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Purchasing Foreclosure properties

If you are looking to purchase a foreclosure property, then there are very important things you need to know before buying.  First you should understand how foreclosure works, so you know why and where you’re getting your property from.  A foreclosure comes from a homeowner that has defaulted on their mortgage and can no longer find a way to pay it.  It can take up to a year in some states before the property goes up to auction.

©Orange County Short Sale - flicker

©Orange County Short Sale – flicker

At the auction you will be competing with professional investors and sometimes even the bank (they want to make sure they get there money back from the property).  If you do go to the auction to make a bid on a foreclosure property, make sure you have the cash, because you will be paying right there, at least the deposit and then you may have 30 days to acquire the rest of the balance.

Another type of foreclosure property that you can purchase is a Department of Urban Housing and Development or HUD homes.  These come from FHA-financed loans defaulting and were not priced low enough to put in the time and effort of renovating.  There can be some really great deals here, so keep that in mind.

Make sure you know what you are getting yourself into with the condition of the property.  The homeowners may have trashed it before they left.  There have been accounts of food strewn about foreclosure homes, burn marks and holes in the carpet and walls.  Most houses will smell too, due to the fact that the Air conditioner has probably been shut off and no air circulation has been going on.  Keep all this in mind when you are viewing the property, no matter how good the price may seem, you may be getting a dump.

Taking a walk through the home is very important before you buy it, you don’t want to find out it needs 10,000 dollars of structural repairs afterward.  Make sure you bring someone with you to formally inspect it, so you know exactly what you are getting yourself into.  Of course there will always be some surprises after you purchase, but with the right research and preparation, they should be minimal.

If you do find a home that you like, meet with a Realtor who is experienced with foreclosures, so they can write up a offer fast and submit the proper paper work.  If it is a new property on the market you will want to get as close as you can to the perfect offer.  If the property has been on the market for months, you should not have to pay full price.

Finally keep in mind that you most likely are required to sign a multi-page addendum of some kind, releasing the bank from any liability associated with the home.  It will basically say that the bank knows nothing about the property and make no representation about the property, and finally are not liable for anything ever related to the property.  Basically giving you full responsibility for the place.

Foreclosure properties are sold as-is, the bank won’t make any repairs.  This is why you want to thoroughly examine the place and bring knowledgeable people with you to help out.  Just keep in mind that a foreclosure property can great deal, but many times, because of lack of knowledge, investors can end up losing a lot of money!

Buying A Home In An Unstable Market

With today’s unstable market, the home buying process has become pretty nerve wracking for future buyers.  With the increased foreclosures and tightened restrictions on mortgages, it can be a very difficult time to buy a new home.  Lenders are getting more picky about who they will qualify, making it much harder for families in the housing market.

©Ambro - freedigitalphotos

©Ambro – freedigitalphotos

On the good side, if you have a strong credit rating and already qualify for a mortgage, it can be a great time to purchase a home.  With lower home prices and a pre approved mortgage, the market can present more of an opportunity to established homeowners than for a first time buyer.  There are some tips, however, to help you stay within a safe area for your future home purchase despite the unstable market.

1.    Don’t get in over your head with a large mortgage.  Everything looks great on paper until you get the first bill and they keep on coming for the next 30 years.  You need to figure out how much you can actually afford each month and for how long.  There are some important questions you should ask yourself before buying.  Can you afford this monthly home expense while saving for retirement, college, kids, or even a new car?  What are the other bills (utilities, taxes) that will come along with this new house?  Knowing answers to these questions will help you decide on what you need your monthly mortgage expense to be.

2.    Real estate agents can affect home buying.  You need to keep in mind that all real estate agents are not the same.  Ask questions to a real estate agent that you are thinking of working with.  This way you will find one that is best suited for your needs and personality.  Some questions to ask; Do they have experience with title searches or can they help you spot potential problems with the property?  Having a good real estate agent is priceless and will save you a lot of headache.

3.    Doing online research about the area you’re potentially looking to buy in, is very important.  Find out crime statistics, school districts, home prices and comparables.  You can find all kinds of information buy joining online forums and asking for advice from people who live in the same area.  A good site to look at is, you will find an array of useful real estate information.

4.    Explore and get to know the area personally.  If your looking to buy a home, than you will most likely be planning on spending a good amount of time there, so walk around your future neighborhood and try to meet a few of your neighbors.  Another good idea is to attend local open houses or contact for sale by owner homes.  By doing this you can find out what others think of the neighborhood and why they are moving.  Drive through the streets as well, try to notice the area; are there a lot of kids, working parents, or older couples? Answers to all these questions will give you a better idea of what your future neighborhood will be like.

