Written By: George Haughton
Fighting foreclosure just became interesting for many home owners. I have taken one paragraph out of the president Obamba's speech to analyzes it some more for my understanding and to be able to write or blog about it. The flowing is the paragraph regarding how the government will work with the those in foreclosure:
"If lenders and home buyers work together, and the lender agrees to offer rates that the borrower can afford, we'll make up part of the gap between what the old payments were and what the new payments will be. And under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower's income. This will enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure."
After reading the speech I got to wondering if this new payment was based on a new rate and current monthly income with a subsidy from the government for the difference? For example if the home owner makes $1000.00 per month then my monthly payments would be about $310 per month. However, what if my original monthly payment was $2000.00, which included my taxes and my income went from $2800.00 to the current $1000.00 will the government pay the difference? I really doubt this could actually be the case but that is how it sounds to some home owner fighting foreclosure. Other say this $310 is based not a traditional 30 mortgage but more like a 500 year mortgage. Fighting foreclosure just got easier.
This is what one reporter wrote quoting the president: "In prepared remarks today in Phoenix, the president said, “Let’s say you earn about $30,000 per year and you find a house that costs $232,500. 31 percent of your monthly income would be about $775, which puts you in a nice comfortable 443-year mortgage at an interest rate of 4.0%, which is fair for someone like you. You win, the banks win, and most importantly, the economy wins."
Again fighting foreclosure not only just got easier but if you can't stop foreclosure with this plan then you don't need to own a home right now.
How do I know if I qualify for this plan? Check the White House Web Site
Showing posts with label fighting foreclosure. Show all posts
Showing posts with label fighting foreclosure. Show all posts
Thursday, February 26, 2009
Tuesday, February 3, 2009
Can you legally stop foreclosure
Fighting Foreclosure
Author: george HaughtonFighting foreclosure in the last two years has been the number one issue for homeowners. Homeowners are losing their homes in record numbers. Therefore, how can homeowners survive foreclosure? What are the foreclosure time line and the reasons for foreclosure?
Foreclosure is a legal solution to a contract breach by the homeowner. To cure the problem both parties (bank and the homeowner) must decided upon a solution. If there is no agreement reached between the homeowner and their lender then the lender is forced to act on their own with foreclosure being the end result. Federal government has regulations in place to protect the homeowner by requiring the lender to prove that they have tried to work with the homeowner. This can come in the form of loan programs or loan modification. Disclosures in the form of written notices will be mailed to you the homeowner regarding a possible foreclosure. .
The lender sometime use a loan servicer to help as a go between to help move the foreclosure process along. This could be a benefit as well a problem. The servicer really could stand in the way of the homeowner not getting the best deal from their lender. So if you find yourself in this position you must be careful when negotiating with your Loan Servicer. The servicers are the ones who move the file to the attorney. Recently some home owners fighting foreclosure have challenged their law suit under the legal question: has to who really own their mortgages? What they found in over 80 percent of the case the lender the mortgage note is not the one filing law suit against them. In fact in some case the note can not be established, that is why fighting foreclosure make sence for the homeowner.
What some of the reasons motivating homeowners to continue fighting foreclosure ? Well consider this : you might come out of it with a lower mortgage rate and lower payment. This fight could protect your equity or the investment that you made into the home when you purchased it and over the years.
About the Author:
My blog will be mostly about mortgage information.I have been in the mortgage business close to 20 years. Working with government loans and now as an additional service, i am now counseling homeowners on how to Fight foreclosure http://www.squidoo.com/stopsforeclosures or http://360.yahoo.com/ghaughtons
Article Source: http://www.articlesbase.com/mortgage-articles/fighting-foreclosure-686439.html
Sunday, February 1, 2009
Foreclosure real estate
Foreclosure real estate Attorneys experienced their bankruptcy business slow down after the bankruptcy laws were changed by the government in favor of the credit card companies and most creditors in general. In other words the laws were now stacked against the borrower. Due to the current home foreclosure crisis the government is now amending the bankruptcy laws to allow the trustee to get some principle reduction or restructuring for the homeowner.
After this brief slow period the attorneys is experiencing once again a boom in bankruptcy filing, but now the attorneys have added the filing of a possible loan modification. Loan modification is needed because homeowners are dealing with mortgages that were created in good times with weird guidelines.
When these mortgages went bust in early part of the recession lenders counting on the increase of the equity to cover any lost sustain in a home foreclosure. However, when the housing bubble burst the opposite occurred, property values fell hard and foreclosures increased.
Real estate as always been a sure bet in the past and banks did not consider that they would take such a nose dive. Typically in normal economic environment homeowner could have use a mortgage refinance to get themselves out of trouble. However, these toxic loans pushed homeowners in foreclosure instead . Meanwhile the lenders made a plead for a bailout from the government hoping to survive this wave of foreclosures ; which they did not see this coming.
