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.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

House Repossessions - Reality Bites

A few years ago bankruptcy and house repossession were considered the domain of the feckless or business failures. How times have changed! The growing number of personal or business bankruptcies is testament to the change in our attitude to this.
The general acceptance of these predicaments doesn't lessen the emotional pain and stress that this generates within a family. The loss of a family home due to repossession and having to relocate to a new area that is unlikely to be as close to schools or work will have a deep impact on parents and children alike.
Unfortunately by the time your lender is talking about repossession, time is really beginning to run out. So, how have you arrived at this precarious position? Ignoring the red reminders isn't going to make them go away. Sleepless nights over a prolonged period worrying about money will affect your reasoning abilities, but disappearing into a bottle isn't the solution either. Blaming yourself or your partner won't resolve the problem, nor is arguing about whose fault it is. What you have to do, and fast, is to try to find a solution or way out.
Having your property repossessed is just about the worst option for you. Any equity you may have could be lost as the lender may well sell at auction or significantly below market value, simply to recoup the money they have lent.
1. Don't ignore the warning letters. Seek help from the Citizen's Advice Bureau. They should be able to put you in touch with a debt advisor. CAB offers a free service - so don't use any agency that requires upfront payment, you will just be compounding your problems with another debt.
2. Speak to your lender. There are horror stories about how badly they treat defaulters, but the advice you will receive from just about everyone is to let them know of the situation. You may be having problems because of a prolonged period of ill health; redundancy; steep rises in mortgage payments that you can no longer afford; personal difficulties, which leave you unable to work or other similar situations. Lenders are required to be as helpful as possible but remember they are not providing social housing - they are running a business.
3. One possible solution is to sell your home and rent it back from a company that specialises in buying homes for cash in a fraction of the time it can take on the open market. There are many companies providing this sort of service and the rates offered range from 75-85% of your property's current value, depending on who you use. The beauty of this option is that any equity built up since you first purchased your home will be realised rather than lost. You also get to stay in your existing home on a rental basis. Check to see if the company offers a guaranteed long-term tenancy scheme (rather than short-term), which provides tenants with the peace of mind and security that should enable them to start afresh. The existing mortgage is paid off, you get a lump sum of any remaining equity and those horrible repossession nightmares just disappear.
4. Another option is to try to sell your home and stay with family or friends until your situation improves or find somewhere to rent that is affordable. You will need to factor in here the time it can take to sell your home on the open market, which can be anywhere from 3 months to a year. A sell and rent back company can complete within 3-5 weeks.
5. See if you can get housed by the local council. Given the length of many council housing waiting lists I wouldn't hold my breath!
Having your property repossessed isn't the end of the story. Repossession will affect your personal credit rating for years to come, which will make it even harder and more expensive to get back on the housing ladder. Indemnity insurance will be increased and you will find it harder to get credit.
Above all, try as early as possible to recognise the warning signals and act on them. Cut your expenditure on non-essentials to zero. That means no cigarettes, no drink, no chocolate or other "little" things to make you feel better. Believe me, all those "little" things add up to one huge hole in your budget. Face up to the situation and try to find a way round it or seek advice on the best solution from a debt advisor.
You don't need to continue to lose sleep over your financial difficulties. Sell & Rent Back may not be the best solution, but it is an option worth considering if you are currently facing repossession and can see no immediate solution.
If you need to sell your property fast visit http://www.sell-my-house-fast.org and complete the online form for immediate help - sorry UK only.
Article Source: http://EzineArticles.com/?expert=Jason_Coghlan

How to Walk Away From a Home in Foreclosure

Some homeowners simply come to the conclusion that they can not keep their current house out of foreclosure. This may be for any number of reasons, not all of which are financial. While having changed jobs and not making the same level of income, or losing an income due to a medical disability may wreck the most damage to the ability to keep a home, some foreclosure victims decide that saving the home is just not worth the trouble. Dealing with threatening banks, waiting weeks for attorneys to answer a simple question, being pushed off from one department to the next, and being turned down for one solution after another are quite convincing in getting homeowners just to leave their homes. They would rather not deal with the extra stress than find a way to stop foreclosure.
Few homeowners, though, know exactly what will happen if they just up and leave the home. What will the ultimate fate of the house be? Will the lender go after both spouses' credit records if only one is on the mortgage? What about being sued or having wages garnished after the foreclosure is over? These are important questions homeowners need to ask themselves before giving up the fight and leaving the house.
If they decide to walk away from the house, the lender will immediately begin trying to collect their money, by making hourly phone calls and sending collection letters. After a few months with no response from the owners, they will hire local attorneys and sue for the foreclosure. Once the foreclosure judgment is awarded to the lender, the house will be sold at a scheduled county sheriff sale. And finally, after the house is sold, ownership will transfer to the high bidder at the auction and the eviction process will start in the courts. Within a few weeks to a couple of months, the county sheriff will be ordered to change the locks and remove any remaining people or property. The house will then be put up for sale by the bank, if they were the winner, or the new owners will move into the house.
Of course, if the homeowners have moved out prior to any of these events, this entire process will go ahead without their involvement or knowledge. The most dangerous part is the eviction, but the foreclosure victims will not be evicted if they have already moved into a new apartment or rental house and are no longer living in the original property anymore.
The bank could possible go after the spouse's credit because the husband and wife are married and therefore count as one "economic unit," so to speak. Whether the lender is able to do it or not depends on how much the bank knows about the spouse who is not on the loan. They need to have quite specific information in order to report negative information to the credit bureaus, or else anyone would be able to report unpaid debts about anyone else for any reason at all. Do they have a social security number? A birth date? Is there some document proving the marriage and that the spouse is responsible for the mortgage, even as a community property issue? If this information is not provided to the credit reporting agencies, it may be difficult for the lender to report the late payments and foreclosure.
The lender may be able to go after other assets and income after the foreclosure, if the state in which the property is located allows for deficiency judgments. Not all states allow this, so it is important that homeowners look up the applicable foreclosure laws. But banks almost never sue their former clients after foreclosure; they know that they could not make the mortgage payments to begin with, so there is little reason to assume that they can make payments on a judgment involving the mortgage. And it will cost the mortgage company more time and money to hire attorneys to sue the former owners again, when they have not collected a single cent from the original foreclosure lawsuit. In other words, it is just not worth their time.
Making the decision to give up on a house is never an easy one, and one that we do not ever recommend. There are always various methods that can be used to stop foreclosure, and homeowners should exhaust all of them before admitting defeat. But, not all circumstances allow homeowners to work vigorously on numerous options to save their homes. In these cases, knowing the potential consequences of simply leaving the home is vital for homeowners to make an informed decision and begin the process of starting over with no regrets or worries about the former home.
The ForeclosureFish.com website offers homeowners foreclosure advice and resources designed to help them save their homes on their own. Hundreds of pages of articles, blog entries, and reference materials are available, describing how foreclosure works and how it can be stopped. Visit the Foreclosure Fish website today to begin learning how to save your home: http://www.foreclosurefish.com/
Article Source: http://EzineArticles.com/?expert=Nick_Adama

