foreclosures Archives

Facing Foreclosure? How To Fix It

Facing foreclosure can be one of the scariest things you do in life. Whether you lost your job, or had a divorce, or otherwise are unable to make your payments, the prospect of losing your home is the ultimate low. However, foreclosure should be the absolute last thing that happens to you. There are plenty of ways to avoid it. Check out this post by the Bankrate blog for what should be your lines of defense before foreclosure happens to you:

-Communicate with your lender- The key is to contact the lender before your debt gets the better of you. The sooner your lender knows of your problem, the more help it can provide.

-Set up a repayment plan with your lender if you are suffering a short term financial set back

-Refinance

-Short sale

-Loan modification

Photo Credit: Joe Penna

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Bankrupt? Foreclosed? Life Goes On.

by Kathy T.

Hitting financial rock bottom is rough. My family went through it when I was in high school after my dad lost his job during the recession. Be it bankruptcy, foreclosure, or short sale- it can be extremely challenging. You may feel like you have failed, and that it’s the end of the world- but I promise you, it’s not. Life goes on! There is a lot of red tape to struggle with, but you can still get a mortgage. And, eventually, it will be taken off your credit score. For more info on waiting periods and moving on with life after a foreclosure or other financial hardship, check out this article by Gene Mundt at Chicagoland Mortgage. It has all the up-to-date legal info that you need!

Photo Credit: Ventura Bankruptcy Attorney

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Less Homes Underwater

by Kathy T.

The housing market has steadily been improving. More houses are becoming available, prices are affordable, foreclosures are lessening, and sellers are able to be picky. One thing that was also dragging down the economy was the sheer number of underwater homes (when someone owes more on their mortgage than the home is worth). The good news is, those are disappearing as well. According to this post by Amber Nelson at the Mortgage101 blog, now there are only 6.5 million underwater homes (compared to 12 million in 2009):

“The rebound in home prices in 2013 helped 4 million property owners regain at least some positive equity in their largest asset—their home. We still have a long way to go to eliminate the negative equity overhang but significant progress is being made every day across most of the country.”

Photo Credit: Doug Letterman

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Mortgage Regulation Worries?

by Kathy T.

Two of the main things that led to the economic collapse of 2008 were: 1. People buying things using money they didn’t have (or couldn’t come up with) and 2. Banks and other lenders giving out money to people that couldn’t pay it back. So, it’s only natural for regulators to be extra alert from now on, and to keep a watchful eye on lenders even today. This article by Patrick Sheridan at CNN Money explains:

The fact that the mortgage servicing industry is increasingly being concentrated in the hands of a few companies worries some. It may be difficult for these companies to manage the sheer number of mortgages that they’ve agreed to service. That’s why Sitkin wants servicers to have more procedures in place to ensure that they can handle the number of loans they own.

Photo Credit: Daniel Lobo

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Missed Payments Becoming the Norm? Now is the Time to Act!

by Kathy T.

While the amount of foreclosures has hit a new low, it is still a problem for many Americans who simply cannot afford their own homes. Once you begin missing payments, the foreclosure process can be much quicker than you’d expect. That is why it is extremely important to stay on top of your payments. If you get behind or miss some, it is vital that you are proactive in making it up. George Souto at the Active Rain blog has some advice for those who may be in danger:

60 days late on a mortgage payment is the point of no return for homeowners.

One of the most important things that a homeowner needs to do as soon as they realize they will not be able to make their mortgage payment is to contact their Lender, and workout a REALISTIC payment plan which will allow them to stay current or catch up if they are already late.

Homeowners who are behind on their mortgage should also seek the help of a free financial counselor like the ones provided by the Department of Housing (HUD)

Photo Credit: Joel Ormsby

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Take the Deal, Already!

by Kathy T.

My question when I read about things like this is how could people afford the house in the first place if they’re that ignorant? May homes really are that much more expensive in Connecticut, but real estate agent Joe Petrowsky talks about a couple who has been in foreclosure for quite some time.

