Loss Mitigation - How Can it Save My House?

Literally, dictionary-wise, mitigation means to reduce or lessen something, in this case, to lessen the loss of money to the bank holding your mortgage when you stop paying your mortgage.
What it means to you is hope of not losing your home!
You may have heard that the bank really does not want to take your house. It is true. Not only are they not in the home owning business, they suffer a big loss when they are forced to take ownership of your home.
I have seen estimates that assert that it can cost up to ½ the amount of the outstanding mortgage balance to take possession of your home and then dispose of it! That is a lot.
How can this fact be turned to your advantage?
If you know what you are doing, or better yet, hire someone who does, to negotiate with your bank's loss mit people, as they are called; to see if they can work out a financial agreement, called a "workout" that allows you to stay in your home.
They will weigh factors such as your ability to begin making your regular payments again, what caused you to fall behind in the first place (hint, it should be something beyond your control, job loss, illness, etc.), how much cash you have to pay toward your arrears, etc.
Typically, they will produce workouts that will range from forbearances, where they have you pay off maybe ½ your arrears and make higher than normal payments for the next 6 - 12 months until you have caught up; to loan modifications.
A loan modification changes one of the major terms of your loan, the term, the interest rate or the actual payments.
The modification produces better long term results, since it is a quasi permanent change, adjusting to your ability to pay.
I mentioned before that you would be better off if you hired someone to negotiate with the bank on your behalf. Makes since, doesn't it to have a professional loss mit person representing you against the bank's loss mit professionals, right?
You would not want to bring a knife to a gun fight!
A word to the wise, however. People claiming to be loss mitigators are springing up like weeds in the tomatoes.
"Yesterday, I was a dog catcher, today, I be a lost mitrigator!"
If you do decide to engage a loss mitigation company, check them out thoroughly. You are staking your home on their expertise.
How long have they been in the business, 2 weeks or 5 years? How many consultants do they have? Do they offer a money back guarantee if they are unsuccessful? How knowledgeable are their people, do they explore ideas with you that you have not heard anywhere else?
Does their website appear professional or amateurish? Do they provide helpful information for free or does the clock start running immediately? How much do they charge? You should expect to pay about 1 month's mortgage payment as the fee for their services.
That is not a bad price, considering the return!
Good luck!
Copyright 2008 Bill Young If you are facing foreclosure and need help from professional loss mitigators, check out this site, now! http://CantPayYourMortgage.Com If you would like to be trained in this lucrative new field, you can get trained and start making money referring distressed home owners to loss mitigation professionals in a matter of a few weeks, starting from home! Click here for more information: http://NeedHelpWithYourMortgage.com
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What To Do After House Repossession

Sometimes no matter how hard you try, you still cannot make ends meet. With today's economy, it is becoming more and more difficult for people all over to maintain possession of their homes. Repossession rates are at their highest right now for banks. People are having the hardest time trying to stay above water. Unfortunately sometimes no matter how hard we try, we end up losing such things as our home. So what do you do after your house has been repossessed?
If you've exhausted all efforts in trying to keep your house or selling it before repossession takes place, then there are a few things you need to do before the bank repossess your house. You need to make sure that you get all of your personal belongings out as quickly as possible. In some cases you may be fortunate enough to have a set date as to when the bank will take over the home and you need to be out of the house. You can never be absolutely sure though, as to what date they will come and change the locks. You don't want to have someone lock you out of your home and keep you from your belongings so it is important for you to take action while you still can. Remove your personal belongings from the home and find a place to store them. You need to be sure that you have you and your family covered for a place to stay.
By waiting till the last minute, you can leave yourself as well as your family and your belongings out in the cold with nowhere to go. There are many places that offer free counselling and advice that can help point you in the right direction if you find yourself in such an unfortunate predicament.
Nobody buys a house with the intention of having it repossessed. This can be a very devastating and traumatic experience for all parties involved. The bank does not want your home any more than you want to give it up but unfortunately their hands are tied if you are unable to make the payments.
Once it has come to the point where the bank is repossessing the house, you want to be able to walk away with as much of your personal belongings as possible. In many cases the bank has the right to seize any property that is in the home to sell for back payment. Keep in mind that you can always get another home, flat or some type of place to live but you cannot replace sentimental items.
If you find that you're having trouble making your house payments and you've gone through all avenues to try to rectify the situation, then it may be time for you to consider moving your personal belongings. It will not do you any good to dwell on the things that have happened.
You need to focus on what you can do today to make things better. Salvaging as much of your belongings as possible is the first place to start. By having your own personal things with you, starting over won't seem as hard.
Derek Rogers is a freelance writer who represents a number of UK businesses. When it comes to helping individuals stop house repossession, he recommends Property Buyers.
Article Source: http://EzineArticles.com/?expert=Derek_Rogers

