What Is Foreclosure Mediation & How It Can Help Stop Foreclosure

Foreclosure mediation is a process that is used to help homeowners avoid foreclosure by coming up with an alternate solution that benefits both the borrowers and the lender. The mediation process varies from state to state, but it generally begins when a lender initiates a foreclosure in accordance with state law. One study has shown that homeowners who participate in mediation are 1.7 times more likely to avoid foreclosure than those who did not.

Read the full story.

List of States with Foreclosure Mediation Programs

Here’s a state-by-state breakdown of foreclosure mediation programs. You’ll also find info on the process specific to each state as to how to go about it.

Related Posts: Courts require mediation before foreclosure; Top 5 alternatives to foreclosure 

P.S.: We’re always seeking personal stories of foreclosure.

If you have one that you’d like to share about going through the process, life after foreclosure, or anything related, send it in [info-at-ForeclosureBusinessNews.com].

P.P.S.: Make Money Cleaning Foreclosures. Get your Foreclosure Cleanup “Business in a Box” and start this lucrative business now.

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Life After Foreclosure: Some Survival Tips

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Insight into How to Get Back on Your Feet After Foreclosure

If you’re in foreclosure, facing foreclosure or have recently lost your home in a foreclosure, here are some survival tactics on looking for a place to live, how to rebuild your credit and finding a job that you can use to keep moving forward.

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Get this free “foreclosure survival guide” at DrPhil.com. It offer some basic, but very good advice (Word document download).

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© 2014 Foreclosure Business News. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

HSBC Foreclosure: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA, Part II

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

Written by Guest Contributor

This is a follow-up post to HSBC Foreclosure: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA.

In this post, I wanted to give some “behind the scenes info” of working with NACA to get your home loan modified. Although this contributor’s loan was with HSBC (who was notoriously difficult to deal with), the info shared here can help any homeowner working with NACA – no matter who their lender is.

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1. A Lot Will Depend on Your Lender: Although NACA assists in the process, the final decision as to whether your home loan will be modified is solely up to your lender.

Some lenders are more flexible than others. For example, HSBC was notoriously difficult to work with – although they gave this homeowner a modification, the payment was higher than what her original payment was, which kind of defeated the purpose.

This brings us to the next point, which is . . .

2. Back Payments: Many lenders try to recoup back payment, which can totally alter what your payments might be. For example, this homeowner was almost $75,000 behind – when back payments, late fees, and attorney fees were added in.

Although HSBC added this onto the back of the loan, it increased – dramatically – what she owned. So although her loan her interest rate was modified down from 8.5 to 5.5 percent, the monthly outlay was still more than she could afford (pushing her “modified” monthly payment to almost $1,700 per month, when they had been $1,578.

3. Stay Organized: Especially if you are self-employed because you will have to constantly submit updated paperwork to NACA. For example, you will have to submit your most recent bank statements, pay stubs, taxes filed, utility bills, property tax info, homeowners insurance info, etc.

So, keep all of this organized in an easy-to-get-to file.

4. Get a Home Office Setup: Instead of having to go to Kinko’s or some other copying/faxing place, spend the $150 or so it costs to get an all-in-one copy/fax/scan machine for your home.

You’ll be sending TONS of paperwork, many times, over a few months (or even a couple of years). It’ll save you so much time and money if you can do it all from a home office setup.

5. Stay Patient: This homeowner said she worked with NACA for well over two years. Again, how fast the process moves will depend a lot on your lender. Plenty of them are backlogged – although more and more seem to be catching up.

Once they start to work on your file though, the foreclosure process can move quickly, especially if you live in a non-judicial state.

So, be sure to stay on top of your mail because that’s the way most of them contact you. If you’re working with NACA, contact them immediately if you receive a foreclosure sale date/notice.

Editor Note: Read the Other Parts of This Series — Initial Post that Started Whole Series, Part I, Part III.

Related Posts

Received a Foreclosure Notice? Why You Shouldn’t Plan to Move Anytime Soon – If Ever

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

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

HSBC Home Loan Modification Help: Yes, You Can Get a Permanent Modification and Even a Principal Reduction — Here’s How

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

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

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

How to Avoid a Deficiency Judgment After Foreclosure

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

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep 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. 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.

