Foreclosure Property and Flood Insurance: Critical Info Every Homeowner Needs to Know before It’s Too Late

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With Tropical Storm Sandy — which is also being referred to as a hurricane, a superstorm and a Nor’easter — bearing down on the northeastern coast of the United States (affecting an estimated 60 million people), flooding is a foregone conclusion in many areas. If you’re a homeowner in foreclosure and/or own any kind of foreclosure property, whether or not you have flood insurance is/should be a real concern.

Questions about Property Foreclosure and Flood Insurance

Following are a few concerns you may have – and some insight into how to handle them.

Did You Know? Regular, run-of-the-mill homeowner insurance policies don’t include flood insurance.

Many homeowners – whether they’re in foreclosure or not – are surprised to learn this, and often find out too late (eg, after their home has been damaged by a flood and they contact their insurance coverage to cover damages). Proof?

Traveler’s – a major insurance agency – puts it simply, stating this about flood insurance:

. . . damages caused by floods are specifically excluded from all homeowners policies. You need to have a separate flood insurance policy in order to be covered.

If I own a home that’s in foreclosure – and I no longer live there – do I have to carry flood insurance on it?

Theoretically, if you own a home in foreclosure (whether you still occupy the home or not), you are responsible for carrying the applicable insurance on it. This includes flood insurance.

USAA, another insurance carrier, explains who needs flood insurance simply and perfectly on its website, stating:

Flood insurance is mandatory when you have a mortgage on a home in a high-risk flood area. Even if you live outside a high-risk area, don’t make the mistake of assuming you’ll never experience a flood. In fact, more than 25% of flood losses occur in areas considered at moderate or low risk.

HOWEVER, . . . this brings us to another question you may be pondering, which is . . .

If I declared bankruptcy to avoid foreclosure and my debts have been discharged, but my lender hasn’t foreclosed, do I still have to carry (flood) insurance – and pay for other fees associated with owning a home, eg, property taxes, etc.?

This is a sticky situation brought on by the foreclosure crisis; one we’ve tackled on this blog before. In the post, Foreclosure Advice: “My Debt Has Been Discharged in Bankruptcy but My Lender Hasn’t Foreclosed? Do I Still Have to Pay HO Insurance, Property Taxes, HOA Fees, Etc.?”, we stated:

A realtor who contacted a few bankruptcy attorneys about what to advise his clients to do if they’ve declared bankruptcy but the bank hasn’t foreclosed received conflicting advice, ie . . .

[One] bankruptcy attorney told me that my client who was recently discharged from the debt through bankruptcy technically didn’t own the property anymore and should drop the insurance and not concern himself with the status of the property anymore.  However, I didn’t feel comfortable with this information. [So] I consulted yet another bankruptcy attorney who stated that until the bank forecloses, my clients are still named as legal owner of record and therefore remain responsible for the taxes, insurance, security and condition of the property.  

We’re inclined to agree with the second attorney’s advice — strictly from a legal responsibility point of view.

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If my lender has foreclosed on my home, do I still have to pay for flood insurance?

If your lender has foreclosed on your home – and completed the foreclosure process (this part is very important) — then no, you are not responsible for paying for flood insurance, or any other fees associated with owning the property (eg, property taxes, HOA fees, etc.).

Note: Many lenders start the foreclosure process these days, and don’t complete it. Unless and until the foreclosure process is completed, you are technically still responsible for it. This means you can be assessed fees by the county for not keeping up the lawn – and other problems caused by a vacant property (if you no longer reside in the residence).

As we stated in the post referenced above:

Unless and until your lender formally forecloses on the property, YOU, the homeowner, are still responsible for its maintenance and other fees.

We received a letter from our lender saying we needed to get flood insurance on a property we own in a “disaster-prone area” that is not our primary residence? Do we have to?

This actually happened to one couple and is quite common, especially in light of the foreclosure crisis and particularly in states like Florida where a lot of people own secondary residences which may be in foreclosure. It brings to light the issue of lender-imposed flood insurance – which can be exorbitant.