Foreclosure Prevention - How To Save Your Home In 6 Not So Easy Steps

OK, if you've found your way to this article, two things are probably true:
One, you are in trouble and you're either struggling to make your mortgage payments or you are worried that you will be struggling soon.
Two, you KNOW you're in trouble and you are looking for help to figure out the best actions to take to save your home.
The good news is that you KNOW you're in trouble. That's an important first step. We are here to help you figure out what to do next, and in some cases what NOT to do.
Below are some questions you need to ask yourself. How you answer these questions will help determine what to do next.
1. Are you are still making mortgage payments (even if you won't be able to very soon)?
2. If you are behind on your mortgage payments, how far behind are you? Have you responded to notices sent by your lender?
3. Do you know the terms of your loan? Specifically, if your have an adjustable rate mortgage (ARM) do you know when the interest rate will increase and the amount you will be expected to pay in future months?
4. Do you have the money to make the payments at the current amount (even though you may be in serious trouble when the payments increase)?
5. Do you know who (which financial institution) currently holds your home loan? Remember, the company that gave you the loan is probably not who owns it now.
The following steps are designed to help you save your home. But, they are not easy. They require hard work, dedication and determination on your part. You need to act quickly because the longer you wait, the fewer options you will have. So let's get started.
Step 1: Decide to Fight for Your Home
Ask yourself if you are ready to take responsibility and WORK your way through your current financial challenges. You have to be honest. You have to know how tough you really are. There will be pain. Now, if you are ready to do whatever it takes, keep reading, if not, don't waste your time, just go watch TV or do whatever else you'd like to do while you're waiting for your financial world to crumble on top of you.
Step 2: Build a Rock-Solid Budget on Tough, Honest Choices
Write down your budget for the next several (3-5) years. This may sound hard, but do it. The word "budget" sounds like a complex plan that takes a long time to construct, but it doesn't have to be that complicated. It's just a list, month by month, of the money that's coming in and the money that's going out. What makes a budget good? Just the thought and honesty you put into it. What are you really going to make? What are you really going to spend? You will have to make some guesses. You don't know what gas will cost next year (assume it will be more than it is now, at least 10% more each year). You don't know how much money you'll be making (assume it will stay exactly the same as it is right now).
You will have to think (hard). What happens in January? Will you have to pay for presents? What happens in July? Will you have to pay for travel? You get the idea. Assume something will hit you out of the blue every 3 months or so (car repairs, an appliance dies, etc.).
Once you see all of the "money out" items in your budget, you may need to make some hard choices. What can you live without to save your home?
Step 3: Know Your Budget Like the Back of Your Hand
Now that you have your budget, memorize it. I mean it. Memorize every little detail. Put it on flash cards if you have to. You should be able to recite every money-in, money-out detail if someone dumped a cold bucket of water on you at 3 o'clock in the morning. Why? So when you're about to buy something you can ask your brain if it's in the budget. Your brain will know the answer immediately. There will be no "maybe it is" or "maybe it isn't".
Step 4: Learn to Think Like Your Bank
You are going to contact the bank or the mortgage lender that currently holds your home loan. But don't pick up the phone yet! First you have to be ready to have the RIGHT conversation with your bank. You know your budget by heart (that was Step 3), now you have to learn the RIGHT way to present yourself, and your budget to your bank. The right way means that you appear to be someone who is AHEAD of the game. You appear to be someone with a clear plan (your budget). You appear to be someone who is going to be able to survive your current money problems.
Put yourself in the shoes of your bank. You (the bank) has hundreds of people in trouble with their home loans. You can't help every one of them. You are a bank, and you don't need a bunch of homes (especially not NOW, when every other bank is experiencing the same problem). What does your bank want? They want "bad" loans to go away. They can either play hardball with you and take your home (and sell it for a loss just to make the whole painful episode end) or they can work with you, so you can keep paying. What does that mean for you? It means you have to look like someone who is going to be able to keep paying. They want to be sure you aren't lying about what you make or what you spend each month. If there's NO chance you'll be able to keep up with lower mortgage payments, there's NO REASON for them to help you! You'll just be back in trouble in a few months anyway, and they'll end up taking your house (foreclosure). If your bank thinks you are a hopeless cause, they'll just foreclose now rather than prolonging the pain.