They were offered a deal by their lender – one that should be a complete no-brainer – and they had to ask their lender if he thought it was a good deal? From Active Rain,

This time, they called saying that their servicer made them a proposal and what do I think about what is being offered. They owe $440,000 and their interest rate is 7.5%. The servicer offered to write the loan down to $270,000 and offered them and interest rate of 4.75% for 25 years.

I was absolutely shocked to read that they hadn’t made payments for three years and were offered this sweet deal, and had to ask if it was a good one? People never cease to amaze me.

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$300 Little Comfort for Foreclosure

by Kathy T.

Homeowners who were unfairly persecuted by banks who claimed non-payment are now beginning to collect compensation for the foreclosures. But the compensation checks that have been mailed are pretty much insulting to a lot of the victims. From NBC News.com,

Pooley said she’s been fighting to save her home from foreclosure for the past three years. Believing that her servicer did not follow legal procedures, she said she has contested the foreclosure through her state’s foreclosure process, and managed to stop three foreclosure sales. She said she also has tried to get authorities to investigate.

Last month, she received her settlement payment, a check for $300.

“It was more than pathetic. It was insulting,” Pooley told NBC News. “I spent more in money on postage providing government agencies with detailed descriptions of what had happened in my case.

Military personnel who were foreclosed get the largest amounts from the settlement, but the remaining 2 million homeowners get between $300 and $500 each. That couple hundred bucks really is little comfort for people who have been unfairly displaced with their credit scores ruined.

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Throwing in the Towel with Lender

by Kathy T. Leave a Comment

The loan modification process is not an easy thing to go through. So hard, in fact, that even famous people sometimes throw in the towel. According to NBC News.com, R. Kelly recently lost his house to foreclosure after trying for a year to get a loan modification.

The singer-songwriter-producer, whose legal name is Robert S. Kelly, was hit with a $2.9 million foreclosure suit in July 2011 because he had stopped making payments on the Olympia Fields, Ill. home. But after trying to force a loan modification when the home’s appraised value dropped from $5.2 million to $3.8 million in the span of a year, Kelly threw in the towel.

The home, only 30 miles from Kelly’s Chicago hometown, had been listed as a short sale — first for $1.595 million and most recently for $995,000 — since 2011. From a jungle-themed swimming pool to a home theater and large, gated driveway, the estate has several celeb-worthy amenities.

I’m sure there are tens of thousands … hundreds of thousands… maybe millions… of people who share his pain.

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Foreclosures Hit All Income Levels

by Kathy T. Leave a Comment

Foreclosures don’t impact just poor and middle class folks. Rich people are also foreclosed on when they can’t or don’t make their mortgage payments. CNN Money offers a tour of some million dollar foreclosures, including this home listed for $2.25 million.

This gigantic new home, completed in 2011, has already gone through a foreclosure and is now being resold for 44% less than its original price.

That’s not a bad deal for all the features you get: a curved staircase, glass, marble and mosaic tiles, onyx kitchen counters, a vast master suite with his-and-her walk-in closets, an au-pair suite and a finished basement with wet bar.

At nearly half off the original price, it’s a real deal!

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Look At All Options Before Walking Away from Home

by Kathy T. Leave a Comment

We have faced a lot of challenges the last two years in holding on to our home. My husband lost his job two and a half years ago, so we have been a one-income family paying a big house note, getting one girl through college, and another girl through high school. We’ve had to make some very difficult choices to keep our house, but the sacrifices will be worth it in the long run.

If you are considering walking away from your house because you owe far more than the house is worth, consider some of the federal relief programs currently available. USA Today explains the biggest problem could be your credit score,

If you decide to walk away, be prepared for a seriously negative hit to your credit rating. But before you pack up and leave, consider the federal mortgage programs.

If you are not behind on mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through the federal Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage.

It’s a difficult decision everyone must ultimately make for themselves. But get adequate legal advice and be armed with knowledge before deciding.

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