© 2013 Yuwanda Black for Foreclosure Business News. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

HSBC Foreclosure Insight: What Happened to One Homeowner Trying to Save Her Home from Foreclosure While Working with NACA

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

Written by Guest Contributor

Back in April in the post, HSBC Foreclosure: Insight into If HSBC Offers Principal Reductions on Home Loans, a homeowner who had been working with NACA to get her home loan modified wrote in to give us an update on how this was progressing.

She sent in the following update to that post. If HSBC is your lender and you’ve been trying to get your home loan modified with them, this advice may help. It also provides some great insight into working with NACA.

Working with NACA to Stop Foreclosure

Well, my last go round with HSBC has come to an end. I was not able to get my loan modified with them – to my satisfaction – even with NACA’s help. To recap, I started working with NACA in/around January 2011. I submitted all paperwork to NACA at one of their live events.

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Almost 2 Years with Very Little Word from HSBC

For almost two years, nothing happened.

During this time (2011), I filed bankruptcy (which was discharged) to be able to free up funds afford to keep my home. Even though I filed bankruptcy, I DID NOT reaffirm my home loan. The reason is, I didn’t want to be saddled with the debt if the loan couldn’t be modified.

Everyone once in a while I’d receive something akin to an annual notice about taxes being paid and/or the increase in my mortgage (because I had an adjustable rate, interest-only loan). Other than this, I received no notices about foreclosure or anything else from HSBC.

This year (2013), things started to heat up. In January of this year, I submitted (updated) paperwork yet again to NACA. HSBC had apparently been having problems receiving the paperwork that was submitted via NACA’s internal submission process. And, I also think that they were just behind processing loans, so this is what accounted for the almost two-year delay.

HSBC Modified My Home Loan, but . . .

Finally, in February 2013, I received a notice from NACA that HSBC had agreed to modify my home loan. BUT, the payments were higher than what my original payment had been; it was 60% of my take home pay, and there was no principal reduction offered.

As the home was more than $100,000 underwater and I’d religiously made 6+ years of INTEREST ONLY payments, I turned down the offer and applied for an appeal. An appeal is where you request that they reconsider your loan modification request.

My appeal was denied in March 2013; HSBC got back to me pretty quickly after I submitted the appeal paperwork. After the appeal was denied NACA closed my file, putting in a note that said:

NACA FILE CLOSED – NACA MOD TREATMENT APPEAL DENIED: Customer does not qualify for a Restructure. This is declined for Net Present Value (NPV) Negative. The NPV of the proposed NACA modification was lower than the NPV of the loan as is, resulting in a NPV negative of (- $35,661). Changes from your budget were: NONE. We will review your file for HSBC’s internal modification programs. Please allow up to 30 days for the review to be completed. Please feel free to contact HSBC directly for an update on the review.

In March 2013, I received my first foreclosure notice; the sale date of my home was set for April 2013. Upon receiving the notice, I immediately contacted NACA and submitted more paperwork in support of my appeal request. The date of the foreclosure sale came and went – and nothing happened. The sale of my home didn’t happen – and I never received another foreclosure notice.

I appealed the decision – yet again – with NACA. It was again denied. NACA left the following note in my file in July, the final time I heard from them:

NACA FILE CLOSED – NACA MOD TREATMENT DENIED: Customer does not qualify for a restructure, the account has been sold to a third party. The file has been closed. NACA FILE CLOSED – NACA MOD TREATMENT DENIED: Customer does not qualify for a restructure, the account has been sold to a third party. The file has been closed.

In June 2013, I’d received a notice from HSBC that my home loan had been sold to Vericrest Financial (aka Caliber Home Loans). I was ecstatic – I no longer had to deal with them.

Where Things Stand Today with My Foreclosure Process

I’m no longer working with NACA. I’ve applied for a home loan modification directly through my new lender.

I did some research and found out that they began as sort of a “distressed lender,” servicing buyers who had bad credit, etc. I’m hoping that they know how to effectively work with homeowners like me who are underwater but want to keep their homes.

Modifying My Home Loan: How the Numbers Shake Out

I’m willing to pay what I signed on for – even though the house is over $100,000 underwater. What I’m not willing to pay are all the late fees, etc. that have been tacked on to the loan.

Following are some figures that better explain why I’ve come to this decision.