Step 5: Track down whoever is Holding Your Home Loan
Contact whoever is currently holding your loan/mortgage. If they've sent you mortgage materials telling you how to contact them, great. If not, locate your lender any way you can (phone number on mail they've sent you, yellow pages, internet search, etc.). Call or write to them and tell them about your situation. Be clear about what you want (I want to keep my home. I have a clear budget that will allow me to make payments of a specific amount, etc.). If your goal is to keep your home, then make sure they know that you have a plan (the budget that you've carefully built and memorized). Leave no doubt that you are better than you look on paper (your credit score, your payment history, etc.).
Tracking down the actual owner of your loan can be difficult. You can start by calling or writing a letter to the company that receives your monthly mortgage payments. Expect to hear something like, "We don't actually own your loan, we just process the paperwork" from this company. In your communication with them make the following request: "If you don't own this loan, please send me the contact information for the company that does own it." You may have to go through several companies to find the one that owns your loan and has the power to change its terms (to freeze or reduce your payments). Do not give up. If it's hard for you, it's also hard for all of the other people out there who are also struggling with their home payments. You are competing with these people to be selected as one worthy of help from your lender. You should be happy that the task of finding that lender is difficult. You should be happy because other people will give up once they see that locating the lender is difficult. But you won't give up until you find them. Be tough. Do not give up.
If you reach a dead-end in your effort to locate the bank that holds your home loan, then contact the consumer affairs department of your state's Attorney General Office and ask if they have a mortgage unit. Tell them what you are trying to do, and ask how they can help.
Step 6: Respond to Whatever Your Lender Throws at You
How your lender responds to your request will determine how you proceed. If they are willing to work with you, great. If they ask for more information from you, follow their instructions, and give them what they ask for as quickly as you can. If they deny your request, ask them what you could change that would make them agree to reset the terms of your home loan.
It's OK to look for help. Some of the links on this page may help you. Some of the advertisements and offers may provide information or services you can use. Shop around, learn, and explore your options. But don't let anyone push you into anything you don't fully understand.
There are lots of companies out there that talk about foreclosure prevention or debt rescue. They may tell you that they can let you keep your home and help you pay your mortgage. They may have a plan where you can stay and just pay rent. Be very skeptical. Ask every question that pops into your head. What will really happen to your mortgage? What will happen to your credit? Make them prove that their plan is best for you. Did they ask you about your specific situation? If they don't ask you about your specific situation (your budget, for example) how can they possibly know what is best for you? Ask to talk with satisfied customers. Some companies can provide real options that may help you. But many, many companies talking about foreclosure prevention, mortgage restructuring, loan modification and/or mortgage rescue are simply predators. They know you need help. They know you need to act quickly. They might just want the last few dollars you have.
You should check out accredited debt counselors in your area. You can get a referral to a non-profit counseling agency approved by the Department of Housing and Urban Development at www.hud.gov. The National Federation of Credit Counselors also has a program to certify counselors.
These steps are not easy. But remember, if they aren't easy for you, they aren't easy for other people struggling to make their mortgage payments. Be tougher than these other people. Keep going when they give up.
Remember, no one can guarantee success. But giving up will guarantee failure.
Find more online help on credit related products and services at www.onecreditcenter.com.
Article Source: http://EzineArticles.com/?expert=Steve_Biafore

Could Selling Your Home Stop Your House Repossession?

