Foreclosure

Projected Loss Severity Of A Foreclosure-both 2010 & 2011

Short sales are probably going to be the loss mitigation method of choice.  When you look at the loss severity of a foreclosure, you can see why some other method might be preferable.  Look at the Fitch ratings report here and see for yourself.  This may be useful information when negotiating with the banks and servicer.

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Foreclosure

Minnesota Foreclosure And Distressed Home Fact Sheets PLUS Twin Cities First Time Buyer Special Programs

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Foreclosure

Foreclosure resource page

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Foreclosure

Timeline For Foreclosure – All 50 States

By John C Hanlin

The #1 thing that most real estate investors and homeowners facing foreclosure want to know is: “what is the timeline for foreclosure?” In other words: “how long does it take?” The answer is that the mortgage foreclosure process and timeline varies from state to state. This article provides the information and resources that you will need to find out the foreclosure laws, procedures and timelines for all 50 states.

As mentioned, each state will typically have a different set of rules and a different timeline for foreclosure.

• 20 states utilize only “Judicial” Foreclosures.
• 5 states and the District of Columbia utilize only “Non-Judicial” Foreclosures.
• 25 states utilize both Judicial and Non-Judicial Foreclosures.##

## Of the 25 states utilizing both types of foreclosure, Non-Judicial Foreclosures are more common. In fact, Non-Judicial Foreclosure is the most commonly used form of foreclosure nationally.

I. JUDICIAL vs. NON-JUDICIAL FORECLOSURES:

The primary difference between the two classes of foreclosure is the involvement or non-involvement of the court system. As you might have guessed, Judicial Foreclosures are processed through the courts. Non-Judicial Foreclosures are not.

Regardless of the type used, the timeline for foreclosure is always preceded by a borrower defaulting on their mortgage payments. Most lenders typically won’t threaten homeowners with foreclosure until two or three payments have been missed. However, once the lender concludes that the mortgage is in default and the homeowner is not going to catch up on their overdue payments, a legal filing is made by the lender and the timeline for foreclosure begins.

A. JUDICIAL FORECLOSURES:

In a Judicial Foreclosure, the lender files a formal complaint with the court and records a legal notice of “Lis Pendens”. The complaint must state the details of the debt and why the lender should be allowed to foreclose on the property. The Lis Pendens gives public notice that the house is the subject of foreclosure proceedings and implements the legal timeline for foreclosure.

If the court rules that the debt is legitimate and in default, it will send a notice to the homeowner demanding payment of the amount owed (plus penalties and foreclosure costs). The borrower is typically given 30 days to respond and satisfy the debt. If they do not, the court will tender a judgement in favor of the lender, instructing that the home will be sold at a “Sheriff’s Sale” auction.

After the judgement is entered, in most states that utilize Judicial Foreclosures, the homewner has about 90 days prior to the Sheriff’s Sale to pay the entire amount owed and stop the mortgage foreclosure process. There are other alternatives that could stop the timeline for foreclosure during this 90 day period:

• Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)
• Sell the home.
• Refinance the loan.
• Declare bankruptcy.

If the mortgage foreclosure process isn’t stopped, the property goes to a “Sheriff’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

How long does the Judicial Foreclosure process take?

This is almost impossible to predict. The judicial timeline for foreclosure is entirely driven by the court schedule and literally “at the mercy of the court”. However, most experts will agree that Judicial Foreclosures can often take more than a year to complete.

Important Note: Even after a home has been sold at the Sheriff’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

B. NON-JUDICIAL FORECLOSURES:

Also known as “Power of Sale” Foreclosures, Non-Judicial Foreclosures are conducted outside of the court system by either a third party “Trustee” or an attorney. This mortgage foreclosure process is used when a “power of sale clause” exists in a mortgage or deed of trust. This clause states that the borrower agrees to the sale of their property to pay off the balance of their home loan in the event of a default.

As with Judicial Foreclosures, most lenders will not begin the Non-Judicial Foreclosure process until several payments have been missed and they are convinced that the homeowner is not going to catch up on their overdue payments. However, once the lender determines the borrower to be in default, a legal filing is made by the lender and the timeline for foreclosure will begin. This filing is known as a “Notice of Default” (NOD).

