Monthly Archives: January 2015

Learn How to Stop Foreclosures

While it is unfortunate when Orange County foreclosures occur, they do not need to end up the disaster they usually are to either the residents in the home or the lending institutions that made the mortgage loan. By implementing some of the legal rules that support alternatives to Orange County foreclosures, residents can make the best of an unfortunate situation that they are facing.

Foreclosure-problems

For many people, the problems occurred when they were offered low rates for their homes, which resulted in Orange County foreclosures when they were unable to keep up with the payments over a period of time. These kinds of dangerous rates are ARMS. ARMS start off with a low rate but they reset much higher at the end of the term. For example a 5 year ARM was a common instrument taken out by homeowners, and because interest rates have gone up considerably in the last 5 years, when the ARM resets, the homeowner is no longer able to afford his monthly payments.

Instead of hurting one’s self by allowing the home to go up for auction by the sheriff, there are some other choices to consider.

To stifle the statistics of Orange County foreclosures, some people find it most beneficial to avoid declaring bankruptcy. For most people, this is because this option would hinder their attempts for many years in the future when it would come to getting credit cards, loans, another mortgage and having a regular and typical credit report run. In order to avoid an unsightly and embarrassing auction of the home and the crippling option of declaring bankruptcy, it is distressed homeowners may consider the following two important options when people are facing Orange County foreclosures of their properties.

 

 

Short Sales

short-sale-foreclosure

This is a popular option nowadays. If one of the Orange County foreclosures is not worth as much as the amount of money that is owned on it, the bank might be willing to sell the mortgage loan to an investor at a discount rather than let the home go to foreclosure auction. In this case, the bank wants to do the fastest approach when it comes to getting rid of Orange County foreclosures and wipe “bad debt” (non-performing assets) from their books.

Here’s how it works. The distressed homeowner works with a real estate investor who does short sales. The investor contacts the bank and negotiates a short sale directly with the bank. The short sale will be an offer by the investor for a discount on the loan. For example, if the loan for the home is $200,000 dollars and the home is worth $190,000, the investor may try to get a discount on the defaulted mortgage note to $150,000. If the bank allows it, the investor now has a $150,000 property worth $190,000.

The bank benefits because even though they lost money, going through the foreclosure process is expensive for them and that is avoided. The distressed homeowner benefits because he or she gets to avoid foreclosure and the consequent damage to their credit, not to mention avoiding the horrible experience of having their home auctioned off by the sheriff.

And the investor wins by getting a property at a discount to its fair market value.

 

Orange County foreclosures

Typically, the investor will then eventually offer the homes to other individuals, who can then spend the time fixing the home up either for themselves or the investor may hold it as a rental.

The last option is to consider if you are facing foreclosure is to work with a real estate investor on doing a lease option for your home. A lease option is often called a rent to own. Despite the fact that the previous owners would be still required to leave the home, the note will be paid off by new tenant-buyers who move into the home.

Here’s how it works in simple terms: distressed homeowner wants to avoid foreclosure. Real estate investor has the homeowner sign a non-exclusive simple option agreement that allows the investor to find a tenant-buyer for the home on a rent to own basis. The investor then locates the buyer and works with him to get financed if need be, or helps with credit repair. The tenant-buyer then moves int the home and takes over the monthly mortgage payments, and has an option to purchase the home at an agreed upon date.

The original distressed homeowner who was facing foreclosure gets to avoid the foreclosure and the damage to their credit that would have transpired.

In Orange County, foreclosures can be avoided by simply looking at some of the other laws that will benefit the individual when it comes to these types of problems.

Stop Foreclosure Quick: Knowing Your Options

Tactics and Options to Stop Foreclosure Quick

With interest rates having risen markedly in recent years, and with billions of dollars in ARMS adjusting upward over the next couple of years, many people now want to know how to stop a foreclosure.

When the ARMS reset, millions of people are finding their monthly payments going through the roof and they simply can’t afford the new payments.

Your tactics for how to stop foreclosure quick will depend on if you have much equity or if you don’t, and how far along you are in the foreclosure process.

Your options will vary for each case. Suffice it to say that the earlier you are in the foreclosure process, the more options you have.

foreclosure tactics

How to Stop a Foreclosure: Options to Consider

You may be able to refinance your loan. If you have a fair amount of equity, you can try this to lower your monthly payments and spread them out over a longer period of time. However, this doesn’t do you any good if you simply don’t have the income to make these lower payments or have the money to do the refinance.

Forbearance with the Bank: if you are still in the beginning stages of a foreclosure, you should contact your lender right away and try to work out forbearance with them. Here’s how it may work: let’s say you are behind on your mortgage payments for 3 months and your monthly payment is $1,000 a month. So that is $3,000 you are behind. If you can resume making your monthly payments but cannot pay the $3,000 you are behind, the bank may allow you to, say, pay $1,300 a month, with $300 of that going toward what you have defaulted on. This means that in 10 months, you’ll be current again.

This forbearance strategy generally only works to stop a foreclosure quick if you had lost your job, which created the impending foreclosure hardship, and now you’ve found a new job….in short, if you are bringing in income again that will make the bank believe working out forbearance with you will be in their interest.

