What you need to know
The foreclosure procedure usually begins the moment you receive a notice of default or a foreclosure notice. Your loan is considered to be default once you are 90 days behind payment. Some lenders send a pre-warning letter saying they "intend to foreclose" which basically means that you contact them and come up with some money in about 15 days or else they are going to send the real notice. As what had happened to the octuplets foreclosure in California, a notice of mortgage default was filed against the home where the family is living because of nonpayment of loan for almost a year.
Unfortunately, bankruptcy's automatic stay won't stop the clock on the advance notice that most states require before a foreclosure sale can be held (or a motion to lift the stay can be filed). For example, before selling a foreclosed home in California , a lender has to give the owner at least three months' notice. If you receive a three-month notice of default, and then file for bankruptcy after two months have passed, the three-month period would elapse after you'd been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale.
The term notice of default is not the same as lis pendens which is a latin word for a pending lawsuit of the actual legal notice in any judicial state. On the other hand, a notice of default is an actual legal notice in non judicial states. This actual legal notice basically informs you, the general public, and the court that they intend to foreclose your property.
A default notice on octuplets foreclosure in California was made public when a copy of document giving the owner three months to settle their debts in order to avoid foreclosure.
State foreclosure laws require the lender to publicly post their notice of default through a local newspaper that is distributed country wide. In many countries posting notice of default in public location is granted. In most cases, you will find notice of default in any local newspaper and going online through the country's website. If online of records is not yet available, you'll be able to find a posting of the notice of default at the courthouse.
Ideally, as soon as you start missing payment try to seek foreclosure help the soonest possible time. Three missed payments without foreclosure help give you less options. Once you receive a notice of default, don't lose hope; there is plenty of time to save your home.
Always remember that many options can take up to 30 days or longer to be completed or much longer if you wait for a miracle to happen. The earlier you seek help the better with more options to have. Finding foreclosure help that works for your budget is the key to saving your home.
Catching up with 3 to 4 missed payment is easier than it may seems because some creditor agrees to a partial payment plan or even a mortgage modification. This is where the lender lowers your loan rates or extends your loan period to ensure that your monthly payments are reduced. Once you receive a notice of default, don't waste time waiting for a miracle to happen; the longer you wait the more late fees and charges to be paid.
Countdowns begin on the foreclosure proceeding, so take action quickly or you might end up losing your home in a matter of 90 days! As much as possible, it is highly recommended that you attend all court hearings regarding your property. Even if there is nothing you can do to stop the foreclosure at the hearing, you will at least have an idea of what is happening and you will have a chance to explain to the judge your situation.
Do the homeowners still owe the bank money after a real estate foreclosure? That is a good question. When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full.
However, the homeowners may still owe the difference between the mortgage balance and the discounted amount as a result a "deficiency judgment." If granted, this judgment will affect the homeowners and their credit report just as any other judgment.
You must get the bank to accept "payment in full without pursuit of any deficiency judgment." You need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a "1099."
Since the homeowners have been under such extreme duress and probably haven't made much income, a 1099 may not adversely affect them. The homeowners can speak with an accountant for advice.
Unfortunately, bankruptcy's automatic stay won't stop the clock on the advance notice that most states require before a foreclosure sale can be held (or a motion to lift the stay can be filed). For example, before selling a foreclosed home in California , a lender has to give the owner at least three months' notice. If you receive a three-month notice of default, and then file for bankruptcy after two months have passed, the three-month period would elapse after you'd been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale.
The term notice of default is not the same as lis pendens which is a latin word for a pending lawsuit of the actual legal notice in any judicial state. On the other hand, a notice of default is an actual legal notice in non judicial states. This actual legal notice basically informs you, the general public, and the court that they intend to foreclose your property.
A default notice on octuplets foreclosure in California was made public when a copy of document giving the owner three months to settle their debts in order to avoid foreclosure.