This article is designed to discuss the house repossession process and outline the process of selling your house to stop your home being repossessed.
House repossession is shrouded in negative press coverage and is seen by many as the worst possible thing that could happen to them. Studies have proven that having your house repossessed not only has severe impacts on your future ability to get loans and mortgages but, it has been linked to psychological problems such as depression. This article aims to inform people about the house repossession process and offer a solution to stop house repossession.
Thousands of people face repossession
You are not alone If you are currently facing repossession, recently, the accelerating housing market has resulted in more people taking out large loans and mortgages in order to gain a foothold on the housing market. Others have been refinancing their properties on to low cost mortgages to allow them to buy luxuries they have always wanted. Such low cost mortgages have dramatically reduced due to the recent rises in interest rates. This has led many people facing the 'shock' of higher mortgage payments once their cheap rate mortgage ends. This has left tens of thousands of individuals, couples and families walking a financial tightrope. Should they lose their job or, face some unexpected drop in income they are often forced to default on their loan commitments which can ultimately lead to repossession.
Should you find yourself in this situation you must not bury your head in the sand, there are some important facts you should remember:
According to government figures house repossessions are on the increase - you are not alone.
Almost 50% of house repossession orders can be suspended if you have the know-how.
You have the right not to be repossessed.
You can usually prevent arrears leading to repossession.
Communicate with your lenders
If you are facing repossession it is very important you understand the house repossession process. Generally, it takes between 3 and 6 months of non payment before you will be issued with a repossession order and summoned to appear in court. Ideally, you should begin to communicate with your lenders to explain your current situation immediately. If you have recently lost your job, got divorced, had a long period out of work due to illness, explain this to your lender.
If your situation is likely to be temporary and you will soon receive sufficient income to honour your loan and mortgage commitments your lender is likely to agree to you paying off your arrears once you return to earning income. However, if you make this agreement and then fail to honour it, your lender will be unlikely to offer you such an option in the future.
Could selling your house stop your repossession?
If you will not earn enough to make the repayments and pay off your arrears one option is to sell your house. Selling your house will only work if you have sufficient equity to pay off your mortgage and loans. If you do not have sufficient equity, it is likely that unless you can find sufficient income to repay the arrears, you will have your house repossessed.
If you do have sufficient equity within your home there are two options to selling your house:
You can sell it via the expensive and traditional route. Or,
You can sell to a company that specialises in quick sales and can let you rent your home back, allowing you to stay in your home - should you want to.
Such companies can help you up to the day before your repossession hearing but, try not to leave it this late. However, these companies can only help you if your debt is between 70% and 90% of the value of your home. The advantages of these companies are:
You are assured a quick and often guaranteed sale, something which is not afforded by the traditional route. This is ideal if you have a short amount of time to settle your debts and will allow you to move on with your life free from the stress and worry of being in debt.
Often selling to such a company as K&G Lettings Limited or others can mean you also release some equity that allows you to start afresh.
A further benefit of selling to such a company is that after a few short months/years your credit would be repaired to s subtle point for you to get another mortgage, something that would take many yeas if you were repossessed.
Conclusions
This article is designed to discuss the repossession process and how selling your home could stop your house repossession. It is clear that there are advantages to selling your house and stopping your repossession and that there are two ways in which to do so: the traditional method and the quick sale method. Should you choose to sell your house to stop your repossession you should always choose a method that suits your situation.
Disclaimer
This is a brief introduction to the concept of the repossession and quick house sale process and is designed to act as a guide. Please ensure that you seek professional advice before making any decision which involves selling your home.
About the author
Gary Wainman is the principle letting and property consultant for K&G Lettings Limited (kandglettings.co.uk) who specialise in offering the quick sale, rent back and stop repossession services across the UK, especially within in Hull and the East Riding of Yorkshire.
K&G Lettings Limited
K&G Lettings Stop repossession service
Get your free guide to stopping repossession by clicking this link and completing the form
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Avoiding Foreclosure