Current Worth of Home: $115,000 to $125,000

Balance Owed on Original Mortgage: Approx $225,000

House Currently Underwater by: $100,000

Total Paid in Interest Only (for 6 years): Approx $110,000

Late Fees / Legal Fees Owed: Approx $75,000

TOTAL TO PAY: $300,000 IN ADDITION TO the $110,000 I’ve already made in interest-only payments since I’ve owed the home — for a house that is only valued at: $115,000 to $125,000.

Stopping Foreclosure: My Decision

My final decision is that I’m fully prepared to move and let them have the house if this latest home loan modification request doesn’t work with the new lender. This has been going on for almost three years now and I’m ready to move on with my life.

I’m debt free and can make a fresh start if I leave this home, and will be able to outright buy something within the next 5-7 years if I save (which I plan to do).

I’ll give one final update on my story once I hear about this latest modification request. I hope my story helps someone else if they’re facing foreclosure, have HSBC as their lender, are working with NACA, and/or just need some insight into what to do.

Editor Note: Read the Other Parts of This Series — Initial Post that Started Whole Series, Part II, Part III.

Related Posts

Received a Foreclosure Notice? Why You Shouldn’t Plan to Move Anytime Soon – If Ever

Foreclosure Notice: How to Understand It & What to Do When You Receive One

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

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

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

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

How to Avoid a Deficiency Judgement After Foreclosure

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

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep 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. 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. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

Foreclosure Advice: Who Qualifies for HARP 2 Refinancing?

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

The popularity of the Home Affordable Refinance Program (HARP) has been well documented in the media in recent months. Compared to the initial version, HARP 2 has been very successful, enabling thousands of “underwater” homeowners to refinance.

On November 15, 2011, Fannie Mae and Freddie Mac released updated guidelines that came to be known as HARP 2. The current HARP program is now scheduled to last through the end of 2013.

Perhaps the most significant change HARP 2 offers is the removal of what’s called a loan-to-value cap on fixed-rate mortgages.

What’s the Loan-To-Value Ratio? Why is it important?

The Loan-To-Value Ratio (LTV) is one criteria used by lenders to assess risk when deciding whether to approve a mortgage. The LTV is calculated by dividing the amount of the mortgage by the current appraised property value. For example, if you were trying to purchase a 400,000 property with $100,000 down, your LTV is calculated like this:

$300,000 mortgage loan amount / $400,000 appraised property value= 75% LTV

In some cases, a homeowner may owe more than the property is worth. For example, a property worth 400,000 that’s mortgaged for $420,000

$420,000 mortgage loan amount / $400,000 appraised property value= 105% LTV

A higher LTV typically means more risk, a higher cost loan, and possibly the requirement to purchase mortgage insurance of the LTV is higher than 80 percent.

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So, is there a loan-to-value cap with HARP 2?

The loan to value cap is different for fixed rate and adjustable rate mortgages:

– Fixed rate mortgages: The 125% LTV cap has been eliminated

– Adjustable rate mortgages are subject to LTV cap of 105%

– Loan terms longer than 30 years are subject to LTV cap of 105%

Here are a few of the criteria to qualify for a HARP 2 loan. Note that participating lender guidelines for approval will vary. If you have applied for HARP loan before and been turned down, go ahead and re-apply again. To qualify for a HARP 2.0 loan, you should:

  • Be current on monthly mortgage payments
  • Current is defined as having no late payments of 30 days or more in the past 12 months. Borrowers who have missed a payment during the past six months may have to wait until they meet these requirements before they apply.
  • Have a mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac.

How can you tell?

  • Check this Website to see if your mortgage is owned by Fannie Mae – http://www.fanniemae.com/loanlookup/
  • Have a mortgage that was purchased by Fannie or Freddie before May 31, 2009.
  • Note that May 31, 2009 is not the date the mortgage closed but the date it was “securitized,” or purchased, by Fannie or Freddie.
  • Not have previously refinanced with HARP
  • If you have previously refinanced with HARP 1.0, you cannot use HARP 2.0.
  • Current loan-to-value should not be more than 80 percent.
  • The LTV is calculated by dividing the amount of the mortgage by the current property value. See examples of LTV calculations below.
  • Not have an FHA loan
  • The Federal housing administration has a separate program called an FHA Streamline Refinance. Ginnie Mae is associated with FHA loans and does not participate in the HARP program.
  • Not have a USDA loan
  • USDA does allow for the refinance of current USDA Guaranteed or USDA Direct Mortgages
  • Not have a VA loan
  • The Interest Rate Reduction Refinancing Loan (IRRRL) offers current VA mortgage holders an excellent opportunity to take advantage of low interest rates

