The most recent foreclosure statistics present a disheartening image of the real estate market and the American economy. According to RealtyTrac, an average of 1 in every 634 housing units received a foreclosure filing in December of 2011. The states with the highest rates of foreclosure were California, Florida, Nevada, Arizona, Georgia, Michigan and Illinois. As homeowners across the country are facing foreclosure or threatened foreclosure, it is important to consider what remedies are available.
Filing for bankruptcy is one way that foreclosure can be halted or even avoided entirely. When a person files a bankruptcy petition, this places what is called an "automatic stay" on all debt collection proceedings against the petitioner. This includes foreclosure. In a Chapter 7 filing, this may give a debtor time to figure out how to sell or surrender the home by way of a deed in lieu of foreclosure or a short sale. In a Chapter 13 filing, the automatic stay may not only buy the homeowner time to determine what to do, but past due mortgage payments and penalties may actually be included in the homeowner's repayment plan - enabling him or her to actually save the home and avoid foreclosure.
The program started slowly but now has the kinks worked out and more loan modifications are being approved than ever before. Just as things are getting rolling, the new powers in the House of Representatives have pledged to cut the budget and assistance to banks. If they are successful the number of approved loan modifications will plunge. If you have been hanging on by a thread, the time to act is now.Banks have their own language. They talk about debt ratios, FICO scores and loan-to-value. If you are familiar with these terms you can probably negotiate the loan modification yourself if you know the right steps, the proper forms to submit and how to fill them out so the lender will be compelled to say yes.
This is a brief overview of how Chapter 13 bankruptcy may affect foreclosure proceedings. Every case is different, and certain factors may affect a debtor's ability to save his or her home. That is why you may find it helpful to consult with a professional. A lawyer who is experienced in handling Chapter 13 bankruptcy proceedings can offer insight as to how your home may be affected if you file. You can also get information about the particular advantages and disadvantages of Chapter 13, such as its ability to protect co-signers or its affects on your credit score. These are all issues that you may want to take into account before making a decision.
Next, this attorney will schedule a sale of your home. This is the first day of foreclosure. You might find a notice on your door or receive a statement in the mail. Either way, you have until the sale date to make arrangements with your lender to keep your home or pay the amount that is due, now including attorney fees. Still, after the sale date you may have a redemption period, which is a period of time in which you can still get your home back after it has been sold, provided you can pay all outstanding balances and costs that were incurred during foreclosure.
What is a loan modification? A loan modification is a amendment to the loan contract which is agreed to by The lender and the homeowner. The lender modifies the existing loan(s) in Order to work with the homeowner because of hardship. The reason is to Help make the loan(s) more within your means. Ordinarily it is in the form of a rate Reduction, fixing the rate for a certain duration of time, or term extension. In the past, this was only used when a borrower was delinquent and suffered A hardship such as employment loss, divorce, illness, and so on.
At this time borrowers can get modifications or freezes from their lender for Unaffordable rate adjustments on variable rate mortgages. The earlier The homeowner addresses the issue, the better the likelihood are of negotiating A fixed rate and a payment that is controllable.A key part that is necessary in each loan modification is the existence Of a financial hardship for the borrower. The hardship can be temporary In nature or permanent, but the borrower has got to be able to prove the hardship.
Here's the thing: none of those means you are in foreclosure.If you get a letter from your bank telling you you are in foreclosure, you are not in foreclosure.Even if you are six months behind with the mortgage and you've received four letters from the bank saying you are in foreclosure, you are not in foreclosure.This is important, so I'll repeat it. You are not in foreclosure because your bank says you are.Only one of two things can notify you officially of foreclosure.A Notice of Trustee Sale.A Notice of Sheriff's Sale.Once you receive either of those, you are officially in foreclosure. Your house will be auctioned, usually in about 90 days' time, depending on which state you live in.
Why is this important?Because, if your bank tells you you are in foreclosure, and you haven't yet received notice of Trustee Sale or notice of Sheriff's Sale, there is still time for a loan modification company to intercede on your behalf.They will have a team of dedicated attorneys who will negotiate with the bank or lender to achieve a substantial reduction in interest rate (and maybe loan principal) on your mortgage, to reduce the monthly payment to a level which you can afford on an ongoing basis. To save your home, no less.(If any loan modification company approaches you who do not have their own dedicated attorneys, walk away.)
The exclusion period means that buying Income Protection Insurance is something you do whilst you are in work; if you wait until you have been told of your redundancy it is too late.Always read the small print to ensure that the Income protection Insurance you have chosen is right for you. There is no point in purchasing a policy as a self employed person to then find when you claim that you are excluded. Similarly there are exclusions for previous existing illness conditions. If you read the policy carefully there is every reason that should the worst happen your home, lifestyle and family will be protected from the worst of the financial storm that may be approaching. You need however to act rather than wait.
