Home Foreclosure News: 9 Reasons Strategic Defaults (eg, Voluntary Foreclosures) Will Continue to Rise

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According to the MSNBC.com article, As home prices fall, more borrowers walk away, more and more homeowners are willing to go the strategic default route. The article states:

A survey last year by two Chicago-area finance professors, Paola Sapienza at Northwestern University and Luigi Zingales at the University of Chicago, found that roughly three out of 10 mortgage defaults in 2010 were by homeowners who could afford to make their payments, up from 22 percent in 2009.

Just a few years ago, phrases like “voluntary foreclosure,” and “strategic default” weren’t a part of our everyday lexicon. However, as the housing crisis drags on and an arguably “jobless economic recovery” stares most Americans straight in the face, it’s not surprising that they are now.

 Strategic Defaults: 9 Reasons They’re Becoming More Prevalent

The above-cited article touched on a few of these, but following are what we see as some of the top reasons strategic defaults will continue to rise for the next few years.

1. Underwater Homeowners: Many homeowners remain significantly upside down on their homes (ie, owe more on the more on the mortgage than the home is currently worth). 

This means many are essentially stuck because they: (i) can’t refinance and; (ii) can’t sell (unless they want to write a check for the difference at closing and/or do something like a short sale), which can harm credit-.

So if a homeowner wanted to get rid of their home – for any reason, they can’t. For example if a job opportunity came up in another city; or a retired couple wants to want to sell and move to a warmer climate, many simply can’t do it because they can’t unload their homes.

Faced with situations like this, many choose the voluntary foreclosure route so they can get on with their lives. 

2. Banks Won’t Modify Home Loans: Banks have, thus far, been unwilling (at least publicly) to write down principal balances. Even a Harvard professor has weighed in saying that this would be the best thing to do, as we wrote about in the 12/6/2011 post here, Home Foreclosure News: Occupy Wall Street People Have Been Stealing Our Ideas on How to End the Home Foreclosure Crisis, stating:

We’ve long said it on this blog – the best things banks can do to prevent foreclosure – for millions! – is to reduce the principal balance. Now, a Harvard professor, who is an economic advisor to the president, is championing the same thing in The Los Angeles Times article, Obama administration ramps up mortgage refinancing effort:

A far more ambitious proposal is offered by Martin Feldstein, a Harvard professor and top economic advisor to President Reagan: Reduce the principal on the mortgages so that the loans are no more than 110% of the value of the properties. . . . Banks would absorb half the cost of the principal reduction, and the government the rest.

Could this practical solution to the foreclosure crisis finally gain some traction?

And the best thing about this plan is that banks and homeowners would share the financial burden. But to date, most banks just haven’t been willing to go down this road, seemingly preferring to let more and more strategic defaults happen.

3. Banks Hard to Deal With: In addition to not modifying loans, the runaround that banks give many homeowners who do try is simply unheard of. Many homeowners report having to send in the same  paperwork to their lender’s foreclosure specialist half a dozen times, only to have it lost.

Others report having a hard time finding out who even owns their home loan because it’s been sold so many times.

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4. Stagnant Economy: In the U.S., the unemployment rate remains abnormally high, at 8.5 percent. The Wall Street Journal expounds on this, stating:

. . . the unemployment rate ticked down to 8.5%, its lowest level since early 2009. But economists gathered here for the American Economic Association’s annual convention took a longer and generally dimmer view. Even if recent progress continues, the recession already has had a lasting effect on a generation …

And, one of those “lasting effects” is undoubtedly the ability to purchase (and hold on to) a home, which brings us to the next reason strategic defaults are likely to continue rising . . .

5. Credit Freeze: Banks are still not lending money (eg, there’s a credit freeze) – not for home loans, small businesses, HELOCs (although, who has equity anyway these days) – nothing! Most are still trying to bolster their bottom lines after what the housing crisis (and recession) did to them over the last few years.

While no one is suggesting that we go back to the days of zero down home loans, it’s harder for even seemingly qualified borrowers to get money. Without banks lending money for mortgages, it’s hard for home sellers to find qualified home buyers.

Many homeowners simply don’t have the financial reserves to “hang on” until the market gets better. Hence, more strategic defaults.

6. Broke Homeowners: Many homeowners have depleted their life savings, trying to stop foreclosure. Retirement accounts have been tapped, liquid savings accounts have been drained and even educational savings accounts for kids have been drained.

This leaves many homeowners without any other options; a strategic default is all that’s left.

7. Exhausted Homeowners: Many homeowners are simply drained — not only financially, but emotionally and physicall as well. In fact, the threat of home foreclosure has left many ill. They’re at the point where voluntary foreclosure is a welcome option, not a financial death sentence, because it gives them room to de-stress, regroup and rebuild.

8. Saving is the New Rule: This home foreclosure crisis has been a learning lesson for many Americans. Many have made getting out of debt a major priority. And, many look at a strategic default as a way to shed “bad debt” (eg, an underwater home). 

9. Regroup and Rebuild: Because of things like shadow inventory, there’s a lot on the market to choose from. Many who undergo voluntary foreclosure are able to turn right back around and purchase comparable properties at deep discounts, especially if they’re in the group that could afford to pay their previous mortgage, but chose to strategically default.