The husband in the couple this happened to was actually a New York Times journalist, who reported on his brush with lender-imposed flood insurance in the article, [Flood] Insurance Dictated by the Bank.

Even though this journalist’s property wasn’t in foreclosure, he did give some important insight into how to handle this situation. He stated that much depends on whom you speak with at your lender’s office, ie:

How you extricate yourself from this trap [lender-imposed flood insurance] depends on whom you talk to. . . . In our case, we resolved the problem the old-fashioned way — we spent four months talking to dozens of Bank of America employees. . . . Based on my experience as both a condo owner and reporter, I can attest that homeowners should not ignore these letters [instructing them to get flood insurance] and must be vigilant in sorting [it] out . . .

How much does flood insurance cost?

The average premium for a standard flood policy is $500 per year. But remember, you could qualify for a Preferred Risk Policy and pay as little as $119 per year. [Source: FloodFacts.com.]

Also note that if you bundle your policies with your insurance carrier (ie, have homeowners, car, life and other types of insurance with the same company), you may be eligible for discounts.

When NOT to Buy Flood Insurance

There are certain situations when you should NOT purchase flood insurance – on a foreclosure property – or any other property you own. This article also details when you should purchase additional insurance to cover situations caused by floods, but which won’t be directly covered by your flood insurance (I know, seems crazy – but better to be informed than surprised after a flood).

More News from Around the Web on Property Foreclosure and Flood Insurance

Is a lender obligated to maintain flood hazard insurance on a foreclosed property if the customer (homeowner) isn’t paying? Short answer: Yes. Most lenders tack these fees onto the balance owed on the mortgage. If they ever work out a mod, refinance, etc., with the homeowner, lenders can/may recoup these fees.

Flood insurance premiums could double in four years because many properties required to carry flood insurance are in areas hit hard by foreclosures (eg, Florida).

Before purchasing flood insurnace, consult a qualified insurance professional — in your area — to find out the best coverage for your family and your dwelling.

Related Posts

The Insurance “Scam” That’s Forcing Many Homeowners into Foreclosure

Foreclosure Advice: “My Debt Has Been Discharged in Bankruptcy but My Lender Hasn’t Foreclosed? Do I Still Have to Pay HO Insurance, Property Taxes, HOA Fees, Etc.?”

Do I Still Have to Pay Taxes After a Foreclosure? The Answer Might Surprise You

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

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

Copyright ©2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author. Legal Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here.

Live Near a Foreclosed Home? Here’s How Much Value Your Property Has Lost Because of It

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Many homeowners who are not  in foreclosure live near properties that are. By now, many realize that this affects the value of their property. And if you’re wondering by how much, a consumer research group has crunched the numbers to find out.

If You Live Near a Home in Foreclosure, Guess How Much Value Your Home Has Lost?

The NBC News article, Foreclosure fallout cost nearby homeowners $2 trillion, report finds spells it out, stating:

Households near a foreclosed property lost or will lose an average $21,077 in wealth or about 7.2 percent of their home value, the report found. In minority neighborhoods, the families lost an average of $37,084 or 13.1 percent of their home value.

Post continued below . . .
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Good News on the Home Foreclosure Front

Hopefully, many homeowners will be regaining the lost value in their homes in the coming years. Foreclosure statistics show that foreclosures fell in 62% of U.S. cities, according to a CNN article, which stated:

Foreclosures fell in nearly two-thirds of the nation’s largest metro areas during the third quarter, according to RealtyTrac Thursday. . . . With 62% of the nation’s 212 largest markets seeing foreclosure activity shrink during the latest quarter, the ongoing decline is yet another sign that the housing market is starting to stabilize.

Top 10 Metro Areas With the Highest Foreclosure Rates

California leads the list, taking 8 of the 10 spots, with Illinois claiming two spots and Florida claiming one.