Listed below are some tips that can be really useful in avoiding or stopping a foreclosure.
1. Most people have the habit of spending away every penny they earn without saving. It is important to save something for a rainy day. One should keep aside enough money as reserve that would be sufficient to pay at least 3 months of mortgage payments.
2. It is important not to miss the mortgage payment at any cost. Apart from savings, even if one can cut down the daily expenditure for this purpose, it is worth it. Missing a mortgage payment reflects badly on your credit report, which can also lead to an increase in interest rate and increase in monthly mortgage payment.
3. In case of any foreclosure, one needs instant cash. The best way to get this is to activate home equity lines of credit well before any emergency arrives. It is important not to use this facility for general purpose.
4. In situations of a foreclosure, one should never hesitate about taking help from friends and relatives. They are the ones who would help in case of trouble.
5. Sudden health problems, loss of a job or other emergency situations often result in skipping monthly mortgage payments. It is important to discuss with the lender about any possible restructuring or rearrangement in the mortgage loan. Lenders do appreciate such discussions and help in getting the loan back on track. It is very important to attend to the problem and find an appropriate solution rather than ignoring it and keeping it aside. The problem can go out of control in no amount of time.
Check Out More Articles:
Subprime Mortgage Crisis And Funds, Expert Mortgage Refinance Advice, Government Tax On Foreclosure Properties
Article Source: http://EzineArticles.com/?expert=Jared_Lee

Is A Foreclosure Legal?

You ask yourself this question and maybe, just maybe there is some light at the end of the tunnel. Just passing on some thoughts heard around the water cooler. If you or a friend is facing foreclosure, you no doubt can find in the foreclosure action a petition from the plaintiffs (lender) attorney asking the court to "accept a lost note or document affidavit".
Now this statement in itself shouldn't cause any dynamite to blow up but if you look into the actual reason for this simple little petition, you will be amazed at what might be happening right before your eyes, in front of the Judge and the entire world.
You see, almost ninety-nine percent (99%) of the average citizens do not have a clue about how the real money is made in the mortgage business. In fact, I would venture to say that over seventy-five percent (75%) of today's mortgage brokers don't have a clue about how money is made in the mortgage business.
You will see ads in all of the mortgage magazines "looking for sharp loan officers" commissions up to one hundred percent (100%). Now, think about this just for a minute. IF a mortgage company was going to pay out one hundred percent (100%) commissions, how do they make any money? Confused? Join the crowd. Here is how they make their money and I mean really, really big money.
Let's just say that ABC Mortgage Company has ten loan officers and each one creates two (2) mortgages a month. ABC now has twenty mortgages at an average of two-hundred thousand dollars ($200,000) on the table and they have paid out ALL of the commissions earned from the lenders to the loan officers. DUMB? Nah, just read further on.
For many years international investors would buy US Mortgage Notes because they were looked at as one of the most secured investments in the entire world. So, these groups of which might be Honda, Yamaha, Toyota and other financial giants would diversify their investment portfolios with secured US Mortgage Notes. For the mortgage company like ABC that had twenty loans a month and you thought they were not making any money, look at what happens.
The secondary market buys those twenty mortgage notes from the mortgage company at the closing or soon thereafter. They pay the mortgage company a commission of two-percent (2%) which is called a service release premium. That term is NOT known on the streets but it DOES EXIST in the industry. So, on a commission of two-percent (2%) and a loan portfolio of four-million dollars ($ 4,000,000) ABC Mortgage Company gets a monthly check from the buyer of those mortgage notes to the tune of eighty-thousand dollars.($80,000) for that month. This is how mortgage companies can pay out one-hundred percent (100%) commissions and make tons of money.
So, along comes the attorney for the mortgage company and he is suing you in court to foreclose on your home. When he petitions the court to accept the lost note affidavit, he is not really telling the truth. The question arises. How could you lose a note that you did not have possession of? Do you think for one "cotton pickin" minute that Honda or Toyota would pay commissions and buy those notes without getting the original notes. That is the only paper that is negotiable.
So, if you didn't have possession, because you collateralized the note, which simply means that you used the value of the note to acquire an equal amount of cash and gave possession of the note to the party that put up the cash. Plain and simple. So, where is the rub? Well, is it possible that the lender through its attorney is possibly committing fraud on the court by stating that "the original note is lost" when in fact it cannot be lost, IF the mortgage company sold it.
This makes for a very interesting conversation between folks in the mortgage industry, attorneys representing both the homeowner and those representing the lenders. I would love to see a ruling on this up to the highest level. After all, without proof of the debt, there is no debt.
There is a lot of case law where it has been determined that the only proof of debt is the original document or a certified copy thereof. How can anyone produce a certified copy when none exists.
In closing, I don't know where this thought is going to lead to or end up, but I was just totally amazed when the conversation of which it was from experts in the mortgage industry started talking about mortgage notes, deeds and collateralization. Today's average person would let this go right over their heads and not know the difference.
Regis Sauger is a licensed Mortgage Broker in Florida, an author, lecturer on credit awareness. He has conducted seminars for underwriters, attorneys, mortgage lenders, realtors and the general public.
www.yurcredit.com
Article Source: http://EzineArticles.com/?expert=Regis_Sauger

