Stop Foreclosures in California — Don’t Let Your House Slip From Your Hands
Posted on May 15th, 2009
When homeowners face foreclosure due to myriad reasons like loss of job, disability/injury, ill health, unexpected expenses, marriage or even relocation, they inevitably have to battle the reality of a foreclosure. It is necessary for you to be aware of your primary and secondary options to stop foreclosure in California.
Also called as Early Delinquency Intervention, this process involves an expert intervention right at the early stages of your financial crisis such that you could make the most of the options the lenders might have for you.
One of the first things you have to do as a part of EDI is to submit three-stepped, standardized, accurate and documented information: A Statement of the problem, in which you identify what exactly your problem is while you prioritize your problems (starting with the most serious ones); secondly, you have to submit a personal financial assessment form which takes a snapshot of your financial health and allows the lender to make better judgments about your paying abilities before chalking out a plan for you; and finally, you will be made to take stock of your equity on your home (your need to own your home and the lengths you should go to secure your home depends on this). Needless to say, being honest, accurate and up-to-date is very crucial here.
Primary Options for Stopping Foreclosures in California
Based on the steps taken above, your lender will be better placed to provide one of the many options available for you. Some of them have been listed out for you here.
Re-instatement of your loan: An obvious and easy way to bring your payments current is to pay the dues and bring your mortgage current. Bringing your payments to current would include paying up the due mortgage, late fees and any other fees the lender might charge you. The time available for you to do this in the state of California is usually 5 business days from the time your home can be put up for sale by a trustee.
Deed-in Lieu of foreclosure: Using this option, you may want to hand-over the deed back to the lender. By taking this approach you save your lender time and you get to stop foreclosure which harms your credit report.
Forbearance Agreement: Your lender typically allows you certain amount of time – 3-6 months in California – during which you make lower mortgage payments or no payments at all. The missed payments will add up with the payments that are due during the later part of your loan term.
If you are unable to make any payments whatsoever, lenders will foreclosure and snatch your home away from you. The exact time it takes to get to this stage is state specific in the U.S. In California, however, it takes about 4 months from the time the Notice of Default has been issued to you. Also, note that the lender is not allowed to float a deficiency judgment – which is a motion a lenders make when they lose money due to the property getting sold for a much lesser value on the market than its worth.
Related posts:
- Stop Foreclosures in Florida — Helpful Points to Help You Get Started
- Stop Foreclosures in Michigan – Will You Let a Foreclosure Destroy You?
- 6 Ways To Sell Your House Fast To Stop Foreclosure
Filed under Avoid foreclosures in California, Deed-in-dieu of foreclosure, Stop Foreclosures, Stopforeclosures iN California, foreclosure, foreclosure help | No Comments »
Stop Foreclosures in Florida — Helpful Points to Help You Get Started
Posted on May 13th, 2009
Florida has one of the highest rates of foreclosure in the country. If you are currently living and looking to stop foreclosure in Florida, it is then critical for you to know the process you need to undergo. The foreclosure process followed in Florida is mainly judicial and that would, needless to say, embroil you in courts, cases, attorney fees and the works. The procedure leads to possession of your home by the lender and take up to 6 months.
Apart from the usual reinstatement, loan modification and refinancing arrangements that are possible, you can stop this from happening by following the steps mentioned below:
Contact the Loss Mitigation Department: The first you should you do if you want to stop your home from foreclosure is to contact the loss mitigation department of your mortgage company. It is easier said than done, since most homeowners might not be able to reach the proper employees who might be able to help you.
Sell Your Home: You can sell your home even if after a foreclosure lawsuit has been filed against you. Even though you might lose your home, it is better than the devastating consequences a foreclosure can have on your credit report. You may pay up the pending mortgage payments with the proceeds from the sale.
Short-sale: In case you don’t find a buyer who can’t or is not willing to pay an amount equal to the mortgage payment due, you might want to consider a short sale. You must next to see if you can contact the mortgage company to negotiate for a reduced pay-off of the mortgage payment due. You could enlist the services of a Miami-Dade county realtor for this.
Deed-in-lieu of foreclosure: You have no equity in your home and you couldn’t arrive at any other solution to stop the foreclosure in Florida, you could choose a deed-in-lieu of foreclosure. As the name suggests, you will handover the deed (and hence your home) to the lender and avoid the foreclosure lawsuit against you. You will also save the time and foreclosure expenses that are bound to arise. This however affects the income you report to the IRS. It is best if you approach a tax professional or attorney to help in this regard. You can take help from Legal Services of Greater Miami, Inc.’s Low Income Taxpayer Clinic to find suitable professionals.
File a bankruptcy: You might, as a last recourse, file a Chapter 13 bankruptcy case. It can be filed until the day your home is set for a foreclosure auction sale. It would still mean that you must be left with enough money to cover your monthly expenses and also have enough money to bring your current mortgage due to current within 60 months according to Florida state foreclosure laws. The foreclosure process stops if you choose this method. Avail debt counseling before you take this step.
Related posts:
- Stop Foreclosures in California — Don’t Let Your House Slip From Your Hands
- Stop Foreclosures in Michigan – Will You Let a Foreclosure Destroy You?
Filed under Avoiding foreclosures in Florida State, Deed-in-dieu of foreclosure, Stop Foreclosures, Stop foreclosures in Florida, foreclosure | No Comments »