Archive for the ‘Foreclosure Process’ Category
The Foreclosure Process
The foreclosure process differs from state to state. Details of the foreclosure process also differ based on who the mortgage lender is if it is a mortgage foreclosure. For property tax foreclosures, the foreclosure process varies based on the city, county or state that is foreclosing.
In general the foreclosure process officially starts when the homeowner in default receives the Notice of Foreclosure from the lender. See Mortgage Foreclosure Process for details of what happens during foreclosure.
Bear in mind that a week before the actual auction date of your foreclosure property, you still have a chance to stop foreclosure. During the whole foreclosure process, there are many things you can do to delay the foreclosure process. You can either do it yourself by calling your bank or you can have a professional do it on your behalf. See What to do about Bank Foreclosure Delays for more options to delay the foreclosure process.
Lastly, if you are in a position where you owe the bank more than your home is worth, then your mortgage is called an upside down mortgage. In this case, even if you sell your home, you still owe the bank. The best solution for a homeowner with an upside down mortgage is to do a short sale. If you don't know what a short sale is, you should start by visiting What is the Definition of Short Sale Foreclosure. Real estate short sale is a very unique way to help homeowners get out of the obligation of having to owe the bank even though the home is sold or auctioned off. It also saves the homeowner's credit from being trashed by the foreclosure process.
Mortgage Foreclosure
July 14th, 2009
A mortgage foreclosure occurs in the states where real estate properties are mortgaged. Some states use trust deeds resulting in trust deed foreclosures. There are ways to stop mortgage foreclosure or prevent mortgage foreclosure but most people usually don't know what to do in mortgage foreclosures situations. There are also many organizations to help with mortgage foreclosure.
Some people obtain bad credit mortgage refinance when in foreclosure. This could make the mortgage foreclosure situation worse so beware of this tactic. When you are facing a mortgage foreclosure, don't try to get a bad credit foreclosure loan mortgage, you can end up in the same situation you are in or worse.
How does mortgage foreclosure work?
In a mortgage foreclosure situation, the borrower signed 2 things: the note or bond which is the evidence that the borrower promised to pay off the debt and the mortgage which is the legal document that creates the lien on the real estate property as security for the debt owed. In case of a mortgage default, the mortgagee or lender will make every effort to collect on the outstanding debt.
What happens in a mortgage foreclosure situation?
When a mortgage default occurs, the lender or mortgage company will send a letter advising the borrower to remit the payment immediately. Many mortgage companies will make several months of attempts to collect on the mortgage payments of delinquent debts. Most mortgage companies would want to work out a payment plan with the borrower instead of ending up with the property in a mortgage foreclosure. If a mortgage payment plan cannot be established, the mortgage lender will hire an attorney to do a mortgage foreclosure. The mortgage foreclosure attorney will initiate the mortgage foreclosure action on behalf of the lender by ordering a mortgage foreclosure search.
What is a foreclosure search?
A foreclosure search is a report from a title company that provides the attorney with info about the property to help him or her with the mortgage foreclosure.
The mortgage foreclosure attorney then files legal documents for the mortgage foreclosure process including a summons, a complaint, and the lis pendens.
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Wells Fargo home mortgage foreclosure
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Countrywide mortgage foreclosure
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Texas mortgage foreclosure
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California mortgage foreclosure
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Why prevent foreclosures?
July 14th, 2009
There are so many reasons why you should prevent foreclosure. If you own a house with a mortgage and your financial situation is such that you may not be able to make a mortgage payment in the future, please let us help you.
Reasons why you should prevent foreclosure or stop foreclosure (if foreclosure already happens)
Leave your home on your own terms instead of getting evicted
At the final stage of foreclosure, if you have not vacated your foreclosure property, you will be evicted. It is not pretty. We have seen many nice and respectable folks leaving their beloved home in a hurry in the middle of the night to avoid being seen by neighbors and sparing themselves of embarrassment. Getting evicted is by FAR worse than if you were to leave your home by yourself or even
selling your home in advance.
Get something for your home instead of getting nothing after foreclosure is complete
If you sell your home before your mortgage lender is done foreclosing on your house, you may get some values from your property. Nowadays, it does not matter how much you owe your mortgage lender. If you owe your mortgage lender MORE than your home is worth, real estate investors can help you negotiate with your mortgage lender in a process called 'short sales'. By doing so, you will be able to sell your home for what you owe on it to the real estate investors. This is particularly beneficial when you owe
more than you can sell your home for.
For example, if your home is worth $200,000 in the market right now and you owe your mortgage lender $250,000. You can only sell it for $200,000 or less if you try to list it on the market with a realtor. In order to sell your home fast, you may have to reduce the price to $180,000. You will also have to pay realtor's fees and other costs. Let's say, you will end up with about $170,000 net for your house.
Since you owe the mortgage lender $250,000, you will have to come up with $80,000 on the spot.
However, if you sell to real estate investors, they will negotiate with the bank to drop
off the remaining portion of your debt. That means, at the end of the day (subject to a successful short sale), you will no longer owe the bank anything. An investor will buy your house, help you find other housing arrangements if needed, set you up with some start up cash, and also help you clean up your credit so that
you can borrow again for your new home in the near future.