Mike West--Foreclosure Stopper

How Do I Avoid Foreclosure - Part 7

Thu, 03 Dec 2009 18:03:12 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 7

This is the seventh in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

We continue the discussion of various options that a distressed homeowner may have. Some of these options only apply to homeowners in very specific situations and will not apply to most; however, if you meet the criteria you should take advantage of any opportunity that presents itself.

Bankruptcy

This option will stop the foreclosure for a period of time but may only delay the process. Anyone considering this option should consult an attorney who specializes in Bankruptcy. Be careful to select one who has a good reputation. Call if you need a referral.

There are several kinds of bankruptcy. Chapter 7 Bankruptcy is a process to liquidate your assets. Chapter 13 allows you to restructure your debt. You may have 3 -5 years to catch up on your delinquent accounts.

I major drawback is that you will find it difficult to sell your property during the bankruptcy process. You will have to get the trustee’s approval to do so. Also, if the homeowner is not able to make all of their payments after the bankruptcy the home will foreclose anyway. All of the time and effort will have been wasted.

Note that a bankruptcy has an impact on your credit similar to that of a foreclosure. Loan applications always ask in you have filed for bankruptcy, so there is a long lasting effect on your ability to buy on credit.

Short Sale

When a homeowner owes more on their home than it is worth and none of the other options listed in this and previous postings in this series do not apply, the Short Sale option may.

In order to qualify for a Short Sale the homeowner must have a financial hardship that is acceptable to the lien holder. Major loss of income, loss of a job, major medical, death in the family are some of the hardships that lien holder may accept.

As a result of the financial hardship, the homeowner must have a monthly short fall--more month than money.

And Finally, the homeowner must be insolvent. They can not have significant liquid assets that would allow them to pay their loan shortfall and expect the lien holder to forgive a portion of their loan commitment.

When a homeowner meets the lien holder criteria there is a strong possibility that a short sale will be approved. The process takes time, a lot of documentation supporting the hardship, shortfall and insolvency; and a lot of work. A majority of Realtors avoid short sales because of the amount of work involved and uncertainty that they will be approved.

There is also a strong possibility that the homeowner will owe taxes on the portion of the loan that is forgiven. Not every attempt at a short sale is successful. Each case is different and has to be examined in detail by a professional who specializes in helping homeowners avoid foreclosure.

Those who do complete am approved short sale are able to purchase another home after two years. The hit to their credit is not nearly as damaging as is a foreclosure or bankruptcy. Loan applications do not ask if you have completed an approved short sale. Long term this option is far superior to many of the others listed.

Here are links to a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss other options people may use to avoid foreclosure. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How Do I avoid Foreclosure - Part 6

Tue, 01 Dec 2009 17:26:09 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 6

This is the sixth in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

Short-Refi

This is a relatively new option in which the lender may reduce either the principal on the loan and the monthly payment. The qualification process is demanding and not all lenders will consider it. It does show how far some lenders are willing to go to avoid foreclosure. Make sure you have all of your documents in order and ready to submit. Naturally, you will have to show on paper that you can meet the commitment on the new loan.

Deed-in-Lieu of Foreclosure

Known as a friendly foreclosure, in this option the borrower surrenders the deed to the property in exchange for a commitment from the lender not to pursue any further action against the borrower. This usually only works when there is only one loan on the property. If the owner has any equity in the property it is not a recommended course of action.

The advantage to the lender is that they do not have to incur the cost of foreclosure. Some lenders require that the borrower be up to date on their payments in order to qualify.

Here are links to a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss other options people may use to avoid foreclosure. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How Do I avoid Foreclosure - Part 5

Mon, 30 Nov 2009 15:53:36 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 5

This is the fifth in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

Refinance

This option may work if you can meet two critical criteria. First, you have to have sufficient equity in the property to be able to qualify for a refinance. In this market that usually means at least ten percent of the current market value. Lenders would like to see more. Second, your credit can not have been too badly damaged. Missed mortgage payments have a major impact on credit scores.