State foreclosure laws require the lender to publicly post their notice of default through a local newspaper that is distributed country wide. In many countries posting notice of default in public location is granted. In most cases, you will find notice of default in any local newspaper and going online through the country's website. If online of records is not yet available, you'll be able to find a posting of the notice of default at the courthouse.
Ideally, as soon as you start missing payment try to seek foreclosure help the soonest possible time. Three missed payments without foreclosure help give you less options. Once you receive a notice of default, don't lose hope; there is plenty of time to save your home.
Always remember that many options can take up to 30 days or longer to be completed or much longer if you wait for a miracle to happen. The earlier you seek help the better with more options to have. Finding foreclosure help that works for your budget is the key to saving your home.
Catching up with 3 to 4 missed payment is easier than it may seems because some creditor agrees to a partial payment plan or even a mortgage modification. This is where the lender lowers your loan rates or extends your loan period to ensure that your monthly payments are reduced. Once you receive a notice of default, don't waste time waiting for a miracle to happen; the longer you wait the more late fees and charges to be paid.
Countdowns begin on the foreclosure proceeding, so take action quickly or you might end up losing your home in a matter of 90 days! As much as possible, it is highly recommended that you attend all court hearings regarding your property. Even if there is nothing you can do to stop the foreclosure at the hearing, you will at least have an idea of what is happening and you will have a chance to explain to the judge your situation.
Do the homeowners still owe the bank money after a real estate foreclosure? That is a good question. When you negotiate a successful short sale, keep in mind that the agreed upon price is payment in full.
However, the homeowners may still owe the difference between the mortgage balance and the discounted amount as a result a "deficiency judgment." If granted, this judgment will affect the homeowners and their credit report just as any other judgment.
You must get the bank to accept "payment in full without pursuit of any deficiency judgment." You need to explain to the homeowners that the discounted amount (the difference between the mortgage balance and the short sale) may be declared as income on their income tax return by means of a "1099."
Since the homeowners have been under such extreme duress and probably haven't made much income, a 1099 may not adversely affect them. The homeowners can speak with an accountant for advice.
Great Stuff on Amazon
What if I need help?
Government Trying to Pay Home Owners and Institutions
The New York Times has reported on the new Obama administration plan to pay homeowners, lenders, and mortgage servicing companies to effect short sales and walk away from homes to avoid letting them go into foreclosure. The case is that selling will be better for the mortgage companies than foreclosing, while also helping mortgage owner's credit scores.Yet, it seems that the government is simply trying a different plan every few months in an attempt to pay banks money to get them to reduce the foreclosure rate, without any thought as to how these tactics give invitation to fraud and further unfairness in the housing market. It is unlikely that this latest plan will not turn out to be just as lacking as every previous government solution.
The main issue with this plan is that the short sale negotiation process is nearly entirely controlled by the banks. even though the lenders are "effectively forced" by government to take a predetermined price for a property, it is the lenders themselves that determine the minimum that they will admit to sell a house short.
The mechanism works like this: the institution contracts real estate agents to estimate the fair market value of a given property. This will determine the lowest price that the institution will accept from a short sale. If the borrowers find a buyer who offers that much or more, the creditor must accept it. Additionally, the creditor must give up any rights to sue for a deficiency judgment after foreclosure.
This leads to corruption across the country, as the banks will use local real estate agents to determine home values. The question arises, will these be the identical real estate agents that helped inflate the housing bubble in the first instance in order to increase commissions on sales? Although they did not play the largest role in the debacle, real estate agents did help fuel the buying.
Also, it is impractical to get around the issue that estimating the value of a property is always subjective. Even using comparable sales in an area is frankly a subjective estimate based on a small sample of other subjective estimates while filtering out other possible relevant subjective estimates. The banks will be using this information to determine the minimum sales price of a property.
The minimum price - as determined by the banks - will also be kept a secret from the homeowners, who may have their own cost estimate done but which may be quite different than the lender's estimate. This makes it nothing but a guessing game for the homeowners to come to the bank with an acceptable offer.