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Related Posts

U.S. Foreclosures Drop to Lowest Number Since 2007, but That’s Still Not Necessarily Good News — Here’s Why

Home Loan Help: Documents Needed to Apply for a Mortgage Modification with HSBC (and Other Lenders)

I filed Chapter 7 bankruptcy, and all my debts listed were discharged; can the bank still foreclose?

Cash for Keys: How Not to Lose This Money if You’re in Foreclosure and File Chapter 7 Bankruptcy

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

Underwater On Your Home? Filing Chapter 7 Bankruptcy? Should You Reaffirm Your Mortgage?

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

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

How to Avoid a Deficiency Judgement After Foreclosure

Foreclosure Advice: Should You Continue to Pay Your Mortgage While You Wait for a Home Loan Modification?

Home Foreclosure News: Bankruptcy Attorney Explains Why Foreclosure Is Inevitable for the Vast Majority of Homeowners Going Through the Home Loan Modification Process

Credit and Foreclosure: 5 Easy Things You Can Do TODAY to Start Repairing Your Credit After Foreclosure

Foreclosure & Credit: How Does Foreclosure Impact Your Credit Report?

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

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

Copyright ©2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author. Legal DisclaimerThe information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here.

The Foreclosure Crisis: Where Do President Obama and Mitt Romney Stand On This Issue – And Why It’s Important If You’re Facing Foreclosure

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc. 

If you’ve been paying attention to the presidential race this political season, you wouldn’t know that the foreclosure crisis is still very real for many Americans. The reason is, neither side seems to be focused on it. There hasn’t been a question about it in either presidential debate; nor was their one during the vice-presidential debate.

When you consider that foreclosures have a direct impact on the #1 issue in this election (the economy), it’s more than frustrating if you’re a homeowner facing foreclosure. So what gives?

If you’re wondering just where the two presidential candidates stand on the question of foreclosures, here’s some insight.

Where Romney Stands on the Issue of Home Foreclosure

Like many issues, Romney has seemingly changed his position on foreclosures. According to the article, Real Estate Watch: Where Obama and Romney stand on housing, in the San Jose Mercury News – initially Romney took a purely capitalist view of the situation, ie, saying that the foreclosure process should run its natural course with no interference from the government. His exact words were:

On Oct. 17, 2011, Romney told the Las Vegas Review-Journal: “Don’t try to stop the foreclosure process. Let it run its course and hit the bottom, allow investors to buy homes, put renters in them, fix the homes up and let it turn around and come back up.”

Fast forward to January of this year . . .

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The Republican presidential candidate seems to lean towards running some type of interference. He seems to suggest that the government can intervene to a limited degree to “work with the lending institutions and help them take action which is in their best interest and the best interest of the homeowners.”

Mind you, this statement was given at a meeting in Florida (Tampa). When you consider that Florida has been one of the hardest states hit by the foreclosure crisis (Florida leads the nation in foreclosures right now), it’s hard to ignore the politics surrounding this sentiment.

Is the former Massachusetts governor serious about helping homeowners stop foreclosure, or is he swaying with the political winds of the times – trying to pick up those crucial 29 electoral votes Florida has to offer?

Only time will tell.

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Where the Obama Administration Stands on the Issue of Home Foreclosure

In 2009, at the beginning of President Obama’s term, foreclosures were a red-hot topic. You practically couldn’t turn on any news channel without at least one story that revolved around the housing crisis.

2009 Foreclosure Statistics

According to RealtyTrac, there were almost 4 million foreclosure filings in 2009 (3,957,643 to be exact). This involved almost 3 million properties (2,824,674).

Fast forward to 2012.

2012 Foreclosure Statistics 

The foreclosure crisis is abating; there’s no doubt about it. Proof?