Many Americans are coming to see their homes as financial investments, rather than becoming so emotionally attached. So, they have no problem dumping it – especially as home values are not projected to rebound for more than a decade in many cases. 

The sad reality is, because so many lenders have dropped the ball, many homeowners are coming to not only see a strategic default as their only option, they’re beginning to embrace that option wholeheartedly.

This is going to put many lenders in the real estate (instead of lending) business – whether they like it or not.

Learn more about strategic default: how to do it, what it is, credit implications, etc.

Related Posts

Timeline For Foreclosure In All 50 States  

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

Home Foreclosure News: Why Home Prices May Be Depressed for Some Years to Come & What It Means for the Average Homeowner

Some Banks are Purposely NOT Foreclosing on Homeowners in Default: Here’s Why

Foreclosure Statistics: 4 Reasons Home Foreclosures are Suddenly Declining

Short Sale Tax Implications: What Sellers Need to Know

The Short Sale Process: How to Find a Short Sale Buyer for Your “About to Be Foreclosed On” Home

What Is the Bank Short Sale Process for Sellers?

Short Sale: Definition, Credit Implications, Tax Implications & More

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

2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes

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.

Foreclosure Consequences: Exploring “Voluntary Foreclosure”

As unseemly as it sits with most of our consciences, voluntary foreclosure — ie, walking away from your home — may actually be the smart [financia] thing to do as examined in the article, Thoughts on Walking Away From Your Home Loan. It states:

If you’re far enough underwater, you’re probably questioning the wisdom of writing a monthly check on a place that may take 10 or 15 years to get back to the value it had two or three years ago.

This economic climate has brought about a host of financial options that most wouldn’t have even considered just a few short months ago. But, with banks failing, 401Ks dwindling and job losses mounting, the American consumer/worker is in a financial pickle. For many, desperate circumstances call for desperate measures.

If walking away from your home has crossed your mind, read this article for further insight into the foreclosure consequences you will be opening yourself up to.

My Home Foreclosure Story: How I Recovered at 50+ & Why You Can Too

My name is Yuwanda Black. I’m a freelance writer and the publisher of this site (along with a few others). I started this blog in 2009 when the home foreclosure crisis was still raging.

I’ve been a realtor and a mortgage consultant in my previous professional lives. This prepared me nicely for my freelance writing career as personal finance, mortgages, credit repair, real estate, etc., happen to be topics I enjoy writing about.

But … starting this blog was also a personal journey. I lost my home to foreclosure during the crisis and the more I read and learned about how it all happened, I felt compelled to share the info.

Starting this blog was also a business move; ie, to promote helpful products and services related to this industry. So in a sense, you might say that the stars aligned to give me my “dream writing / online marketing” freelance job. But, I digress.

Losing a Home to Foreclosure: Facing the Shame

When I lost my home to foreclosure (voluntary foreclosure), I was ashamed, embarrassed and felt like the biggest financial disaster walking. I was almost 50, had practically zero in retirement (thanks to pouring money into a the sinking asset that was my home), and scared s**tless about my future.

My Biggest Fear in Life

Know what it is? Growing old and being poor. And there it was … staring me smack dab in the face! For all of her great points, America is “No Country for Old Men” (or women), to borrow a movie title.

How did I get to this point? I’d been working all my life (since I was 11). Literally, mowing lawns was my first “job.” My stepfather bought me and the sister closest in age to me a lawn mower. We lived in a trailer park with 64 lots and went door to door asking neighbors if they wanted their grass cut. That’s how we saved for new school clothes every year.

After all of that and many more jobs under my belt — almost 40 years later — I found myself at poverty’s door. One day, I took a hard look at my finances, divorced myself from the emotion of my situation and took charge of my life. I knew had to do something drastic, or my greatest fear would indeed come true.

Why Losing My Home to Foreclosure Was the Best Financial “Mistake” I Ever Made

When I look back now, I can honestly say that losing my home to foreclosure — even though it was voluntary — was one of the best things that ever happened to me, financially and personally.

So here’s my home foreclosure story — and how I recovered from it at almost 50. And yes, there is life after foreclosure; a great life. But you have to pull that band-aid off, face your financial reality, and make moves to get “unpoor” as I call it.

Now, I’m on track to have the nice retirement I always dreamed of. If you’re in the same situation, just know, you can recover — if you take action.

Share Your Foreclosure Story

I’m always seeking personal stories of home foreclosure. If you have one, please send it it. You can do so anonymously, or openly (I’ll gladly link back to your site, of course). Share how it happened, what lessons you learned, how you felt about it, and anything else you want others to know. I’d be honored to publish it.

Related Posts

Foreclosure Advice: Did You Know That How Much You Save Affects Whether You Will Be Foreclosed On?

Foreclosure Consequences: Exploring “Voluntary Foreclosure”

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

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

P.S.: Start a Foreclosure Cleanup Business Today.

Even though the foreclosure crisis is over, as long as real estate is bought and sold (hint: forever!) there will always be a need for foreclosure cleanup (and real estate-related) services. Get your foreclosure cleaning “Business in a Box” and start this lucrative business right now.