Real Estate Foreclosures

Many people buy homes thinking that it will appreciate as an asset. But when homes are in debt or there is pressure on its foreclosure by creditors, the party is over. Real estate foreclosure consultancy has come of age. Blame it on greed of the lender borrower or investor, but the focus is more on the hapless owner who is at the receiving end. Tips to avoid foreclosures are valuable, provided one realizes that the property is becoming a white elephant! But what are real estate foreclosures in the first place?
Realty experts now insist that borrowers know what they are in for before they see themselves knocking the courtrooms for justice. A real estate foreclosure means buying a property at a lower value and then reselling at a higher price. In this process the creditor enforces a charge on the mortgage document.
A foreclosure usually occurs when a borrower fails to pay the debt. It may be due to death, employment loss, divorce, bankruptcy or taking on too much loan amount. Don't neglect that registered notice or letter from the creditor. It is advisable to negotiate the debt and sort out differences to make the payments. Creditors are not in need of your house but in need of the money they have invested in the property. You will need them for relieving the debt. Foreclosure begins with filing of a case against the borrower or property owner by creditor. It can be auctioned to get back the loan amount.
We offer the most valuable Foreclosure information online! Find current Real Estate Foreclosures and government foreclosed property listings, HUD & REO properties listed in all 50 states.
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Foreclosures Don't Always Make Good Neighbors

With the rampant epidemic of foreclosures across the nation, we know this is devastating for the home owner, but does anybody ever wonder how this affects the neighbors? Imagine the problems that result from an increasing amount neighborhood homes sitting vacant.
You may spend hours tending your gardens, pruning the trees and mowing the lawn. Unfortunately the house next door which has been turned over to the bank, is not nearly so well cared for. The plants may be dying, and the lawn and gardens left untended.
These are common problems in neighborhoods containing foreclosed residences. Other issues include:
General decline of property values in neighboring homes.
Swimming pools left to stagnate and eventually creating health concerns.
Failure to continue regular pest control procedures, creating a haven for pesky rodents or insects.
General deterioration of the appearance of the neighborhood.
One of the more serious consequences is the evidence of crime due to vacant lots which offer a shelter for criminal activity including drug dealing and vandalism. Increased incidents of drug related activity can also lead to other crimes such as robbery and muggings.
In 2006 a paper called "The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values." studied the effects of foreclosures on neighboring homes and discovered that "An increase of fewer than three foreclosures a year for every 100 owner-occupied homes in a neighborhood, corresponds to about a 6.7 percent increase in violent crime."
Another fundamental problem is that of legitimate renters losing their homes. Since a large number of the foreclosed residences are rental properties, when a property is seized, the residents are removed and forced to find other accommodations. Now these tenants, some of whom were long term, stable renters, are out on the streets and the house sits abandoned.
This foreclosure epidemic has hit quickly and hard creating some nasty consequences. Unfortunately, this one could have been prevented with the initiation of proper legislation and monitoring of fraudulent lending practices.
Las Vegas Realtor John West, owner of Specialists Real Estate. Let John help you find your ideal Las Vegas real estate property.
Article Source: http://EzineArticles.com/?expert=Jon_West

Save My Home!

