Foreclosure Woes

If your mortgage is at a very large bank, you have made a mistake! Trying to work out a solution to your deficiency is very complicated and the service is lousy. Your foreclosure woes have begun!

A friend was delinquent with her mortgage payments. She had owned her property for 37 years. The bank filed the papers to put the property in receivership (foreclosure action) to the bank. The friend immediately phoned the bank to see if there was anything she could do. She worked out a plan with the bank to reduce her payments and followed through for 13 months of on-time, full, adjusted payments. When she attempted to make the 14th payment, the bank returned it.

One day, she received a notice that her home was scheduled for a “Sheriff’s Sale.” Puzzled by the notice, she immediately phoned the bank and was told that they did not need to file any more legal papers, since they had previously filed the necessary papers (before she made the arrangements) and the application for Obama mortgage assistance had been rejected. What this means is that the deficit, the difference between payments under existing mortgage and the adjusted payments while the Obama mortgage assistance modification application was awaiting approval or rejection, was due in full when the application was rejected. Example: Payment under existing mortgage, $1100; payment under Obama mortgage assistance, $700. Rejection would mean $400 X 13 or $5,200 would be due immediately and there could be fees attached. During the 13 months, no statement showing her account was ever provided by the bank. She was advised that when a mortgage is in default, the bank has no legal obligation to provide a statement of the account.

The bank purchased the property at the “Sheriff’s Sale”. Did you know that following a “Sheriff’s Sale” and confirmation of the sale, the bank (buyer) only must give you 48 hours to vacate? Furthermore, you will have all these strangers entering your property to complete various tasks on behalf of the lender/buyer (the bank).

People all around me are losing their homes due to foreclosure. It is almost a repeat of the Great Depression. The exception is that in the Great Depression, saved money placed with banks was also lost. Today, bank accounts are insured by the FDIC.

What brought this dilemma on? My thoughts on this are that credit was “too easy”! On the lender side, banks and mortgage companies were willing to be liable for too much mortgage. On the buyer side, a lack of concern and understanding of how much debt was being taken on. No one planned on losing a job or other circumstances, not being able to meet those mortgage payments. You always want the lowest payment possible at the lowest interest rate. I personally experienced this. When times are tough, you need to work closely with your lender. In 1946, a family member, who owned with a mortgage loan, sometimes only made the interest payment of the mortgage due to hardship. They did not lose their property but many years later, paid it off. Could this be a solution to the present day foreclosure woes?

The Obama Making Home Affordable program (loan modification program) is a complete disaster. Those who really need the help are not getting it. A recent conversation with my banker revealed the seminars attended by the financial employees of mortgage lending institutions left them with a big blank trying to understand what the heck it is supposed to do. The mortgage lending firms are less than helpful to the customers who have or will be very shortly losing their homes. One application was returned reject because the owner’s income was too low. Isn’t that what a loan modification should be considering when reviewing need? Very few people have been approved under the Making Home Affordable program.

If you are having a problem making your mortgage loan payments, the best thing you can do is visit your lender in person and suggest that maybe you could just pay the interest on the loan for a period of time.

Obviously, not being able to pay your mortgage payment is a very serious situation and should be avoided at all costs, even to the point of putting the property up for sale. You will not see a penny of your equity should you allow your lender to foreclose. It is also very important that your mortgage lender is local.

5 Ways to Stop Foreclosure Immediately – Don’t Let the Bank Destroy Your Family

There are various ways to stop foreclosure immediately, but the most common way homeowners can prevent foreclosure is by using the loan modification process. During this time of financial unrest, getting out of a bad financial situation is not really unheard of. Families today have options and lenders are willing to work with your family to keep you in your home. The following ideas could help keep the stress off your shoulders and the creditors and loan collectors off your back.

1: Refinance your original loan. Money lenders will consider foreclosure refinance loans if they feel you will not neglect making payments to them. Qualifying for refinancing is tough and the requirements are strict. The requirements include equity from your home and a steady income. Although the payments may turn out to be higher some homeowners prefer to start off fresh and use refinance as one of the ways to stop foreclosure of their family home. But let’s face it; there has to be an easier way.

2: Selling to a relative or close friend to prevent foreclosure may be your only way out temporarily. You will be out of your financial situation and be able to have them carry you for a while until you land back on your feet. You can lease or rent back the property from them until you are financially able to buy the property back. But if you don’t feel safe or trusting with the people you’ll be working with; this option may turn into a way for family or friend to make a quick profit selling your home at a reduced rate.