Foreclosure Advice: Did You Know That How Much You Save Affects Whether You Will Be Foreclosed On?

Many who are facing foreclosure and/or have lost their home to foreclosure did so because of a loss of income. Proof?

According to a report from Treasury, 68.1 percent of homeowners who received a loan modification said loss of income (curtailment of income or unemployment) was the main hardship they faced. In addition, the survey found 72 percent of those who make more than $75,000 had at least three months of savings compared to 35 percent for those making less. [Source: Survey: 27% of Americans Have No Emergency Savings]

So, one could surmise that how much you save directly impacts whether or not you will survive a foreclosure or not.

If you’ve already lost your home to foreclosure, are facing foreclosure and/or are rebuilding your credit after a foreclosure, following are some healthy financial habits to get into — especially as it relates to housing.

How to Rebuild Credit After a Foreclosure & Other Healthy Money Habits You Should Invest In

1) Save 6 to 8 months of expenses: Some experts will even advise building up an emergency fund that can carry you through a whole year. The reason is, it’s taking longer to find a job after you lose one. And, many who do find jobs find themselves underemployed (ie, earning less). So, the more you have saved, the better your chance of surviving a job loss, illness or other type of emergency.

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2) Revamp Lifestyle: There’s nothing like losing the very roof over your head — or the threat of it — to make you assess what’s really important in life, ie, can you really afford a $500 per month car payment; eat out to the tune of $400 per month; get weekly mani/pedi’s; buy the latest tech gadget?

Many of us live way beyond our means — and don’t even realize it. Proof? Watch “money shows” like Til Debt Do Us Part. I’m constantly amazed at how many of the couples featured on this show have no clue as to not only how much they’re overspending each month; but many don’t even realize exactly how much they earn.

This brings me to my next tip which is to . . .

3) Get in Touch with Your Money: As in, KNOW — to the penny — how much you earn each month. This will not only tell you how much you can afford (or not afford) to spend, but to respect your money. Much like dating, if you want to get to have a relationship with someone, you have to get to know them. And to do that, what do you do — ask basic questions; learn who they are and what they’re all about.

Same thing with money — you need to get it touch with it and learn about it in order to develop a healthy relationship with it. This means knowing BASICS like how much you earn, what you spend it on, what you want/need it to accomplish for you, what it means to you, etc.

4) Learn How to Use Money Smartly: If you’ve been taught (or witnessed) unhealthy money habits growing up, it’s up to you as an adult to change this. So, invest in classes; speak with money experts, talk with friends who have good relationships with money — in short, do whatever you need to to turn things around.

As alluded to above, you have a RELATIONSHIP with money whether you acknowledge it or not. Make sure it’s a healthy one — one that brings you prosperity and happiness; not stress and unhappiness.

5) Make Saving a Habit: How much you save will depend on many factors, eg, your earnings, but many experts will advise you to save at least 10%. The point is to get in the habit of saving SOMETHING out of everything you earn. And if you start saving early (eg, in your 20s) and invest your money wisely (eg, in a well-researched mutual fund), it practically won’t matter if you ever earn “a lot” of money in your lifetime, because compound interest will ensure that you’ll be okay in your old age.

How to Save One Million Dollars

Sound impossible?

It’s not. Proof?

. . .  as Einstein reportedly put it, compound interest is the “eighth wonder of the world.” . . . Becoming a millionaire depends on how much money you currently have saved, how much interest that money will earn, how much you can save each month — and, of course, how long you can wait before making a withdrawal.

You see, becoming rich is not about how much you earn, it’s about how much you save. And, as the first link in this post underscores, those who earn more seem to figure it out much earlier than those who earn less. . . . which means there’s no better reason to do as the rich do when it comes to money, no?

Related Posts

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

Home Loan, Bad Credit and How to Qualify: Yes, It’s Still Possible, But . . .

Foreclosure Advice & Credit Card Debt: Can Credit Card Companies Put a Lien On Your Home?

Home Foreclosure: The New Credit Standards to Qualify for a Mortgage Brought on by the Crisis

Foreclosure Laws: Divorce, Debt & Foreclosure – What Every Dependent Spouse Needs to Know

Foreclosure Consequences: Exploring “Voluntary Foreclosure” 

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

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

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 © 2013 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 professional (eg, attorney, accountant, real estate agent, etc.)  — in your jurisdiction — before taking any action based on the information listed here.

Olympic Foreclosure! Gold-Medal Winner Ryan Lochte’s Parents Face Foreclosure

It seems that no one is immune from foreclosure notices these days — not even an Olympian (who’s  become somewhat of a celebrity because of his Olympic success).

Gold-medal winner Ryan Lochte’s parents face foreclosure on their Florida home. As reported via ABC News:

The parents of U.S. Olympic gold-medal swimmer Ryan Lochte cheered their son on in London this week, but they were also embroiled in a foreclosure lawsuit back home in the states.

CitiMortgage filed a suit against Lochte’s parents . . . seeking to foreclose on the couple’s February 2007 mortgage on their property in Port Orange, Fla. The bank is seeking to recover $250,000 . . . [Source: ABCNews.com, Lochte’s Parents Face Foreclosure on Port Orange, Fla., Home]

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As an aside, this doesn’t necessarily mean that Lochte’s parents are having financial difficulties. Many choose voluntary foreclosure these days — especially in foreclousre hotspots like Florida and Nevada.