Few refinances result in a reduction in the monthly payment and/or a reduction in principal. Even if you do meet the two primary requirements, unless you have a chunk of cash to contribute to reduce the principal, higher payments will be the most likely result.

Also, unless the underlying hardship has been resolved, you may still have difficulty making the revised mortgage payment.

Mortgage Modification

Homeowners who can prove that they can come close to affording their monthly mortgage payment may qualify for a loan modification. Lenders are sometimes willing to change the terms of a loan if the modification will keep the loan producing. The most common form of modification is an interest rate and payment reduction for a period of time, usually one to five years. At the end of the adjusted period the terms revert back to those originally set. Any short fall that the lender takes during the adjustment period is usually added to the principal. So in effect, the payments are reduced for a period of time and the term of the loan is extended to allow the borrower to repay the loan in full.

There are very few instances in which the lender reduces the principal balance. The borrower signed a commitment to pay the loan balance and the lender expects payment in full.

Lenders are very cautious when considering loan modifications and will require extensive documentation as proof that the borrower will be able to meet the entire commitment of the modification.

A note of caution to those considering a loan modification. Loan modification fraud is rampant in the marketplace. Exercise great care before you pay any individual or organization to represent you in an attempt to modify your existent mortgage. Those asking for payment in advance should be scrutinized even more carefully. The California Department of Real Estate publishes a list of individuals and organizations that are suspected of fraudulent activities and the California State Bar has published a list of attorneys who have crossed the ethics line. Dealing with individuals and organizations outside of California is even more dangerous. The link to the HUD web site below should be helpful.

Here are links to a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss other options people may use to avoid foreclosure. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How Do I avoid Foreclosure - Part 4

Wed, 25 Nov 2009 14:09:28 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 4

This is the fourth in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

Rent the Property

This is an option that will work if you can rent the property to a tenant who can meet their rental commitment long term. The danger in an economy with over 10% unemployment and 26% underemployment is that the tenant can lose their job or take a pay cut in order to keep their job. If that happens, the rent checks are likely to stop coming in while the mortgage payments are still due each month.

Over 40% of home in foreclosure were not owner occupied, meaning that they were rentals or vacation properties. When the rent checks stopped coming in the owners could not continue to make their payments and lost the property to foreclosure. The F word has a major impact on their ability to buy anything on credit for seven to ten years.

The issue of cash flow is also important. Not all homes will rent for enough to cover the mortgage, taxes, insurance and upkeep. Many landlords try to cover the mortgage payment with rental income and have to cover some or all of the taxes, insurance and upkeep with income from other sources; a difficult thing for most of us to be able to do long term.

Refinance

This option becomes increasingly more difficult as housing values decline. A few years ago, when home prices were increasing in leaps and bounds 100% financing was easy to obtain. Today, lenders want to see some equity in the property before they will even consider a loan. Lenders want to see an 80% loan-to-value ratio; that is to say, that they will loan up to 80% of the current market value on a property if all other factors are acceptable. Some will consider going up to 90% of current market value in rare circumstances, but they will charge higher interest rates. It is the risk/reward issue. The higher the risk, the greater the reward to the investor.

Unless you have an equity position of 20% or more given the present market value of your property, refinancing will be very difficult at best.

If your equity position is less than 10% it is not an option.

Here are links to a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss other options people may use to avoid foreclosure. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How do I avoid foreclosure- Part 3

Tue, 24 Nov 2009 19:17:54 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 3

This is the third in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

Forbearance or Repayment Plan

The reinstatement option discussed (in post # 2) in this series is limited to those very few who, after going in to default, can come up with a large, lump sum cash payment to get their loan back on track.

This option is likely to work for a larger number of distressed homeowners. The hardship causing the borrower to miss one or more payments must be resolved. The borrower must be able to prove that they have the income to continue to make the required payments.

The borrower must make up all of their missed payments, pay late fees and any other fees the lien holder charges. However, in this option, rather than making a lump sum payment they ask the lien holder to allow monthly payments of the total reinstatement balance, usually three to twelve.

Naturally, the lien holder must approve this option. Bear in mind that these payments will be in addition to the regular monthly payments.

