Secrets about Foreclosure<br />By Reed Allmand<br />
What does a Foreclosure involve?<br />A foreclosure is the legal process whereby a mortgage lender or bank repossesses a home as a result of a borrower’s default under the terms of the loan. <br />Warning! The following are foreclosure SCAMS to AVOID:<br /> - Rent-to-Buy Scams<br /> - Equity Skimming Scams<br /> - Phantom Help (False Counseling Scams)<br /> - Bait & Switch Scams<br /> - Fraudulent Bankruptcy Scams <br /> - Partial Interest Bankruptcy<br />
What is Predatory Lending?<br /> - “The industry-based professional practice of using a borrower’s ignorance of lending practices against them for profit.”<br /> <br />Examples of Predatory Lending include:<br /> <br />- Mortgage Fraud – Occurs when a borrower lies on the loan application or provides phony bank statements or pay stubs.<br />- Subprime Loans – Loans offered to individuals knowing they have bad credit<br />
What are Possible Solutions to Stop Foreclosure?<br />- Short Sale – A negotiated agreement between borrower and lender where the lender agrees to a full payoff of the loan for an amount less than owed.<br /> <br /><ul><li>Deed In Lieu of Foreclosure – Occurs when the borrower signs an agreement which transfers the title of the property to the lender.</li></ul>- Loan Modification – Changing one or more terms of the loan to make it more affordable for the borrower.<br />
What are types of Foreclosure?<br />Judicial Foreclosure <br /> - Foreclosure initiated when the lender files a complaint with the court in the county where the property is located, homeowner<br /> - Homeowner is served with a copy of the complaint and a date to appear in court<br /> - In court, Judge will hear from both sides and make a ruling on the case<br /> Non-Judicial Foreclosure <br /> - Authorization of the lender to proceed with recovering property from a defaulting homeowner without going to court<br /> - Non-Judicial Foreclosures vary based on each state’s laws<br />Texas Foreclosures <br /> - Lenders can utilize Judicial or Non-Judicial Foreclosures<br />
Who Can Foreclose?<br />- The lender has the right to foreclose.<br /> - The What Happens After the Foreclosure Sale?<br />borrower must vacate the premises.<br />Is it Possible to Stall or Stop Foreclosure?<br /> - Yes, if you bring your loan payments current.<br /> - Yes, if you renegotiate a loan modification program or forbearance with the lender.<br /> - Yes, if you negotiate to trade property for the payments with the lender.<br /> - Yes, if you declare bankruptcy<br />
Legal Challenges to Foreclosure include the following:<br /> - Ownership of the Loan<br /> - Truth-In-Lending Violations<br /> - RESPA Violations<br /> - Unconscionability<br /> - Servicing Errors<br /> - Breach of Contract<br />
What should I do between the foreclosure sale and the eviction?<br /> - Formulate a plan – Be proactive! Create a new financial plan.<br /> - Carry out your plan – Maintain good communication with your lender and stick to your plan.<br /> - Redemption – Redeem property and assets, regaining financial control of your life.<br />
What are some options when considering a Foreclosure?<br />- Forbearance – Allows you to bring your mortgage payments current in a short period of time, typically within six months to one year.<br /> <br />- Loan Modification – Changing the loan terms to make payments more affordable for the borrower.<br /> <br />- Deed-In-Lieu – Allows the borrower to surrender the property to the lender without filing bankruptcy.<br /> <br />- Short Sale – The lender will receive less than what is owed as a full payoff of the mortgage.<br /> <br />- Temporary Indulgence – Grace period of 60 to 90 days to bring mortgage payments current.<br /> <br /><ul><li>Recasting – Recalculations of remaining interest and principal payments based on a new amortization schedule.
- Filing Bankruptcy – Affords homeowners the benefit of being able to implement and carry out a plan to avoid foreclosure. </li></li></ul><li>What are the different types of Bankruptcy? <br />- Chapter 7 Bankruptcy – Allows debtor to liquidate most unsecured debt.<br /> <br />- Chapter 13 Bankruptcy – Debt consolidation plan that allows debtor to restructure debt and pay back in 3 to 5 years.<br />- Debtor must have enough income to cover all monthly expenses and pay into a Chapter 13 plan.<br />
Why Choose Allmand & Lee?<br /> <br /> - Commitment: Allmand & Lee is committed to helping families in financial crises. <br /> - Experience: Allmand & Lee handle thousands of bankruptcy cases each year.<br /> - Focus: Allmand & Lee focus on consumer bankruptcy to help families avoid financial disaster.<br /> <br />Allmand & Lee Can Help You Find Solid Ground <br /> - Allmand & Lee is a partner, educating you and advocating for you!<br /> <br />
Contact Allmand & Lee Today!<br />- For more information on how Allmand & Lee can help resolve your financial issues call:<br />214-884-4176<br />
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