Sometimes bad things happen to good people. Although it's easy to think that everyone who faces possible loss of their home through foreclosure got into their situation through making bad financial decisions - that is often not the case. People fall ill and can't work, get divorced, a partner is disabled or dies, they lose their jobs - there are many different reasons that can cause people to fall behind in their mortgage payments. And even if it is as a result of a making a poor decision, they still don't deserve to be humiliated, or to have their credit damaged for up to 7 years, by going through the foreclosure auction process.
Fortunately, there are many possible solutions to avoid foreclosure, but with all of them there are two key factors that matter above all else. First, do not go into denial - accept that you have a problem, and don't think some miraculous solution will appear and save you at the last minute. It won't! Second, talk to the lender as soon as you know you can't make a payment. They want to help.
Particularly in today's economic environment, lenders are reluctant to foreclose on homes if they can avoid it. The last thing they want is to have hundreds of thousands of houses on their books, in a declining market. They are in the lending business, not in the real estate business. You will find that their loss mitigation department has a number of programs available to help - as long as you talk to them soon enough. Time is your enemy when it comes to foreclosure, but if you are talking to the lender you can probably work something out.
For example, two of the options available are loan modification - where the terms and/or interest rate can be changed, or forbearance - where the delinquent amount can be added on to the mortgage principal. These solutions are available when the financial problem is temporary and you will be able to resume payments in the future. If the problem is deeper than that, and you can no longer avoid the loan, there are still ways that the lender can help. They can allow time for you to sell the home, if you and a real estate agent think that can be accomplished in a relatively short time. Or, if you don't have equity in the property, in some circumstances they will allow you to sell the property for less than you owe (called a "short sale"), or even allow you to walk away from the property and just give them the deed for it ("deed in lieu of foreclosure").
The one thing you can be certain of is that, even of you have substantial equity in your home, if it goes to foreclosure you will not see any of it. By the time the lawyers have finished, any surplus will have disappeared.
Unfortunately, it is a fact that most people facing foreclosure will do nothing about it until the very end. They may try to refinance, and hope that will come through in time, but it usually doesn't. So they end up with a couple of weeks before the auction is due to be held, and very few options left open to them. At that point, their only hope is usually to work with a private investor to see if they can salvage some of their equity, or at least save further damage to their credit by having someone take over their property.
So, the best course of action is always to talk to the lender early in the process, and to work with them to resolve the situation. You will find them easy to talk to, and very understanding - their loss mitigation people deal with this every day. But, if it is too late for that, try to find a reputable and knowledgeable private investor who is experienced in helping people to avoid foreclosure, and talk to them about the options they can offer.
For a confidential discussion on the options available in your situation, and a no-obligation offer on your home visit http://www.MyFastCashForHouses.com.
Chris Lewis is a private investor with many years' experience of helping people to save their homes and credit. You can find more details, and helpful reports, at http://www.MyFastCashForHouses.com
Article Source: http://EzineArticles.com/?expert=Chris_X_Lewis

Avoid Foreclosure - An Option That Many Do Not Know About

Looking down the barrel of a foreclosure, if you are among one of the over 1.4 million homeowners facing this same issue, there may be a creative technique to save your home. Save your home and salvage your equity so that you can fight again. The last thing that you want to do is give your home back to the lender.
If your financial hardship has left you in a position whereby you are not able to pay your mortgage payment, whatever the reason may be, then you cannot afford to live in your home. Foreclosures are growing dilemma for many homeowners in the Untied States today; foreclosures are at an all time high. Alan Greenspan has made comments that the US may be heading for a recession in 2008.
Some lenders out there have not been playing fair, and some even to the point of unethical practices. These unethical practices are a primary reason that foreclosures are at an all time high and not expected to slow down in 2008, from what most experts have said.
On the bright side of things, you may have an option that may allow you to keep your home, even if the foreclosure process is already under way. Something that has been around for many years, and you may possibly utilize to save your home and equity. You may need to wait a year or two in order to cash out the equity on the property, but it is better then the alternative.
This option is referred to as a Lease Purchase Agreement, find a tenant to lease your home from you, with an option to purchase the home at the end to the agreed period or time; usually 12 to 24 months. You set a price for them to buy the house when the agreement is signed; this will allow you to set the price so you can save the equity and by some time to recover. With a tenant that has the option to buy your home you may be able to:
First and foremost is the avoidance of a foreclosure
Since renters are paying less today due to the high foreclosure rates, this may be a way to increase the monthly rent, due in light of the purchase agreement
A one-time payment, up-front as a non-refundable deposit, this is usually 1% - 3% of the sales price. The best part of this is that even if they decide not to buy your home, you still keep the money
Quickly locate a buyer for your property, most times faster then trying to sell you home in the traditional manner
Someone else will be paying the mortgage payment, and potentially a few hundred dollars a month more
Lease Purchase Agreements usually work well in any real estate market; these agreements referred to as a "lease option" as well. This is a very valuable strategy to keep in mind, especially during market that in a distress.
While there may be many other reasons to take advantage of a lease option, they are defiantly an excellent way to avoid foreclosure, and salvage your home from the bank. In a foreclosure, your credit will be destroyed for years to come, and the additional financial repercussions can take a tool on your personal life.
Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help. You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

Foreclosure Pitfall - Private Investors May Cost You Your Home

Foreclosures can be very devastating; the repercussions on your credit report can be devastating to you in the years to come. Having a property foreclosure will affect you for many years in the future. Make a valid effort in protecting yourself from a home foreclosure if possible.
There are is a growing number of real estate investors that would gladly place their money into your property in efforts to grow their financial portfolio. With the drastically growing foreclosure rates in the United States today, many new, "green" investors getting involved in the real estate market. If you are facing foreclosure then this may be good news, however beware of the dangers, and investor that has interest in your property, may adversely affect you in the even that they get into financial trouble.
Unfortunately, many of them have failed to understand that every property that they purchase is an investment that is tied together under their name. Therefore, if one property is in jeopardy of foreclosure, or the payments are in default, that leaves all their other properties in harms way. If you allow just one of the properties to fall into foreclosure or default on a loan, it could immediately affect the other properties. Using their cash to get out of a foreclosure or catch up on late payment, they are essentially tying their hands on the other properties. In a worst-case scenario, if several of their properties go into foreclosure, then the lenders may be able to take their other properties as a form of collateral.
Collateral provide lenders protection against financial loss, in the even that the borrower is not able to pay the loan on time. Prior to signing an additional note, mortgages, or similar loans be sure that you fully understand the consequences that are involved. Lenders are looking more and more at the collateral of investors, as they have taken huge losses in the past 18 months. Lenders are adding assets such as, cars, boats, investment homes, retirement properties or anything of value to secure a loan, therefore if your home is one of their listed assets then you too may be at risk.
Remember that threaten your financial position anymore by making an illogical, or unwise decision. The real estate business is shaky, at best, and you do not want to be in the middle of the storm when it comes. Recovering from your hardship is much easier to do when you make smart decision, and leave the bad ones to someone else.
Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help. You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

