Home Foreclosure News: Woman Successfully Stops Bank from Foreclosing for Over 25 Years; She Hasn’t Made a Mortgage Payment Since 1985

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

If you thought people going for 3, 4, 5 or 6 months without making a mortgage payment – and still being able to live in their homes — was something, here’s  a doozy for you . . .

A Florida woman has successfully staved off foreclosure for almost 26 years. Acccording to the MSN.com real estate article, The 25-year ‘foreclosure from hell’:

The last time she made a mortgage payment was October 1985. . . . [Her] foreclosure case has outlasted two marriages, three recessions and four presidents.

How has this 71-year old done it — for the most part without any legal help? Maybe she can teach you a thing or two about how to stop foreclosure.

Related Posts

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Stop Foreclosure: How to Ready Your Home for a Fast (Short) Sale

Stop Foreclosure: The Secret Your Lender Won’t Tell You That Can Help Save Your Home

Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage

Stop Foreclosure: 1 Really Easy Thing You Can Do to Buy More Time to Save Your Home

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

 

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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Cash for Keys Program: If You’re in Foreclosure and Have Filed Bankruptcy What You Need to Know

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

Is your house in foreclosure? Have you filed bankruptcy to try to hold onto it, or buy more time to get together funds before moving out? Has your lender put forth a “cash for keys” offer?

If any of this applies to you, following is some critical info you need to know.

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Home Foreclosure Info: What is Cash for Keys?

As we discussed in this cash for keys post:

Cash for keys (aka, keys for cash, cash for keys program, cash keys program, cash for keys agreement, cash for keys relocation program) is simply when a lender agrees to pay the homeowner who’s house is in foreclosure to vacate the property.

Many homeowners who face foreclosure are often having difficulty paying their other bills, so they file bankruptcy to find some financial relief. If you do this, you may jeopardize the keys for cash offer your lender has put forth. Following is how and why.

If You’ve Filed Bankruptcy and Want to Accept a Cash for Keys Offer, You May Not Be Able To

There are a couple of reasons you jeopardize any cash for keys settlement when you file bankruptcy, ie:

(I) Payments Coming to You: When you file bankruptcy, your attorney will ask you if you have any payments, settlements, awards, etc. coming to you – of any kind. This can be lottery winnings, a tax refund, paycheck, loan someone is repaying you, etc.

The reason they’ll ask you this is because any funds that are coming to you have to be noted in your bankruptcy petition, and could ostensibly be seized to pay off your creditors.

Usually, the payments have to be over a certain amount. Laws vary from state to state, so consult your attorney about the particulars.

(II) Bankruptcy Protection: When you file bankruptcy, your creditors are legally not allowed to make deals or in fact, conduct business with you – of any kind. This is because you are under the protection of the bankruptcy laws. They help to protect you from creditor harassment.

As an aside, this is why so many corporations and wealthy individuals file bankruptcy. For many, they’re not broke, not in the way the little guy is when they file. In essence, bankruptcy laws give filers a chance to regroup and reorganize.

Remember when a few of the large automakers filed bankruptcy (eg, GM) soon after President Obama took office, only to emerge from it making record profits just a year later? This is why they filed; they got a chance to regroup without the hassle of dealing with creditors, and came out stronger for it.

Well, you too have this same kind of protection when you file. The downside in the case of a cash for keys offer is that your lender is required by law to deal with your trustee. A bankruptcy trustee is an entity, usually an individual, in charge of administering a bankruptcy estate.

Any offers, settlements, payoffs, winnings, proceeds, etc. that come your way must go through the trustee. The trustee is the one who will look at your list of assets (if you have any) and determine which ones (if any) are exempt from the bankruptcy proceedings, and which ones are to be used to pay creditors.

So, in the case of a keys for cash offer, for example, the monies that you were counting on to move may very well go to some of your creditors.