After the NOD is filed, the homeowner typically has a 90 day “Reinstatement Period” to catch up on missed payments and stop the foreclosure before the lender can take further action. There are other alternatives that could stop the timeline for foreclosure during the Reinstatement Period:

• Negotiate a “Forbearance Agreement” with the lender that revises the loan terms to the satisfaction of both parties. (Most lenders do not want to foreclose because it can cost them a lot of money.)
• Sell the home.
• Refinance the loan.
• Declare bankruptcy.

If the borrower remains in default at the end of the Reinstatement Period, a “Notice of Trustee’s Sale” will be filed with a date and time posted for an auction sale of the property. After the Notice of Trustee’s Sale is recorded, the homeowner typically has another 21 days before the auction date. During this period, the borrower can still stop the timeline for foreclosure with any one of the alternatives mentioned above in the Reinstatement Period.

If the mortgage foreclosure process isn’t stopped, the property goes to a “Trustee’s Sale” where it is auctioned off to the highest bidder and extinguishes all rights of ownership of the defaulting homeowner. If noone purchases the property at the auction, the title to the home reverts to the lender and it becomes what is known as an “REO Property”. This stands for “Real Estate Owned” (by the bank or lender).

Important Note: Similar to Judicial Foreclosures, after a home has been sold at the Trustee’s Sale, some states will allow an opportunity for the homeowner to regain ownership of their home. This is known as a “Redemption Period” and is a period of time after the mortgage foreclosure process has been completed. Even though the property now will have a new owner, the former homeowner can still reclaim title to their home by paying off the full amount of their original home mortgage plus penalties and foreclosure costs.

THE BOTTOM LINE:

Regardless of the mortgage foreclosure process used, it is very important to know the laws and procedures for your particular state. To help with that, here is a link to the Foreclosure Process: All States.

ABOUT THE AUTHOR:

The author, John Hanlin, recently published the HOT NEW E-BOOK: “The LazyMan’s Guide to Understanding Foreclosures & REO Property Investment”. Click here for info.

Mr. Hanlin is an Independent Investors’ Consultant who provides FREE investment advice on his website:
http://www.JohnHanlin.com where you can sign up for a copy of his FREE Special Report: “The Safest High Yield Investments You Can Make Today”.

You have full permission to reprint this article provided it is kept unchanged and all author information above remains intact.

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http://EzineArticles.com/?Timeline-For-Foreclosure—All-50-States&id=3070758

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Foreclosure

Foreclosure Victims Helping Foreclosure Victims

By Nick Adama

A number of the homeowners that we talk to everyday are motivated by two main goals. The first, obviously, is to save their home from foreclosure, avoid potential scams, and get their financial lives back to normal. Teaching homeowners how to do each of these is the main purpose of our website, which encourages every foreclosure victim to gain the foreclosure information necessary to stop foreclosure on their own. However, many homeowners that we talk to also have a secondary, altruistic goal, which is to help families in similar situations avoid facing foreclosure and the loss of their homes. In fact, some even want to get into the foreclosure industry as a way to provide legitimate, empathetic support to other foreclosure victims and make a career out of helping others in need.

A good number of homeowners who have faced foreclosure know just as much about the foreclosure process as many of the major players in the real estate and mortgage industries. Realtors, mortgage brokers, and representatives from mortgage companies often know very little about how foreclosure actually works, as it is not often studied. Rather, the basics of how mortgages work and how real estate is transferred is focused on to the exclusion of the actual process that banks use to take a home back that is in default. This leaves the door wide open for former foreclosure victims to provide their own foreclosure advice to other homeowners in financial hardships.

A lot of foreclosure experts can do their work from home or in an office. The main consideration will be what services are being provided to the clients, though, to determine how easy it is for the new foreclosure expert to manage the process of helping homeowners save their homes from foreclosure. If a former foreclosure victims plans on helping to buy or sell the actual foreclosed properties, they will need a real estate license to act as anyone’s agent. They will also need to be a real estate broker or work for a broker in order to ensure that there is proper oversight and all the laws are being followed in the state. Finding a local broker to work for is often easy for real estate agents, as there is always someone looking to buy a house or sell a house.

