Archive for the ‘Home Foreclosure’ Category
News of the real estate market still getting worse.
According to an analysis by the firm RealtyTrac, the number of homes that entered foreclosure in 2007 rose 75 percent compared to last year, surpassing more than 1.2 million properties. This year we expect another large increase. A property goes into foreclosure when the owners who took a loan (or two) to buy the house they stop paying their dues and the lender begins legal proceedings to recover their money.
The process is long, complicated and expensive for the family that lost property and for the bank. Neither wants to go through this. But most families are in arrears with their dues and in danger of falling into foreclosure are not aware that there are several alternatives, according to a recently released study. Nor do they know they have the ability to call your lender and try to negotiate an agreement. If you are in a precarious financial position and are behind in dues, you lose nothing to try to resolve the following steps.
First, get on your situation.
You have to know the name of the company to whom you send the fees, the amount you owe on each mortgage, the interest rate you are paying and whether variable or fixed term of the mortgage, how many months behind you in payments, penalties have been made in how and what was the last contact I had with them. You have copies of all letters you sent. Many people are afraid to open these notifications and ignored. Is it worth losing your house because you are afraid a letter? Of course not! Ignoring the situation is not going to solve.
Second, he understands well what are your options.
The financials are willing to negotiate with you. Some examples are: to reduce or defer fees for a time, to modify loan terms to reach a modest fee, to convert a variable rate to a fixed rate, add late payments to pay principal and so little by little, and much more . Each option has its strengths and weaknesses but can be much better than losing your home and the capital you have invested in it.
Third, ask someone who can advise you well.
Have been many individuals and companies that say they want to help or offer “tactics” to eliminate debts but do not really have the necessary knowledge, or worse, are crooks. They can make matters worse by giving wrong information.
The worst that can happen is that any option to work and still go into foreclosure. But if you had not tried, always have the doubt that perhaps could have solved the problem and did not.
Foreclosure, is the legal process by which a lender takes possession of the house that supports a loan. Typically the house behind a home loan that was used to buy the house. The lender’s intention is not to keep the house, but sell it and use the money generated by the sale to recover the money paid. This year the rate of properties entering foreclosure has exceeded 300,000 each month.
By comparing this with the number of properties whose mortgages have been modified by Home Affordable -50.000 throughout the year, it is clear that hundreds of thousands of families are falling into foreclosure despite the measures taken by the government . A key question that many ask is how long it takes exactly this process of foreclosure.
Foreclosure Timeline
The foreclosure process can be divided into several stages. Each stage takes a different period and varies substantially by state. It is a simple process nor is standard. It is something very complicated and is therefore extremely important that advisers will someone who knows the foreclosure laws in the state where you live.
Here I present a copy foreclosure starting from the day the fee is not sent up. Do not forget that given the huge increase in the number of properties that are going through this process, some steps may take much longer just for the fact that financials can not cope.
Day 1
Reaches the expiration date of your fee and do not send it. You’re late with your monthly payment.
Day 2 to 15
The administrator of your mortgage (loan servicer) in some cases gives a grace period pending the quota.
Day 16 to 30
Having received no payment, a late payment penalty is added to your account.
Day 45 to 60
The administrator of your mortgage sends a letter notifying you that you have violated the terms of your mortgage and give you 30 days to resolve the situation by paying what you owe: arrears plus penalties and interest accrued. This notice is called “breach letter”.
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The ads are seen and heard almost incessantly in Hispanic media: Do not lose your home! Stop paying your mortgage without have to move! Avoid Foreclosure! Declare bankruptcy to discharge his debts! These radio and television ads can convince almost anyone that there are magic solutions to financial problems. But the reality is that many are nothing but fraud, scams and swindles.
Types of fraud related to mortgage modification
The Royal Spanish Academy offers three definitions of a fraud:
1. Action contrary to truth and righteousness, which is detrimental to the person against whom it is committed.
2. Act aimed at circumventing a law against the State or third parties.
3. Offense if the person in charge of monitoring the execution of public contracts, or some private league with the representation of conflicting interests.
These definitions capture well the behavior of people who prey on the desperation of Hispanics with respect to their mortgage. But there is also a fourth category that would add to the definition of fraud in this context: The lack of knowledge. Many people have entered the “business” of the changes they see an opportunity to make money. They have no intent to commit a crime. I really want to ride a legitimate business. But I just do not have the experience or expertise to do a good job.
I consider this a scam too because even though the intention is good, do not have the resources to fulfill their promise.
Signs and clues that modification service is not legitimate
To avoid being a victim, you should be aware of the following signs that the person you wish to advise you may be a scam artist:
Collection of fees in advance
It is never a good idea to pay in advance. In many states like California, it is illegal to charge for services in advance of change. Some promise to refund 100% of what you pay if the end does not receive the change. Others do not charge you for making the change, but they charge you for other “services.” They are tricks. Only pay after you receive the final result of the modification, which can take months.
Promises that can stop foreclosure
This is not possible. If you’re in foreclosure, the process does not stop just because you request a modification. Only the bank can for the process if they want. There are no tricks to cancel a foreclosure.
Do not offer a written agreement
Very bad sign. Always have a written agreement. Read it before signing. If you put pressure to sign it immediately, do not do and look for another consultant. You should get an independent translator to ask you a Spanish translation if you can not read English. If the contract you sign is in English not trust the Spanish translation that gives the advisor. You may be false.
Denying access to information on successful cases
You have the right to call evidence about other people who helped counsel and achieving results. Confidentiality can not give you the name, but they must have information on successful cases. If you do not want to show anything, then think again.
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