Furthermore, with the bank determining the value of the property on its own and keeping its estimation secret from the homeowners, it will be nearly impossible for the borrowers to know if the bank has received an acceptable minimum offer or not. What if the bank simply refuses a viable offer? The homeowners will matter-of-factly be told it did not meet the back-room minimum.
Regrettably, this latest plan will likely be as successful as other previous government plans to halt foreclosures. Namely, it will be sold as a possible benefit to stressed homeowners, but in hindsight, it will prove to be an erroneous idea corrupted by artiface from top to bottom, as well as just one more misrepresentation of a market badly hurting for less bureaucratic intervention.
RSS: Add your blog
Fetching RSS feed... please stand byCommon Foreclosure Myths
MYTH: My mortgage company would rather foreclose on my home than keep me in it.
The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure.
MYTH: Foreclosure is an uncommon problem - I'm all alone in this.
Foreclosure is a challenge faced by millions of Americans every year from all walks of life. Rich, poor, young, old - the list is as diverse as society itself. It's nice to know there's one place you can turn to for caring, non-judgmental advice if you find yourself struggling with your mortgage. We'll be with you every step of the way.
MYTH: I've only missed one payment - I can likely catch up.
The most important thing to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month's payment. So, if you're a month behind, you actually owe two payments - last month's and this month's.
MYTH: I've missed too many payments to get help.
There's always time to get help. We can't work miracles, but we can always give expert advice for any situation. That being said, the help we're able to offer is far more constrained if you're eight payments behind than if you're one or two behind. The sooner we can get involved, the better chance you have of avoiding foreclosure.
MYTH: I'm getting many offers of "help" from a variety of different people. Are they all scams?
Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams:
1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice.
2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.
3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.
MYTH: It's impossible to stay in my house after foreclosure proceedings begin.
Contrary to what you might think, there are still options available to you after the foreclosure process has started. The sooner you call us, the more tools we'll have to help you fix your situation.
The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure.
MYTH: Foreclosure is an uncommon problem - I'm all alone in this.
Foreclosure is a challenge faced by millions of Americans every year from all walks of life. Rich, poor, young, old - the list is as diverse as society itself. It's nice to know there's one place you can turn to for caring, non-judgmental advice if you find yourself struggling with your mortgage. We'll be with you every step of the way.
MYTH: I've only missed one payment - I can likely catch up.
The most important thing to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month's payment. So, if you're a month behind, you actually owe two payments - last month's and this month's.
MYTH: I've missed too many payments to get help.
There's always time to get help. We can't work miracles, but we can always give expert advice for any situation. That being said, the help we're able to offer is far more constrained if you're eight payments behind than if you're one or two behind. The sooner we can get involved, the better chance you have of avoiding foreclosure.
MYTH: I'm getting many offers of "help" from a variety of different people. Are they all scams?
Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams:
1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice.
2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.
3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.
MYTH: It's impossible to stay in my house after foreclosure proceedings begin.
Contrary to what you might think, there are still options available to you after the foreclosure process has started. The sooner you call us, the more tools we'll have to help you fix your situation.
Video Module
powered by Youtube
by checkmaet
checkmaet
Hello world. This is my bio. I can edit it later!
- 0 featured lenses
- Winner of 2 trophies!
- Top lens »
Feeling creative?
Create a Lens!
Explore related pages
- Riverside California Bankruptcy Riverside California Bankruptcy
- Boston Bankruptcy Lawyer - Joshua Spirn & Associates Boston Bankruptcy Lawyer - Joshua Spirn & Associates
- Bankruptcy 101 - California Bankruptcy Basics Bankruptcy 101 - California Bankruptcy Basics
- Cincinnati Bankruptcy Lawyer - Ryan J. Ruehle Attorney at Law, LLC Cincinnati Bankruptcy Lawyer - Ryan J. Ruehle Attorney at Law, LLC
- Miami Florida Bankruptcy Attorney Miami Florida Bankruptcy Attorney
- Personal Bankruptcy: Tips and Resources to Cure the Financial Blues Personal Bankruptcy: Tips and Resources to Cure the Financial Blues