Related Posts

Timeline For Foreclosure In All 50 States  

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

Home Foreclosure News: Why Home Prices May Be Depressed for Some Years to Come & What It Means for the Average Homeowner

Some Banks are Purposely NOT Foreclosing on Homeowners in Default: Here’s Why

Foreclosure Statistics: 4 Reasons Home Foreclosures are Suddenly Declining

Short Sale Tax Implications: What Sellers Need to Know

The Short Sale Process: How to Find a Short Sale Buyer for Your “About to Be Foreclosed On” Home

What Is the Bank Short Sale Process for Sellers?

Short Sale: Definition, Credit Implications, Tax Implications & More

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

2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes

Celebrity Foreclosures: O.J. Simpson’s Miami Home in Foreclosure; Comedian Tracy Morgan’s Mom’s Home in Foreclosure (and He Won’t Help)

Celebrity Home Foreclosure News: CSI Actor Losing Home to Foreclosure

Celebrity Foreclosure News: Famous R&B Singer Hasn’t Paid Mortgage for Over a Year, Yet He Is Still Unlikely to Lose His Home to Foreclosure

Celebrity Foreclosures in 2011: From Sports Greats to Entertainment Superstars, Home Foreclosures are Not Limited to the Average Joe

Home Foreclosure News of the Day: Celebrity “Beach” Daughter in Foreclosure and Iraq War Veteran Suing Over Illegal Foreclosure

Celebrity Home Foreclosure News: West Wing & Thirtysomething star Timothy Busfield May Lose Home in January

Tiger Woods’ $865,079.36 Monthly Mortgage Payment

Octomom Avoids Foreclosure

Stopping Foreclosure: “Extreme Home Makeover” Family Held Raffle to Avoid Foreclosure?

Another Extreme Home Makeover Family Facing Foreclosure: Are These Families Irresponsible?

Celebrity Foreclosure News: Octomom Home Receives No Bids at Auction

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.

Foreclosure Crisis Heating Up Again: Experts Predict Negative Equity Could Make Things Worse

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

The foreclosure crisis started in earnest in 2007; that’s five years it has drug on and on and on. And, every time it seems like there’s some light at the end of the tunnel, another thing happens that prevents the housing recovery from getting under way.

The latest stumbling block is the negative equity situation, ie underwater homeowners. This was predicted – and discussed – right here on this blog over two years ago. In the post, Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012, we stated:

Home Foreclosure: Why the Average Joe Is in Deep Doo Doo

According to the article, Foreclosure crisis phase 2: The negative equity dilemma:

“In the next 12 months it’s going to be tragic – most people are just starting to fall behind now … According to the Center for Responsible Lending, a nonprofit research and policy group, as many as 9 million homeowners could go into foreclosure between 2009 and 2012.”

Many middle-class homeowners are accustomed to being able “tap their home for equity” (eg, take out a home equity loan/line of credit) when things get tough or they need extra cash to send the kids to college, pay for a new roof, or pay for an unexpected illness not covered by insurance, for example. 

That option is gone.

Now all of this is coming to pass. In the article, Negative Equity Problem Could Make Foreclosure Crisis Even Worse, summed it up, stating:

. . . things could get a lot worse thanks to the gigantic negative equity problem, which has pushed many homeowners to the brink of foreclosure and put immense pressure on household finances.

For the time being, the vast majority of those 12 million or so Americans with underwater mortgages continue to make their monthly payments, but the longer the housing market and economy stay stuck in the mud, the more likely it is they could run into trouble.

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The Obvious Solution that Lenders are STILL Resisting that Could Go a Long Way Towards Solving the Foreclosure Crisis

Lenders need to get their collective heads out of their a**es and start working with homeowners (ie, cut principal balances), especially now that the “stigma” of foreclosure has disappeared for many.

Many homeowners are simply tired of living in financial limbo. They want to get on with their financial lives. And for many, this means needing to know if they’re going to ge to keep their homes (ie, get an affordable payment), or file bankrupcty/face foreclosure and move on.

We discussed why voluntary foreclosure is not only an option — it’s becoming a more attractive option for many homeowners the longer the foreclosure crisis drags on. And, if lenders don’t start playing (fair) ball, they’re going to be the ones left holding the bag.

Ironically though, it’ll more than likely be taxpayers who’ll bail them out.

Related Posts

Foreclosure Crisis to Drag on for Another 9 Years?

Timeline For Foreclosure In All 50 States  

Home Foreclosure: The New Credit Standards to Qualify for a Mortgage Brought on by the Crisis

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

Home Foreclosure News: Why Home Prices May Be Depressed for Some Years to Come & What It Means for the Average Homeowner

Some Banks are Purposely NOT Foreclosing on Homeowners in Default: Here’s Why

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

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

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

Many homeowners these days are in limbo. They’ve stopped making mortgage payments, maybe have even filed bankruptcy and are ready to move on with their lives, but they’ve heard nothing from their lender, eg, the bank hasn’t foreclosed. No one seems to know exactly what kind of foreclosure help to offer these homeowners.

