Six Steps to Keep Your House
November 20, 2009 by Daniel Hines
Filed under Mortgage Foreclosure
Life is tough, and it’s tougher when circumstances attack. Unemployment, unexpected medical bills, student loan repayments, or accidents can happen at any time, and can cause you to fall behind on your financial obligations. If something like this happens to you, you’ll undoubtedly want to repair your finances before you lose your home or other valuable property. These are the first six things you should do:
1. Look at your financial situation. How deep in debt are you, and what is the main cause of your debt? Some things like medical bills or student loans are eligible for some sorts of government assistance, and are easier on your credit than things like credit card debt. Are your problems simply caused by overspending? If this is the case, you may be able to repair your situation before doing anything drastic.
2. Talk with your Lender. Remember, the bank never wants your property; it is worth far more to you than it is to them. The person who is in the best position to give you some sort of help is your lender. You should come clean with the causes of your debt and inability to repay, and then see if they can offer you a debt repayment plan or some other form of bankruptcy alternative.
3. Pay your overdue bills. You want to relieve yourself of your highest interest first. You should also pay down credit card debts if you can. This will serve a few purposes: it saves you money on your high interest bills; it gives you the confidence to know that you can take care of your debts; it lets your lender know that you are capable of and willing to pay down your debts.
4. Learn about your rights and your options. As an indebted person, you have several rights that you should know about. Right now, go to ftc.gov and check out the fair debt collection act, it gives you protection from much of the harassing you may already be receiving from creditors. There are also several different programs that can help you with a debt payment plan or some other option. Many of these charge heavy fees, so be careful to research and select the best plan for you.
5. Contact a debt counselor. A debt counselor is somebody who can give you lots of information, and help you set up a payment plan. Many states offer a free debt counseling service to help protect residents. Make sure your debt counselor isn’t trying to sell you anything; this is a key that he doesn’t have your best interests in mind.
6. Watch out for scams. Unfortunately, there are thousands of people trying to take advantage of those who are struggling. Don’t let yourself be fooled. Whatever you do, don’t sign your property over to a third party; they’re trying to steal your home.
Good luck, and remember, no matter how things end up, you can always start with a clean slate in a few years.
Are you in financial trouble and looking for the best advice? We’re here to provide free, high-quality information to you. Don’t make any deals with your debt collection agency until you’ve educated yourself. We will show you how to find the best debt relief strategy for you.
Tags: bankruptcy alternative, business, credit card, creditors, debt, debt collector, debt management, debt payment plan, debt relief, Finance, foreclosure, money, mortgage, Mortgage Foreclosure, student loan
The Bank Short Sale – The Best Way Out Of Foreclosure?
October 1, 2009 by William Edwards
Filed under Mortgage Loans
A bank short sale is not the only way to get out of foreclosure – but it might be the best way. If you’re already in this situation, you’re already straining under intense financial pressure. Much of this anxiety should be alleviated if approved for a short sale, because you’ll be in the best position possible to buy another home.
The hardest thing for a homeowner to do is admit the fact that we may not be able to save our home, but if we cannot save it, our primary goal should be to avoid foreclosure. Accepting a bank short sale in lieu of foreclosure is not the only way out – but it may be the best way out. A foreclosure could end up with us having wages garnished, other properties seized, being sued, and harassed for years to come. Not to even mention the damage to our credit. If handled by an expert, a bank short sale could settle all of these issues right now.
Either way, for the layman, a bank short sale or foreclosure can be quite stressful due to all of the complexities involved. There are attorneys, lenders, accountants, complex forms, legal jargon, and the internal revenue service to deal with. On top of that the money is tight on every side. We’ve got to remember in this situation that all parties involved are trying to get as much of their money as they can – so we’ve got to be prepared for anything. Banks are well-known for dropping surprise requests at the last second. Don’t allow yourself to be pushed around!
By having expert legal advice from the outset, we can avoid many of these last minute surprises. Don’t be fooled into thinking you can complete this process without expert advice. A bank short sale involves many aspects of law relating to taxes, lending practices, and real estate. Be sure that you have access to professionals in “each” of these areas. There are services offered by teams of attorneys, accountants, and real estate professionals that will help you complete the entire process – and then get their fees paid by the lenders. As with any service, there are good ones and bad ones – so be careful – but there are some excellent services out available.
A bank is losing money with a short sale and are not necessarily enthusiastic about doing them. They avoid a foreclosure – yes, but their attitude is not to be considered enthusiastic. They can be difficult to deal with at times because they’re trying to get back as much money as they can. For this reason they might not always move as fast as we want – although we know they can. Patience is a valued virtue here – so practice it and keep cool. If you’ve ever had to work with the government you know exactly what dealing with these banks will be like.
Although a bank short sale is a tenuous process and all parties may not always see eye to eye, in the end, we’ll be the winners. We may lose our home, but we’ll be considered winners if we can get the debt forgiven, come out without any unpaid property taxes, without a bankruptcy, and be free and clear. This is the beauty of a bank short sale. It’s not all roses – no, but the ultimate objective is to end up in the best position to purchase another home. The successful completion of this process puts us in a great position to succeed in this area. A bank short sale is not the only way out – but it is definitely one of the best ways!
The Short Sale Process – Do I Have To Lose My Home?
September 30, 2009 by Anthony Y. Mauer
Filed under Mortgage Foreclosure
The short sale process can be quite stressful on the homeowner. They are in the unfortunate position where their home is worth less than the mortgage – the short sale definition. Most homeowners allow themselves to approach dangerously close to foreclosure before admitting that the short sale process is something they’ll have to deal with.
There is no short sale without an agreement with the lender. It is an agreement between both the lender and the borrower and is a transaction that contains many complex factors and considerations. Most important for the borrower is that there will be no foreclosure awaiting them on the other side of the short sale process.
The two parties first agree to the short sale, and then they must deal with all of the various and complex aspects of the bank short sale process. For example, they must decide how much of and the manner of the debt to be forgiven, the price of the home, payment of fees, and then deal with the purchase agreement. It is absolutely vital at every stage to have the assistance of a professional. The short sale process is not to be done on your own!
The homeowner will need to complete a document known as the hardship letter to verify how they ended up in the short sale process. The statements in this document will be verified by various financial documents provided by the homeowner. It is in this manner that the lender will verify how the borrower ended up being so dangerously close to foreclosure.
The bank will then assess the fair market value of the home and work with appraisers, brokers, and real estate agents. This is done in order for the home to be appraised properly, and for the bank to recover as much as possible from the sale of the home. In the end it’s all about business, and lenders wish to keep their losses to a minimum.
If the home is sold in accordance with the agreement – then the money will be used to settle the debt. The bank is not obligated to wait any longer than they agreed to wait in the contract. They can legally proceed with foreclosure if it is not sold by the date agreed to in the contract. These issues will be clearly stated in the agreement.
The borrower’s credit rating doesn’t have to be damaged by the short sale process. A short sale involves many complex issues and many people have missed important dates relating directly to their credit rating. Their credit was left in shambles as a result. Some allow their credit to be damaged due to having other finance areas deeply ingrained in the short sale process. Damaged credit is NOT a foregone conclusion here – this is the important point. It is for this main reason that following the advice of our experts is critical.
If we successfully complete the short sale process we could very well end up with little damage. If we do it right, we could still have stable credit, no legal fees or unpaid property taxes, and no foreclosure! This would be our prize – to be in the best position humanly possible to buy another home.