Everything You Need To Know About Foreclosure.


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If you are interested in how to stop a foreclosure the best way, please visit my website at: www.realestatesolutions2012.com
We offer a solution that will immediately stop the foreclosure; and insure that your credit is not adversely effected.

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Everything You Need To Know About Foreclosure.

  1. 1. ==== ====For A Fast, Easy Way To Stop A Foreclosure, Check This Out.www.realestatesolutions2012.com==== ====Understanding the Foreclosure ProcessWhat Is Foreclosure?Foreclosure is the process that allows a lender to recover the amount owed on a defaulted loan byselling or taking ownership (repossession) of the property securing the loan. The foreclosureprocess begins when a lender files the appropriate documents with the appropriate officials (seebelow for more details).Colorado Foreclosure LawsColorado foreclosures occur through both in-court (judicial) and out-of-court (non-judicial)proceedings.The judicial process is used when no power of sale is present in the mortgage or deed of trust.The process begins when the mortgage lender files suit with the court system. The borrower thenreceives a letter from the court demanding payment. Typically, youll be given 30 days to respondwith payment or a written response to the banks attorney and parties involved. If you do notrespond within the time limit given, a judgment will be entered and the lender can request sale ofthe property by auction. If you file a written answer with the court, there is a hearing and theprocess takes longer and can even be forestalled. If a judgment is entered, then an auction datewill be set, usually several months in the future. Once the property is sold, youre served with aneviction notice by the sheriffs office, and you must vacate the home immediately.The most commonly practiced method of foreclosure in Colorado is the non-judicial foreclosureprocess. It is carried out by a Public Trustee who acts as an impartial party. The process beginswhen the lender files the required documents with the Public Trustee of the county in which theproperty is located. The Public Trustee then files a "Notice of Election and Demand" (NED) withthe county clerk and recorder. Once the NED is recorded, the Public Trustee Sale of the propertyis scheduled to take place between 110 and 125 days of the recording.Pre-foreclosure PeriodMany factors can lead to default of payment on a home loan and eventually foreclosure. Many arenot the fault of the homeowner. Perhaps it is due to a hardship (loss of income, militarydeployment, health or family issues) or to "loan fraud" or "creative financing" by the banks(Adjustable Rate or ARM, Option ARM, Negative Amortization, or Interest Only loan). Whateverthe cause, facing foreclosure is not an enjoyable experience.
  2. 2. The foreclosure process usually begins after the homeowner has missed several payments anddifferent attempts have been made by the bank to collect. Lets look at what typically takes placeand what you can normally expect.Day 1: You miss your first paymentDay 1-15: Grace period (Some lenders only allow 10 days)Day 16-30: A late charge is assessedDay 30: Borrower is in defaultDay 45-60: Lender sends "demand" or "breach" letter, and phone calls beginDay 60-90: Lender sends letters and makes phone calls. A repayment plan or a loan modificationplan may be offered.Day 90-105: The lender refers the loan to the loss mitigation department/foreclosure departmentand retains an attorney to handle the foreclosure.Day 90-?????: The lenders attorney files the required documents with the Public Trustee, whothen files a NED with the county clerk and recorder. Once the NED is recorded, the property isscheduled to be sold within 110-125 days at a Public Trustee Sale.Notice of Sale / AuctionOnce the NED (Notice of Election and Demand) is recorded, the notice must be published in anewspaper of general circulation within the county where the property is located for a period of 5consecutive weeks. The Public Trustee must also mail a copy of the published notice to thehomeowner within 10 days. At least 21 days before the Public Trustee Sale, the Public Trusteemust mail a notice to the homeowner describing how to redeem the property and stop the sale.If the homeowner wants to redeem the property and stop the Public Trustee Sale, he must file an"Intent to Cure" with the Public Trustees office at least 15 days prior to the foreclosure sale. Hethen has up till noon of the day before the sale to bring the loan current and redeem the property.The Public Trustee typically conducts the sale at the courthouse. Bidders must register in advanceand have funds available. At the sale, the public trustee reads the written bid submitted by thelender, then any registered party may bid. The winning bidder is given a certificate of purchase.Redemption PeriodThere is no longer any redemption period for the homeowner after a foreclosure sale in Colorado.How to Avoid Foreclosure -What Are Your Options?FORECLOSURE!Its a harsh word that most people avoid thinking about...until they have to. If you are severalmonths behind on your mortgage, without money for professional help, and at the end of yourrope...foreclosure may be the ONLY thing you can think about. It preys on your mind and leavesyou feeling lost and vulnerable to the come-ons of the unscrupulous professionals who say thatthey are experts in foreclosures, but arent. STOP!You may be in a difficult situation, but it is not hopeless. Foreclosure is not your only option! Myname is David Stitt, and Ive got good news for you. You do have alternatives. You just cant seethem right now. But by the time you finish this short guide, your vision will have cleared and