Foreclosure - Can They Come After You Later?

hear from people who are very very frustrated and they will often say that they are simply going to walk away and let their house go to foreclosure sale.
This is not the best course.
I am always urging people to deal with foreclosure situations so that they don't go through to the foreclosure sale. The reason for this is that in many cases your lenders can pursue you after the sale and make life difficult for a long time.
There are several scenarios where this can happen.
First, if you have two mortgages. The first mortgage may be doing the foreclosure. Once the house goes to auction, the second mortgage gets wiped out. But the law is generally that the second mortgage holder can still sue you for breach of contract. They will probably win a quick summary judgment. And now you have a judgment against you that can drag you into bankruptcy.
Even in bankruptcy, you may have to pay this judgment over 3, 4 or 5 years, or at least part of it. Because many people don't qualify for a chapter 7 discharge so they are stuck in chapter 13 which requires years of court supervised repayments. You may be eligible for a chapter 7 though...if your income falls below the median income of your state or your debts exceed a certain threshold.
But you don't want to have to go there, right?
The second scenario where you could face more jeopardy after the foreclosure auction is in states that use a mortgage process rather than deed of trust process. A mortgage usually requires judicial foreclosure. A state like Illinois comes to mind. The lender can come after you in many instances for their financial losses and after the foreclosure sale, they don't have to do anything more. They have a judgment entered against you.
In any situation where someone has a judgment against you they can haul you into a hearing and require you to bring financial documents, lists of your jewelry and bank accounts and valuables, and just about anything else they care to ask of you. And you have to go and answer their questions. It's a mess.
The best way to avoid this is to not just walk away. Do a short sale. Negotiate with the lenders. Get help if you need it. But don't ignore this situation and let it just go...because more and more, it will come back to bite you.
And please get my acclaimed 25 page free report Keep Your Home that explains how you can stop foreclosure even if your sale date is coming up, and secrets of avoiding bankruptcy and even how to cut other debts such as credit card debts, with almost 100 articles that are free on my website Mortgage Relief Formula free tools to stop foreclosure, slash debt and sell your house in nine days. I even show you how you can buy a house with no money down and with terrible credit.
Article Source: http://EzineArticles.com/?expert=Richard_Geller

Fearing Foreclosure - Walking Away May Cost You More Then You May Know

Many people that are facing foreclosures are frustrated and upset about the current situation. Even though this may be the case many believe that walking away from their homes and letting them go into foreclosure is the answer; however this is not the proper way to handle this situation
I would encourage people to deal with situations so that they are not evicted from their homes at the worst possible time. Often time's lenders do not go away after the home is foreclosed and sold to the next buyer or investor. The lenders can make life hard for several years to come.
I will go over several scenarios of when this can happen to you, or someone that you may know of in this situation.
The first thing that you have to understand is if the home has two mortgages this can lead to problems when the house is foreclosed and the bank takes it bank. The first lien holder, otherwise known as the first mortgage may bring forth the eviction. After the home is foreclosed and sold at auction, the second mortgage that was on the home is wiped out.
The law generally is that the second mortgage can sue you for breach of contract and come after you directly. More then likely they will get a quick judgment in a court; and now this can force you into a bankruptcy situation.
However, even this is not save you in most cases, as the judgment against you will have to be repaid over the course of 3-5 years. Many people are not able to qualify for a Chapter 7 discharge due to the new laws regarding bankruptcy, so you will have to file Chapter 13, which requires you to repay the debts, under the supervision of the court system
Some may be able to qualify for Chapter 7, however your income will have to be below the median income of the state and your debt has to be signing as outlined by each state and individual laws.
The second scenario is that the first lien holder can come after you directly as well. In this case you will not only have a judgment for the balance that was owed on the second, but you will have a judgment for the balance of the loss incurred by the first mortgage company. Not all states fall into the scenario, so make sure to investigate your particular situation with an attorney that knows and understands foreclosure laws in your state.
In any case, where there is a judgment against you can be asked to go to a hearing whereby you will be required to provide financial documents, bank account information and a detailed list of all valuables that you own. Which would include just about anything that you have that has some value, even as little as it may seem.
To avoid foreclosure and the repercussion of such, your best course of action is to perform what is referred to as a "short sale". This is done by negotiating with the lenders. Finding help is also a great way to avoid potential issues down the road. So contact an attorney, real estate agent or anyone that you trust has the expertise and knowledge to help you out in your situation.
However, most people do not realize this and think that "walking away" is the best solution. Do not do this, please talk to an attorney or real estate agent before just walking away, as it may cost you more then you think in the end.
Thomas Bladecki is the author and can provide additional information about how to avoid foreclosure, and what to do in the event you are (or someone you know) is facing foreclosure. Home Foreclosure Help has valuable information about avoiding foreclosure.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

Learn How To Challenge The Banks Authority To Foreclose! Keep Your Home - Know Your Options

