Tips To Find Foreclosure Assistance

If you are facing foreclosure, it is important to know all your options. Many foreclosures are caused from job loss, unexpected medical bills, or divorce. Typically, these are once-in-a-lifetime occurrences; therefore, contacting your mortgage lender and informing them of your situation is vital to your credit as well as keeping your house. If you are facing any of the above mentioned financial issues, the following steps could help you avoid losing your house.

• Contact Your Mortgage Lender – If you are having problems making your mortgage payment, contact your lender immediately. The loss mitigation department will be able to assist you with options from refinancing, loan modification, or forbearance. Explain your situation, then follow-up with an email or letter thoroughly describing what has occurred that has caused a financial hardship and then send documentation to the lender to support your situation.

• Maintain Your Residence – Stay in your house. Most of the recent government assistance programs are all based on housing that is owner-occupied. Once you move out of your property, you will lose many protections issued by these recent laws.

• Contact an Approved Housing Counseling Agency – Contact the Department of Housing and Urban Development (HUD) and seek out a HUD approved advocate to act as a liaison between you and your mortgage lender. The housing counseling agency should be well-versed on all the government programs that may benefit you. The housing counselor should be knowledgeable on any private or local organizations which may offer assistance. Assistance from a HUD approved housing counselor should be free of charge.

If after talking to the housing counseling agency you may decide that your best option, due to your financial situation is to sell your property to avoid foreclosure; there are other options, which include: short sale, or deed in lieu. A short sale is when the mortgage holder accepts a lesser amount than is owed on the mortgage. This usually occurs when the mortgage is greater than the value of the property. It would be necessary to contact an experienced real estate agent who has successfully handled short sales in the past. A deed in lieu is when you voluntarily give back your property to the lender. If you choose this route, your credit will not be as damaged as if you went through a foreclosure; whereas, the benefit to the lender is that they will not have to go through the expense of foreclosing on the property.

In summary, the first step to take to avoid foreclosure is to contact your mortgage lender and thoroughly explain your financial hardship. Send a detailed follow-up email or letter to your lender with supporting documentation of your hardship. Second, seek out the assistance of a HUD approved housing counseling agency. Thoroughly explain your situation to the HUD approved counselor and cooperate by providing any documentation requested to support your situation. They should work on your behalf to help you save your home, or at a minimum help you minimize the damage to your credit.

 

When You Want Renting House During Foreclosure

One of the worst situations that a tenant can find themselves in is to be renting a house that is going into foreclosure. It’s an uncertain situation and may eventually see the tenant evicted through no fault of their own.

If you find yourself in this situation, you have a number of rights that you should be aware of.

Will I Be Evicted?

Before 2009 the vast majority of tenants would lose their lease once the home entered into foreclosure, leaving them in a situation where they had to find somewhere else to live.

However, in 2009 the Protecting Tenants at Foreclosure Act changed so that any tenant in a foreclosed property can maintain their lease and continue to live there, assuming the new owner doesn’t want to use the home for themselves.

While it is certainly not ideal, you will find that many people purchase foreclosed properties as an investment, rather than as a place to live themselves. That means many will be happy to keep you where you are, as they will now be receiving monthly money without having to put any work in.

Bear in mind that this differs slightly for tenants who are on a rolling monthly contract. In these cases the tenant will be given 90 days to vacate the property once ownership is transferred, unless they can reach an agreement with the new property owner.

What About Maintenance?

This is where the issue becomes a little stickier. Before a foreclosed property is sold to a new, individual owner it will usually become the property of a bank or mortgage provider for a period of time. There is no determining what this period of time is going to be, but it can be detrimental to maintenance efforts on the house.

A bank is not inclined to make sure everything in the house is working as you need it to, and your old landlord will no longer care once the house enters foreclosure. This means that any maintenance issues are likely to go neglected until there is a new property owner who is happy to allow you to keep renting.

Legal Action

In some cases, the tenant will also have the option of pursuing legal action against their former landlord, particularly if the landlord failed to inform them that the property was being foreclosed on.

In a legal sense, this failure to provide information essentially amounts to fraud, which means that the tenant can sue for monetary damages, such as any costs associated with the tenant being forced to move and any rent increases that they have had to endure in the process.

Unfortunately, if it has gotten this far then it is likely that you will have had to move out of the rented property, which is not an ideal situation.

The risk of foreclosure is something that should be disclosed, if it is a possibility, before the tenant ever signs the lease. Otherwise, they are having vital information withheld from them, which means their decision is less informed.