3: Try bankruptcy to stop a foreclosure in progress, but this can become an expensive alternative. The amount of payments which need to be made to satisfy the creditors and bankruptcy costs make this an option for those who have a large amount of disposable income. Let’s face it if disposable income is available your family wouldn’t be in this situation.

4: One of the easiest ways to stop foreclosure immediately is to sell the property outright before the foreclosure has time to proceed. If you can get enough for your home paying off your debt in time will stop the foreclosure from proceeding but will leave your family looking for a new place to live.

5: Work with an online loan modification service to prevent or stop a foreclosure from going through. This type of service will work with your lender to help rework your arrangement in order for your family to keep their home. The banks would prefer to get paid and not have to deal with trying to sell your home. This option will at the very least help you to repair your credit and hopefully prepare you to purchase another home in the future.

100% Free Foreclosure Listings Are Available

One hundred percent free foreclosure listings are available in certain places if you look hard enough. What you will likely find if you are looking for foreclosed properties is that the state of Nevada currently has the highest percentage of foreclosures in the nation. Of course you may only find that if you are interested in deeper economic questions and the variables that caused the foreclosure crisis within many states, counties and municipalities. As you can surmise by looking at some of the free listings. Many of the foreclosures that happened in Clark County, Nevada were probably caused by a downturn in the casino world. The gambling empire’s struggles were not just felt by giants like Steve Wynn and Sheldon Adelson they were felt by everyone who worked in the casinos-from the dancers to the card dealers to the janitors.

Because of the high cost of Las Vegas real estate along with the general high costs involved with simply living there, you tend to see some very prices within the two hundred and three hundred thousand dollar price range. It was because of prices like these in this tough housing market that many of these houses ended up on the free foreclosure list. The reason some of these houses in Vegas went into foreclosure was because they happen to be right near the strip where property taxes and uptake costs tend to skyrocket. Many workers who were fairly well paid as members of many different unions got laid off and they couldn’t maintain the house payments. That is how these homes ended up on the free foreclosure list.

Within many of these free search engines you will be able to locate school information about academic institutions near these foreclosed homes. This is of course good if you are looking to buy a home and you happen to have children. Believe it or not within these free search engine results for foreclosed properties you can also run a credit check upon yourself. This is important so you don’t end up in the same situation as the person who had the home foreclosed upon them.

Condo Foreclosures Stalk the Land

“Foreclosures are the top subject in the economic news today. Will it affect my condominium association too? What can be done?”

 

Foreclosures stalk condo owners like a predator looking for his prey. They are at an all time high in over 20 years, especially in the big cities.  They are evenly split between builders going out of business and buyers that bite off more than they can chew. With owners’ financial houses in complete disarray due to general economic conditions or loss of income, condo foreclosures are becoming a fact of life. This is more common than most would have you believe.

 

Foreclosures on condominiums occur when the current homeowner fails to make his mortgage payment, and the unit is being sold by the bank or lending institution at below market value. It is a devastating situation if you are in the position of having a condo repossessed or foreclosed upon. There is no choice for the bank or mortgage lender to get some money back through foreclosure because of the lack of payment by the owner. In some situations, the bank or lender will allow someone else to make the payments, which gives that person the right to move into the condominium. 

 

When too many condominium owners lose their units to foreclosure, condo associations feel the financial pain. That is bad news for homeowners who depend on them to take care of building maintenance, property insurance, utilities, landscaping, and other amenities that are shared in common.

 

Condominium associations do have options, but most of them are not that palatable to the owners. Boards of Directors can borrow money from a bank, borrow money from the association’s reserve, reduce contributions to reserves, cut back on amenities, reassess costs, renegotiate service contracts, delay capital expenditures, increase monthly assessments, and levy special assessments. They can offer payment plans or loans to the owners. They can waive late fees or penalties to help owners catch up on delinquencies. Some condominium associations are assessing anywhere from $10,000 to $30,000 per unit to make up for the shortfall.

 

There are some actions an association cannot take. They cannot abandon their fiduciary responsibility just because the funds are inadequate, and they cannot abandon the effort to collect delinquencies.

 

Once the condominium association forecloses, the owner typically will stop paying the mortgage and the bank or lender may be willing to accept a deed to the property from the association in lieu of a bank foreclosure. That could result in a faster sale of the unit to a new owner. Obviously, the number one priority is to get someone in the unit who has the money to pay the assessments.

Times have changed. Foreclosure stalkers (politely called investors) are not showing up in bunches at foreclosure auctions to snap up great bargains. We always used to hear about the great times when condominium properties were sold with profit to interested buyers and the associations recovered all their money, plus making a profit that financed the new landscaping at the front gate. Those times are gone!