  3. 3. options for your future...good options...will be right before your eyes.You are not alone! In the United States, foreclosure filings have increased consistently over thepast few years, with more new foreclosures reported in every quarter, pushing the foreclosuremarket to record levels. So you are not alone. But if youre like the many thousands of peoplefacing foreclosure, youre scared and confused. Youre overwhelmed by the legal mumbo-jumbo offoreclosure litigation. You dont know who or what to trust. Youve undoubtedly been pinned to themat by Realtors and Attorneys, warning you about the dire consequences youll face if you dontuse their services. Or maybe youve worked with mortgage brokers. They promise the world - orworld-class loans - and then they dont deliver. And then theres the holder of your mortgage whois unwilling (maybe after months of negotiating) to budge an inch when it comes to working out amore affordable payment plan.After all youve probably been through, Im not surprised that youve given up hope for a goodsolution and may feel resigned to accepting foreclosure and the years of damage it will do to yourcredit rating. Once again, STOP! Dont fall into despair. Things are not as bad as they seem.There are other options.A helping hand when you need it.This Survival Guide is exactly what the name says it is: a simple, no-nonsense approach toforeclosures. It was created to help you and other homeowners become better informed about thedetails of the foreclosure process. I believe that knowledge is power...and I hope that this guidewill give you the power to avoid foreclosure entirely.Once you know the facts, youll be able to make a well-reasoned and thoughtful decision and thentake action with the confidence that youre doing whats best for you.On the next couple of pages, we are going to take a look at your different options and the pros andcons of each. You will be given the information you need to make a well-educated decisionregarding your situation.What Are Your Options?ForbearanceForbearance is a payment plan that a debtor enters into with a lender when they are unable tomake timely payments, often due to illness or another temporary situation. In forbearance, thelender will allow you to delay payments for a short period. You agree that after missing paymentsfor a few months you will bring the account current by making larger payments. The problem is,more than 85% of debtors default after the first payment. They cannot continue to make theinflated payments after the forbearance period ends, and they are right back where they started.Loan ModificationA loan modification is a permanent change in one or more of the terms of a mortgagors loan. Thismay help you catch up by reducing the monthly payments to a more affordable level. You mayqualify if you have recovered from a financial problem and can afford the new payment amount.However, Loss Mitigation Departments are now undermanned, under experienced, andoverworked. Nightmare stories abound on the subject of patrons having to hound and harass LossMitigation Departments to get their paperwork pushed through to escape foreclosure. After all the
  4. 4. hassle, most homeowners are still denied any help and end up in foreclosure.Partial ClaimYour lender may be able to work with you to obtain a one-time payment (loan to be paid at end ofmortgage) from the FHA-Insurance fund to bring your mortgage current. You may qualify if yourloan is 4-12 months delinquent and you are able to start making full mortgage payments.Deed-In-Lieu (Voluntary Foreclosure)As a last resort, you may be able to voluntarily "give back" your property to the lender. You mayqualify if you are in default and dont qualify for any of the other options, your attempts at sellingthe house before foreclosure were unsuccessful, and you dont have another FHA mortgage indefault. "Foreclosure" will most likely be reported on your credit report.Loan AssumptionThis is where someone else takes over the payments of your loan, usually in exchange for yourproperty. Loans made after 1988 are almost never assumable.BankruptcyMany debtors will spend a lot of money for an attorney to file a Chapter 13 bankruptcy - which isreally a payment plan - only to lose the house. In essence you are paying the attorney instead ofthe lender. Before acting, know how much the process will cost and what your new increasedmonthly payment will be. Also know that if you miss one payment, your Chapter 13 will bedismissed and you will need to file Chapter 7. This will cost more attorney fees, assets, includingyour house will be liquidated and your credit report will still show a foreclosure.Sale of PropertyIf the homeowner has equity in the property they can and should consider selling the property. Thehomeowner will receive a check at closing for equity over and above what is owed and closingcosts paid. Most homeowners in foreclosure, however, have little or no equity. Be careful listingwith a Realtor that can tie up your property for months.Do NothingWhen it comes to the threat of foreclosure, procrastination is a prescription for disaster. Doingnothing changes nothing. Unless you take action, you will end up in foreclosure and your credit willsuffer for the next 5-7 years.Pre-Foreclosure Sale (Short Sale)The pre-foreclosure sale program allows the lender in default to sell his/her home and use the netsale proceeds to satisfy the mortgage debt, even though these proceeds are less than the amountowed. It has two major advantages over a foreclosure: (1) You may be eligible for a new homeloan after just 2 years instead of 5. (2) You should be able to avoid a deficiency judgment. When ahouse is sold at auction, the chances of the foreclosing lender filing a deficiency judgmentincreases dramatically. They will have years to come after you or to sell it to someone else whowill.As you can see, there are several options to consider - but consider you must! You cannot affordto stick your head in the sand like an ostrich and do nothing. Being in the state of denial is a badstate to be in! And as we said earlier, procrastination is a prescription for disaster.