Related Posts

Can You Get a Permanent Home Loan Modification? Over 6 Million Homeowners Have Since 2007

How to Stop Foreclosure Effectively in 2013: Sound Advice from a Loan Modification Specialist | Foreclosure News

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

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

About the Author: Check out our blog to get any more information on the market! http://www.westernbancorp.com/western-bancorp-introduces-your-california-mortgage-newsletter. Charles Warnock is Director of Digital Marketing for Western Bancorp in San Jose, CA. He writes often on content strategy, copy writing, interactive marketing, real estate and mortgage marketing.

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.

 

Foreclosure Cleaning, Construction & Commercial Supply Contracting/Job Leads for 2/6/2013

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

FYI: See this post for some helpful info — Advice on Bidding for Foreclosure Cleaning and Other Lite Commercial/ Landscaping / Construction Type Jobs.

Property Preservation Contractors Needed (Baltimore, MD & Surrounding Areas): Company with expanding workload needs contractors to perform the following duties: winterize properties; board up windows; repair roofs; lawn maintenance; trash removal; etc.

Must have own transportation and all applicable tools, in addition to a digital camera and internet access. You will also be expected to get your own general liability insurance after 60 days. Get full details on this property preservation job.

Property Preservation Crews Needed (Lakeland, FL): Seeking experienced professionals in the Polk County area with the following to perform property preservation duties: commercial-grade lawn equipment (eg, mower, edgers, blowers, etc.); a reliable truck/trailer; a laptop, camera and/or smartphone; and lockboxes and knobs.

Pay/Compensation: 30 days net; twice per month (on the 15th and the 30th). You must be able to cover your own expenses while you wait for payment. Must be licensed and insured. Get full details on this property preservation job.

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As these job listings illustrate, there are plenty of foreclosure cleanup (and RE-related) jobs out there. Get your foreclosure cleanup “Business in a Box” and start this lucrative business right now for 40% Off!

Copyright Violation Notice: If you’re reading this entire post (snippets are fine) on any blog other than ForeclosureBusinessNews.com, it is stolen content. Scraping content (eg, using software to illegally copy and paste copyrighted content from websites and blogs) is becoming a common practice which affects every site owner. So if you see this content someplace else, please take a quick moment to send an email to [info]at[ForeclosureBusinessNews.com] (remove brackets, of course) so that we can take the appropriate action. Thank you in advance for your help.
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Property Preservation Vendors Sought (Memphis (Western), TN): Duties include, but are not limited to: foreclosure trashouts and debris removal; landscaping (initial and ongoing); general cleaning; winterizing; etc.

Must have general liability insurance of at least $1,000,000, and initial start-up supplies and equipment. Responsible for taking before, during and after photos of completed jobs. Get full details on this property preservation job.

Property Preservation Contractors Needed (Columbus, IN): MMM Inspections in need of experienced property preservation contractors in cities and towns throughout the state of Indiana. Duties you will be expected to perform include: trash and debris removal; general home repairs; boarding up of windows, doors and other entry ways; doing lock changes, snow removal; covering swimming pools; etc.
 
You are responsible for having your own tools, eg, for lawn maintenance, general home repairs and other tools necessary to take on the duties associated with REO (bank-owned properties, eg, foreclosures). Other necessities include owning/having access to a reliable vehicle, a computer, internet access, a digital camera, printer, and a scanner. Get full details on this property preservation job.

Related Posts that Can Help You Learn the Industry & Get More Foreclosure Cleaning / Property Preservation Jobs

Want to Know Where to Find Foreclosure Cleanup Clients For Your Business? Look No Further than This . . .

Advice on How to Bid on Janitorial and Commercial Cleaning Jobs

Foreclosure Cleanup Jobs: New Biz Owner Lands 10 Jobs from Property Preservation Company

Foreclosure Cleaning Jobs: Why Landlords Are Fertile Marketing Ground for Foreclosure Cleanup Businesses

Foreclosure Cleaning: How to Get Non-Foreclosure Cleaning Jobs

Foreclosure Cleanup: Many Cities Allocating Gov’t Funds to Cleaning Foreclosed Properties

FAQs About Cleaning Foreclosures a Living

Foreclosure Cleaning Business: Why You Should Never Discuss Rates or Prices Over the Phone

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. Content may not be reprinted or reproduced in any manner without the express, written consent of the author.