Bankruptcy was all ways an option in the past for homeowners facing foreclosure. However, now we are dealing with a different type of loans that when went bad were difficult for homeowner to handle. For example the sub prime loans came with adjustable rates that would push payments out of the reach of the homeowner. Bankruptcy could not stop that. Most of these borrowers could not refinance into a prime rate mortgage because of their credit or income data.
Another type of loans that went bust was the option arm loan which was structured with an introductory rate as low as 2.9% with a potential increase of additional 6 percent over the life of the loan. Therefore if you started with a rate of 2.9 with an index of 4.5, your effective rate would be 7.40 but you were only require to pay each month the 2.9 interest only. These option arms created a negative amount each month because the borrower was not paying the fully indexed mortgage rate each month based on the 7.40. Therefore, under the prefect conditions these loans could work but with the Libor and Treasure index going creating a run away mortgage.
Attorney’s across this country is now in demand working with homeowners fighting foreclosure using not only bankruptcy but loan modification. Filing bankruptcy has its limitation, with home equity falling. Loan modification would not only create a fix rate but increase the numbers of years to pay off the loan. Hopefully the new bankruptcy laws will allow the bankruptcy trustee to obtain such restructuring.
After this brief slow period the attorneys is experiencing once again a boom in bankruptcy filing, but now the attorneys have added the filing of a possible loan modification. Loan modification is needed because homeowners are dealing with mortgages that were created in good times with weird guidelines.
When these mortgages went bust in early part of the recession lenders counting on the increase of the equity to cover any lost sustain in a home foreclosure. However, when the housing bubble burst the opposite occurred, property values fell hard and foreclosures increased.
Real estate as always been a sure bet in the past and banks did not consider that they would take such a nose dive. Typically in normal economic environment homeowner could have use a mortgage refinance to get themselves out of trouble. However, these toxic loans pushed homeowners in foreclosure instead . Meanwhile the lenders made a plead for a bailout from the government hoping to survive this wave of foreclosures ; which they did not see this coming.
Bankruptcy was all ways an option in the past for homeowners facing foreclosure. However, now we are dealing with a different type of loans that when went bad were difficult for homeowner to handle. For example the sub prime loans came with adjustable rates that would push payments out of the reach of the homeowner. Bankruptcy could not stop that. Most of these borrowers could not refinance into a prime rate mortgage because of their credit or income data.
Another type of loans that went bust was the option arm loan which was structured with an introductory rate as low as 2.9% with a potential increase of additional 6 percent over the life of the loan. Therefore if you started with a rate of 2.9 with an index of 4.5, your effective rate would be 7.40 but you were only require to pay each month the 2.9 interest only. These option arms created a negative amount each month because the borrower was not paying the fully indexed mortgage rate each month based on the 7.40. Therefore, under the prefect conditions these loans could work but with the Libor and Treasure index going creating a run away mortgage.
Attorney’s across this country is now in demand working with homeowners fighting foreclosure using not only bankruptcy but loan modification. Filing bankruptcy has its limitation, with home equity falling. Loan modification would not only create a fix rate but increase the numbers of years to pay off the loan. Hopefully the new bankruptcy laws will allow the bankruptcy trustee to obtain such restructuring.
Wednesday, January 7, 2009
What is your foreclosure state laws?
written by: George Haughton
What is the foreclosure Laws in your state? If you are fighting foreclosure then it is a must to know what they are. Over the past 12 months the news is that about 90 percent of those who faced bank foreclosure showed up at their court date without understanding what the process were. The other sad reality is that these home owners had no legal representation. Therefore, they often times lose their home because of not being prepared. Such foreclosure homes could have been saved if approached with an attorney at your side.
Therefore, not only should you have a legal representation but you should have a sense of the process. The organization Pre-Paid Legal Services will help homeowners present and answer court fillings. This is no time to face foreclosure alone or ignore help that is available to you in the market place.
Each state handle foreclosure real estate different and so their foreclosure laws some time have some loop holes that each lender could take advantage of. For example how must a lender serve court papers, can they just advertise it in your local papers or must they personally served you physically? What if your child answers the door and got the initial court document? What about your redemption period, what is a notice of motion, can your mortgage be reinstated and who can help you with this?
Most attorneys can help you to navigate through the loan modification process. They can also negotiate mortgage rates by means of the loan modification. Just like the credit counselors the attorneys can help you secure a better position with your credit card company reducing such credit card debt.
So in this blog here are the main points:
1. Know your state foreclosure law.
2. Get legal representation
3. Use company like prepaid legal ($16 per month)
4. Consider using Attorneys to reduce credit card debt.
Stop foreclosure by considering some of these prevention techniques. A final point here, you don’t have to file bankruptcy or refinance to prevent bank foreclosure. Therefore, your attorney can help with your credit card debt and your home mortgage at the same time. Keep your home but get better loan payments today by fighting foreclosure.ffff
What is the foreclosure Laws in your state? If you are fighting foreclosure then it is a must to know what they are. Over the past 12 months the news is that about 90 percent of those who faced bank foreclosure showed up at their court date without understanding what the process were. The other sad reality is that these home owners had no legal representation. Therefore, they often times lose their home because of not being prepared. Such foreclosure homes could have been saved if approached with an attorney at your side.
