Tag: foreclosure

Foreclosure: How to be more Pro-active to Save your Home

Stopping foreclosure might not always be possible, but if you do nothing at all, you will definitely not be able to stop it.

If it is the difference between keeping hope alive, and keeping your home, or just giving up and hiding, choose to be more pro-active if you think you are in danger of foreclosure.

There are many different things that you should consider when attempting to stop a foreclosure. First of all, remember that it has happened to many other people besides yourself. It does not make you stupid, or a bad person, it just means that you need help. You need a reality check, and you need a plan on how to deal with foreclosure.

If you are at least three months behind on your monthly mortgage payments then you are definitely at higher risk of losing your home and there probably will not be anything you can do if you choose to wait until then before ever attempting to be proactive in any way.

If some extra bills have come up and you are already thinking that you might possibly have to put off paying your monthly mortgage payment, go ahead and give the mortgage company a phone call. By taking action before something happens, just when you suspect that it may, you are being proactive.

People who end up in financial trouble for whatever reason who are on their toes are typically the ones that can and will prevent foreclosure on their home.

You must be assertive in trying to make arrangements with your mortgage company because if all you do is sit around and cry about being behind on those monthly payments, they are not ever going to want to speak with you about anything.

Trust me, as unbelievable as it may sound, the mortgage company truly does NOT want you to lose your home due to foreclosure. They really don’t want an empty house that they can’t sell, or will have to sell cheaply. They want regular monthly payments coming in, especially all the lovely interest you are paying them!

Maybe they should have possibly used better judgment whenever they were approving you for any type of mortgage loan and letting you purchase a home through their lending company. They are normally very willing to speak with you to try to work out some sort of solution.

There is no reason at all for you to just wait around for them to call. You can and should make the first move. That will look really responsible to them and they will absolutely take note of that responsible behavior and pro-active attitude,  and will more than likely allow you to tell them the entire story as to why you were late on your monthly mortgage payments.

Once you have discussed your difficult circumstances with them, and hopefully some sort of plan for what to do to make up the arrears, and how soon you think you can do this realistically,  story with them, chances are they will take your suggested payment plan seriously.

If you suggest you will get a second job, or your wife will go back to work part-time, or you show them a well-thought out household budget that you will stick to, then changes are they will be willing  to work out some type of payment arrangement with you, often right on the spot so you can avoid foreclosure.

It does not always work out, but being pro-active is going to get you much closer towards preventing foreclosure than just giving up.

Remember, whenever you are planning a budget, make sure you take care of the most important aspects first–housing, utilities, food, car if you really have no other means of getting to work and tending to your shopping and so on.

Everything else is OPTIONAL, including credit card payments. Can you get some wiggle room there? Get a lower APR on the cards you do have?

A good sound budget may mean tightening your belt for a number of months, but it is better to do whatever you can NOW to possibly stop foreclosure, so that you won’t lose all the equity you have in the home, and lose  everything you have worked so hard for throughout the years just because you have hit a bad patch.

For more information on foreclosure and what you can do to be more proactive about stopping foreclosure, visit:
http://www.hud.gov/foreclosure/index.cfm

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Foreclosure Assistance to Help Save Your Home

 

For anyone who is undergoing a great deal of stress thinking that they might possibly lose their home due to falling behind on their mortgage payments, there are many options that could potentially save your home from foreclosure.

It is very important to seek foreclosure assistance available as soon as you think you are going to have a problem meeting a mortgage payment. Leaving it too late will remove many of your options.

One resource that you could utilize would be the many different online resources, where there is 24 hour foreclosure assistance available for people who are in need.

The online resources are government or nonprofit organizations which are available to everyone who is in need of assistance. They might even possibly be able to contact some of your creditors to discuss with them some type of payment plan, which could help you to manage your finances more appropriately.

The internet is truly the greatest place to locate all sorts of information about foreclosure, to educate yourself and know your rights.  Here at this site, we talk about foreclosure, and also the importance of having a budget which can help you formulate a plan for getting out of trouble with the mortgage company or bank.

In addition to looking up foreclosure information on the internet, Try going to the yellow pages on the internet or even in your home telephone book. Throughout the yellow pages you should be able to find more information about finding foreclosure assistance in the area which you reside in.

Another great resource for locating information about getting assistance with your foreclosure is right at your local library. Visiting the library regularly is a really good idea anyway because it is a good way to get access to new reading material, books and information, plus the internet, inexpensively. Let’s face it, everyone has to tighten their belts nowadays.

In the library you will have the opportunity to find many different resources about foreclosure assistance that could be very helpful to you. There will be advice in the self help section on budgeting, better money management, asset management, and even investing, which could be very beneficial for anyone in need of better financial advice.

But your first priority should always be to make sure you don’t end up homeless. No one wants that, certainly not the bank. They want the nice tidy income from the interest you keep paying them every month, which over 25 years adds up to a fair amount of money!