Over the last few months, the web is rife with homeowners asking questions like:

If I stop paying my mortgage, how long before the bank forecloses? Or,

I haven’t paid my mortgage in ___ months (or over a year), but the bank hasn’t foreclosed; what should I do?

There are millions of homeowners across the country in situations like this – and they have no idea what to do. They’ve tried to communicate with their lender to no avail, they’ve tried to refinance and/or modify their mortgage to no avail – and they’re just sitting . . .  and waiting and waiting and waiting. It’s led to what one journalist calls “A Squatter Nation.”

Living Rent Free – for Years!

The article gives accounts of several homeowners who haven’t made mortgage payments – for years, eg:

Charles and Jill Segal have not made a mortgage payment in nearly five years — but they continue to live in their five-bedroom West Palm Beach, Fla. home.

Lynn, from St. Petersburg, Fla., has been living without paying for three years.

In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.

They’re not alone.

Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years. These cases can go on and on.

FYI, get full details on What Happens When You Stop Paying Your Mortgage.

5 Things You Should Do If You Stop Paying Your Mortgage and Your Lender Hasn’t Foreclosed

As the editor of this blog, I’ve scoured hundreds of sites over the last few months and have talked with several homeowners who are in this situation. From this – albeit limited – research, following are five things I think every homeowner who’s in this situation should do.

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1. Stay Put: Whatever you do, don’t leave. There are many reasons to stay put. One of the main ones though is that you’re still legally responsible for the property. This means you’re still liable if someone, for example, hurts themselves on the property, or if damage occurs to the property and/or for its upkeep. So, you might as well be living there. This way you can maintain it — eg, cut the grass, prevent property damage, keep vagrants/vandals out.

By doing this, you will also avoid fees that a vacant/abandoned property can incur. For example, counties around the country are suing homeowners for the blight caused by foreclosed homes. Most of these fees are associated with regular maintenance issues (eg, the lawn is overgrown). Also, HOAs will sue for the same reason. If you stay put, you avoid all of this.

2. Save As Much as You Can — As Quickly as You Can: If you’re facing foreclosure, nine times out of ten you’re in financial difficulty. It’s taking banks a lot longer to foreclose these days than in the past – in some cases years.

In essence, this means you can live rent free while you get your financial footing. While it’s not i-deal from a moral standpoint in the long run (eg, living rent free), it is i-dollar (good for the pocketbook), especially for those who’ve run through savings, may be unemployed or underemployed (eg, making much less than in their previous jobs) and are still looking, and have nowhere to go.

Unless and/or until the bank forecloses – even if you’ve stopped paying your mortgage – it’s still your house. So stay put.

3. Create a Backup Plan (Eg, Have a “Plan B”): I’d do one for every quarter – up to a year out. Why? Two reasons. Number one, if you decide to stay put – and you aren’t making mortgage payments – you’re living on borrowed time. And, no one knows when that time is going to be up.

So, save as much as you can – and figure out what you’re going to do if say you have to move within the next three months (or six months, or nine months, or one year). Scout rental situations to learn what it’ll cost to move in, what the credit requirements are, how much utilities are, etc. This way, you’ll know exactly what to do if you get a foreclosure eviction notice on your door.

The second reason you should have a Plan B is so that you can breathe easier. Having a back-up plan will take some of the uncertainty out of your living situation, which should ease your mind a bit. This is huge, when you consider the fact that the threat of home foreclosure has left many ill. Many homeowners are at the point where [voluntary] foreclosure is a welcome option, not a financial death sentence, because it gives them room to de-stress, regroup and rebuild.

FYI, learn How the Foreclosure Process Works & How Long You Actually Have to Move if You Eventually Lose Your Home.

4. Create a “Keep Your Home” Plan: If you really want to stay in your home, figure out what you can realistically afford once your lender does make a move. For example, if you’ve found other employment, yet your salary is a half or third of what it used to be, figure out how much of a monthly mortgage payment (and homeowners insurance and taxes) you can afford given your new financial circumstances.

And, don’t kid yourself on what these costs are. Financial experts advise that housing costs shouldn’t make up more than 25-33% of your AFTER TAX income.

Be able to prove to your lender, “Hey, if you modify my mortgage and allow me to keep my home, I can afford to pay $X.”

And again, be saving as much as you possibly can while you’re not paying the mortgage so if they say, “Ok, we’ll work with you but we need a payment of $X to clear up some of these back fees (eg, property taxes, HOA fees, lender-imposed insurance, etc.),” you will have some money to start the bargaining process with.

5. Create a Financial Life Plan: As in, assess what got you into this mess in the first place. While many homeowners have been screwed by mortgage companies and unscrupulous lenders, we have to take some of the blame too.

What caused you to lose your home? Was your spending out of control? Was/is your car payment almost as much as your mortgage payment? Do you have credit card bills out the wazoo? Do you have a 6-8 month emergency fund?

Whatever caused you to be in this financial predicament is in the past, but that doesn’t mean you should forget it. You should study it to learn what you can do better moving forward. The reality is, if you’ve stopped paying your mortgage and are facing foreclosure, you are most likely going to lose your home. But, you can use the financial breathing space to plan a better future.