Therefore, not only should you have a legal representation but you should have a sense of the process. The organization Pre-Paid Legal Services will help homeowners present and answer court fillings. This is no time to face foreclosure alone or ignore help that is available to you in the market place.
Each state handle foreclosure real estate different and so their foreclosure laws some time have some loop holes that each lender could take advantage of. For example how must a lender serve court papers, can they just advertise it in your local papers or must they personally served you physically? What if your child answers the door and got the initial court document? What about your redemption period, what is a notice of motion, can your mortgage be reinstated and who can help you with this?
Most attorneys can help you to navigate through the loan modification process. They can also negotiate mortgage rates by means of the loan modification. Just like the credit counselors the attorneys can help you secure a better position with your credit card company reducing such credit card debt.
So in this blog here are the main points:
1. Know your state foreclosure law.
2. Get legal representation
3. Use company like prepaid legal ($16 per month)
4. Consider using Attorneys to reduce credit card debt.
Stop foreclosure by considering some of these prevention techniques. A final point here, you don’t have to file bankruptcy or refinance to prevent bank foreclosure. Therefore, your attorney can help with your credit card debt and your home mortgage at the same time. Keep your home but get better loan payments today by fighting foreclosure.ffff
Friday, December 26, 2008
Stop foreclosure
stop foreclosure include finding and using the methods of relief available through your lender. Of course you need to start dealing with your lender early enough to take advantage of the options that could be available if you want to stop foreclosure. Here is at least seven possible relief options your lender can pursue:
• Temporary Indulgence: To stop foreclosure this method gives the homeowner a period of time to bring their mortgage current, this period could be as long a two months. Here are few conditions that could allow a real option. For example, if the homeowner is refinancing their loan and is just waiting on a pending approval from the new lender. In this case they could issue a “Temporary indulgence “to give you time to stop foreclosure. Another reason why the lender could approve period of time is the homeowner who has a real estate sales contract to sell their home and need more time to do the closing. This would be a win, win situations.
• Liquidating Plan: This method the lender is trying to bring current the mortgage after the hardship has passed. With foreclosure stop and the borrower can now afford to pay a little more to the monthly mortgage payment. Lenders can now get creative with this method as long as the plan can accomplish it quickly and it is affordable for the homeowners.
• Special Forbearance: The goal here again is to stop foreclosure by giving the homeowners some relief for up to 18 moths without making payments. However, at the end of this period of time a “liquidating plan” goes into effect to help bring the mortgage current. However,to obtain this kind of relief you must be ready to document the reason for your temporary hardship. With the economy as it is today and with so many people laid off or reduction in income this could easily be documented. However, the lender as the last word and must be convinced the special forbearance will solve the problem in the long run and stop foreclosure. .
• Additionally there is a “long term special forbearance” which can even go up to 24 months
Some homeowners who want to stop foreclosure do not pursue the options available to them due to lack of understand to these options available with their lenders. Making a call at to your lender can often get some of these options explain or at least find how to locate it on their website. As usual don’t give up fighting foreclosure until you have tried every option available to you.
• Temporary Indulgence: To stop foreclosure this method gives the homeowner a period of time to bring their mortgage current, this period could be as long a two months. Here are few conditions that could allow a real option. For example, if the homeowner is refinancing their loan and is just waiting on a pending approval from the new lender. In this case they could issue a “Temporary indulgence “to give you time to stop foreclosure. Another reason why the lender could approve period of time is the homeowner who has a real estate sales contract to sell their home and need more time to do the closing. This would be a win, win situations.
• Liquidating Plan: This method the lender is trying to bring current the mortgage after the hardship has passed. With foreclosure stop and the borrower can now afford to pay a little more to the monthly mortgage payment. Lenders can now get creative with this method as long as the plan can accomplish it quickly and it is affordable for the homeowners.
• Special Forbearance: The goal here again is to stop foreclosure by giving the homeowners some relief for up to 18 moths without making payments. However, at the end of this period of time a “liquidating plan” goes into effect to help bring the mortgage current. However,to obtain this kind of relief you must be ready to document the reason for your temporary hardship. With the economy as it is today and with so many people laid off or reduction in income this could easily be documented. However, the lender as the last word and must be convinced the special forbearance will solve the problem in the long run and stop foreclosure. .
• Additionally there is a “long term special forbearance” which can even go up to 24 months
Some homeowners who want to stop foreclosure do not pursue the options available to them due to lack of understand to these options available with their lenders. Making a call at to your lender can often get some of these options explain or at least find how to locate it on their website. As usual don’t give up fighting foreclosure until you have tried every option available to you.
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