However, if the new foreclosure specialist is just interested in doing loss mitigation work, there are no licensing requirements in most states, although it is a good idea to check with the states that they plan on doing business in. Some states have new regulations for loss mitigation, including specific language that must be included in contracts or to be disclosed to clients, so it is important to do the necessary research to make the entire operation legal and successful. For the homeowner who wants to help other foreclosure victims, there are also a number of foreclosure help companies that one can become an affiliate of and work through. Many of these companies specialize in helping homeowners put together forbearance agreements or loan modifications, and provide valuable services to foreclosure victims. Of course, it is wise to keep an eye out for foreclosure scams, as well.

In terms of being scams or not, foreclosure experts have two options. First, they can work for a company that they have interviewed, researched, and come to trust and do the best that they possibly can within their structure for the homeowners trying to stop foreclosure. In reality, this might be a good place to start learning the “back end” of the foreclosure industry and how people are able to avoid going through foreclosure in various ways. Not every company will be proficient in every way to save a home, of course, but many foreclosure experts have been in the industry for a number of years, if not decades. The important thing to remember, again, is to do the research necessary to ensure that the company is legitimate and works with the best interests of their clients in mind.

The second option is for the foreclosure victim turned foreclosure specialist to start their own business and work for himself or herself. That way, if the entire operation turns out to be a scam, it is no one’s fault except their own, but they can change it at a moment’s notice, since they control the business that they own. If a former foreclosure victim wants to help homeowners in foreclosure, and they can not trust anyone else not to be a foreclosure scam, then all they have left is themselves. Depending on how much they trust themselves to be honest with people, they should consider doing it on their own.

Once a homeowner has faced foreclosure and come through it, they can provide an important perspective to other foreclosure victims in similar situations. Especially as foreclosure is often accompanied by a transition period, there may be an opportunity for homeowners to become the most powerful positive force in the foreclosure industry and provide the most relevant foreclosure advice available. Having shared a common experience is one of the best ways to gain trust, and foreclosure victims have a valid reasons to help others stop foreclosure and avoid the pain and humiliation that accompany every foreclosure situation.

The ForeclosureFish.com website has been designed to help homeowners save their homes from foreclosure by using the most important foreclosure advice and information available online. The site contains over two hundred articles on foreclosure, numerous reference materials, and a free evaluation to every homeowners who wishes to learn what they can do to avoid foreclosure. Visit the ForeclosureFish.com website today and browse through hundreds of pages of information or download a free e-book describing the basics of the foreclosure process: http://www.foreclosurefish.com

Article Source: http://EzineArticles.com/?expert=Nick_Adama
http://EzineArticles.com/?Foreclosure-Victims-Helping-Foreclosure-Victims&id=705389

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Foreclosure

Understanding HAFA-What Is It & How It Works

This explains what the HAFA is and how it might work for you. This might work for people that are in distress and would like to try and avoid a foreclosure. Here is a link for additional information http://www.CDPE.com/hafa I work with homeowners who need help at this difficult time-let me know what I can do for you.

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Foreclosure

Owner Financing – The Foreclosure Process

By Craig Meriwether

One of the great parts of the owner finance home sale is the opportunity to work with the buyer in the case of financial problems. By creating a solution that works for both parties a home owner is more than likely to stay in the house and the loan holder will continue to receive monthly payments. If a solution cannot be created then unfortunately foreclosure might be the only option to take. This article will present a look and some of the different ways foreclosures can be handled.

In some states, the beneficiary can choose one of two methods to foreclose judicial or non-judicial. In a judicial foreclosure, the beneficiary files a lawsuit against the trustor in Superior Court to foreclose on the property. The case is then set for trial. If the court rules in favor of the beneficiary, the property will be ordered sold at a public sale. In most instances, however, it is a non-judicial foreclosure. In a non-judicial foreclosure, the court system is not involved. To foreclose non-judicially, the deed of trust or mortgage must contain a power of sale clause. The power of sale clause gives the trustee the right to begin foreclosure without going to court. To include a power of sale clause does not require a specific form or language.