So, if you are in need of foreclosure assistance, put aside your pride and ask for help. Better to do it at the first sign of trouble and be prepared, than to hope things will get better and in the process make your situation worse.

Learning how to manage your money more efficiently will definitely be your first step in order to see how you can avoid foreclosure and make sure that you don’t ever get behind on your important monthly bills.  A good budget can also help you if you want to go to the bank with a plan on how you are going to make up the missed payment/s

It does not matter which resources you choose to gather your information from on foreclosure as long as it is current, reliable and trustworthy. Take the time to do the research you need on foreclosure and how to prevent it.  Take time to write out your budget.

Above all, come up with a realistic financial plan you can live with. You might not have the glamorous lifestyle you once had, but a few sacrifices here and there will be worth it if you get to keep the home you have invested time and money in, and can stop foreclosure before it ever happens.

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The Threat Of Foreclosure Is On The Rise, Part 3

Continued from Part 2

Foreclosures are definitely going to keep on rising, even with attempts by the government to bail out this situation. The biggest disaster would be if banks failed as a result of this foreclosure fiasco. Bear Stearns already collapsed under the weight of bad debt from houses that had to go through foreclosure proceedings. Most banks profits are at a standstill, or a 90% drop since last year.

Foreclosure is happening all over the United States and that is why it is so vital that you try to learn more about ways to prevent foreclosure from happening to you and your family. You should never take the loss of your home and major investment lightly. If you are buying a home in this rock-bottom market, make sure you factor foreclosure into your equation.

Careful forward planning will remove a lot of your financial worries and anxiety over owning a home, and given the economy going into recession, we should all definitely be trying to come up with some plans to help manage our bills each month and possibly even save ourselves some extra money. Put the plastic away, brown bag it for lunch every day, cut down on takeaway, or lattes.

Your home is the most important thing you own, but you don’t own it until you’ve paid every last cent on it. So you need to protect your investment in that home and avoid foreclosure. Stick to your budget and pay down debt, then remain debt free. Check your terms on your mortgage and find out if there are any penalties for early repayment (this might seem silly to you, but that is how the banks make their money, from all the interest you pay on the loan!) If there is no penalty, then go for it.

Even an extra $10 a month will help if it is the difference between being in debt for ages (think those minimum payments on your credit cards-again, they are making all their money from the interest you pay!) and getting out of debt as rapidly as possible.

If there is a penalty, once you are debt free, save that money in an interest bearing account, and start looking at safe short term investment opportunities, such as treasury bills, to keep growing your nest egg.

You might find that using these strategies, you can not only avoid foreclosure, you will be on the road to better asset management and true financial freedom.

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The Threat Of Foreclosure Is On The Rise, Part 2

Foreclosure notices are being sent out left and right at the moment, and many families are being faced with the stark reality check of knowing that they just can not afford their home any longer–or won’t be able to if they don’t start acting now to get themselves out of the red hole of debt.

The important thing is to educate yourself, and realize there is no quick fix for the problems which have probably been accumulating over time.

The other thing you should realize is the sacrifices will be worth it in the long run if you are just patient. The first thing you need to do is make sure that you do not render yourself homeless. You must also have enough to meet your utility bills and foods. Those are the basics.

Anything else is totally optional, and only if it is within some sort of sensible budget. A car may be essential for getting to and from work, or if you live in an area where there really is no public transportation. The high price of gas and home heating oil has really hit us hard in the past couple of years, so you are not alone in your struggles, and there are plans from various oil companies that can help.

Don’t be afraid to ask for help, or too proud. If your financial woes have come about as a result of illness, what payment plan options do you have for your medical bills, medications, and so on. Many of the big pharmaceutical companies have assistance programs, and many chain stores carry generics, some of which are prices at only $4. They are buying in bulk, and pass the savings along to you.

You can go to the library and look up all sorts of information for free in books, magazines, and on the internet. There are lots of non-profits that help with issues to do with money management and coping with financial problems. It may be hard to know where to start, but often just looking for the answer to one question will open you up to all sorts of possibilities so you can get yourself back on track financial and avoid foreclosure.

Start thinking of different things that you could do as a family to try to save yourselves a little bit of money here and there, because it not only all adds up in the short term, at the end of 6 months or a year, you will be very surprised to see just how much money you were actually able to save, or to use to pay down debt.

If you have far too many credit cards, consider talking to the lender yourself to explain your situation and ask if you can have a lower APR. You have probably seen loads of offers for 0% APR. So it is in their interests to keep you rather than let you go off to the other lender, so there is room for compromise. If things are looking so bad that you can barely make the minimum payments on your cards each month, consider a non-profit debt management service. They negotiate for the best APR and basically give you a pay down plan.