 

Guide To Fight Fore Closure

A foreclosure can be a very scary experience. Many people purchase their homes and most people have no idea that they can lose it through a foreclosure. In America, you either get foreclosed upon in a judicial or non judicial jurisdiction. Regardless of which one you are in, you must equip yourself with knowledge. When faced with foreclosure, most people make the mistake of thinking that the lender will provide them with valuable information to help the borrowers. That is never the case. But that is okay because there are ways to save a home from foreclosure. Below are 4 things you need to know when facing foreclosure:

1. Come up with a game plan

You must figure out whether you can save the home or will you be walking away from it. If you decide to save the home, then contact the lender and request the loss mitigation department. Then advise the loss mitigation department that you want to save the home. The lender will then extend the programs it has available to you. If you qualify for one of the programs that the lender outlines, then you will be on your way to saving your home. If you decide to walk away because there are no other options, then contact a real estate attorney who will advise you on your legal consequences. You should also consider talking with an accountant, who will advise you on your tax consequences. You will need to meet with a realtor who specializes in short sale.

2. Go over your finances

One of the reasons a homeowner faces foreclosure is because of an undue financial hardship. As such, the best thing to do is to calculate whether you can hold on to the home. You can only do so, by going over your finances. The rule of thumb, which seem to be the only thing that work is you can only afford a mortgage payment that does not exceed 31% of the gross income. You will never be able to afford a home where your mortgage amount exceeds 31% of the gross income. If you do not want to set yourself up for failure, then only take on a mortgage where your debt to ratio does not exceed 31% of the gross income.

3. Hire an attorney

It would be wise to hire a foreclosure attorney because when you are getting into foreclosure you need legal advice. The lender will not be doing that for you. Most people don’t understand that when you stop paying on your mortgage, the lender really does not care about you. You are now a liability and the lender is attempting to secure its interest in the property. A foreclosure attorney will provide and preserve the legal rights you have when face with foreclosure.

4. Get educated

If you like to read, then consider investing in a self help book on foreclosure. There are self help book on foreclosure that provides you with information to help you save your home or walk away with little or no liability. A good foreclosure self help book covers every state, judicial and non judicial foreclosures. It is written by an attorney in lay man terms. A good self help book on foreclosure help is very easy to read. Get one, so you can save your home. Know your options from an attorney, the author of a foreclosure self-help book.

 

How To Buy House After Foreclosed

Foreclosure is never a pleasant experience, so it is important to be aware of where you stand once your property has been foreclosed. Once the proceedings have been put in place, you will have a limited amount of time to catch up on your mortgage payments before your lender accelerates the payments to the point where they will accept nothing less than full payment if you intend to keep the property. The amount of time you have for this will differ depending on the loan provider, but it will usually be no more than a couple of months.

If you are unable to meet these conditions in the timeframe provided, hope is not necessarily lost. There are a number of things you can do to try to maintain possession of the property, particularly if you have maintained a right to redemption on the property.

Your Rights

It is important to note that not every home is eligible for redemption, so it is important to find out if you even have the right before trying to exercise it.

To be eligible, your home will need to have been seized via a judicial foreclose order, in which the lender files a foreclosure suit in court. This process usually takes longer than other types of foreclosure, often lasting up to a year before the lender has undisputed control of the property. This offers you a timeframe in which you can try to buy back the home before it goes to auction.

Timeframe

As mentioned, a judicial foreclosure will often take a year to complete, which usually means that you have about that amount of time to raise the required funds to buy back your home. However, this is not guaranteed and there will be cases where you have far less time to achieve the same outcome.

This is particularly the case if the loan company brings the house to auction quickly and a buyer is found who will pay the full asking price for the property. In these cases you will only have about three months to match the offer ad buy the home back. After this period has passed you lose the right to buy your home.

The Price

The price you will pay to redeem your home is not necessarily going to be the amount that you owed to the lender at the time of foreclosure. In fact, you will often find that you end up paying more to buy the property than you would if you had just maintained the mortgage payments.

In most cases the amount you pay is going to be equal to the amount the lender would ask for if the property was placed in an auction, plus any associated interest charges. Furthermore, you will usually be asked to pay the owner for any repair work undertaken in addition to taxes and insurance for the period in which they owned the home. Furthermore, you will also be required to pay any subordinate liens attached to the property before you can buy back your home.

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