How to Get Cash for Keys Money If You File Bankruptcy

The best thing to do is wait until your bankruptcy case has been resolved. While this can take anywhere from a couple of months to 6 months or more, simply tell your lender that’s what you’re going to do and ask if you can stay in the home until your case is resolved.

Many will allow this simply because they can’t foreclose on you while you’re in bankruptcy, because you are under the protection of the bankruptcy laws, remember? When you file bankruptcy, you in essence tie your creditors (in this case your mortgage lender’s) hands.

Disclaimer: The above is in no way meant to be legal advice. It is for general informative purposes only. As laws vary from state to state, contact a bankruptcy attorney regarding specifics as they relate to your situation.

Next Up in the Cash for Keys Series

In the next post in this series, we’ll discuss keys for cash programs as they apply to renters.

Related Posts

“Cash for Keys” Can Help if You Have a House in Foreclosure & Can’t Afford to Move

Stopping Foreclosure: What to Do When the Bank Refuses to Accept Your Mortgage Payments & Tries to Escalate the Home Foreclosure Process

Right of Redemption Laws: How to Get Your Home Back – Even After It’s Sold as a Foreclosure

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Because of Home Foreclosures, Buying a Home Is Cheaper than Renting in Almost 75% of Largest American Cities

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

If home ownership has long been a dream of yours, and you’re sick of renting, now has never been a better time to buy. Proof? According to the recent Bloomberg article,  Buying Home Is Cheaper Than Renting in 72% of Big U.S. Cities, Trulia Says:

A record 2.87 million homes received notices of default, auction or repossession in 2010 . . . [making] Buying a home … cheaper than renting in 72 percent of the largest U.S. cities . . .

That House in Foreclosure Could be Your Dream Home

If you’re new to the home-buying process, looking at foreclosed properties may not excite you as much as looking at shiny new homes with all the bells and whistles. But remember this, bells and whistles can always be added. The things you should be concerned about when you buy a house is whether the bones are good, ie:

How’s the wiring;

Are there cracks in the foundation;

Is there proper and sufficient insulation;

Etc.

If the bones are good, the cosmetics can be fixed.

Remember this.

How to Qualify for a Home Mortgage: Times Have Changed

While there’s lots to choose from on the market, qualifying for a home mortgage has gotten more difficult. There’s no denying this. Home financing options like zero down home loans and so-called “liar loans” (stating an income without providing proof; aka no doc loans and no income verification mortgages) are a thing of the past.

Learn more about what it takes to qualify for a home loan in this, the post-foreclosure crisis real estate market.

 Related Posts

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

 

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

 

How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards All to Blame

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P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

 

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

“Cash for Keys” Can Help if You Have a House in Foreclosure & Can’t Afford to Move

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

One of the fears for many who have a house in foreclosure is that the lender will toss them out on the street and they’ll have no place to go. It’s a valid fear, especially for those who’ve lost jobs, run through their savings, are about to lose unemployment benefits and still have no solid employment opportunities in sight.

If this sounds like you (or someone you know), then you need to know about lender “cash for keys” programs.

What is Cash for Keys?

Cash for keys (aka, keys for cash, cash for keys program, cash keys program, agreement, cash for keys relocation program) is simply when a lender agrees to pay the homeowner who’s house is in foreclosure to vacate the property.

Following is the rationale behind lender cash for keys programs:

A homeowner may ask, “I have a house in foreclosure, why would a lender pay me to move?”

Lenders do this on homeowners who are in foreclosure for a number of reasons:

Cash for Keys Programs: Why Lenders Pay Homeowners Cold, Hard Cash to Leave Their Homes

It’s Cheaper for Lenders: Because they don’t have to go through the entire home foreclosure process if you agree to leave the property and accept a cash payout. According to the industry-leading home foreclosure blog, ForeclosureFish.com:

On average, banks lose about $60,000 on a foreclosure in terms of paying lawyers, filing fees in court, property taxes and insurance for the home, administrative and maintenance costs, and lost revenue once the owners stop paying.