So, for the time it takes to repay the reinstatement balance the total monthly payments will be very large.

The danger here is that if only one of the payments is missed, or not paid completely, the borrower goes right back to the same stage of the foreclosure process where they were when they started to make the forbearance payments.

This is difficult for most borrowers, but some use this option successfully to avoid foreclosure.

Sell The Property

This option was probably in the back of many borrower’s minds as an exit strategy if they got into trouble, when they really did the financial stretch to buy their dream home. It can still work IF conditions are right.

In order to sell the property the current market value of the property has to me high enough for the seller to satisfy all liens against the property, plus commissions and all closing costs. Today few will qualify.

Here are links to a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss other options people may use to avoid foreclosure. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How Do I Avoid Foreclosure - Part 2

Mon, 23 Nov 2009 15:36:47 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 2

This is the second in a series of posts designed to be a step-by-step directory for distressed homeowners to use to try an avoid foreclosure.

We will discuss the various options that distressed homeowners have. Some of these options only apply to homeowners in very specific situations and will not apply to most; however, if they apply to you should take advantage of any opportunity the presents itself.

Reinstatement

If the reason the borrower missed one or even a few payments was temporary and has been resolved, they may decide to have their mortgage reinstated. In order to get back on track the borrower must make all of their missed payments, pay late fees and any other fees the lien holder charges.

The borrower should contact their lien holder, explain the nature of their situation and request specific information about what is require to get back on track. Expect there to be legal and processing fees on top of the late fees.

The late payments will be reported on your credit report, but those are not nearly as damaging as a foreclosure will be. After two years lenders do not consider “mortgage lates” when deciding to extend you credit.

Once you make the necessary payment you will have avoided the foreclosure. The collection calls will stop and you can get on with your life.

Service members Civil Relief Act (SCRA)

In December of 2003, this Act was signed into law. It provides protection for military personnel in specific situations. It is designed to provide temporary relief from paying a mortgage if the criteria are met.

For specific information you can go to:

http://www.USCG.mil/legal/la/topics/sscra/abput_the_sscra.htm

It is appropriate that those in the military are afforded some kind of protection while they are defending our country.

Here are a few web sites with helpful information for less specific situations:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss options to provide the information people need to make an informed decision. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

How Do I Avoid Foreclosure-A step By Step Process

Fri, 20 Nov 2009 17:18:25 GMT

How Do I Avoid Foreclosure:

A step by step process for distressed homeowners.

Part 1

“O.K., I’m in trouble, real financial trouble. Due to circumstances beyond my control I can’t pay my bills. The mortgage is due and I can’t come close to covering the payment. What can I do”?

Unfortunately this scenario is playing out with thousands of home owners in our country today. In fact, one in ten mortgages throughout the country are in trouble with even more headed in that direction.

Unemployment is at 10.2% and underemployment is at 20% in California. Many of the wild west mortgages of the past few years are due to adjust, making the payments impossible to make for an ever growing number of borrowers.

Homeowners need help in the form of information and education. Unfortunately, this is such an emotionally devastating situation many people shut down and do nothing. The cold hard truth is that doing nothing is a sure fire formula for losing their home to foreclosure.

And foreclosure is not just a one time event. Once a foreclosure is on you credit record it stays there for seven to ten years, making it difficult to obtain any kind of financing (home, auto, credit card, store card). Those in this situation that do obtain credit are looking at interest rates well into the double digits. People should do EVERYTHING POSSIBLE to avoid foreclosure.

We have to get the word out family, friends and neighbors that there are options available to them to increase their chances of avoiding foreclosure. The thing is that they have to take action.

There are many organizations available and willing to help without charging a fee. Unfortunately, there are also far too many who will take advantage: fraud is rampant.

The bottom line is that the distressed homeowner has to take action and be careful not to let an individual or organization taken advantage of them.

Contacting the lien holder and discussing your situation honestly is absolutely necessary. However, before doing that there are a few steps to take first.

Take some time to learn what all your options are first. This information is available in many places.

