Prevent Foreclosures

Archive for the ‘Loan Modification’ Category

When facing foreclosure, most people wonder if mortgage companies will work with you to prevent foreclosure. The simple answer is yes. However, the extent of how the mortgage company will work with you depends on the individual mortgage company. Although mortgage companies would rather work with you to prevent foreclosure, in practice, it is quite difficult to come to an agreement with mortgage companies.

Why is it difficult to work with mortgage companies to prevent foreclosure?

While all mortgage companies will say that they would work with you and help you however they can, in practice, they are there to gauge how much you can pay, negotiate higher payments than you can afford and send the rest to collection even without notifying you. Most mortgage companies have many departments dealing with people who are behind in payments. It is not uncommon for the person on the phone with you to say one thing and then you receive something else in the mail.

It is hard to talk to the person with authority at the mortgage company. Almost all mortgage companies will treat you as just another case they have to deal with and their objectives are to get as much out of you as possible and as fast as possible. If you are prepared to pay some parts of your mortgage payments, then they are likely to take it but then you are also likely to get a letter from their collection agencies.

How to work with mortgage companies to prevent foreclosure?

Before you contact your mortgage company and try to negotiate, you should find out about all your options. You can get a free foreclosure consultation or you can do a lot of research by yourself.

Prevent Foreclosure Today - Immediate Prevention. Most homes can be saved. Fast & Free Advice

Then you can prepare your hardship case that will include sending the mortgage company a hardship letter or several hardship letters to explain your situation. If you have talked to your mortgage company and have settled on a solution, you should get them to put your agreements in writing. Don't
trust that things will go as planned until you see everything in writing.

Facing Foreclosure Alone is always tough. You've got to stay in the loop! So in case you're new here, you may want to subscribe to the Prevent Foreclosures RSS feed. It will keep you up to date with the latest resources and tactics on how to prevent your foreclosure from happening.

Knowing how to avoid foreclosure can help ensure that you will never face foreclosure. How to avoid foreclosure strategies depend on how much you owe vs fair market value as well as other factors such as how far long in the foreclosure process you are in addition to what other liens there are against your real estate property.

How to avoid foreclosure 101

Below are different ways to help you prevent and avoid foreclosure.

Catch up on your payments Even if you have received the notice of default and is already in the foreclosure process, you can still avoid foreclosure by catching up on your payments (mortgage payment, tax payments, etc). You may also need to pay fees associated with the foreclosure process to avoid foreclosure. But, unfortunately, for most people, catching up on payments is not an option to avoid foreclosure.

Sell your home to avoid foreclosure

Selling your home is a way to avoid foreclosure. If the real estate market is strong, you may be able to sell at a higher value than the amount you owe the mortgage company and pay off the loan. You will avoid foreclosure by paying off the loan. However if the real estate market is slow or weak, see short sale.

Let someone else take over your mortgage payments to avoid foreclosure

There are many real estate investors who are trained to profit by taking over mortgage payments of people in foreclosure. This may be a way for you to avoid foreclosure.

Rent your property to avoid foreclosure

Renting is a way of making fast money, providing your house is somewhere attractive to tenants. You may be able to obtain fast cash to catch up on your payments, therefore avoiding foreclosure.

Free Avoid Foreclosure Consultation

If you want more information about what you can do and learn all about your options, here is a link to a free consultation.

Prevent Foreclosure Today - Immediate Prevention. Most homes can be saved. Fast & Free Advice

If you have an upside down mortgage, you may have heard of a short sale. Below explains what is a definition of short sale foreclosure.

Definition of short sale foreclosure

When you owe the mortgage company more than your home is worth. (You can find out what your home is worth for free using the link on the right hand side.) Then even if you sell your home, you will not have enough money to pay off your mortgage balance. In this case, there is a solution and it
is called short sale or real estate short sale or foreclosure short sale.

What happens in a short sale foreclosure?

When a homeowner realizes that he or she is upside down on his or her mortgage, he or she can find a realtor or a real estate investor to help him/her with a short sale.

As your mortgage company is getting to foreclose on your home, you can have a real estate investor send them a short sale proposal letter. In the letter, the real estate investor will express his or her interest in buying your home to avoid foreclosure. By buying your home, he/she will save everyone from the headache of foreclosure.

Since you owe more than your home is worth, the real estate investor or realtor will convince the bank to accept less than the amount you owe for the property. For example, if your mortgage balance is $200,000 and your home is now worth only $150,000, you are "upside down" $50,000. If you contact the bank yourself and ask them to take $150,000 they are unlikely to listen.

However if you prove to them of your hardship, provide them with a willing buyer who is the one doing the short sale, and convince them that if they did not accept the short sale then they will have to file for foreclosure and sell your home in an auction which could be much less than the short sale price offered. If the short sale is done right and the real estate investor is experienced at doing short sale, then the bank is likely to accept less money than the actual amount that you owe.

What's the best that can happen in a Short Sale?

In a successful short sale case, you walk away free and clear, the real estate investor buys the property and the bank settles. A realtor can usually find you a buyer who is willing to do a short sale with the bank.