Declared Bankruptcy? Bank Won’t/Hasn’t Foreclosed? More Advice from a RE Professional

Here’s some excellent insight from a California real estate broker about what to do when the bank won’t foreclose (especially if you’ve already declared bankruptcy and gave up the property).

Related Posts

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

Home Foreclosure News: 9 Reasons Strategic Defaults (eg, Voluntary Foreclosures) Will Continue to Rise

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

The Top 5 Alternatives to Foreclosure: Which One is Best for You?

2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes

Short Sale vs. Foreclosure: What’s the Difference between Them and Which One Hurts My Credit (FICO) Score More?

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

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 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. 

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

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

This article discusses the tax consequences of what happens when your home is foreclosed on, when you do a short sale, or you do a deed-in-lieu of foreclosure and there is a deficiency. Issues covered include:

Can your lender sue you for any deficiency owed;

What happens if the lender forgives the debt;

When/if you owe taxes on a deficiency;

How much you may owe in taxes;

When you won’t owe taxes;

And a whole lot more. So, let’s get started . . .

Why So Many Homeowners are Facing Foreclosure Deficiencies

The foreclosure crisis hit in earnest in and around the fall of 2007. Its effects continue to this day. One of those effects has been than many owners find themselves upside down on their real estate homes and/or investments. When the property is sold, whether voluntary or involuntary, this shortfall needs to be addressed one way or another and the effect of same can have substantial financial impact.

What Does It Mean to Be “Upside Down” on Your Home?

Being “upside down” means that the amounts owed on all loans on your property — determined at a specific time and in a specific manner — exceeds the value of your property. This “value” of your home can change depending on whether the calculation is being made as a part of a deed-in-lieu, a short sale, or a foreclosure.

What Happens When You Do a Deed-In-Lieu of Foreclosure Transaction?

In a deed-in-lieu transaction, the owner transfers the property to the lender in satisfaction of the mortgage encumbering the property. If the lender determines that the value of the property in question is less than the mortgage debt, a deficiency arises.

Example of a Deed in Lieu of Transation: Let’s say the lender is owed $329,000.00 at the time of the deed-in-lieu transfer date. Let’s further surmise that the lender has determined that the value of the property is only $270,000.00. This means a deficiency of $59,000.00 would exist ($329,000 – $270,000 = $59,000).

Example of a Short Sale Transation:In a short sale, the deficiency is determined based on the net proceeds received by the lender at the time of the sale.

Using the numbers from the example above, if the property is sold for $270,000, the net proceeds given to the lender will be substantially less. Assuming a 6% real estate commission and traditional closing costs (documentary stamp tax, title insurance and tax credits), the net proceeds to a lender on the sale will likely be less than $250,000. This would result in a deficiency of over $79,000.00.  Here’s how the math shakes out:

Lender Owed: $329,000
Property Sells for: $270,000
Realtor Commission:  $16,200
Closing Costs: $4,050 (FYI, closing costs are usually between 1-2% of the sales price. We calculated this at 1.5%, so in this case it’s $270,000 x 1.5%, which equals $4,050).

So the final “loss” to the lender doing a short sale is $59,000 (cause house sold for $59,oo0 less than what was originally owed on it) + 16,200 + $4,050 = $79,250, for a final net of $249,750.

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Deficiencies in a foreclosure are judicially determined after the foreclosure sale. If a lender is seeking a deficiency (ie, going after the homeowner for the “net loss” on the property), the lender must apply to the court and provide appraisal information to support the valuation.

The property owner has an opportunity to challenge the valuation by submission of evidence to support a higher valuation. At the deficiency hearing, the court determines the property’s value as of the foreclosure sale date and then calculates the amount of the deficiency.

For Property Owners: Choices You Have If There Is a Deficiency

If a deficiency exists, there are several possibilities that a property owner might face depending on what the lender chooses to do with regard to the shortfall. This includes debt forgiveness, collection by the lender or sale of the debt to a third party for collection.

What Happens if You Have 1st and SEcond Mortgages On Your Property and a Deficiency Exists

In addition, in many cases, an owner will have a first and second mortgage on their property. Generally the second mortgage lender gets little or no money, and may take action separate and apart from the action of the first mortgage lender, even if the loans are titled in the name of the same lender (most loan holders are servicing agents who may own a portion of or none of the actual loan and the actual owners may direct that different action be taken on each loan).

What Happens When a Lender Forgives Your Debt (ie, Doesn’t Sue You for the Deficiency)

If the lender elects to forgive the indebtedness, the lender will send the property owner a Federal tax Form 1099-C. This is notice to you from the lender that the debt is cancelled and no collection effort will be made on the debt. The amount of the debt forgiven is determined in the same manner as the deficiency. Cancelled debt is generally treated as taxable ordinary income to the recipient of the debt relief unless some exception applies.

Example of Debt Forgiveness by a Lender: For example, if a property is foreclosed and the final judgment amount is $450,000.00, and the property has a value of $400,000.00 at the time of the foreclosure sale, the debt forgiveness will be $50,000.00. This $50,000.00 will be taxable income and treated as if someone paid you the actual money even though you did not receive any payment. If your blended tax rate is 20%, you would owe $10,000.00 in tax on this amount.