As this figure indicates, foreclosing on a property is an expensive undertaking, and any fees that can be mitigated saves lenders.

Another way the cash for keys programs saves lenders is that it deters homeowners from trashing a property. And, this happens more than you might think. According to a recent post here entitled, Home Foreclosure News: 13.9% of All Foreclosed Properties Vandalized

About 13.9 percent of all real estate properties owned by a bank or agency were so badly damaged that they did not qualify for standard mortgage financing, according to data collected from real estate agents across the country for November 2010.

Ouch (for lenders)!

As the CBS 3 News article, Homeowners Trash Houses During Foreclosure, sums up so succinctly: “Banks that own foreclosed homes that have been trashed have to hire clean up crews. It can cost thousands of dollars.”

Cash for Keys: Specific Info You Should Know

Time to Leave: Usually, lenders will give homeowners anywhere from 30 to 60 days to move out. This varies from bank to bank though. There have been cases where banks have allowed (yes allowed) homeowners to stay 6 months or more without paying the mortgage – and still give them “cash for keys” when they vacate the property.

Why? Because foreclosed properties are magnets for thieves, vandals and squatters. It’s better for them to have homeowners stay there until the property is resold and/or can be secured than to have it sit empty during this process. Read one example where a bank paid a homeowner to say in her foreclosed property.

Leave It Clean: The whole idea behind the cash for keys programs is to mitigate lender costs, hence, one requirement that all these programs have is that the home must be left in “broomswept condition.” What does this mean?

Simply that the property must be at least surface clean. You don’t have to shampoothe carpet and paint any dirty walls, as “normal wear and tear” is acceptable. But, there can’t be any visible signs of vandalism, eg, holes in the walls, appliances ripped out, damaged flooring or ripped up carpet.

Generally, all fixtures must be left, as well as major appliances – even those you may have purchasd (eg, your refrigerator). And, this means outside buildings as well. All toys, pets and pet care items, lawn equipment, old cars, junk and debris must be cleared away from the yard and outside structures.

How Much Cash Can You Can Get? If your house is in foreclosure and you agree with the bank to move out, generally they’ll pay you anywhere from a few hundred dollars on up to about $3,000. Every lender is different.

Some have set amounts that they’ll pay, eg, $2,500 at HSBC bank for example. Others may base it on a percentage of the appraised value of the home. And, some homeowners have been able to negotiate higher payments via their lender’s cash for keys programs; one homeowner said he got over $8,000, stating:

On my house they offered me $4000.00 and to be out in two weeks. I told them it wasn’t enough money and I’m not interested. They replied back to me the same day and said ok we will offer you 8100.00 and four weeks to get out. I thought OK deal.

Apparently, You Can Negotiate Cash for Keys Payments: Many banks are formalizing their cash for keys programs, so may not be willing to negotiate payments. But, if you feel the amount they’re offering you is too low, ask for more.

As one poster commented in a cash for keys post on a website said, “I asked my friend who is a realtor she said they can offer you up to $10,000 per house max. That’s what the banks can afford. Ask around. Learn more in the video below.

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

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Filed Bankruptcy to Prevent Foreclosure? How to Still Qualify for Cash for Keys

In a post on Wednesday, we’ll discuss how to still qualify for Cash for Keys if you’ve filed bankruptcy. There are special stipulations that apply here. And in a later post, we’ll discuss cash for keys for renters (yes, if you rent, you can qualify for a keys for cash payout).

Related Posts

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Stop Foreclosure: How to Ready Your Home for a Fast (Short) Sale

Stop Foreclosure: The Secret Your Lender Won’t Tell You That Can Help Save Your Home

Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage

Stop Foreclosure: 1 Really Easy Thing You Can Do to Buy More Time to Save Your Home

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Learn More about Cash for Keys

Home Foreclosure News: 13.9% of All Foreclosed Properties Vandalized

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

The actions of angry homeowners and vandals combine to make damage of foreclosed properties a real pain in the patootie for banks, lenders and other mortgage holders. According to the ABCNews.com article, Here’s the Kyes, and Some Cement Down the Drains:

About 13.9 percent of all real estate properties owned by a bank or agency were so badly damaged that they did not qualify for standard mortgage financing, according to data collected from real estate agents across the country for November 2010.