Filing for bankruptcy is one way that foreclosure can be halted or even avoided entirely. When a person files a bankruptcy petition, this places what is called an "automatic stay" on all debt collection proceedings against the petitioner. This includes foreclosure. In a Chapter 7 filing, this may give a debtor time to figure out how to sell or surrender the home by way of a deed in lieu of foreclosure or a short sale. In a Chapter 13 filing, the automatic stay may not only buy the homeowner time to determine what to do, but past due mortgage payments and penalties may actually be included in the homeowner's repayment plan - enabling him or her to actually save the home and avoid foreclosure.
The program started slowly but now has the kinks worked out and more loan modifications are being approved than ever before. Just as things are getting rolling, the new powers in the House of Representatives have pledged to cut the budget and assistance to banks. If they are successful the number of approved loan modifications will plunge. If you have been hanging on by a thread, the time to act is now.Banks have their own language. They talk about debt ratios, FICO scores and loan-to-value. If you are familiar with these terms you can probably negotiate the loan modification yourself if you know the right steps, the proper forms to submit and how to fill them out so the lender will be compelled to say yes.
This is a brief overview of how Chapter 13 bankruptcy may affect foreclosure proceedings. Every case is different, and certain factors may affect a debtor's ability to save his or her home. That is why you may find it helpful to consult with a professional. A lawyer who is experienced in handling Chapter 13 bankruptcy proceedings can offer insight as to how your home may be affected if you file. You can also get information about the particular advantages and disadvantages of Chapter 13, such as its ability to protect co-signers or its affects on your credit score. These are all issues that you may want to take into account before making a decision.
Next, this attorney will schedule a sale of your home. This is the first day of foreclosure. You might find a notice on your door or receive a statement in the mail. Either way, you have until the sale date to make arrangements with your lender to keep your home or pay the amount that is due, now including attorney fees. Still, after the sale date you may have a redemption period, which is a period of time in which you can still get your home back after it has been sold, provided you can pay all outstanding balances and costs that were incurred during foreclosure.
What is a loan modification? A loan modification is a amendment to the loan contract which is agreed to by The lender and the homeowner. The lender modifies the existing loan(s) in Order to work with the homeowner because of hardship. The reason is to Help make the loan(s) more within your means. Ordinarily it is in the form of a rate Reduction, fixing the rate for a certain duration of time, or term extension. In the past, this was only used when a borrower was delinquent and suffered A hardship such as employment loss, divorce, illness, and so on.
At this time borrowers can get modifications or freezes from their lender for Unaffordable rate adjustments on variable rate mortgages. The earlier The homeowner addresses the issue, the better the likelihood are of negotiating A fixed rate and a payment that is controllable.A key part that is necessary in each loan modification is the existence Of a financial hardship for the borrower. The hardship can be temporary In nature or permanent, but the borrower has got to be able to prove the hardship.
Here's the thing: none of those means you are in foreclosure.If you get a letter from your bank telling you you are in foreclosure, you are not in foreclosure.Even if you are six months behind with the mortgage and you've received four letters from the bank saying you are in foreclosure, you are not in foreclosure.This is important, so I'll repeat it. You are not in foreclosure because your bank says you are.Only one of two things can notify you officially of foreclosure.A Notice of Trustee Sale.A Notice of Sheriff's Sale.Once you receive either of those, you are officially in foreclosure. Your house will be auctioned, usually in about 90 days' time, depending on which state you live in.
Why is this important?Because, if your bank tells you you are in foreclosure, and you haven't yet received notice of Trustee Sale or notice of Sheriff's Sale, there is still time for a loan modification company to intercede on your behalf.They will have a team of dedicated attorneys who will negotiate with the bank or lender to achieve a substantial reduction in interest rate (and maybe loan principal) on your mortgage, to reduce the monthly payment to a level which you can afford on an ongoing basis. To save your home, no less.(If any loan modification company approaches you who do not have their own dedicated attorneys, walk away.)
The exclusion period means that buying Income Protection Insurance is something you do whilst you are in work; if you wait until you have been told of your redundancy it is too late.Always read the small print to ensure that the Income protection Insurance you have chosen is right for you. There is no point in purchasing a policy as a self employed person to then find when you claim that you are excluded. Similarly there are exclusions for previous existing illness conditions. If you read the policy carefully there is every reason that should the worst happen your home, lifestyle and family will be protected from the worst of the financial storm that may be approaching. You need however to act rather than wait.
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