Archive for June, 2010
How to Fight the Foreclosure Process – Little Known Strategies to Stop Foreclosure!
There is a way to delay foreclosure process for years in a legal manner even without paying monthly mortgage, sounds bogus?!? But there is actually a way, and its more than one way only if the homeowners are well informed and know how to use the law for their own benefit. Here are just some tips out of a hundred ways that you can use to successfully prevent foreclosure against your creditor. First on the list is a well written Hardship Letter. A hardship Letter is a letter containing reasons why a person is in a current financial crisis and that hinders his/her ability to pay the monthly mortgage. Usually this letter is used to either apply for refinancing or mortgage modification. A well-thought Hardship Letter will do a lot in postponing the foreclosure process for some time after the summons have been served. Second on the list is a Homeowner Court Hearing. Every homeowner has a right to request for a court hearing in their local Circuit Court. When used properly, this approach can be very advantageous on the homeowner's part. Through this process, the court hearing can even last for a year delaying the foreclosure process if the right buttons are pushed. And the good part is a homeowner does not need a lawyer's service to be successful using this approach. Third and can be considered the most effective among the three, is Finding Inaccuracies on your Housing Contract. This strategy is considered the most effective because it can actually delay the foreclosure process for more than 2 year and save the homeowner's property. Few homeowners have ideas that contracts made from the last 2 to 5 years contain inaccuracies, but lawyers do and in fact most of them are not willing to share their knowledge with just an ordinary homeowner because they themselves use this strategy to earn more money from their clients with the same case. It is not just the lawyers who knew about the inaccuracies on the housing contracts but mortgage companies do too. These mortgage companies have been vigilant in keeping this information from the homeowners for years. With this approach the tides can surely be turned, it is the homeowners who will have the power over their lenders and not the other way around. So, while Obama's administration is finding a way on how to reform the Mortgage Modification Program, which is clearly not working and will not work unless it is revised, every homeowner will have to learn how to defend themselves from foreclosure and from ending up losing their property.
Housing Double Dip a Done Deal
Everybody take a nice long look at today's Pending Home Sales Index from the National Association of Realtors, because it's just about the last positive picture we're going to see for a while.
Short Sales and Promissory Notes – What Options Does a Homeowner Have?
Going through the short sale process with the bank can be a lot like a soap opera. One minute everything seems to be going fine and the next minute the short sale is on the brink of failure. One of the situations that can really cause a wrench in the works is when a short sale approval letter is received with a promissory note attached. What this means for the homeowner is that the bank will only approve the short sale if the homeowner agrees to sign a note for either the full deficiency owed or a portion of it. The deficiency is basically the difference between what the bank lent you and what they finally get back from the short sale transaction. Getting that promissory note can be very distressing and often causes the short sale process to come to a screeching halt. The promissory note is basically a new loan the bank wants the homeowner to sign to cover their loss from the short sale. Some things to keep in mind about the promissory note are: 1. If the note is not signed by the homeowner the short sale is dead 2. The note is not tied to the property in any way and is considered an "unsecured" debt (much like a credit card) 3. The note may actually have pretty good terms in respect to the duration of the loan and the interest. Some homeowners may be able to handle the low payment terms the bank lays out in the note. So, what are homeowner's options in this situation? Below are some possible options: 1. Don't sign the note and push back on the bank to see if they will remove the note as a condition of short sale approval. This does happen on rare occasions. Good negotiation skills are needed. 2. Don't sign the promissory note and let the short sale process die and the home go to foreclosure. This is not usually the funnest option but may be the only option depending on the financial status of the homeowner. If the homeowner is mentally willing to make the payments on the promissory note but does not have the financial capability then this may be the only option. 3. Negotiate better terms on the promissory note before signing. The bank may agree to some changes to the terms of the note including duration of the loan, interest rate and monthly payment amounts. 4. Sign the note. This option allows for the short sale to move forward. The foreclosure is avoided and a much smaller payment is owed to the bank every month. 5. Sign the note then settle the debt down the road. Going this route requires some courage since you have to sign the note first and then try to approach the bank after-the-fact to negotiate a one-time settlement payment for a fraction of the original promissory note amount. Since it is an unsecured debt and is usually handled by their collections department, they may agree to the one-time settlement option. It goes without saying that each bank and investor backing the loans have their guidelines and policies about promissory notes. It is important to understand the risks involved and weigh the cost vs. benefit of whatever decision is made about the promissory note. Either way, the end goal should be for the homeowner to move on with their lives. M.D. Rogers is a seasoned investor with experience in distressed properties. Go check out his most recent website to help Harley owners find the best Harley Motorcycle Cover. There you can also find specific information on the Harley Davidson Motorcycle Cover.
