buy new appliances for you place, look for ones that are going to be the most energy efficient, so that you can at least save money on the electricity bill. Also when buying a new product, price shop all the stores, if you find a lower price online, bring in a printed copy of the cheaper price and see if you can get a local store to match it. Also don’t be afraid to ask people what is the best price they can do, sometimes you will get some sort of discount by doing this.
Hopefully by following these tips and the previous ones, you will have plenty of money to make your mortgage payments on time. Keep finding ways to save money and if you have a good tip, please let us know so we can spread the word to other people trying to save their homes.
Second Foreclosure Option
LJ Adama writes articles on financial advice and foreclosure help. To get better ideas on how to stop foreclosure. Or to learn about loan modification and foreclosure prevention methods please visit us at ForeclosureFish.com