If, on the other hand, the security instrument does not contain a power of sale provision, judicial foreclosure is the beneficiary’s only way to obtain the property. Most conventional deeds of trust say “with the power of sale”.

Judicial and non-judicial foreclosures differ in many ways. The foreclosure method selected by the beneficiary has significant consequences for the trustor.

Non judicial foreclosure is relatively fast, as this method does not involve the court system. In most instances, non-judicial foreclosure takes, at minimum, about four months after the trustor has failed to meet the obligation or defaulted on the loan. Judicial foreclosure, on the other hand, may take up to several years.

Non judicial foreclosure is generally less costly than judicial foreclosure. In a non-judicial foreclosure, the trustee’s and attorney’s fees are largely specified by law. In a judicial foreclosure, however, there are generally no legal limits for attorney’s fees. As a result, the trustor may be liable for significant legal expenses.

Another major difference between the two foreclosure methods is the beneficiary’s right to a deficiency judgment. A deficiency judgment is a court order stating that the trustor still owes money to the beneficiary if the proceeds from the foreclosure sale are not sufficient to pay the balance of the debt.

Some state laws do not allow a deficiency judgment in a non-judicial foreclosure on residential purchase money loans. A residential purchase money loan is one in which loan proceeds are used to purchase the property. Furthermore, state laws do not allow deficiency judgments against the residential trustor where the loan was made by the seller of the property or by a third party lender (often a financial institution) on a four-unit or less residential property that is the principal residence of the trustor. If the beneficiary judicially forecloses on a non-purchase money residential loan, a deficiency judgment may be obtained against the trustor.

Non-judicial and judicial foreclosures also differ with regard to the trustor’s right of redemption after the foreclosure sale. This is the trustor’s right to reclaim the foreclosure property. In a non-judicial foreclosure, the sale of the property at the trustee’s sale is an irrevocable final sale, and the trustor does not have the right to redeem or reclaim the property after the sale. Judicial sales, however, are subject to redemption by the trustor.

This summary of the major differences between non-judicial and judicial foreclosure shows the advantages of non-judicial foreclosure for the beneficiary. The non-judicial foreclosure is timely, economical, non subject to redemption, and may command a higher sales price. In addition, it is unlikely that the beneficiary would recover any losses through a deficiency judgment, as the trustor could not make the loan payments in the first place. Because of these advantages, beneficiaries typically prefer to foreclose non-judicially. Beneficiaries might foreclose judicially when they see an opportunity to recover any losses through a deficiency judgment.

The following two sections give detailed information on each of the foreclosure methods.

Non-Judicial Foreclosure

This section describes the major procedural requirements of non-judicial foreclosure, discusses the trustor’s reinstatement and redemption rights, reviews legal provisions for trustee’s fees and summarizes special legal provisions affecting foreclosures in many states.

Many states allow the beneficiary of a deed of trust containing the power of sale provision to foreclose non-judicially after the trustor has defaulted on one or more contractual obligations. In case of default, the beneficiary may order the trustee to initiate foreclosure.

Notice of Default

Foreclosure begins when the beneficiary notifies the trustee that the trustor has defaulted on any obligations stated in the promissory note and deed of trust. The beneficiary gives the trustee information concerning the condition of the debt such as the amount of the unpaid balance and due dates. Upon receipt of this information, the trustee prepares the Notice of Default.

The Notice of Default must be recorded in the office of the recorder of the county where the property is located. If the deed of trust encumbers property located in more than one county, the Notice of Default should be recorded in the other counties as well.

The trustee must mail a copy of the Notice of Default to the trustor and to each person requesting notice within ten days of recording the notice. The law specifies additional notification requirements under certain circumstances. The Notice of Default must be published weekly for four weeks in a newspaper or personally be served on the Trustor, if the trustor has not requested to be notified of its recordation of the notice

Trustor’s should always notify the beneficiary and the trustee of any address changes to ensure prompt receipt of any correspondence from the beneficiary or trustee.

Before January 1, 1986, the trustor and beneficiaries under subordinate deeds of trust were given three months from the recordation of the Notice of Default to cure the default. An amendment to the law extended the expiration of the reinstatement period to five business days before the scheduled trustee’s sale. If the trustee’s sale is postponed, the reinstatement period is extended to five business days before the new date of the sale.