Approximately 1.3 million homes, or 3.2 percent of all homes with a mortgage, were in the national foreclosure inventory as of July 2012 compared to 1.5 million, or 3.5 percent, in July 2011. Month-over-month, the national foreclosure inventory was unchanged from June 2012 to July 2012.  [Source: CoreLogic.com

With numbers like this, many news outlets are reporting “good news” on the foreclosure front. Unfortunately, this doesn’t mean a hill of beans to the millions of homeowners who are actually in foreclosure — or very close to going into foreclosure (which no one seems to want to focus on).

The Obama Administration’s “Prevent Foreclosure” Programs

The Obama administration has tried to ease the foreclosure crisis. It launched a couple of “prevent foreclosure” programs soon after taking office, ie, HAMP and HARP. However, it’s widely agreed by housing and economic experts that the government’s efforts to stop foreclosure via these programs have been a dismal failure.

But, the administration kept trying. In the summer of 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act was signed into law. The act was billed as a “sweeping overhaul of the United States financial regulatory system,” which includes the regulation of mortgage lenders and servicers.

So, what’s the administration’s current stance on home foreclosure?

The above-mentioned San Jose Mercury News article states:

After the 2012 State of the Union, the administration released a “plan to help responsible homeowners and heal the housing market” that promoted a “fair set of rules” that would “allow lenders to be transparent about options and allow borrowers to meet their responsibilities to understand the terms of their commitments.”

What exactly does this mean for homeowners?

Basically that The Home Affordable Modification Program (HAMP) will be extended through next year. According to the Fox News article, Obama administration to extend and expand foreclosure relief program, following is some further help the administration is extending to help homeowners prevent foreclosure:

The government will triple the financial incentives for private lenders to reduce the principal amount of mortgages for homeowners at risk of losing their homes. And for the first time, the government will offer incentives for principal reductions to government-controlled mortgage giants Fannie Mae and Freddie Mac. 

What the Presidential Election Means for Homeowners Facing Foreclosure

As with every presidential election, there are many issues at stake, eg, equality pay for women, abortion rights, the economy, healthcare, etc. For every American, some issues hit home (pardon the pun) more than others. 

So if you’re a homeowner facing foreclosure, it’s up to you to do your homework and cast your vote accordingly. As we’ve seen, the candidates aren’t talking about the foreclosure crisis and the media has moved on to other more popular (ie, “if it bleeds it leads”) issues.

So nobody’s looking out for you – and the preservation of your home – but you.

Be sure to vote accordingly.

Related Posts

Foreclosure News: Lenders Required by Gov’t to Pay Homeowners Up to $125,000, Return Their Foreclosed Property, or Modify Mortgages

2012 Is a Critical Year for Homeowners Facing Foreclosure (Learn the Tax Consequences of Home Foreclosures & Short Sales)

Home Loan Modifications: Why Federal Government’s Mortgage Modification Program a Mix of Good and Bad News for Homeowners

Home Loan Modification: 65-75% of Loans Modified via HAMP (the govt’s Home Affordable Modification Program) Likely to Go Bad  

Home Loan Modifications via Government’s “Prevent Foreclosure” Program Go Up, But Will It Help Stem the Tide of Foreclosures?

Home Foreclosures Projected to Rise as Government’s “Prevent Foreclosure” Program Falters

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

Foreclosure Deal: One REALLY Good Thing to Come Out of It for Homeowners

The OTHER Foreclosure Settlement: You May Be Eligible to Be Paid TWICE – Even If You Didn’t Lose Your Home to Foreclosure

The Foreclosure Deal: Homeowners Who Lost Homes to Foreclosure Have Money Coming — and More Benefits for Those Trying to Hang Onto Their Homes

What the Foreclosure Settlement & More Short Sales Mean for Homeowners Facing Foreclosure

Stopping Foreclosure: How to Get Your Home Loan Modified Quickly with the Help of NACA

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free  

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

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

Copyright ©2012 Yuwanda Black for Foreclosure Business News. Legal Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here. 

Georgia Foreclosure Law: Recent Ruling Could Impact Future Foreclosure Suits

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

Georgia is a non-judicial foreclosure state, which means that the foreclosure process moves quicker than states that are governed by judicial foreclosure law because there’s no requirement for a court to be involved.