And, as the foreclosure crisis continues over the next couple of years, it would behoove mortgage holders to keep the Tylenol close because more headaches are on the way.

Related Posts

Foreclosure Clean Up: Why It’s Still a Leading Small Business Opportunity for 2011

Why Foreclosure Cleaning Companies Will Be Profitable for Years to Come

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

 

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Follow Foreclosure Business News on Twitter.
Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure Statistics: For First Time in History, Foreclosures Top 1 Million & That’s Not the Worst of It

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

Lenders seized more than 1 million homes last year, surpassing the number of foreclosures in 2009 by almost 100,000, when the number topped out at 918,000.

And, that’s not the worst of it.

Home Foreclosure Rates: 3 Million Home Foreclosures Possible?

According to the Reuters report, U.S. 2010 home foreclosures top 1 mln for first time, that number could have been much higher — topping 3 million, if it had not been for the 4th Quarter fall off which was precipitated by the home foreclosure robosigning scandal. The article states:

Total properties receiving foreclosure filings would have easily exceeded 3 million in 2010 had it not been for the fourth-quarter drop in foreclosure activity — triggered primarily by the continuing controversy surrounding foreclosure documentation and procedures that prompted many major lenders to temporarily halt some foreclosure proceedings . . .

Home Foreclosures Statistics: 2011 Expected to Be Worse — Will Top 1 Million Again

The outlook is not good for the next couple of years, according to some housing and finance experts. Proof? According to the Philadelphia Inquirer article, Rise forecast in housing foreclosures, but Phila. area mostly unscathed:

. . . 1.2 million U.S. homes likely will be repossessed by lenders this year, 20 percent more than in 2010, RealtyTrac of Irvine, Calif., which tracks foreclosures nationwide, reported Thursday. . . Economist Patrick Newport of IHS Global Insight in Lexington, Mass., said foreclosures were likely to remain horribly high for a year or two because so many homes – 23 percent nationally – are deeply underwater, meaning that more is owed on them than they are worth.

Good News on the Home Foreclosure Front

There is a silver lining to all of this — it seems that the market is bottoming out and that the only way for things to go is up. So, American homeowners can at least start to feel optimistic about a couple of things:

(i) That the value of their homes will start to come back (albeit slowly); and

(ii) The real estate market as a whole will have corrected itself, bringing prices on homes in line with what they should have been all along, instead of the inflated values we saw before this whole home foreclosure crisis.

In the words of Jesse Jackson, at least we can “Keep hope alive!”

Related Posts

Home Foreclosure News for 2011 — 100,000 Foreclosures Expected in the First Month of This New Year

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

Foreclosure Clean Up: Why It’s Still a Leading Small Business Opportunity for 2011

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

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Florida Home Foreclosure Crisis: Sunshine State’s High Foreclosure Rates Creates Ripple Effect for Legal & Financial Institutions

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

The whole home foreclosure crisis started in states like Florida, Arizona, California and Nevada have created ripple effects in courts that are overwhelmed with cases, banks who’ve been accused of everything from outright fraud to things like robosigning and property tax assessment boards (ie,  county value adjustment boards).

What does all of this mean for the average Joe trying to prevent foreclosure?

Home Foreclosure Crisis: Consequences for Homeowners Trying to Prevent Foreclosure

Months waiting for a loan modification that may never come through;

A speeded up foreclosure process as courts seem to be ruling more in favor of lenders just to clear the backlog of foreclosure cases;

Depressed housing prices for all homeowners, which has a particularly devastating effect on the 50% of homeowners in the state who are NOT underwater; and in what some call a bit of good news for some homeowners;

Free rent for going on two years for many who’ve simply stopped paying the mortgage in anticipation of being foreclosed on and/or a loan modification.