At any time during the reinstatement period, the trustor may stop the default by paying the beneficiary all sums of money due on the loan up to that point including additional costs incurred by the beneficiary, and attorney’s or trustee’s fees as specified by law. It is not necessary to repay the entire loan balance.

After reinstatement of the loan, the foreclosure proceeding is discontinued and the trustor resumes making the regular periodic payments.

Notice of Trustee’s Sale

If three months have passed since recording the Notice of Default, and the trustor has not begun to reinstate the loan; the trustee may proceed with the foreclosure by preparing a Notice of Trustee’s Sale.

The Notice of Trustee’s Sale must be recorded in the office of the recorder of the county in which the property is located at least 14 days before the date of the sale. As with the Notice of Default, the Notice of Trustee’s Sale must be mailed to the trustor’s last address actually known to the trustee.

The Notice of Trustee’s Sale also must be published in a newspaper of general circulation in the city, judicial district or county where the property is located. The notice must be published once a week over a 20-day period before the sale.

In addition to mailing and publication, the Notice of Trustee’s Sale must be posted for at least 20 days before the sale at the following locations:

o In at least one public place in the city, judicial district, or county in which the property is to be sold; and

o In a conspicuous place on the property to be sold

Improperly broadcasting the Notice of Trustee’s Sale typically will result in the cancellation and re-notice of the sale.

As mentioned before, the trustor can cure the default during the reinstatement period that runs up to five days before the schedule sale. After the reinstatement period expires, the trustor must pay the entire indebtedness plus foreclosure costs to avoid foreclosure. This is called redemption and only can be done during the five days before the sale. The trustor’s right of redemption ends once bidding at the foreclosure sale starts.

Trustee’s Sale

The trustee or the trustee’s agent must conduct the foreclosure sale at a public auction in the county where the property is located. The sale is to the highest bidder who must pay in cash, cashiers check or cash equivalent as specified in the notice and acceptable to the trustee.

The trustee may postpone the sale at any time before it is completed. The sale may be postponed at the trustee’s discretion, upon instruction by the beneficiary, or upon a written request by the trustor who has the right to request a one-day delay to obtain sufficient cash to pay the debt or bid at the sale. The trustor’s request for postponement must include a statement identifying the source of the funds. The law allows for three postponements. After three postponements, a new notice of sale must be given, except for postponements requested by the trustor or ordered by a court.

After the sale to the highest bidder, the trustee executes and delivers a trustee’s deed to the purchaser. The trustee’s deed conveys title to the purchase free and clear. The issuance of the trustee’s deed terminates the previous trustor’s legal and equitable rights in the property. It should be noted, however, that title to the property is conveyed subject to all senior liens, including liens for property taxes and assessments.

The purchaser of the foreclosed property is entitled to take immediate possession. A trustor who refuses to vacate the property may be legally forced to do so.

Rent and Rental Income

Generally, the trustor occupying the property does not have to pay rent to the beneficiary while in default. If a deed of trust should indicate a rent liability, enforcement of it would be unlikely.

The beneficiary may have a right, however, to any rental income generated by the property during the period of default. In the absence of such a provision in the deed of trust, the beneficiary is generally not entitled to any rental income.

Deficiency Judgment

In General, the law prohibits a deficiency judgment in a non-judicial foreclosure with a power of sale provision. Even if the proceeds from the foreclosure are inadequate to repay the loan, the beneficiary has no other possibility to recover.

Trustee’s Fees

The fees a trustee is entitled to charge the beneficiary or deduct from the proceeds of the sale are prescribed by law. The trustee may charge for costs incurred in recording, mailing, publishing, and posting of Notice of Default and Notice of Trustee’s Sale; the cost of postponing the sale by request of the trustor (not to exceed $50 per postponement) and the cost of a trustee’s sale guarantee. In addition to charging for these actual costs, the law provides for a fee schedule based on the amounts of the unpaid debt.

The legal limitations for trustee’s and attorney’s fees do not apply to attorney’s fees the beneficiary is entitled to recover under special provisions of the deed of trust.