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Editor Note:
Did you know that  2012 Is a Critical Year for Homeowners Facing Foreclosure (Learn the Tax Consequences of Home Foreclosures & Short Sales)?
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This makes the recent ruling in Georgia foreclosure law all the more important for homeowners in this situation because it means that they at least have the right to know exactly who’s foreclosing on them.

If you know anything about the whole foreclosure crisis, one of the main problems many homeowners have is finding out exactly who owns their home loan. This is because lenders usually sell the loans before the ink is dry on the closing papers. But, a spate of court decisions over the last few years is slowing this practice and circumstances surrounding it.

For example, take the California Homeowner Bill of Rights. One of the things that this foreclosure legislation does is penalize companies who robosign documents – up to $10,000 per document.

Georgia Foreclosure Law: The New Change

Now, a Georgia court has come down on the side of homeowners facing foreclosure. An article in the Atlanta Journal Constitution summed up the Georgia foreclosure law ruling this way:

The issue involves the many lenders who sell their loans to other parties such as investment trusts, but serve as stand-ins handling the paperwork in the foreclosure process and act as if they still own the loans.

The Georgia Court of Appeals held Thursday that the name of the actual owner of a mortgage must be present in foreclosure filings and notices sent to delinquent borrowers.

At first read, it may seem incredible that an “entity” could foreclose on a homeowner – without them every properly knowing who/what said entity is/was. But, it WAS possible – and it’s happened to a lot of homeowners. And it all goes back to how lenders handle home loans.

Post Continued Below . . .
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They grant them, then sell them – over and over and over again. And not only that, when it’s time for a lender to foreclose, many of them had “proxy entities” standing in for them. So it was tough for homeowners to figure out who the actual lender is/was; how many times a loan was sold; the difference between a “proxy entity” and the actual loan owner . . . and on an on and on.

The court majority put it this way, “A debtor [homeowner in foreclosure] has a right to know which entity has the authority to foreclose, and there should be no confusion about the identity of that entity.”

Common sense, no?

Related Posts

Want to Stop Foreclosure and Keep Your Home? Now There’s Hope — Here’s Why

Understanding Foreclosure Deficiencies and Mortgage Debt Forgiveness: Specific, Clear, Detailed Examples Given

Underwater On Your Home? Filing Chapter 7 Bankruptcy? Should You Reaffirm Your Mortgage?

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

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

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

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

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs.

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

Copyright ©2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author. Legal Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here. 

U.S. Foreclosures Drop to Lowest Number Since 2007, but That’s Still Not Necessarily Good News — Here’s Why

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

According to the NPR article, U.S. Foreclosures Drop Dramatically, But The Picture Remains Very Mixed, some promising foreclosure statistics were releasted recently, ie, since September 2011, foreclosures have decreased by 16%, which is the lowest they’ve been since the summer of 2007.

While this is good news, it’s not all rosy. We still have a ways to go yet before the foreclosure crisis is over. Following are three reasons why.

3 Reasons the Recent Drop in Foreclosures Isn’t All It’s Cracked Up to Be

1. Court cases winding down, lenders winding up to foreclose on more homeowners: The last few years, lenders have been battling it out with state and federal legislators over illegal foreclosure proceedings, eg, robosigning. Now that many of these cases have been settled, lenders are once again gearing up to go forward with many foreclosures that were halted during these proceedings.

The aforementioned article explains it in the following manner; stating:

Several states where the foreclosure flow was not so dammed up last year could see a roller-coaster pattern in foreclosure activity going forward because of recent legislation or court rulings that substantively change the rules to properly foreclose. A backlog of delayed foreclosures will likely build up in those states as lenders adjust to the new rules, with many of those delayed foreclosures eventually hitting down the road.