  5. 5. Questions You Need to AskQuestions You Need to Ask Yourself1. If I file Chapter 13 Bankruptcy, will temporary relief from my monthly mortgage payments meanthat I will be able to stop foreclosure forever...or will I be unable to keep up with my paymentswhen they resume and I end up in foreclosure again?2. If I choose Forbearance or a lender payment plan that gives me temporary relief from paymentsI cant afford now....will I be able to afford the inflated monthly payments that Ill have to make inthe future, or will I end up in foreclosure again?3. If I am unable to meet my monthly expenses now, can I commit to a payment plan...or should Ijust give up my house to a lender with a Deed In Lieu and accept the bad foreclosure mark on mycredit history?4. If I do something now, will I have more options available to me...or should I wait until the sheriffis at my doorstep with an Order to Vacate and hope that he/she will show me mercy?5. If I consult with an experienced Real Estate Investor, will I be able to get out of this situationwithout ruining my credit...or is my only option to spend thousands of dollars for Attorney fees,Realtor commissions and still run the possibility of losing my house?Questions to Ask Your Mortgage Broker1. Do you guarantee in writing that you will close my loan before my case goes before a judge incourt?2. What interest rate will you charge?3. How many points do you charge?4. What will my monthly payments be compared to what they are now? Higher? Lower? Thesame?5. What will the total of all closing costs be?Questions to Ask Your Attorney1. If I file for Chapter 13 bankruptcy, will it stop foreclosure or just stall it?2. What are your fees for filing bankruptcy papers and handling my case?3. What will my monthly payments be compared to what they are now? Higher? Lower? Thesame?4. What happens if I default on my payments because I cant make them?5. Cant I file a bankruptcy myself at the courthouse and save thousands of dollars?Questions to Ask Your Realtor1. Do you guarantee in writing that youll sell my house before my case goes before a judge incourt?2. Do I have to pay your commission if I find someone on my own who wants to buy the house?3. How much do I owe you if you dont sell the house and I lose it to foreclosure due to a judgesruling?4. If the sale price doesnt cover my indebtedness and your commissions, do I have to reach intomy own pocket to pay you?5. How long will your listing contract tie up the house and entitle you to a commission?Questions to Ask Your Foreclosing Lender1. Can you work out a payment plan (forbearance) with me and will you put everything in writing
  6. 6. before I agree to it?2. If I agree to these terms, will you agree in writing to stop the foreclosure?3. What will my monthly payments be, compared to what they are now? Higher? Lower? Same?4. If Im late on this payment plan, do you start where you left off with the foreclosure?5. Since forbearance means a big increase in monthly payments, can you tell me how manypeople end up back in foreclosure because they cannot afford the monthly payment?What To Do NowStep 1: Get answers to your questions.Not only do you need answers to the questions above, but there may be other questions you areasking yourself. Dont be intimidated by the experts youre consulting. Remember they work foryou.Step 2: Make a decision...and follow through on it!Once you have the facts you can decide on how to proceed and who you need to help you. Thesooner you act, the sooner you can reverse the downward spiral and change your credit from badto better.Step 3: Act Now!After youve done your homework and feel youve come to an informed decision, youre halfwaythere. Dont let inertia set in. Dont procrastinate. ACT NOW before your window of opportunitycloses.One final thing to consider: Get a Forensic Loan Audit!A large majority of the loans made during the last 10 years, especially sub-prime and adjustablerate mortgages were not done properly and have errors and violations.The Forensic Loan Audit is the FIRST STEP you should take to properly prepare for any type oflitigation or any type of solution when dealing with your lender. Audits are used as a valuable toolto get your file to the top of the lender pile and to get your case noticed and heard!The more violations found in your mortgage, the more LEVERAGE you have to argue your caseagainst your lender. With millions of homeowners requesting financial solutions, it is increasinglymore difficult to get the results you want when you need them. You need every tool, every amountof leverage possible! The Forensic Loan Audit is that tool!David Stitt1-866-666-2269 ext 504[http://www.NewHopeAudits.com]davidstitt@mail.com
  7. 7. Article Source:http://EzineArticles.com/?expert=David_Stitt==== ====For A Fast, Easy Way To Stop A Foreclosure, Check This Out.www.realestatesolutions2012.com==== ====