Proof?

The Miami Herald article, Foreclosure crisis hits home for all, states:

In South Florida, where nearly half of all homeowners owe more on their homes than they are worth, 20 months of rent-free living adds an incentive for borrowers to voluntarily stop paying their mortgages.

Related Posts

Florida Foreclosure Law: How to Get Your Home Back Even After It’s Sold at Auction

Florida Foreclosures: Good News for Homeowners — Court Requires Mediation before Foreclosure

Florida Foreclosure Law: Chief Justice Orders Foreclosure Hearings to be Open to the Public

Foreclosure Laws in Florida: A Quick Overview of the Home Foreclosure Process in the Sunshine State

Florida Foreclosure Lawyer Making a Mint: One Fl Attorney says, “Murderers get more due process than homeowners being foreclosed upon”

Florida Foreclosure Law: Condo Associations Caught in the Middle When Lenders Won’t Foreclose & Owners Stop Paying the Mortgage

P.S.: Get Foreclosure Cleaning Jobs: Learn exactly what you need to know to register with your local housing authority to get foreclosure cleaning jobs.

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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosure News for 2011 — 100,000 Foreclosures Expected in the First Month of This New Year

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!”

Well, 2011 is starting off with a bang — a not-so-good bang for many homeowners. According to recent reports, 100,000 home foreclosures are expected in this month alone.

Why So Many Home Foreclosures This Month?

Besides the normal reasons of banks delaying foreclosures because of the holidays and the recent home foreclosure robo-signing scandal, a lot of this can be attributed to simple human behavior.

What do I mean?

Well, a lot of people make definitive decisions at the start of a New Year. For example, some common New Years resolutions are to lose weight, find a new job and get out of debt. ‘This last resolution is particularly relevant, for what this means for many is getting rid of a home they can no longer afford and/or filing bankruptcy, etc.

So, while lenders may be willing to work with many homeowners now, those same homeowners who are facing foreclosure and have been stressed about how they’re going to afford the mortgage are saying:

Forget it. I’ll do a strategic default (eg, a deed in lieu of foreclosure, a short sale and/or declare bankruptcy and start fresh.

Some are not even taking these proactive measures — they’re simply doing the “jingle mail walk.”

Home Foreclosure News: Factors That Push Many Homeowners to No Longer Fight Foreclosure

These types of contingency plans may catch many lenders by surprise. But many homeowners are tired of a myriad of things, eg:

Waiting for a home loan modification that never seems to come through; or

Trying to refinance a home that’s severely underwater; or

Going through their savings to save a home they can no longer afford; or

Tired of sending out applications in hopes of landing a job that pays enough to allow them to hang onto their homes that have lost 10, 15 or 50% of its value (eg, being under water).

For all of these reasons, January is shaping up to be a brutal month on the home foreclosure front. But, as with every situation, there can be a silver lining.

In the next post here, we’ll look at why foreclosure may be the best thing that could ever happen to you.

Related Posts

Foreclosure Clean Up: Why It’s Still a Leading Small Business Opportunity for 2011

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

Stop Foreclosure: How to Ready Your Home for a Fast (Short) Sale

Stop Foreclosure: The Secret Your Lender Won’t Tell You That Can Help Save Your Home

Stop Foreclosure Help: What Happens When You Stop Paying Your Mortgage

Stop Foreclosure: 1 Really Easy Thing You Can Do to Buy More Time to Save Your Home

Stopping Foreclosure: Obama Administration to Launch 2 New Programs to Help Homeowners Avoid Foreclosure (One is for Unemployed Homeowners)

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

P.S.: Start a Business Cleaning Foreclosed Properties. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. Learn how to start a foreclosure clean up business. Read how one foreclosure cleaning business owner rakes in $40,000/wk (not a typo).

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P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2011 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.