2. Underwater homeowners: Many homeowners who may want to sell can’t because they owe more on their homes than they’re worth (they’re underwater). This could be hiding another foreclosure crisis in the making as more homeowners decide to walk away from homes that have depreciated so much, because they don’t ever see the properties regaining their value.

Also, this can cause a housing inventory problem. While more buyers may be qualified to purchase a home, they may not be able to find anything because the inventory just isn’t there . . . because underwater homeowners can’t sell. The only hope in many of these cases is a short sale — which can be difficult to get lenders to agree to.

Post continued below . . .
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 3. Foreclosures increasing in some states: While some states seem to have weathered the worst of the foreclosure storm, some states are seeing drastic increases, eg, Florida. According to the aforementioned NPR article,

. . .  foreclosure starts jumped there by 24 percent in September, compared to the same time last year. Florida now leads all states in the greatest number of properties in the foreclosure process.

So while the tide is turning in some areas of the country, there’s still plenty of wind in the sails of the foreclosure storm in other areas.

Related Posts

Get Foreclosure Help: How to Find Agencies that Will Help You Stop Foreclosure – For Free

Foreclosure Advice: Should You Continue to Pay Your Mortgage While You Wait for a Home Loan Modification?

Underwater On Your Home? Filing Chapter 7 Bankruptcy? Should You Reaffirm Your Mortgage?

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

Timeline For Foreclosure In All 50 States  

Understanding the Robosigning Mortgage Settlement Offer: 8 Key Things Every Homeowner Facing Foreclosure Should Know

Foreclosure Deal: One REALLY Good Thing to Come Out of It for Homeowners

The OTHER Foreclosure Settlement: You May Be Eligible to Be Paid TWICE – Even If You Didn’t Lose Your Home to Foreclosure

The Foreclosure Deal: Homeowners Who Lost Homes to Foreclosure Have Money Coming — and More Benefits for Those Trying to Hang Onto Their Homes

What the Foreclosure Settlement & More Short Sales Mean for Homeowners Facing Foreclosure

P.S.: Foreclosure Clean Up Job Leads: FYI, don’t forget to bookmark the site and come back for direct leads on foreclosure cleaning jobs, foreclosure cleaning contracts and foreclosure cleanup request for bids on jobs. Always look under the “Recent Posts” heading to find the latest job listings.

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

Copyright ©2012 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author. Legal DisclaimerThe information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here.

Want to Stop Foreclosure? The 9 Options Every Homeowner Has — Insight into Which Ones May be Right For You

ForeclosureBusinessNews.com: “Foreclosure News the Average Joe Can Use!” Find Trusted Vendors, eg, Foreclosure Lawyers, Mortgage Consultants, Cleaning Co’s, Etc.

The following is a guest post by real estate investor Shaun M. Johnson.

Foreclosure is everywhere. Utah has now reached number 5 in the most foreclosures in the nation, and of coarse Salt Lake City is leading that number. There are ways that you can stop foreclosure in northern Utah, but you must act now. Find the top 3 ways that would work best for you and start pursuing them today. I suggest 3 ways because then you will have 2 back up plans.

9 Ways to Stop Foreclosure — Choose 3 That May Work for You

1. Pay Overdue Mortgage Amount: Save up and get current on the mortgage by paying back the payments. You may be able to do this by getting a loan from friends or family, or tapping into your IRA account, or your 401K account. Those who know you realize that your situation is not your fault and most will be willing to help you Stop Foreclosure.

2. Contact Your Lender: Work with them to structure a repayment plan. This is what most lenders are doing for the people who are actively trying to stop foreclosure. This is where the lenders understand your situation, and they still believe that you are a good investment for them. They feel that you just had a hiccup in your financial situation and so they add the money that you owe to the back of your loan, which gives you more time to pay it back in the future. The lender wants to stop foreclosure as much as you do.

3. Get a Home Loan Modification: Work with the lender to modify the terms of the loan. They may go about it in several ways, which include forgiving part of the balance to lower your payments. They may also lower your interest rate, which in turn would lower your mortgage payments. Another option your lender may consider is lengthening the terms of your loan (eg, going from a 30-year to a 40-year period). This can be an ideal situation if your lender is willing to do this.