Special Legal Provisions

Special federal and state laws may affect the manner in which the foreclosure is conducted. If the loan is insured or guaranteed by the U. S. Department of Housing and urban Development (HUD! EHA) or the Veterans Administration (VA), certain procedures must be followed. In the case of a VA-guaranteed loan, the trustor may be liable for any deficiency, unless the veteran obtains a release of liability from the VA. California law does not necessarily protect the trustor from liability for a deficiency on a VA guaranteed loan. Federal laws governing the VA loan program take precedence over any conflicting California law. Trustors should contact the VA for details concerning their rights and to learn about specific requirements.

Judicial Foreclosure

Judicial Foreclosure is tried in some state Superior Courts. The beneficiary, upon default of obligation by the trustor, brings a foreclosure lawsuit against the trustor. If successful, the court will issue an order to sell the property at a public sale. The beneficiary must use judicial foreclosure if the security instrument does not contain a power of sale provision. A mortgage or deed of trust containing the power of sale provision may be foreclosed judicially if the beneficiary chooses to do so.

The decision to foreclose judicially or non-judicially is not necessarily final. The beneficiary may discontinue judicial foreclosure at any time and commence non-judicial foreclosure.

Conversely, the beneficiary may abandon non-judicial foreclosure and initiate judicial foreclosure. Beneficiaries sometimes initiate both types of foreclosure simultaneously.

Foreclosure Sale

A court-appointed commissioner or sheriff in the public place must give notice of the sale of the property for 20 days preceding in the date of the sale. This same notice must be published in a newspaper of general circulation weekly for 20 days. The notice also must be sent by certified mail to all defendants at their last known addresses.

At the foreclosure sale, the property must be sold by the auctioneer to the highest bidder who is financially qualified.

Redemption of Property

In a judicial sale, the trustor has the right to redeem or reclaim the property after the foreclosure sale. For a trustor, the right of redemption makes a judicial sale attractive. It should be remembered, however, that a judicial sale might also lead to a deficiency judgment. This possibility does not exist in a non-judicial foreclosure.

Deficiency Judgment

In a judicial foreclosure, the beneficiary has, under certain circumstances, a right to a deficiency judgment. The deficiency judgment is limited to an amount equal to either the difference between the indebtedness and the fair market value of the property, or the indebtedness and the sales price at the foreclosure sale, whichever is less.

Rent and Rental Income

The trustor occupying the disputed property does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

After the sale, the trustor retains possession of the property and does not have to pay the beneficiary rent while in default. The beneficiary may be entitled, however, to any rental income generated by the property.

Craig Meriwether is owner of Kula Investments, a company founded you help you get top dollar for you owner financed real estate loan. [http://www.ioubuyer.com]

Article Source: http://EzineArticles.com/?expert=Craig_Meriwether

http://EzineArticles.com/?Owner-Financing—The-Foreclosure-Process&id=2140489

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Foreclosure

Introduction of Home Affordable Foreclosure Alternatives – Short Sale and Deed-in-Lieu of Foreclosure

This is FANTASTIC NEWS!!!  FINALLY, they are establishing minimum requirements on resolving the short sale procedural process.  Here is the link to the government news release:

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

Short Sales have been difficult to close, and these new measures are a huge step in the right direction. One major highlight: A lender must give a yes or no answer to an offer within 10 days. Also included: a moving allowance, incentives for sellers and lenders, commission rules, and a stipulation that releases sellers from debt liabilities.

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Foreclosure

Why Foreclosure Is Often Preferred By The Loan Servicer Instead Of Offering A Loan Modification

Have you ever wondered why a foreclosure occurs when a better solution might have been a modification?  Would you like to read the facts and figures and see how mortgages are bundled, sold and serviced?  You will soon see it is isn’t pretty, we are in the midst of a crisis, and it is likely to get worse before it gets better.  That being said, you can probably guess why-it’s about the money.  It is a little more complex than that-the report is 60 pages-but is explains the incentive and disincentives that are at conflict within the mortgage market today.  Once you understand how all the pieces go together, you can see that something “different” needs to be done.  I am a strong free market believer, but in this case, the government needs to have a mandate and rule that is guided towards keeping people in their homes.  Left to current industry solutions, the mortgage mess will continue to play out and get worse.  If you click on the link below, you will find the free report from the National Consumer Law Center.

http://www.consumerlaw.org/issues/mortgage_servicing/content/Servicer-Report1009.pdf

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Foreclosure

Facing Foreclosure In MN

You need to understand all your options.  Make sure you visit http://www.hocmn.org and get the information you need.  This link is to a non profit site that has counselors that can help.

