Tuesday, January 5, 2010
Monday, January 4, 2010
Sunday, January 3, 2010
Tuesday, December 29, 2009
Saturday, April 12, 2008
Prevention Of Forclosure
Forclosure Prevention Options
Avoid foreclosure using a foreclosure prevention program during a grace period (pre-foreclosure): Two main solutions are possible with many variations: a loan refinance or new loan is obtained to pay off late payments and bring the loan current. the Collections department works out new payments with the owner to avoid foreclosure. Hire a foreclosure prevention expert: A foreclosure expert can help to quickly navigate the options that may be available to you and select the best option for your situation. Special Forbearance Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. Mortgage Modification You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. Most lenders can work with home owners even if they have poor credit and have a foreclosure date. Chances to obtain a loan to regain a current status on your mortgage become diminished once you have received a notice of default (NOD). Notice of Default is usually sent after 90 days of the mortgage payment being late. Partial Claimlender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if: your loan is at least 4 months delinquent but no more than 12 months delinquent; are able to begin making full mortgage payments. When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property. Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. You may qualify if: the loan is at least 2 months delinquent; you are able to sell your house within 3 to 5 months; and a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines. Deed-in-lieu of foreclosure As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure. You may qualify if: you are in default and don't qualify for any of the other options; your attempts at selling the house before foreclosure were unsuccessful; and you don't have another FHA mortgage in default. Special Government Programs for Seniors The Home Equity Conversion Mortgage (HECM) is a widely accepted and used reverse mortgage product by seniors 62 or older. Available since 1989, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). The amount of available proceeds you can qualify for under the HECM program depends on your age, appraised home value, and current interest rates. The older you are, and the more valuable your home is (and the less you owe on your home), the more funds you qualify for. These types of loans can be used to provide income to seniors, help stave off a foreclosure, or simply provide a means for seniors to use the equity in their homes. You the home owner can pursue any of these options on your own. However, these can be very technical, legal and complex solutions to implement. A great deal of experience in real estate, legal terms and finance is needed to properly access and pursue the right solution for you. A home owner typically does not have this kind of experience nor the time to implement a solution before a foreclosure takes place. An expert who understands all of your options, can explain them to you in detail and implement them quickly is invaluable to saving your home. Provide the details on your situation below and a home foreclosure prevention expert will do just that for you. Sell Your Property: You can sell your property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on their credit history. Public Auction: A third party buys the property at a public auction at the end of the pre-foreclosure period. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. This is also referred to as bank-owned or REO properties (Real Estate Owned by the Lender). Bankruptcy What is bankruptcy? Bankruptcy is a federal court process designed to help people eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization." Will filing for bankruptcy protect me from creditors' efforts to collect what I owe? When you file bankruptcy, an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections. What is the difference between Chapter 7 and Chapter 13 bankruptcy? In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors. In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own. What might I lose if I file for bankruptcy? You may be able to exempt up to $17,425 of your homes equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.(this is only an estimate, please consult a local Bankruptcy Lawyer to discuss your individual situation). Insurance - You usually get to keep the cash value of your policies. Retirement plans - Pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected in bankruptcy. So are many other retirement benefits; often, however, IRAs and Keoghs are not. Personal property - You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to $1,000 or so. Most states let you keep a vehicle with more than $2,400 of equity. And many states give you a "wild card" amount of money -- often $1,000 or more - that you can apply toward any property. Public benefits - All public benefits, such as welfare, Social Security, and unemployment insurance, are fully protected. Tools used on your job - You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession. Wages - In most states, you can protect at least 75% of wages that you have earned but not yet received. How Creditors Can Get Around the Automatic Stay Usually, a creditor can get around the automatic stay by asking the bankruptcy court to remove ("lift") the stay, if it is not serving its intended purpose. For example, say you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property. The foreclosing creditor is apt to run to court soon after you file for bankruptcy, to ask for permission to proceed with the foreclosure - and that permission is likely to be granted. Will bankruptcy stop a foreclosure? Yes and No… A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound… it may help you at first but major surgery is still required. The Bottom line is that Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone else’s hands. Your best option is for you to stay in control, and allow us to work something out for you prior to filing. Pros for filing Bankruptcy to Stop Foreclosure The Foreclosure proceedings will be temporarily suspended. Cons for filing Bankruptcy to Stop Foreclosure There will be a bankruptcy on your record for 10 years. The Mortgage Company can work around the Bankruptcy and still Foreclose. You lose any leverage and control you once had. A deal must still be worked out with the Mortgage Company to repay the past due amount. If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure. The Economic Opportunity Council of Suffolk’s Foreclosure Prevention consultants can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.