How a Real Estate Attorney Can Help You Stop Foreclosure: 3 Specific Ways

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

For many homeowners facing foreclosure, a foreclosure attorney is an option. Usually, by the time it gets to this point, a hoomeowner is frustrated, tired and feeling like they have no other option because their mortgage company has put them through the wringer.

Foreclosure lawyers definiely have their place — they can help you prevent foreclosure in several ways. So, don’t feel like they’re an option of last resort. Sometimes, they can help you speed through the foreclosure process — and have it resolved in your favor.

Following are three ways a foreclosure attorney can help you stop foreclosure.

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3 Ways a Real Estate Attorney Can Help You Stop Foreclosure

(Note: The following is a guest post courtesy of on behalf of of Gary F. Kinsella, a Boston Real Estate Attorney)

A real estate attorney is the person to turn to when you simply cannot work with your mortgage lender on your own any longer.

When you agree to the terms of a mortgage and sign the documents for it, you position yourself for a set number of years to repay the loan. If you cannot maintain the agreement you set originally, the lender has the right to sue you for the funds you owe. If you cannot pay, the court may force a foreclosure to occur. In this process, the property is sold so that the lender can recoup some of its invested money. You lose out. If you are in this position, it is time to talk to a lawyer about the options.

A Foreclosure Lawyer Can Stop the Foreclosure Process via Bankruptcy

One of the steps that the real estate attorney may take is simply stopping the foreclosure action. To do this, he or she may advise you to file for Chapter 13 or 7 bankruptcy protection. If you are in the last few phases of this process, though, this may be the only option. The key here is to allow the lawyer to work with your lender to find a solution if possible. By stopping the legal action, it is possible to get some time to accomplish this.

A Foreclosure Attorney Can Help Modify Your Home Loan by Working with Your Lender

In some cases, the lawyer will work with the lender to modify the loan. You may be able to do this on your own, but it is a difficult process. More importantly, you simply cannot get this wrong. It is essential that you work with your lender to make sure that you qualify for any type of modification you can obtain. This will allow the lender to restructure the loan with lower monthly payments or moving late payments to the end of the loan with the goal of making it easier for you to get caught up.

A Foreclosure Lawyer Can Negotiate Lowering Court Fees and Costs with Your Lender

In some cases, the amount you have to pay the lender to simply get caught up on such debt is incredible due to fees and court costs. The lawyers may be able to work with the lender to negotiate this lower. This could help you to make the payments you missed and get caught up on the loan.

Additionally, a real estate attorney will help you with stopping the foreclosure process if you feel you did not receive adequate notice or the lender violated some other right.

You may also be able to fight to recover your home after the lender, depending on where you live, has foreclosed on it. There may be hope. If there is, these attorneys will help you to find it.

Related Posts

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

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

How to Avoid a Deficiency Judgement After Foreclosure

Could Recent Mortgage Law Challenges Mean More Homeowners Won’t Face Foreclosure and/or That They Were Illegally Foreclosed On and Can Keep Their Homes?

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

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

About the Author: There is a Boston Real Estate attorney ready to help area residents navigate through this difficult and often stressful process. For quality legal guidance, locals should visit http://www.gkinsellalaw.net today.

P.S.: Get Foreclosure Clean Up (& Other Real-Estated Related) 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? Tweet it and 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 professional (eg, attorney, accountant, real estate agent, etc.)  — in your jurisdiction — before taking any action based on the information listed here. 

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.?”

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

Are you facing foreclosure? Have you filed bankruptcy and had your debt discharged — including giving up your home? If so, you may be thinking that you’re “debt free,” and that includes dealing with fees associated with your home, eg, homeowners insurance, property taxes, HOA fees, etc.

Hold up though; this may not be the case. And, even experts disagree about what you should do if you find yourself in this situation. Proof? A recent post on Trulia.com, a leading real estate site whose contributors are experts from across the RE spectrum (eg, RE agents, RE attorneys, bankruptcy attorneys, etc.), addresses this question. And, they have very different things to say about it.

Answer to What to Do If Your Debt Has Been Discharged in Bankruptcy but Your Lender Hasn’t Foreclosed on Your Property

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. The bottom line is, even though you may have given your home up in bankruptcy and think that you are free to move on with your life, it’s not that simple.