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Foreclosure

The Foreclosure Process and Alternative Options

Unfortunately there is a huge amount of foreclosure that are going on across the United States, and Minnesota is no exception. There have been many people who have ended up bailing out on a Minnesota mortgage, only to end up having their home foreclosed on. It is both difficult for mortgage companies as well as homeowners and so many foreclosures are occurring. Even though there is a redemption period in Minnesota that is 6 months if you have a primary residence, you’ll find that there are still far too many foreclosures occurring. Let’s take a look at the stages of the foreclosure process, the reasons so many lenders are not interested in distressed real estate in MN, and some alternative options to foreclosure that you have as a homeowner.

The Stages of the Foreclosure Process

First of all, it’s important that you understand all the stages of the foreclosure process. Basically a foreclosure happens when owners can’t make their payments, which leads to the piece of real estate being taken and sold by the lender in order for them to try to recover the money that they lose from the mortgage. Here are three stages in the foreclosure process.

• Stage #1 – You Miss 3-6 Payments – The first stage of the foreclosure process is that you start missing payments. While usually you’ll find that the lender can’t do something right away, once you miss 3-6 payments, you’ll find that this can begin the first stage of the foreclosure process. If you begin missing payments, it is important that you work to find a resolution before it even gets this far in the process. You’ll have more options the sooner you try to solve the problem.

• Stage #2 – Notice of Default – The next stage is when you get a Notice of Default. After you have missed too many payments, then a trustee is going to be ordered to record one of these notices by the lender. This is done at the County recorder’s Office. This means that you will be notified that you are going to face a foreclosure in the future. Then you have a reinstatement period that will go until about 5 days before the auction of the home. You want to leave enough time before the actual sherrif’s sale.

• Stage #3 – Notice of Sale – The next stage in the process is the Notice of Sale. If the loan is not brought current, then the sale date will be made. The notice of the sale will also be put up on the property as well.

Reasons Lenders Don’t Want Distressed Homes

Many times when people are going through a foreclosure, they cease to care about their home. Often they are not able to keep up with repairs that need to be done, which can lead to the homes becoming distressed. Most lenders out there are not going to want to own distressed real estate in MN for a variety of reasons. Here are a few of the reasons that they don’t really want these homes that have become distressed.

• Reason #1 – Too Much Work – First of all, dealing with distressed real estate in MN is just too much work for lenders. Usually they come with problems that would have to be fixed before a sale could occur. Lenders just want to get their money and they don’t want to spend time working on the property. So, this is one reason that they don’t want these homes.

• Reason #2 – Costs Money to Fix Problems – Another reasons that they don’t want to deal with distressed homes is that it takes quite a bit of money to fix up these homes much of the time. They are already facing a loss, so the last thing they want to do is actually spend money trying to fix up homes that have been distressed due to problems with foreclosure.

• Reason #3 – They Lose Money – If lenders end up having to deal with distress real estate in MN, usually they end up losing money. They are working to find options where they don’t lose a huge amount of money. Distressed homes will just make them lose more money, so they don’t want to have to deal with them and will look for other options

Alternative Options to Foreclosure

Of course there are some alternate options to foreclosure that can help out homeowners and lenders alike. Finding an option to foreclosure is definitely a great idea. Here are just a few of the best options to foreclosure that can save the day if you are facing a foreclosure in the near future.

• Option #1 – Refinancing – One option that you have is refinancing when you are trying to avoid foreclosure. In some cases you may be able to get a mortgage refinance that will bring your mortgage current and help you to avoid going through the foreclosure.

• Option #2 – Forbearance – Forbearance on the part of the lender is another option. However, you’ll have to prove that you are having financial difficulties if you use this option.