Here are a few web sites:

http://portal.hud.gov/portal/page/portal/hud/topics/avoiding_foreclosure

http://www.ForeclosureStopper.org

http://www.CDPE.com

In future posts we will discuss these options to provide the information people need to make an informed decision. Those posts will be coming soon.

Feel free to contact Mike West, Realtor, CDPE if you have any questions or need help.

(916) 337-0658 e-mail: Mike@BMikeWest.com

Fannie Mae Deed-for-Lease Program

Thu, 19 Nov 2009 17:02:24 GMT

HOW TO AVOID FORECLOSURE

Fannie Mae Deed-for-Lease Program

Fannie Mae has come out with another option to help distressed home owners avoid foreclosure Any program that will help is worth looking at. The program guidelines are very specific and not everyone will qualify.

It is a variation of the deed-in-lieu process, through which the homeowner/borrower gives the lien holder the deed to the property in lieu of foreclosure. The lien holder becomes the owner of the property and the distressed homeowner who meets the guidelines remains in the home as a tenant.

The borrower must have sufficient income to qualify to pay the market rent for the property. The cap is 31% of the borrower(s) gross income. So a family with a $ 2000 per month gross income can only qualify for a $ 620 monthly rent payment. The borrower must submit proof of income.
The borrower must continue to occupy the property. They can not initiate the program, move out and sublet to another party.
The property must be kept in good condition.

This program was announced on November 5, 2009, and not many loan servicers have embraced it at this writing. The guidelines will not allow many to qualify, but is an option for those who do.

For more information go to:

http://www.fanniemae.com/newsreleases/2009/4844.jhtml

If you have further questions feel free to contact Mike West:

(916) 337-0658

http://www.ForeclosureStopper.ORG

The Truth About Mortgage Modifications

Mon, 02 Nov 2009 08:23:34 GMT

The Truth About Mortgage Modifications

The decisions you make as a homeowner today hold a profound impact on your financial future. However, it is important to safeguard yourself from misinformation and fraud. Get the facts regarding your situation and always have a contingency plan.

For those who qualify, a mortgage modification is the ideal remedy to their financial distress. I’ve prepared a FREE report on the truth about mortgage modifications to guide you through this important process. Simply provide your information below to get this valuable information, and feel free to pass it along to anyone who may need it. One homeowner lost to foreclosure is one too many!

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Together, we can formulate a plan to get back on track.

If you have any unanswered questions, or your circumstances are urgent, please call me today.

Mike West
916 337-0658

Short Sale & Deed-In-Lieu

Contrary to what you may have heard, lenders actually want to avoid foreclosure wherever possible. That’s why they’re accepting more short sale and deed-in-lieu transactions everyday in an effort to eliminate unnecessary foreclosures. This is great news for homeowners facing financial distress.

To help you understand more about these two options, I’ve prepared a free report just for you, called ‘Short Sale & Deed-in-Lieu: Dignified Solutions.’ To receive your free report, please provide your information in the fields below.

I hope you’ll review these options carefully and pass this information along to those who may need it. I commend your efforts to finding a solution to the difficult financial situation that you or someone you know is currently facing. Providing the best advice and information in your time of need is my priority.

Let me help you evaluate your options and get you back on track to a secure financial future.

Avoiding Mortgage Modification Fraud

I Am An Agent Against Mortgage Fraud!

The last thing struggling homeowners need is to be victimized by fraud. Sadly, some people are preying on those who need help the most. Today, the real estate industry is the newest, biggest target for predatory schemes. In fact, the U.S. Attorney General, Eric Holder, stated that mortgage fraud cases are 400 percent higher than they were five years ago.

With nearly 1 in 6 homeowners unable to pay their mortgages, understand that you are not alone. Knowing your legitimate foreclosure-avoidance options is the best way to fight this terrible trend.

The report on this site will tell you how to avoid mortgage fraud schemes, as well as what solutions are available to you. Enter your information below and get the facts now!

Options and Solutions

Thank you for visiting our site and taking the first step toward finding answers. We appreciate what it has taken for you to come here, and commend your efforts to get the facts about your situation. The current real estate environment can be frustrating, with misinformation and conflicting plans for how to proceed.