Do you know that there are laws the banks and Judges have tried to keep hidden from us for over the last 75 years? They cannot keep us shut ignorant forever, this information is coming out and becoming known from many sources. These legal remedies that can save your home. Thousands of homeowners are losing their homes daily! Let's stop this trend. Get informed.
Most people do not know how the banks work for. The banks act as exchangers, what they are exchanging is a security interests (promissory notes) into Federal Reserve Notes. This is like changing Euro's into Dollars. They are given one form of currency and exchange it for another. The exception is the promissory note is of the same exchange rate of the Federal Reserve Note.
"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money." -- Putting it simply, Boston Federal Reserve Bank
My eBook will give you areas to research so that you will gain a better understanding as to what is actually going on. Everything in this book will be verifiable and will allow you to be a stronger negotiator when dealing with the banks and courts. Yes, I did say courts. You may be faced with either suing or being sued by the bank. It's not as scary as you may think. There are things you will be able to do that will win the day even when dealing with a dishonest judge, which most of them tend to be.
It is my hope that this information will start you on a path of knowledge and discovery and will help you be free and free of debt. This is not a cure all for those in foreclosure. It is a series of steps that can give you breathing room against the banks' deception so that you can learn how to defend yourself and challenge their legal authority to foreclose. The banks actually do not have the legal authority to foreclose and when challenged correctly, they have to go away. When that happens, you owe nothing to them and own your home. For more information go to www.howtostopforeclosure.webs.com - Fear no more. Know your options.
D. Loren Cossak, Author
Article Source: http://EzineArticles.com/?expert=D._Loren_Cossak

The Time Needed to Stop Foreclosure

One of the toughest decisions homeowners will have to make to save their homes is what plan to focus on at any given time. Because each option to stop foreclosure requires different methods of contacting the bank, communicating with their attorneys, and the time frames for completion can be quite different. And the time necessary to implement a last-ditch backup effort also varies widely. This is why homeowners need to be realistic about how long they have to work out a solution.
The least complicated way to save a home would seemingly be working out a repayment plan with the lender. But, most lenders are extremely busy, and their loss mitigation departments more than a little incompetent. Homeowners or mitigation companies may call the contact at the bank a dozen times, leaving voicemails at every opportunity, and simply never receive a call back. After several weeks of this pointlessness, an additional payment has been missed and the likelihood of qualifying for a payment plan drops further.
Similar delays are almost guaranteed to happen if the homeowners are attempting to qualify for a foreclosure refinance. The mortgage broker will have to get updated payoff information, which may take ten business days from the attorneys, and be good only for a few days. This makes closing a mortgage extremely unlikely, as the information regarding the loan is outdated as soon as it is received.
Bankruptcy to stop foreclosure is another commonly-used method, but new laws and state regulations may require more than a few hours or days to file with the court and put the process on hold. Regardless, the fact that the paperwork will be held up in court for several months at the very minimum, while a payment plan is arranged and creditors are informed, will postpone the homeowners' ability to work out a more permanent solution.
And although some real estate agents will promise to work hard to sell the foreclosed house and get a fair price for it, many local markets are currently unstable or declining. A fair value for the homeowners may mean that they can sell and stop foreclosure entirely, whereas a fair value for a potential buyer means getting a great deal on a home. The real estate agent may have little choice but to present inadequate offers and leave the homeowners with no hope of selling the home before the sheriff sale.
Actual timelines for any method of preventing foreclosure are quite often difficult to predict. The fact that so many parties are involved, whether they be the homeowners, the lender, various attorneys, a mortgage or real estate broker, foreclosure specialists, or the court system, necessarily complicates the entire process. As long as homeowners have realistic expectations of the length and complexity of saving their home, though, they may be able to effect a much smoother foreclosure experience.
Nick writes for the ForeclosureFish.com website, which provides homeowners with mortgage help and assistance designed to give them the resources they need to save their homes from foreclosure on their own. Visit the site today to read more articles, search through a daily-updated foreclosure blog, and download a free e-book explaining how the foreclosure process works and how it can be stopped: http://www.foreclosurefish.com/
Article Source: http://EzineArticles.com/?expert=Nick_Adama

Mobile Home Foreclosure - Tips and Tactics

Dealing with a mobile home foreclosure may be much different than a normal property. Mobile homes do not have the same value as a normal stick built home thus a foreclosure may be remedied much easier with a mobile home. This article will look at some ways it you can avoid a mobile home foreclosure quickly.
They Don't Want Your Property
Banks and lending institutions really do not want to foreclosure on property if they absolutely do not have to, although it may seem as if they're evil in trying to get you when you're not making your payments, nothing could be further from the truth.
There's a lot of time expense and trouble involved in for closing on he home. When you're dealing with a mobile home foreclosure the process is even more of a pain for the lender because the value is often not there for them to foreclose on and get their money back.
Mobile home loans can often be settled, much like you could a car loan or other types of items that would be difficult for the lending institution to repossess and then try to sell. A regular home on the other hand, is much more feasible for them to market and get their money back out of it so you do not have as many options.
No matter whether it's a mobile home foreclosure or another type of foreclosure property - You still need to take some necessary steps to avoid losing your home. The first thing you want to make sure is if your mobile home has enough value to save.
One way to determine the true value of your mobile home is to check to see what mobile homes have sold for in or around the area where your home is located. If you have very little equity built up in your home you may not want to save it from foreclosure.
At the point that you determine you do not have the value in your home. It really comes down to a matter of your credit. Having bad credit can be quite costly. If you could not rent something of equal quality for lesser then what you're paying for your house payment. You might as will save your home from foreclosure and avoid a nasty credit score.
If you need more foreclosure help then quickly head over to http://foreclosure-help-now.com where you will find helpful foreclosure tips, advice and resources including information on foreclosure plans, negotiating and more Mobile Home Foreclosure
Article Source: http://EzineArticles.com/?expert=Tom_Turner

Facing Foreclosure? - Do Something About It!