Debt Forgiveness Could Mean You Owe Taxes on the Deficiency Amount, But . . .

There are several exceptions to the taxability of the loan debt forgiveness. However, it is crucial that a Form 982 be filed with a tax return to make sure that the debt cancellation is addressed, regardless of whether the debt relief is taxable.

When You DON’T Have to Pay Taxes on Mortgage Debt Forgiveness

The most common exceptions are as follows:

1. Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners.

2. Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.

3. Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets.

4. Non-recourse loans: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.

The Mortgage Forgiveness Debt Relief Act of 2007

The Debt Relief Act of 2007 was created to address the growing number of foreclosure on property for which the mortgage debt exceeds the value of the property. Effective for the tax year 2007 and valid through 2012, the Debt Relief Act allows homeowners to be exempt from taxation for debt forgiveness for loans up to two million dollars (one million for married couples filing separately) which secured the taxpayer’s primary residence.

Restrictions on The Mortgage Forgiveness Debt Relief Act of 2007

The Debt Relief Act has certain restrictions which may affect if any tax due as follows:

1. Only the debt given to acquire, build or substantially improve the residence is exempt. People who cashed out their equity via a refinance will only have a partial exclusion. For example, if the home was originally financed with a $300,000.00 loan, refinanced with a new loan for $400,000.00 in a cash out, and the value at foreclosure is $250,000.00 the taxpayer will have $50,000.00 in exempt income and $100,000.00 in taxable income.

2. The Debt Relief Act only applies to an owner’s primary residence. Second homes, rental property, vacation homes and investment property are excluded and debt relief on these properties will result in taxable income, unless another exception applies.

In order to obtain the exception, a taxpayer must complete new IRS Form 982 to evidence the debt forgiveness and to calculate the exemption amount. According to the IRS, in most cases the application under Form 982 only requires that a few lines be completed to obtain the appropriate relief.

As part of the debt forgiveness process, a careful examination of the amount forgiven and the value of the home listed on the 1099-C should be checked, especially if tax liability exists. If these figures are incorrect, the lender should be notified and an attempt to obtain a revised 1099-C should be made. If the lender refuses to make the corrections, you should consult a tax professional for assistance in challenging the 1099-C amounts with the IRS.

What Happens If Your Lender Does Not Forgive Your Mortgage Debt

If the Lender does not forgive the indebtedness after foreclosure, short sale or deed-in-lieu, then the deficiency becomes an unsecured obligation of the maker on the note.

In a foreclosure action, a deficiency is created by judicial determination. After the foreclosure sale, the lender applies to the court for a deficiency based on the value submitted by the lender. A property owner can challenge this valuation at the deficiency hearing by presenting evidence (appraisal or comparables) to support a higher value. At the hearing the court then determines the amount of the deficiency and awards the lender a judgment based on that amount.

If the deficiency arises from a short sale or deed-in-lieu, the lender must bring an action on the note against the maker, seeking the shortfall. As part of this process, a challenge to the amount due can be made. At the end of the lawsuit, the lender obtains a judgment against the maker under the note and can begin collection proceedings. In next month’s article we will discuss deficiency judgments and collections.

Related Posts

Tax Consequences of Home Foreclosures & Short Sales: Note — 2012 Is a Critical Year for Homeowners Facing Foreclosure

Home Foreclosure and Taxes: Important Tax Consequences of a Short Sale after December 31, 2012

How to Avoid a Deficiency Judgement After Foreclosure

How to Stop Foreclosure by Getting a Home Loan Modification, Loan Forbearance and Even a Principal Reduction: 100% Free Foreclosure Help Given by a Reputable Nonprofit Agency

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

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

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.

About the Author: Michael J Posner, Esq., is a partner in Ward Damon, a mid-sized multi-specialty business oriented law firm serving all of South Florida, with three offices in Palm Beach County. They specialize in real estate law, and can assist owners with foreclosures, short sales, deficiency hearings and loan modifications. They can be reached at 561.842.3000, online at http://www.warddamon.com/, or via e-mail at mjposner@warddamon.com. His blog is located at http://floridarealestateattorney.blogspot.com.

How to Avoid a Deficiency Judgement After Foreclosure

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

Before we get into the discussion on how to avoid owing money to your lender after a foreclosure, let’s define the key term here.

What Is a Deficiency Judgement?

A deficiency judgement is one that allows your lender to sue you for the difference between either what they are owed or the current market value of the home and what was paid for it at the foreclosure auction. The laws regarding a deficiency judgement after foreclosure vary from state to state so it is important to know how the process works in your state before proceeding. In many cases, lenders do have the right to pursue this type of judgement.

The First Line of Defense: Talk to Your Lender

The best way to avoid a deficiency judgement after foreclosure is talk to your bank before the foreclosure process is complete. Ask them directly if they will pursue a deficiency judgement against you. Ask them if they would agree to sign legal paperwork waiving their right to pursue a deficiency judgement (this is very important to do if they agree to it; you want it in writing for your records).

Short Sale: If you are doing or at least trying to do a short sale on the home, your lender may be more inclined to waive their right to this kind of judgement. Talk to the realtor handling your short sale to see what help they can provide.