• Option #3 – Short Sale – A short sale is an excellent option that is available if you are trying to avoid a foreclosure as well. Often this helps to lenders to get most of their money, although they probably won’t get all of it. However, they are often ready to go with this option if they need to.

• Option #4 – Mortgage Modification – Mortgage modification can be a help as well. If the lender will modify the terms, give you a lower interest rate, or tack on missed payments to the end of the loan, you may be able to avoid the foreclosure, which benefits the lender and the homeowner.

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Foreclosure

Save Your Home From Foreclosure-WORK It Out

When you are in a place where you are facing foreclosure, you may very feel as though the world is very frightening place.  Having your home threatened and feeling as though there is nothing that you can do about is terrifying, but the truth of the matter is that there are many things that you can do.  Don’t let panic and increasingly angry calls from your lender get you down.  Once you have a plan in place and know what is going on, you will find that you are going to feel much better.  Foreclosure is something that should be avoided at all costs, and the truth is that there are methods that can help you get back on track.

First, consider the reinstatement of the existing loan by making up back payments and fees.  This is perhaps the most basic and straightforward way to get out of foreclosure.  Remember that the bank wants to avoid foreclosure nearly as much as you do, given the loss that they take.  When you are able to get back to square one by making up back payments and fees, you’ll find that this is certainly what you want to do.  This is perhaps the ideal solution, but it can be a difficult one to accomplish.  Typically, people can get to this place by making cashing in on assets or even by selling other property.

Another thing that you want to consider is the possibility of modifying the existing loan.  Consult with your bank, or even consider refinancing.  You may find that it is possible to lower the balance, the payment and the interest rate right across the board.  Take some time to do your research, especially if you have a feeling that there might be hard economic and financial times coming.  Take some time and really consider what your options are going to be in this regard.  The sooner you act, the more likely that you and your lender can make this this action come to pass.

When the foreclosure process is looming large and seems inevitable, you’ll find that it is time for you to consider finding out if a forbearance is possible.  A forbearance is typically only possible if you are in a place where financial hardship has been an issue, and if you are going to be able to pay off the debt at a latter time.  A forbearance can be extremely helpful, as it can have you staying in your home without needing to make payments for up to a year.  Within a year’s time, you may have been able to recover from any medical bills that were an issue, or even find a new job if you have been let go.  With a foreclosure, you’ll find that you are in a place where you need to think about reinstated-back payments/fees are added to the back of the loan or even forgiven.

The issue of what do when you are facing a foreclosure is a difficult one to deal with, but the first and most important thing that you need to keep in mind is that the earlier you deal with it, the better.  When things are falling apart, when medical bills are piling up or even when you have lost your job, it can be difficult to know what fire to put out first, but remember that you are dealing with a situation where you need to take care of your housing.  When you see the economic equivalent of an avalanche heading your way, make sure that figuring out what to do with your mortgage is your first priority.

Remember that the lending institution is not a force that simply wants to take your home from you.  In all likelihood, they would rather that you stay right there and pay out on the investment that they have made on you.  Consider what your options are going to be and make sure that you consult them early and often when it comes to possible financial difficulty.  The earlier a problem is caught, the more likely that it can be solved in your favor.  The situation that you have is one that many, many people find themselves in.  Consider what your options are and what you can do when you are looking at getting the results that you need.

Another thing that you should consider is that there are third parties out there who are willing to give you advice and support, and in many cases, they are willing to give it free of charge.  HOPE NOW and the Homeowners Preservation Foundation are just two of the organizations that can do you a great deal of good.   They have toll free numbers and in many cases they can help you put together a plan that will enable you to avoid foreclosure all together.  The Homeowners Preservation Foundation is can even provide HUD approved counselors to get you back on track.  Remember that you have many different options available, and that these are just two of the larger ones.  Also look for help from more local sources.

Keep in mind the fact that foreclosure is not something to be ashamed of.  It is something that happens to thousands of people, and there are solutions out there.  Do not let this problem go until is something overwhelming and difficult to cope with.  Consider what your issues are and what you can do to solve them.  Taking action right now is something that can do you a great deal of good, so ease back and really consider your options.

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