Probably never before in the recorded history of real estate transactions has foreclosures received such prominent attention. It is as equally likely that there have never been such a high percentage of foreclosures in relationship to all other real estate transactions. In fact, the possibility of foreclosure has most likely never crossed a great majority of borrower's minds prior to this past year.
Attempting to pinpoint exactly what went wrong and how we found ourselves at this point could cause too much fruitless debate, so I am going to make the assumptions that lender greed, borrower and broker ignorance, couple with a stagnant national economy have driven the spike in foreclosures. You may disagree with me as is your right, but each of the above assumptions plays a role in our current market troubles.
I want to bring attention to one facet of this situation and focus on how relief is possible for certain borrowers. When the reality of foreclosure arrives at the borrower's door, usually in the form of a serious letter from the lender or worse, the Sheriff, most people's natural reaction is denial. Certainly they are aware that the bills have not been paid (unless a trusted family member or friend has failed to perform their entrusted duty of making payments), and the notice should not come as a surprise.
Unfortunately, it is this denial, and therefore rejection of reality, that paralyzes people from acting and working to resolve the situation. If there was ever a time that you need clarity of thought and the ability to problem-solve, it is now! Even if this situation was not a surprise to you, it is time to accept the reality and begin to enact positive changes.
First, gather your resources and locate suitable help. Most likely, the lender has sent you numerous letters that specify several possible solutions that will prevent foreclosure. Find those letters, or if you tossed them in the garbage, call your lender immediately and request copies. With those letters in your hands, you will have taken an important first step towards preventing foreclosure.
Since I mentioned calling your lender, I want to let you know that from your lender's perspective the best thing you can do (besides paying your debt), is to establish and maintain communication with them throughout this process. You may feel like you are being taken advantage of by your lender, you may be embarrassed or afraid to call, or you may need to find a trusted third party to help you make the call, but do it, and do it now! Lenders tend to be more lenient and work with those who show a genuine interest in resolving the situation by maintaining communication.
It is important that you keep in mind that your lender is going to go to every legal length possible to recover their debt, so be careful what you say and reveal in discussions with their representatives. Unless you are a lawyer, or have professional experience with collections, your contact with your lender should remain focused on getting them to send you all of the information they have that could help you prevent the foreclosure. Specifically, you will want to request a hardship package. This information will be required by the lender for certain types of relief, so get it and be prepared to complete the paperwork.
Probably one of the smartest things you can do will be to associate yourself with professional help. Call your local mortgage broker who originally sold you the loan product and see if they are aware of alternative solutions, like refinancing or forbearance, that can help you prevent foreclosure. If you are in such a financial position that keeping the house in unfeasible, consider putting your home up for sale. Make sure you find a Realtor with experience in pre-foreclosure sales, or short sales, to help you choose the best course of action.
Most importantly, you need to do something! You must recognize that this is a very serious situation with long-term financial consequences that is preventable! The longer you wait, the more you deny the reality of the situation, it gets much worse. If you cannot bring yourself to attempt to resolve the problem alone, reach out to friends and family for help and guidance. Locate suitable professional help, whether it is a lawyer, Realtor, or mortgage lender, and accept their guidance.
In many, many situations, foreclosure was easily preventable by the actions of the homeowner/borrower. It is the lack of action that guarantees the foreclosure will take place. If you would like to try and keep your home, or even if you know you must give it up, take the time and make the effort to prevent foreclosure as the solution. The financial stakes are just too high to approach it any other way.
Joe Hayden is a real estate Realtor based in Louisville, KY. He loves helping people achieve their dreams and goals, and especially loves tackling the complexity of real estate transactions. He can be contacted through his website, Louisville, Kentucky Real Estate. Please visit his real estate blog here.
Article Source: http://EzineArticles.com/?expert=Joe_A._Hayden

Fearing Foreclosure - There May Be Options Available To Start Over

Some homeowners believe that it may be easier to let the bank foreclosure on their home, and simply start over. Well in today's market that may well be the case, millions of homeowners are doing just that, walking away from their homes and letting the bank take it back. It seems that everyone is pointing the finger are someone else, there are many reason, but only a few people have the answers to these questions. By taking this action, you will just be among the great number of people that are doing the same thing.
Think this through, walking away may be the easy out, it may also seem like the only option that you have, the consequences cannot only affect you in the future but it will not help your immediate situation.
Upon losing home in a foreclosure, you will need a place to move you and your family too. Often the rent that you will pay may be about as much as you are already paying to live in your current home; that is if you can even get them to rent the property to you after your credit report has been adversely affected.
Keep in mind that you will need some cash, as most rental companies; require that you pay a security deposit, usually based on your credit, which is now in shambles. You will also need to transfer utilities, and you may have other costs that are associated with moving.
You may have heard rumors that the lenders want to foreclose on you home, but do not listen to them. Banks are in the business of lending, not property management. They do not want your house; they are many reasons why they do not. Foreclosures do not look good on their financials, and in many cases, they lose a great deal of money in a foreclosure.
Lenders are usually open to hear what you have to say about attempting to work something out with them. Once you know that you are in trouble contact the lender right away, if you receive notices or phone calls from them, do not ignore them, talk to them and try to work something out. Lenders may have several options available to you, but you need to talk to them in order to find out.
You may qualify for a loan modification program if your financial situation has changed, such as an increase in living expense, loss of wages or maybe you have had a major medical expense, these are all valid cases, in the event of a loan modification. This type of program would allow for repayment of the default and current payments within a pre-set amount of time. These are sometimes called a special forbearance; there are other types as well.
Refinancing may be an alternative to get your payment to a more affordable level. Talk to your lender, they can inform you of the options that are available to you. An effort on your part to make your payments, doing temporary work or selling some of your assets will demonstrate to the lender that you want to keep your home, who knows, you may be able to catch up on payments doing these few things alone.
In addition, you may be eligible for what is referred to a "short sale"; you and your realtor can approach the bank with an offer from someone to purchase your home for less then what is currently owed. This process can be somewhat involved so be sure that you fully understand the process.
Nothing with a foreclosure is easy, and will take some time, but beware that the clock is ticking once you have been notified of a default. After all this is your home, is it not worth a bit of time and effort.
There is a great abundance of information that is available on the internet, most of which comes without a fee. There are also companies out there that will assist you for a modest fee. Make sure that you investigate the company before you pay them anything, as there are a growing number of frauds that are taking advantage of homeowners facing foreclosure.
Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help. You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

Prevent Foreclosure - Want To Know How To Stop A Home Foreclosure?