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4. Refinance Your Home Loan. This may be a good option if you don’t like how your loan modification came out. By refinancing you are asking another lender if you’re still a good investment for the bank. If they agree then they will finance your home through them and the loan that is foreclosing on you will be paid in full, thus stopping your home foreclosure.

5. Declare Bankruptcy. This is a temporary fix for most hoemowners. It allows you to stall your foreclosure for up to 2 years in some cases. You can then use this time to “get back on your feet” financially. Realize that this comes at a price though; it hurts your credit almost as much as a foreclosure and the interest that you will be paying on back payments for the mortgage can be outrageous when the bankruptcy is over.

Many bankruptcy attorneys will suggest a short sale because the whole point of bankruptcy is to get rid of debt and a short sale or selling the property outright is the only way to get rid of your mortgage without going into foreclosure.

6. Sell Your Home: If you can, selling your home is a good option if your’e not underwater and the property is worth enough. You have a limited amount of time to do this if this is the route you wish to use it to stop foreclosure. Usually, in order to make a sale happen, you have redeuce the asking price by quite a bit. One option is to sell it to a real estate investor. They can usually be found via those “We buy houses” ads you see all the time. 

7. Do a Short Sale: This is where you get the bank to take a discount on your mortgage. You find a buyer for your house. The buyer will want to buy your house for less than you owe on it. You will submit the offer into the bank and they will credit your mortgage as paid in full.

It’s important to do your research in finding someone to help you do this. They should not charge you anything and they should have done many of these transactions before. Usually, your best bet is to contact an investor who specializes in short sales to stop foreclosure.

8. Do a Deed-in-Lieu of Foreclosure: What is this? This is where you just give your house back to the bank. Why would they accept this? Because it saves them money by not having to file foreclosure and go through the entire foreclosure process. It also helps your helps your credit.

Although this is not usually the best way to stop foreclosure, it can still be an option. Just know, not all lenders offer this option. 

9. Do Nothing. Sadly, many homeowners are devastated and confused when facing foreclosure. Hence, they do nothing, which is the worst option of all. This does not stop foreclosure. Homeowners who do nothing; who don’t fight back — get hurt the worst financially. The sheriff will show up one day and evict you from your house in front of all your neighbors.

The good news is, if you’re reading this article, then this probably won’t happen to you because you’ve decided to be proactive to stop foreclosure.  

For more detailed information on the fastest ways to stop foreclosure, download my free report. You can pick it up at http://www.stopforeclosurenorthernutah.com/

Related Posts

How to Avoid a Deficiency Judgement After Foreclosure

Mortgage Foreclosure Timeline: How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home

Understanding the Robosigning Mortgage Settlement Offer: 8 Key Things Every Homeowner Facing Foreclosure Should Know

Timeline For Foreclosure In All 50 States  

Stop Foreclosure by Getting a Same-Day Home Loan Modification: Here’s How and Where

Credit and Foreclosure: 5 Easy Things You Can Do TODAY to Start Repairing Your Credit After Foreclosure

Mortgage Loan Modification: Top 10 Questions About (Home) Loan Modifications

Foreclosure Advice: What to Do When You’ve Stopped Making Mortgage Payments, But the Bank Won’t/Hasn’t Foreclosed

About the Author: Shaun is a successful real estate investor in the northern Utah area. He has helped many people out of foreclosure and looks foreward to helping you. He is the proud father of a son, Jimmie, and he has been happily married for 4 years now. He has a FREE REPORT on the web that you can download by entering your name and email at http://www.stopforeclosurenorthernutah.com.

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Copyright ©2012 Foreclosure Business News. Disclaimer: The information dispensed on this blog is not to be taken as legal advice; it is for general purposes only. Please consult a qualified attorney — in your jurisdiction — before taking any action based on the information listed here.