You need a hardship letter to stop foreclosure because the bank needs an explanation as to why you fell behind on your payments. They also use this information to determine if your reason is a legitimate one and if you can qualify for a loan modification. The bank also requires that you give them all of your financial information such as recent banks statements and paystubs. These documents inform the bank how much you are currently able to afford. They will then determine if it would be in their better interest to continue with the foreclosure and try to sell it, or to allow you to remain in the home. When writing a hardship letter to stop foreclosure you need to include the following: 1) ... [Read more...]
It is my understanding that many people in foreclosure status would actually like to do anything they can to stop foreclosure sale. Most of these people have had their homes for many years and allowed themselves to be duped into refinancing homes that were free and clear. They also refinanced homes that were at an affordable original purchase amount, but because they may have needed extra money for one thing or another, mortgage reps talked people into getting equity out of their homes to pay for whatever extra expenses they may have had. Because of this, now these people are unable to pay the higher mortgages on their homes mostly because they were talked into a 2 year arm mortgage. This meant... [Read more...]
Believe it or not, there is a way for you to stop foreclosure with a single question to your banker. What is that question you ask? The question is, “Is there any way we can do a loan modification to adjust the mortgage payment to an amount I can afford?” The banker will have to then take all of your financial information and figure out if there is any way for them to lower the interest, increase the length of the term and come up with an amount that will be affordable to your income. Because you are not the only client in this situation, this process alone may take up to six months just for them to give you an initial decision. Before the foreclosure boom, the banks were notorious... [Read more...]
Being served with a notice that your bank is about to start foreclosure proceedings to take your home because of non-payment can be a scary and embarrassing situation. Many are unsure what to do when this happens. Some panic and abandon their home immediately, some will just ignore the letters and phone calls until the sheriff’s officers come a knocking, while the small percentage of the informed will begin the chess match. You know… In the game of chess, each opponent makes a strategic move carefully watching the other’s strategy and moves. Whatever move the first opponent makes determines the other opponent’s move. The same goes for a foreclosure. The first player is the borrower... [Read more...]
There was a time when we heard of people who were homeless, it was usually caused by bad choices in the victims’ early life. Those choices were usually: Becoming drug addicted Dropping out of School Going to jail and therefore becoming unable to get a job It is also caused by a situation that is out of the victims’ control such as losing a job and therefore not having any income to maintain a home or apartment. Today, because we are in this recession and foreclosures are at an all time high, unemployment and other factors are now causing people, who were typically “by the book” and “good hard working people”, to make up a large number in homelessness. Check... [Read more...]
When trying to decide what type of foreclosure is a good one, you need to evaluate the cost of the property to it’s estimated value. For example. If a foreclosure is worth $200,000 after repairs, then the asking price can be no more than $130,000. This is because hard money lenders will only allow you to borrow 65% of the ARV (after repair value). $200,000 x .65 = $130,000 However, if you need construction costs to be included, then you need to deduct that amount from the $130,000 and that amount will be your offer. So, if construction repairs is $20,000, then: $130,000 – 20,000 = $110,000 You should only offer $110,000. If you have repair money and do not need to borrow towards... [Read more...]
Many people are uncertain about whether or not they should jump into the field of real estate. It usually is because of the fear of not knowing how or where to start. However, there are a number of people who honestly do not believe there is money to be made at all. This is so crazy because there is an astronomical number of people loosing their homes today more than ever. Even with the “Obama loan modification” people are continuing to loose their homes. If you thought things were beginning to look up then you are wrong. Check out the real numbers. Read More →
I came across this article in ezinearticles dot com and thought that Bruce Swedel made some very important points on what you can do to avoid foreclosure in the first place. It also shows you that there is a serious foreclosure epidemic in our country which is bad news for those loosing their homes, but good news to investors. Check out the article below: Avoid Foreclosures Today and Save Money With today’s onset of globalization, there have been quick lifestyle pattern changes. In our hectic and busy schedules, we oftentimes overlook the huge need to make proper investments in order to save some money. However, such trivial issues could bring benefits in the long run. Simply restricting... [Read more...]
This is so funny because I didn’t think to blog about this and I have been doing it for the past two years. It didn’t even cross my mind until it was offered to me yesterday. Because I am in the business of getting control of many pre-foreclosures and I know the process takes from six to twelve months for the foreclosure to really begin, I usually offer those in dyer need, to rent these properties for very low, granted the owner does not live there. Here’s how it works: If you come across a property that is listed as being in foreclosure, you can negotiate with either the owner, manager or realtor to rent the property until the foreclosure actually takes place. Because no... [Read more...]