Would you like to know how you could stop a home foreclosure? The best answer is to take immediate action. Many people overlook the best solution, and ignore the lenders. This is not the good solution, the lenders will continue to pursue it until either they sell the home at auction or take the home back them.
Stopping a home foreclosure can be a bit intimidating, but do not try to run from it, remember that the banks do not want the property back, they are in the business of lending, not property management.
Homeowners that are facing foreclosure are either in a financial bind, or some other hardship, their intention was not to get in to this position, but this does not mean that they cannot recover from it, or stop the foreclosure process.
Once the owners take control of their lives and stop ignoring the issues at hand, contacting the lender is the first step in getting back on track. It is not easy to stop the foreclosure process; it will require some work, but do not give up on it. Most banks will work with the homeowner by attempting to resolve the default without going through the legal process, especially with the high rate of foreclosures in today's market.
If you are looking to stop a foreclosure, chances are very good that you have already received the "Notice of Default"; this is the lenders legal way of informing you that you are potentially facing a foreclosure on your home. Depending on the state, you live in and the laws regarding foreclosures, you will have some time to take action.
Whatever you do, ignoring the notice is the last thing that you want to do. This is not just a warning or a collection letter from the lender, this is the beginning of a legal home foreclosure and ignoring the notice is a guarantee that the lender will win. Working it out with the lender is the only way in which you can stop to foreclosure.
Talk to the loss prevention, or sometimes called the loss mitigation department. This department handles foreclosures, and can get you on a work out plan. Lenders not like to deal with foreclosures, however if you leave them no choice, be assured that they will if given no other option.
The lender may be willing to setup a workout plan, or payment plan for the amount in default and to keep the loan current, in this case, you should take action if you are able too. They will require certain financial and personal information in order to modify the loan agreement. Providing this information accurately and timely, will ensure a timely result from the lender, and will prevent the lender from pursuing further action on the foreclosure.
Selling your home is another option, if you are not in a position to agree with the lender's recommendations, or you will not be able to make the payments as promised, your best option may be to sell your home. Selling your home is one way that you are in control of the unfortunate situation.
Taking action is the best way to start, and you can look on the internet for a great deal of information regarding foreclosures and companies that can offer assistance. Make sure to act fast as time is already against you if you have received a "Notice f Default."
Stopping or preventing a home foreclosure is entirely up to the homeowner, if you are willing to work with the lender, provide the required information, and come to an agreement, you may stop the foreclosures on your home. On the other hand, if you are not willing to talk to them or ignore their phone calls and letters, then make sure that you have your personal belongings packed and ready to go when they foreclosure on our home.
Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki

Foreclosure Help And Saving Your Home

It's easy to feel helpless when the bank is foreclosing on your home, but it does not have to be that way. There are things that can be done during foreclosure proceedings to convince the bank to allow you keep your home. You should work with your lender if you are behind on your mortgage and the sooner the better. It is possible as many people are learning everyday!
If You're screening your calls and worried about what you're going to do if the bank does take your home you need to realize that time is still on your side but you have to act now to fix your situation. It is going to get really ugly as the bank starts the legal process to take back your home. You should understand that the bank would really rather not foreclose. Not because they are feeling sorry for you or they are worried about the kids, it really is a matter of them not wanting to carry your home on their books but again you won't know until you take action to prevent this from happening. Stopping your foreclosure is possible and will depend on your specific circumstances but just know that you do have choices and you don't have to lose your most important investment.
Again, the bank doesn't want to take your home. Your lender doesn't need a place to live. But you didn't make your mortgage payments so the bank is in a spot and their investment has to be protected. The bank doesn't want to kick you out of your house anymore than you want to lose it. Money is the key motivator here, so that's where you need to start to help yourself get out of this foreclosure.
To help avoid foreclosure, you can try to negotiate a payment plan or work with your lender to lower your interest rate. Don't screen your calls and avoid your lender's letters! You could obtain a loan so you can catch up on missed mortgage payments. Maybe you can pay back less than what is presently owed on your mortgage; it depends on your individual situation. There may still be hope that you can avoid having your house foreclosed on.
You do have rights. You do have ways to prevent foreclosure today but you have to act now! There are ways to dig yourself out of this hole and avoid foreclosure. Do you know your state's foreclosure laws? Do you know your rights? Do you know that if you are active military you have some options available to you civilians don't have?
Where is your money going? Can you realign your finances in order to funnel less money towards unnecessary expenditures and more money towards paying your mortgage and catching up on payments you have missed? Foreclosure help is possible but you have to get real about your situation. Don't give up before you even start fighting foreclosure. Avoiding this kind of mess is much easier if you start as soon as you know the risk is there.
The point is this-you need to think about your options and get help. You're not alone and you're not the first person this has happened to. You don't have to feel ashamed and you shouldn't. Your lender doesn't want to take away your home and you should take advantage of this fact and work towards a solution.
Foreclosure help is more than just getting your house back. It's the first step to gaining the knowledge about money and finance you need to help you avoid the scams and rebuild your credit. You don't have to lose your home, you can protect your family, and you can build a solid financial future but you have to get going right now. Start by getting the foreclosure help you need today. Good Luck!
Robert Bahr has over 20 years mortgage banking experience and his book titled "Don't Look Now But Your Home is Gone" will provide you with the foreclosure help you need to try and save your most prized possession...Your home! Start by visiting http://www.mortgage-foreclosure-solutions.com
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Foreclosures Explained in Four Minutes