Let’s face it, it is ridiculous to save for your kid’s college education if you are swimming in debt. So get your budget in order, and above all, draw up a plan to prevent foreclosure which you can show to the bank or mortgage company. Look at all the real life examples at America’s Debt Diet of how people who looked as though they might lose everything, house, equity and investment in the house, and good credit rating, were able to haul themselves back from the brink by making financial management their second or even third full time job.

You do have the ability to make things better for yourself and for your family if you educate yourself, but it is a tough economy and things might just get worse before they get better. The only sure thing is that nothing is going to improve without some hard work and determination. Even if you don’t think you are at risk of foreclosure at the moment, educate yourself now. Draw up contingency plans as to what you would do if you were ever to lose your job, or become ill, and not be able to make your mortgage payments on time.

Learn more in : The Threat Of Foreclosure Is On The Rise Part 3

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The Threat Of Foreclosure Is On The Rise, Part 1

Even though interests rates are not really that high at the moment, the purchasing of homes all around has definitely taken a downward slide.

There are so many people that never have had the opportunity to experience the great joy of getting to purchase their own home, while still others have seen their dream become a nightmare in recent months.

Paying rent on homes throughout the years seems like a huge waste of money, when it could be going toward building equity in a home. Investing in a home in the hopes that the value will go up.

But since our economy has gotten so bad lately, it is difficult enough to even keep food on the table, let alone make those large monthly payments. The government has brought the interest rates down, but if you were on a fixed rate mortgage, chances are that has not really helped you.

The threat of foreclosure is extremely stressful, but don’t get paralyzed like a deer in the headlights. It is really important to talk to someone about your foreclosure situation before it gets out of hand.

In this article we will talk about the threat of foreclosure that has definitely been rising throughout the country. While it is absolutely unbelievable just how difficult these times have gotten for many, it IS possible to do something about it if you are willing to take action.

With our lives being so full of stress as it is, thinking about the possibilities of possibly losing your home through foreclosure can seem overwhelming.

If you find that you are struggling just to make ends meet then perhaps you need to think about making some changes in your life that might make it possible for you to cut down on expenses and make your mortgage payments more manageable.

Read more in: The Threat Of Foreclosure Is On The Rise Part 2

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Why Probate is Better Than Foreclosure

If you are trying to make a profit in the business of foreclosures, you have probably found out how hard it is. It seems as if the market is flooded with people who are working to get a piece of that market. In many areas, this task is almost impossible, even for the most hard-working.

When you work in foreclosures, you often have to deal with sellers who are desperately unhappy. They do not really want to sell to you, and may view you as a vulture, preying upon their misery in a time when they are losing property they may still want.

The people in foreclosure are often losing their homes, the very roof over their heads. Can we blame them if they sometimes get irritated or downright nasty during the proceedings?

In probate, the situation is very different. The sellers in probate are usually eager to sell, and the house in question is probably not their primary residence. You are dealing with people who are motivated to sell and to be cooperative, not highly stressed people just trying to “get through” a bad time in their lives. It makes a huge difference in the way they will deal with you.

Many heirs are actually very eager to sell to you so they can quickly settle the estate. A friend of mine recently lost his mother and he inherited her house. During the next few weeks, he was required to travel back and forth, about 50 miles each way, to deal with the various legalities and hassles of property ownership.

My friend confided in me that if someone would just offer him a reasonable price for the house, he would probably take it. He even said that he would not dicker too much over the offer, because he would just want to complete the deal quickly and easily and liquidate the asset.

When someone you love dies, you not only inherit all of their property, but also all of their problems too. No one who is going through the grieving process for a loved one wants to take on a very large project at the same time. If you can offer these people a simple and fast solution of “What to do with Mother’s house,” they will take it, so probate is ideal.

Also, often after the estate goes through probate, several siblings or relatives will inherit jointly, which can cause all types of problems. Maybe the siblings live in different places or do not get along. Getting rid of property you own but do not live close to is sometimes difficult.

In most of these types of cases, none of the parties involved want the property, so they don’t want to buy each other out. Instead, they just want to split the money from the sale of the property. This fact is especially true if there are outstanding debts against the property, and also if they are going to have to pay a lot of inheritance tax on it, but can’t actually get at any cash. This is where you can step in to supply the heirs with a solution to what can be a difficult problem.

Another factor can come into play with this situation. Many senior citizens, 65 years or older, defer their property taxes until after their death in what is called a “senior deferral.” Once the senior citizen passes away, these taxes come due.

If the heirs to the estate inherit the property, they also inherit the past due taxes. Most people just want to get these taxes paid as quickly as possible, so that they can pay them and any other outstanding debts to the estate, and then see what is left over. They are eager to sell and resolve the matter, and pay off the hefty tax bill.

In conclusion, probate is better that foreclosure. The market is easier to work in because fewer people are buying in the probate market, and the sellers are more eager to sell to you. It’s much better to buy from people who are looking at you as a hero rather than a vulture swooping down to pick over their carcass and rob them of their home.

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