Home Foreclosure Help Is Available To Those Facing Foreclosure

Negotiate a foreclosure help plan prior to losing your home; people that are facing foreclosure often do not realize that there are options to avoid foreclosure. Home foreclosure help is available for these who may be losing their home if they are willing to talk to the lender and entertain options that they offer to avoid foreclosure.
Lenders are calling, sending letter and other correspondences attempting to collect the money that is owed to them. Homeowners believe that this is because they are like "robots" and do not care about the circumstances; however, this is simply not the case. Lenders are just doing their job, then loan people money and in turn, they expect payment to be made on time every month. In most cases, lenders will negotiate a reasonable arrangement to avoid foreclosure.
Lenders have several options available to people that are facing a foreclosure, however you have to talk to them in order to determine if they are viable options for your particular situation. Lenders do not want to process a foreclosure to get the house back. The process can be very length, time consuming and expensive, therefore the often times would prefer to negotiate a suitable settlement versus taking your home through a foreclosure.
Interest Only Payments
Depending on the amount of the default and the time that lapsed your lender may be willing to offer you an interest only loan for a year or two. Foreclosure help is often available from lenders by modifying their loan and getting your payments lowered. This should lower your monthly payment and allow you to get back on track and prevent foreclosure of your home.
Half Payment
Some lenders may discount your monthly payment, up to 50%, if they feel that this will afford you the time that is needed to correct the financial difficulty that you are experiencing. Discounting your monthly mortgage payment is a foreclosure help option that is rarely available, but it never hurts to ask you lender.
Short Sale
Often times a lender will allow a homeowner to sell their home for less then the amount that is currently owed on the loan. This is commonly referred to as a "short sale." Borrowers may not think that this is a valid form of foreclosure help however, a short sale is prefer over a foreclosure to minimize the impact to future credit. While some lenders will not allow or offer borrowers facing a foreclosure this option, it is worth asking prior to the lender taking foreclosure action.
While this is an overview of only a couple of options that are available to borrowers for foreclosure help, it is a great starting point. There are a number of options available to people that are facing foreclosure, be sure to research and investigate all of your home foreclosure help options prior to making any decisions or simply walking away. Many home foreclosure help web sites offer valuable information that can assist homeowners that are facing a foreclosure.
Thomas Bladecki is the author and can provide additional information about foreclosure listings, current real estate news and conditions on the most popular cities, visit Home Foreclosure Help to get the latest news and information about the foreclosure dilemma.
Read valuable information in his Foreclosure Blog. It is updated regularly, and is a great portal to find the latest scope in the foreclosure world.
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