Avoid foreclosure using a foreclosure prevention program during a grace period (pre-foreclosure): Two main solutions are possible with many variations: a loan refinance or new loan is obtained to pay off late payments and bring the loan current. the Collections department works out new payments with the owner to avoid foreclosure. Hire a foreclosure prevention expert: A foreclosure expert can help to quickly navigate the options that may be available to you and select the best option for your situation. Special Forbearance Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. Mortgage Modification You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. Most lenders can work with home owners even if they have poor credit and have a foreclosure date. Chances to obtain a loan to regain a current status on your mortgage become diminished once you have received a notice of default (NOD). Notice of Default is usually sent after 90 days of the mortgage payment being late. Partial Claimlender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if: your loan is at least 4 months delinquent but no more than 12 months delinquent; are able to begin making full mortgage payments. When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property. Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. You may qualify if: the loan is at least 2 months delinquent; you are able to sell your house within 3 to 5 months; and a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines. Deed-in-lieu of foreclosure As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure. You may qualify if: you are in default and don't qualify for any of the other options; your attempts at selling the house before foreclosure were unsuccessful; and you don't have another FHA mortgage in default. Special Government Programs for Seniors The Home Equity Conversion Mortgage (HECM) is a widely accepted and used reverse mortgage product by seniors 62 or older. Available since 1989, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). The amount of available proceeds you can qualify for under the HECM program depends on your age, appraised home value, and current interest rates. The older you are, and the more valuable your home is (and the less you owe on your home), the more funds you qualify for. These types of loans can be used to provide income to seniors, help stave off a foreclosure, or simply provide a means for seniors to use the equity in their homes. You the home owner can pursue any of these options on your own. However, these can be very technical, legal and complex solutions to implement. A great deal of experience in real estate, legal terms and finance is needed to properly access and pursue the right solution for you. A home owner typically does not have this kind of experience nor the time to implement a solution before a foreclosure takes place. An expert who understands all of your options, can explain them to you in detail and implement them quickly is invaluable to saving your home. Provide the details on your situation below and a home foreclosure prevention expert will do just that for you. Sell Your Property: You can sell your property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on their credit history. Public Auction: A third party buys the property at a public auction at the end of the pre-foreclosure period. The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. This is also referred to as bank-owned or REO properties (Real Estate Owned by the Lender). Bankruptcy What is bankruptcy? Bankruptcy is a federal court process designed to help people eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as "liquidation" or "reorganization." Will filing for bankruptcy protect me from creditors' efforts to collect what I owe? When you file bankruptcy, an "automatic stay" goes into effect. The automatic stay prohibits most creditors from taking any action to collect the debts you owe them unless the bankruptcy court lifts the stay and lets the creditor proceed with collections. What is the difference between Chapter 7 and Chapter 13 bankruptcy? In Chapter 7 bankruptcy, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors. In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back your debts over time. The amount you'll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own. What might I lose if I file for bankruptcy? You may be able to exempt up to $17,425 of your homes equity. Some states have no homestead exemption; others allow debtors to protect all or most of the equity in their home.(this is only an estimate, please consult a local Bankruptcy Lawyer to discuss your individual situation). Insurance - You usually get to keep the cash value of your policies. Retirement plans - Pensions which qualify under the Employee Retirement Income Security Act (ERISA) are fully protected in bankruptcy. So are many other retirement benefits; often, however, IRAs and Keoghs are not. Personal property - You'll be able to keep most household goods, furniture, furnishings, clothing (other than furs), appliances, books and musical instruments. You may be able to keep jewelry only worth up to $1,000 or so. Most states let you keep a vehicle with more than $2,400 of equity. And many states give you a "wild card" amount of money -- often $1,000 or more - that you can apply toward any property. Public benefits - All public benefits, such as welfare, Social Security, and unemployment insurance, are fully protected. Tools used on your job - You'll probably be able to keep up to a few thousand dollars worth of the tools used in your trade or profession. Wages - In most states, you can protect at least 75% of wages that you have earned but not yet received. How Creditors Can Get Around the Automatic Stay Usually, a creditor can get around the automatic stay by asking the bankruptcy court to remove ("lift") the stay, if it is not serving its intended purpose. For example, say you file for bankruptcy the day before your house is to be sold in foreclosure. You have no equity in the house, you can't pay your mortgage arrears, and you have no way of keeping the property. The foreclosing creditor is apt to run to court soon after you file for bankruptcy, to ask for permission to proceed with the foreclosure - and that permission is likely to be granted. Will bankruptcy stop a foreclosure? Yes and No… A home is an asset usually secured by a deed of trust. The mortgage company is entitled apply to the court for relief from the automatic stay, the order preventing creditor action by virtue of the bankruptcy. Depending upon several factors, you may be able to prolong a foreclosure until you have received your discharge from bankruptcy. Usually, to keep a home that is in foreclosure you will have to make a deal with the Mortgage Company. This is the key, you still must work something out with the Mortgage Company to repay the past due amount. This is why we say filing for Bankruptcy is like putting a band aid on a bullet wound… it may help you at first but major surgery is still required. The Bottom line is that Bankruptcy may buy you a small amount of time but negotiations will still need to be made with the Mortgage Company to enable you to keep your home. Most people who file Bankruptcy to save heir home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing Bankruptcy removes your leverage and places your fate in someone else’s hands. Your best option is for you to stay in control, and allow us to work something out for you prior to filing. Pros for filing Bankruptcy to Stop Foreclosure The Foreclosure proceedings will be temporarily suspended. Cons for filing Bankruptcy to Stop Foreclosure There will be a bankruptcy on your record for 10 years. The Mortgage Company can work around the Bankruptcy and still Foreclose. You lose any leverage and control you once had. A deal must still be worked out with the Mortgage Company to repay the past due amount. If you are 1 day late on any trustee payments your case "may" be dismissed, the stay will be lifted and you will be back in Foreclosure. The Economic Opportunity Council of Suffolk’s Foreclosure Prevention consultants can negotiate on your behalf with the Mortgage Company to keep your Home from Foreclosure and get your loan back in good standing.
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