Deed in Leiu: If you are doing a deed in lieu of foreclosure, you will also want to ask your bank to include this as part of the paperwork.

Voluntary Foreclosure: If you are simply walking away from your home (eg, doing a strategic default / voluntary foreclosure) and have not tried to work out a deal with your lender/ bank, it may be difficult to get them to agree to this.

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Check With a Foreclosure Attorney

If you have tried to talk to your bank about this issue and they either will not talk to you about it or refuse to waive their rights to a deficiency judgement after foreclosure, it might be worth it to consult a foreclosure attorney to see what, if any, options you have. They should be able to give you a clearer idea of whether or not the bank will pursue a judgement in your case. They may also have suggestions for how you could get your bank to agree to not pursue one.

The good news is that banks do not often pursue a deficiency judgement after foreclosure.

Is Your Foreclosure in a Judicial or Non-Judicial Foreclosure State? In states where there is a non-judicial foreclosure process, the bank would typically have to file a lawsuit against you for the deficiency judgement. This takes more time and legal resources on their part.

If you live in a state where judicial foreclosure takes place, the deficiency judgement can sometimes be included in foreclosure case. It is worth your while to check to see if this is the case in your situation.

Related Posts

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

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

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

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

“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

Author Disclaimer: The author (Juliana Montgomery) does not guarantee the accuracy of the information provided in this article and is not liable for reliance on this information. In using this article, you agree that its information and services are provided “as is, as available” without warranty, express or implied, and that you use this article and the information contained in it at your own risk. You agree that the author has no liability for direct, indirect, incidental, punitive, or consequential damages with respect to the information, services, or content contained in this article.

Foreclosure is enough of an issue to get over without having to worry about a deficiency judgement after foreclosure. Try to resolve this issue before your foreclosure process is complete. Get more information at http://www.stopping-home-foreclosure.com/DeficiencyJudgementAfterForeclosure.html.

Facing Foreclosure? Thinking about Doing a Short Sale? Here are the Answers to 10 Frequently Asked Short Sale Questions

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

If you’re facing foreclosure, one of the things you can do to avoid it is conduct a short sale.

What is a short sale?

In case you don’t know, a short sale is when you sell your home for less than what it owed on it. We’ll go over the definition again inteh article below. Also, you can learn much more about short sales in a week-long series we did on this topic last summer.  The entire series of posts — which covers everything from tax implications to what to expect during the process —  are as follows:

Short Sale: Definition, Credit Implications, Tax Implications & More (July 5th) 

What Is the Bank Short Sale Process for Sellers? (July 6th)

The Short Sale Process: How to Find a Short Sale Buyer for Your “About to Be Foreclosed On” Home (July 7th)

Short Sale Tax Implications: What Sellers Need to Know (July 8th)

Now, on to the article entitled . . .

10 Frequently Asked Short Sale Questions

After reading the above series of articles, you should have a really good grasp of what shorts sales are and the pros and cons of selling your home this way. For more clarifying detail, following are some commonly asked questions about this real estate transaction (from both a seller and a buyer’s point of view).

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1. What happens to the seller’s credit rating when they allow an investor to short sell their property?

What typically happens is the loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.

2. Where do you find investors for Short Sales?

Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors’ club meeting.

3. Define Short Sale?

A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition . . . but without the luxury of time.

4. Can a homeowner (seller) profit from a short sale?

The seller cannot profit (monetarily) from a pre-foreclosure short sale. But there are always exceptions to the rule.

5. How do bankruptcies affect the possibility of doing a short sale?

Most mortgagees won’t consider a short sale if the homeowner is in bankruptcy. Why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what documents do I have to include in a short sale package?

What’s required varies from lender to lender, so there is no cut and dried answer. In short, documents needed depend on the lender and each lender has different requirements. It is typical to require the following: a hardship letter, a purchase and sales contract, ECOR, a settlement statement (HUD 1), net sheet, pay stubs, bank statements, a personal financial sheet (monthly budget), etc. 

7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?

All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.

8. How late in the pre-foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgagee- approved, pre-foreclosure short sale.

9. What is a Due on Sale Clause?

“Due on Sale” Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender’s security instrument upon a sale of all or any part of the real property securing the loan without the lender’s prior written consent.

For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

10. Will banks allow a short sale when the owner has some or a good amount of equity?

If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.

Related Posts

The Top 5 Alternatives to Foreclosure: Which One is Best for You?  

Short Sale vs. Foreclosure: What’s the Difference between Them and Which One Hurts My Credit (FICO) Score More?

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

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

2 Foreclosure Options for Homeowners with Little or No Equity in Their Homes

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?

About the Author: Mr. Fowler has been a real estate investor for over 15 years specializing in the area of pre-foreclosure/short sale investing. He has bought and sold over 200 homes in Georgia, Florida, Louisiana, and Tennessee using the same short sale techniques that he teaches in his course, Making Money with Short Sales: The Complete Guide to Acquiring Property Pre-Foreclosure. Mr. Fowler currently resides in Atlanta Georgia. He also spends many hours per month teaching his creative real estate investing techniques to other aspiring investors across the country.

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.

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