It is a sad reflection on the times to write that it is currently a good time to invest in a foreclosure property. Does that possibility leave you feeling slightly uncomfortable?
Well, it should not, because when buying a foreclosure property you are probably doing the previous owners a favor. By law, once the foreclosure order is finalized it cannot be rescinded in favor of the original owners again, and the longer the house remains unsold, the more painful it can be.
Having got that out of the way, and having acknowledged that someone has to buy it - why not you? It is no surprise to report that foreclosures are up, but to realize that the figures are up 94% over this time last year is quite a revelation to most of us!
A home can be brought into foreclosure once a home owner is at least two months in arrears; a lender can give notice that it will foreclose. The final part of a foreclosure is public auction sale, but before this, the owners do have certain time allowances to bring the loan current. Time varies from state to state.
When we think of a foreclosure sale, to most of us, it is a home coming under the auctioneer's hammer. But buying a 'distressed' property is far more complicated than that. For instance, when looking for a foreclosure you will also come across REOs and short sales.
REOs are not short sales, but some intended short sales can end up as an REO. All short sales are foreclosures but not all foreclosures are short sales.
To further complicate matters; although REO stands for real-estate owned, in fact some bank owned properties are called REOs (meaning real estate owned by the lender). Foreclosed homes can become REOs when the bids have not been sufficiently high enough at an auction. Then the lender retains the property. In the case of an REO, the property is already owned by the lender, through a foreclosure action.
With a short sale, the home is in foreclosure, but has not yet gone to public auction. (In this instance, the lender must agree to accept less than the amount that is owed on the property). This is a legal requirement because this type of sale will save them the problem of dealing with the final part of the foreclosure.
A 'short sale' home is a good investment for a buyer looking for a bargain home. This type of transaction is often portrayed as happening on the court house steps!
All these different scenarios are pointing to the fact that you will probably feel more comfortable working with a real estate agent that has experience in buying foreclosure homes. This way you will know what to expect at each stage of the purchase and you will be forewarned of the procedures.
Apart from the lower price in foreclosure purchases, there is one other difference. Everything moves very fast. Have your financing ready and expect to feel rushed!
Working with a real estate agent who can inform you of the different stages of the process ahead of time and prepare you for each stage may help to ease your mind and offset any unfamiliar feeling of moving into such a large sale faster than you would choose!
Scott is an agent that specializes in Prescott Arizona real estate. To learn about Dewey-Humboldt real estate, be sure to visit Scott's website at http://www.prescottscott.com
Article Source: http://EzineArticles.com/?expert=Scott_Baxter

Foreclosures - A Brief Explanation

Well the real estate industry particularly the mortgage companies are at the forefront of the double edge sword, foreclosures are at record highs in many major metropolitan areas, and experts are predicting that this is not the end.
On the other side of things, it is a prime market for real estate investors and families, or individuals, looking to get a piece of the "American Dream", if you are looking to buy a home or start investing in real estate now is the time.
Keep in mind that you are likely helping the owners out by buying a home foreclosure. Most laws regarding foreclosures are pretty clear, once a home is foreclosed the original owners can gain from the loss, therefore, if the home is foreclosed and the bank does not sell the house in a timely manner it may cost the previous owners a great deal of financial loss, in addition to the credit damage.
Some states require the homeowner to be in default on the mortgage payments by at least two months, prior to the lender giving a legal notice that it will exercise their right to foreclosure, or otherwise "repossess" the home. After the "Notice of Default" is published, the home is put up for sale at a public auction, however before all of this takes place the homeowner will be given a time frame in which they can bring the loan current with the lender. Individual states vary in the length of time given to the homeowner prior to the home foreclosure auction.
There is a variety of different foreclosures that you may see, REO's, Short Sales and NOD's they are all vary different in many ways. Buying distressed properties is a bit more complicated then simply looking at a home and getting a loan. You may need to do some rehab work prior to the home being ready for sale, or there may be liens and judgments that need to be resolved.
Short sales are homes that are about to become another foreclosures; however not all home foreclosures will result in a short sale. Short sales are what they sound like; it is home sold for less then what the balance of the loan to the mortgage company. REO's which stands for "real estate owned" properties, are essentially bank owned properties, meaning owned by the lender. In most cases, these foreclosures are assigned to a real estate company and managed by them instead of directly by the bank.
Short sale homes are usually a good place to start looking for potentially good investment properties. These types of investments generally happen at the last minute right before filing the foreclosure at the courthouse.
Getting a real estate agent that is experienced in these types of properties and transactions is the best approach. They can guide you in the process and will understand the procedure at every step. One very important thing to point out while investing in foreclosures is that everything moves along very fast; you will need to have your financing ready to go and be prepared to feel like you are being rushed during the process.
Remember investing in real estate take time, research and the ambition to do it; however if you do it right and get the right people involved you can make good money doing it.
Thomas Bladecki is the author and can provide additional information about foreclosure listings and the current real estate markets visit Home Foreclosure Help. You should also see his Foreclosure Blog for all the latest information about the real estate foreclosure market.
Article Source: http://EzineArticles.com/?expert=Thomas_Bladecki