One homeowner wrote into this blog stating that her HOA had levied fines — in her name, of course — for not paying HOA fees, even though she’d gone through bankruptcy and thought she had no further interest in the property. But, because she was still the LEGAL OWNER OF RECORD on the property, the fines were levied in her name and if she hadn’t paid them, the HOA threatened to sue her.

And, they had every right to.

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Now, imagine if you’ve gone through bankruptcy and are trying to rebuild your credit and something like this happens. It’s why we believe that homeowners facing foreclosure — even those who’ve gone through bankruptcy — should not leave their home. They should stay put. Unless and until your lender formally forecloses on the property, YOU, the homeowner, are still repsonsible for its maintenance and other fees.

The only thing declaring bankruptcy does is release you from the obligation to pay your homeowners loan back to the bank. It does NOT release you from being the legal OWNER of the property. Only a sale or foreclosure (or short sale or deed-in-lieu of foreclosure) can do this.

Hence, if someone hurts themselves on the property, for example, you can technically be sued for it;

The county can assess maintenance fees for failure  to upkeep the property (eg, the lawn is overgrown);

Your HOA can sue for unpaid fees;

Etc.

It’s extremely important to remember this — and one of the main reasons we advise homeowners to stay put.

Homeowner Fees You Can Probably Get Away with Not Paying If You File Bankruptcy But the Bank Won’t/Hasn’t Foreclosed

Property Taxes: If your home is eventually sold, these will “follow the house,” so to speak. Many times, the lender will pay these — even months after they’re due. You can check via your local county’s site to see if your property taxes are being paid.

Now if you can afford to pay these, you should — especially if you’re not paying the mortgage, and particularly if you hope to eventually save your home. This will be less you’ll have to pay to “catch up” if and when your lender does decide to grant you a home loan modification.

Homeowners Insurance: Just like property taxes, many lenders will step in and pay this. Read more about lender-imposed homeowners insurance.

Homeowner Fees You Should Pay, Even If You File Bankruptcy But the Bank Won’t/Hasn’t Foreclosed

HOA Fees: The reason is, HOAs are usually quicker to move to sue you. And even though these fees “follow the house” as well, if you’re trying to rebuild your credit after bankruptcy, the last thing you need on your credit report is a legal action like a suit. So just buckle down and pay this.

Are you facing foreclosure and have filed for bankruptcy — or are thinking about doing so? Share your experience or ask your question in the comments section below.

Related Posts

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

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

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

I Received a 1099 From My Home Equity Lender: Tax Consequences of Foreclosure — with a HELOC

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

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

How to Stop Foreclosure Using Chapter 13 Bankruptcy: What to Expect When You File, How Ch 13 Differs from Ch 7 & More

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

Stopping Foreclosure: What the “Produce the Note” Defense Is & How It Can Help You Save Your Home from Foreclosure (Or at Least Stall)

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.

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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. 

Foreclosure News of the Day: Foreclosures Did WHAT in March Nationwide?

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March Brings Good News for American Homeowners Facing Foreclosure

The number of U.S. homes struggling through foreclosure held steady in March but fell from a year earlier, new data show, indicating that the huge wave of foreclosures that some housing experts keep predicting isn’t even a whitecap yet.

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About 1.4 million homes, or 3.4% of all homes with a mortgage, were at some stage in the foreclosure process last month, the same as in February but down slightly compared with 1.5 million in March 2011, Santa Ana research firm CoreLogic said.

Get full details in the LATimes.com article, Foreclosures held steady in March.

Having Problems Selling Your Home in This Depressed Real Estate Market? Get Some FREE Help

Get free info from real estate experts on how to sell your home in this tough market.

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

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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.

How to Stop Foreclosure Using Chapter 13 Bankruptcy: What to Expect When You File, How Ch 13 Differs from Ch 7 & More

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

Filing Chapter 13 Bankruptcy can stop foreclosure. In this article, we’ll take a look at this strategic move to help you assess if it’s a viable option that can help you save your home.

The Foreclosure Crisis and the Plight of the “Average Joe”

Over the last couple of years, many Americans have been facing the fact that foreclosure might be on their horizon. Looking for a way out can sometimes be complicated. The government has come up with programs like HAMP that never really panned out. Some banks offered loan modifications that had a success rate of around 5% for those who applied. What most people don’t know is they have an ace in the hole by filing bankruptcy.