As a real estate agent, what I often see in troubled homeowners is a belief that they are alone with their challenges. Regrettably, over 70% of homeowners in foreclosure proceed without ANY visible assistance. This is not acceptable for the communities I serve.

That's why I've developed this site: to ensure you get the valuable resources that can reduce your financial strain and change your life for the better. As a CDPE I know the options for homeowners in foreclosure or delinquent on their mortgages, and I can send you a report detailing this information, prepared just for you.

Simply enter your information below and click "Send." I hope that you will review this information carefully, so that your next steps are the right steps toward a real solution.

Let me help you evaluate your options and get back on track to a solid, stable future.

Foreclosure Vs. Short Sale

As a Certified Distressed Property Expert, I have devoted my career to helping homeowners who face difficult situations, taking them from uncertainty to resolution. Lately I've found a lot of conflicting information going around, especially concerning short sales, which you should know about.

A short sale occurs when a lender accepts the selling price of a home, even if it is less than the full amount owed on the mortgage. For particular homeowners, this can be the best option to foreclosure. Yet, I still hear people suggest that short sales are basically the same as foreclosure.

This is absolutely wrong!

You need to have the CORRECT information. That’s why I'm glad you're here. To help, I’ve prepared a free report—just for you—that compares the realities of foreclosures and short sales side-by-side. Simply provide your information below, and I'll send you this report.

If you have any additional concerns about this issue, or your circumstances are urgent, please feel free to give me a call. I can help you evaluate your options and get you back on track to a secure financial future.

Mike West 916 337-0658

7 Short Sale Myths

There are millions of homeowners just like you who are looking for answers and don’t know what to do. You’re not alone and you’re in the right place.

As a Certified Distressed Property Expert, I have training and experience in providing solutions to homeowners facing financial hardship. Despite my best efforts, there’s still an overwhelming amount of misinformation about the options available, especially short sales.

To give you a better idea of the short sale option, and to set straight some of the myths you may have heard, I’ve prepared a free report just for you - please fill out the information below to receive your free report. This report will clarify the following myths:

The Bank Would Rather Foreclose Than Bother With A Short Sale
You Must Be Behind On Your Mortgage To Negotiate A Short Sale
There Is Not Enough Time To Negotiate A Short Sale Before My Foreclosure
Listing My Home As A Short Sale Is An Embarrassment
Short Sales Are Impossible And Never Get Approved
Banks Are Waiting On A Bailout And Not Accepting Short Sales
Buyers Are Not Interested In Short Sale Properties

These ideas are potentially harmful to homeowners seeking real solutions. I hope you’ll review this information for yourself or share it with a homeowner in need.

In these times, we all need to know the truth to know how to get back on track.

If you have any additional concerns about this issue, or your circumstances are urgent, please give me a call.

Mike West
916 337-0658

Your First Steps To Avoid Foreclosure

Your First Steps

In today’s market, 1 in 7 homeowners is having trouble paying the mortgage. More than 70% of these homeowners proceed without seeking assistance or getting the facts. Many do not even realize that foreclosure is a process, and that there is time to make decisions that may result in a better outcome.

You are not alone. Millions of other homeowners nationwide are facing the same challenges. To assist you, I’ve prepared a free report outlining the first steps a homeowner should take when facing a foreclosure.

Fill out your information below for this free report. There is NO COST for this information! Don’t hesitate. Get back on track today!

Strategic Defaults are NOT Strategic

Walking Away Is NOT The Answer

You may have heard that a “strategic default” can be an appropriate and even beneficial reaction to an upside-down mortgage or impending foreclosure. While this idea is widespread, the truth is that default is never an easy road to choose, and rarely ever strategic.

Unfortunately, the ramifications of a “strategic default” are rarely explained, leaving many homeowners stranded on an island of misinformation. To assist you, I’ve prepared a free report outlining the myths and misrepresentations of strategic defaults.

Fill out your information below for this free report. Don’t hesitate. Get the facts today!