Bankruptcy: Some people who want to know how to stop a foreclosure turn to bankruptcy. We are not attorneys, so this is not legal advice, just our opinion. But bankruptcy in our view should be an option of last resort. First, it is an action that will follow you around for years, leaving your credit shattered. Secondly, unlike what many people believe, filing a bankruptcy will not allow you to keep your home in the long run anyway. Lastly, it costs quite a bit of money…money that may be better spent paying off your defaulted mortgage loan.

file bankruptcy

Short Sales: This option is an increasingly popular way to stop foreclosure quick. A short sale is when the bank agrees to sell the defaulted mortgage at a discount. However, you as the homeowner will not be able to short sale the property since the bank will make it mandatory that you can’t profit from defaulting on the payments. Usually it will have to be you working in conjunction with a real estate investor who will negotiate with the bank to buy your mortgage note at a discount.

There is no guarantee the short sale will work, but if the investor can present a compelling case to the bank, they may accept it. Short sales are done all the time these days. You will benefit in that your home, if the bank accepts the short sale, will not go to foreclosure….therefore you will not have your credit ruined due to the foreclosure.

 

How to Stop a Foreclosure with a Lease Option

Lease options are another great way to stop foreclosure quick.

A lease option is also known as a rent to own. This is when you get a tenant-buyer into your home as quickly as possible to take over your mortgage payments. The tenant-buyer will have an option to purchase your home as well. The option term is usually 12 to 24 months.

Of course, you’ll have to move out of your home, but you get to avoid the foreclosure and the subsequent destruction to your credit and the humiliation of having your home auctioned off at the sheriff’s sale.

Working with real estate investors on a lease option also helps because time is critical when you are facing foreclosure. Real estate investors have connections and marketing expertise and may be able to get you a tenant-buyer for your home quickly, and set up the contracts properly.

Foreclosures On The Rise and Foreclosure Solutions

It’s comforting to know foreclosure solutions can be found. Why, you ask. Because home foreclosures are still a big problem inside of our country. While foreclosure numbers are lower in some areas, that aren’t the condition in the majority of the country.

foreclosure house sales increase

Authorities state it’s those popular variable-rate loans that happen to be serving to push the increase in foreclosures all over the United States, allowing potential buyers to buy more costly properties than they might usually easily afford. With adjustable-rate loans comprising around 1 / 4 of all house loans, how big will this issue develop into?

Just about each and every month, you will find a lot of foreclosures in newspapers across the country and several experts predict the stats will stay the same for a long time to come. Simply just get hold of your local paper, or maybe turn on your radio, in addition to your television and you can pick up something relating to the nation’s foreclosure tragedy.

Quite a few representatives that manage foreclosures assert that they believe what we have been witnessing currently will continue and foreclosures may continue at the same pace for a good while. For that reason, it would benefit you to fully understand what your foreclosure solutions are.

There are many alternatives to a foreclosure. One of the main foreclosure solutions is something known as a short sale; however not everyone is approved. The thing is, it can be extremely expensive for a lender to foreclose on a home, and then place it back on the market, and in some cases have to repair the house before placing it in the marketplace.

foreclosure short sales

One more alternative is to battle your foreclosure. Foreclosure rights change some from state to state, so it all will depend on the laws and regulations within your specific state to know what your foreclosure rights are. Thus, the very first thing that you have to do is to find out what the laws and regulations are for your state to know what your foreclosure rights are.

Does your state have a judicial or non-judicial process? How quick does your individual state’s foreclosure procedure move? What about, right of redemption? Each one of these questions, and others, are issues that you must understand so you’re able to actually comprehend what your foreclosure rights are and the way the procedure is likely to work.

How to Handle Foreclosure

When you are faced with the problem of foreclosure on your home on Orange County you need to immediately get the services of a professional Foreclosure Defense Lawyer. The Foreclosure Defense Lawyer will check out the facts behind your foreclosure and give you good advice on how to save your home. Millions of homes a month are ending up in foreclosure leaving families out on the streets. Many times the family could save their home from foreclosure if they had elected to fight the bank or lending institution that is holding their loan agreement (mortgage). That is the first step in handling foreclosure on your home.

foreclosure street

When it comes to handling a foreclosure case the leading attorneys in Orange County know just about everything that there is concerning the law, government programs, and other resources that will help the family to remain in their home. Even though the government has set up several bailout programs to help stop foreclosure it is still up to the homeowner to take the first steps. Most homeowners are not aware of their rights and what they should do in order to handle foreclosure when they have been served the notice of foreclosure. This is very understandable and the main reason that you need a foreclosure attorney by your side to help you through the whole procedure.

 

The best thing that you can do is to avoid foreclosure by taking care of the problem before you are served a notice of foreclosure. In most mortgage agreements is states that if you miss one or more monthly payments that the lenders can foreclose on your property. When you are faced with problems that will prevent you from making your monthly payments as the consumer then you should realize that foreclosure actions will soon take place. You can handle this problem by making arrangements with the bank as soon as possible. Some lending institutions allow you to skip one payment a year as long as you pay the interest amount that is owed. If this is just a onetime event perhaps you could call the bank and ask for a skip payment for that year taking care of the amount that is to be applied towards the interest.

Foreclosure-Defense-Attorneys

When you know that you have a more serious problem then you will need the services of an attorney that can help you work out some arrangements with the bank. Most Foreclosure Defense Lawyers will try to help you to get a lower interest rate, lower payments, and a longer period of time to pay for your home. In most cases this helps the homeowner to keep their home preventing any foreclosure problems. There are various other things that can be done to handle foreclosure and it depends on your situation as to how things can be handled.