A Brief Look at Filing Chapter 7 Bankruptcy to Stop Foreclosure

Filing chapter 7 bankruptcy usually will stop foreclosure temporarily. In some situations the debtor might be able to free up enough cash by eliminating all their unsecured debts, making their mortgage affordable. This all depends on how far behind the debtor is.

In this situation, to stop foreclosure, the lender might require the debtor to come up with all their back payments in order to avoid the foreclosure sale. This can get complicated and should not be attempted as a do-it-yourself project. A bankruptcy attorney should be consulted.

Filing Chapter 13 Bankruptcy: An “Ace in the Hole” to Stop Foreclosure

Americans have a true ace in the hole if they decide to file Chapter 13 bankruptcy. A Chapter 13 bankruptcy was created for people who could afford to pay back some of their debts over a period of time.

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Editor Note: Learn How To Get A Home Mortgage After A Bankruptcy Or Other Major Credit Challenge.
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Benefits of Filing Chapter 13 Bankruptcy to Stop Foreclosure

One of the main benefits of filing Chapter 13 bankruptcy is the ability to keep all of your property using the power of an “automatic stay” granted by the U.S. legal system.

How Recent Changes in Bankruptcy Law Affects You

To explain, in 2005 the bankruptcy code was amended to stop people who were abusing the bankruptcy system. Congress felt that many individuals had the ability to pay back their creditors at least something.

Chapter 7 bankruptcy was changed to include a means test* that required the debtor to qualify to file bankruptcy based on their income and expenses. This meant that individuals with higher incomes would be required to pay back their debts at least partially via Chapter 13 bankruptcy. Fast forward to 2008 and the collapse of the real estate market. Many individuals who previously only considered filing Chapter 7 all of a sudden saw the benefits of filing Chapter 13 bankruptcy. It was as if Chapter 13 was created just for the crashing real estate market.

As the housing market went bust, most Americans saw their home equity go out the window. Many people who bought at the peak of the market were all of a sudden upside down (underwater) drastically on their home.

For those who didn’t lose their jobs and still had a good income, Chapter 13 bankruptcy presented an opportunity to renegotiate debts.

*What is the Bankruptcy “Means Test?”

The Means Test is simply a test that determines your financial ability to repay debts. It will help you determine if you qualify to file a Chapter 7 or a Chapter 13 bankruptcy. It consists of two parts, and takes a formulaic look at your income versus your expenses. FYI, If you fail the Means Test and don’t qualify to file a Chapter 7 (where all of your debts are dismissed), you can still file for financial protection under Chapter 13 bankruptcy (where you get on a repayment plan).

What Happens When You File a Chapter 13 Bankruptcy

When filing Chapter 13, the debtor and their bankruptcy attorney are required to come up with a feasible (reasonable) repayment plan that will last anywhere from 3 to 5 years. With Chapter 13, debts are paid by priority. Secured debts (eg, car loans, home loans, etc.) are at the top of the list. Unsecured debits, eg, credit cards, are at the bottom. Why is it structured like this?

Structuring debt repayments in this manner allows debtors to prioritize their financial obligations (debts) to pay their most important ones (eg, mortgage, car loans, etc.). first. Then, if there are any leftover funds, “unimportant” unsecured debts like credit cards can get nominal amounts.

This is why and how filing Chapter 13 bankruptcy allows debtors to stop foreclosure.

Chapter 13, just like Chapter 7 bankruptcy, shares the power of the automatic stay, which means it stops all collection and legal activity creditors levy against debtors. When it comes to protecting real estate, Chapter 13 bankruptcy really shows its power and benefits.

As the conversation here illustrates, filing Chapter 13 bankruptcy can be complicated;  consulting a qualified bankruptcy attorney – one familiar with the bankruptcy laws of your state/jurisdiction – his highly advised.

Related Posts

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

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

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

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?

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

Home Foreclosure News: Owning a Home Becoming a Lot Harder for Lots of Americans Because of the Foreclosure Crisis

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”

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.

About the Author: The author is a professional that formed FilingBankruptcyNow.Com which provides information for debtors considering filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy and helps individuals stop foreclosure and eliminate their debt by putting them in touch with a local bankruptcy attorney.

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