These are just the top tips for buying a home, look for more help in an upcoming article.  There is no reason to be scared of the unstable market, just make sure to do your research.  Keep your future in mind and know that it is your happiness that matters most.

Part 2

Earlier we looked at some tips to help ease the stresses and worries for future home buyers.  Some of the previous advice given: information on not getting over your head with a large mortgage.  How real estate agents can affect home buying. Do online research and get to know your future neighborhood better. These are important bits of information please review part 1.

Today we are going to continue on with some advice when looking for a home in today’s unstable market.  The First few tips are for someone who has established credit, while the final suggestions will be for someone who’s credit may not be as strong.

1.    Negotiate with the home seller for the property you are interested in.  You never know what the seller’s situation might be and it won’t hurt asking for a lower price.  Be ready to walk away from the house though, if they won’t meet your request.  If you don’t want to loose the house, you may want to be careful how demanding your requests are.  If the seller is under a lot of pressure to sell, they might be open to your demands.

2.    Foreclosed properties can be good or bad.  Upfront they may seem like a great deal, being less expensive than similar houses not in foreclosure.  However, if the homeowner has been unable to make their mortgage payments, it is not very likely that they have kept up with general maintenance of the home itself.  You could end up getting stuck with a property that has larger issues than you are willing to deal with.

3.    Getting a good mortgage and knowing which lender is right for you can be one of the biggest challenges of home ownership.  There are many unethical lenders out there offering great deals, but remember, if it sounds too good to be true, it probably is.  If you are caught with an unsavory lender and something bad happens in the future, the status of your home and ability to secure a second mortgage could come into question.  You don’t want to loose everything due to a bad mortgage company.

4.    Get a home inspection.  You need a third party, unbiased view of the property, before you buy.  You want to know all of your property’s potential problems up front, so pay for an excellent home inspector.  Do research before hand and ask friends if they know a quality inspector.  If they find a problem that seems more of a headache than what it’s worth, you have the opportunity to back out before purchasing. (assuming your offer was contingent on a property inspection)

5.    If you have bad credit, consider buying a house through a lease purchase or rent to own.  It is a great time to purchase a house at a fixed price.  Renting the house until you can afford to get your mortgage will give you time to raise your credit score, which will lower your monthly payments by getting a better interest rate.

Finally, just keep in mind your long term plans before buying a home.  A home purchase is a huge investment, so look for a home that will suit you now, as well as several years down the road.  You can invest in your home and make any necessary upgrades to help you grow with the property and these improvements will help to increase your investment and make you more financially secure in the future.

Penny Pinching – Is It Really Worth The Price

©Simon Howden - freedigitalphotos

©Simon Howden – freedigitalphotos

America is faced with troubled financial times, possible job loss and even home foreclosure. With all this being said, how do we deal with money issues.  Well if you are like most Americans, you’re trying to get the best deal for your buck.   How do you know when you see a good deal though?  This is a tough question that can drive people absolutely mad in a store.  Are discount stores really saving you money?  If you buy one, should you buy the other at half price?  Do you need ten tubes of toothpaste, if it saves you a dollar?  These all very important questions you should ask yourself before venturing out in the consumer world.

At the end of the month when you actually look at your finances, take all things into consideration.  You have to think about the ratio of what you are spending to what you’re saving.  If you’re cutting back on your cell phone minutes to save five dollars a month, but then spending $7 more a month on long distance, the savings may not add up. Or driving 20 miles out of the way, to visit a discount store for only a few dollars in savings.

You must also think about your family’s needs; if you have a coupon for one dollar off of crackers, that may seem like a good deal, but ask yourself first if you would have bought those crackers, without the coupon.  Coupons can actually have you spending more money on unnecessary items, which you probably would have never bought in the first place.

When you’re feeling like most of your money is being spent on your 401K, Health insurance, or mortgage payments, it is easy to get nervous and start thinking about penny pinching.  Just make sure you weigh the costs.  One common thing that happens to everyone is brain rationalization.  For instance if you buy an item at a discount “savings” store, your brain may think its okay, no matter what that item may be.  How many times have you gone into a big-boxed store and rationalized your purchases, because you were shopping at a discount outlet.  When the matter of fact is, your probably only saving mere pennies and making unnecessary purchases.  If you cart is filled with enough cereal to last you half a lifetime you might want to stop and think about your purchase.

Also think about how much driving you’re doing to get to these big box discount stores.  With gas prices this high, are you really saving much more money than if you would have just gone to the grocery down the street.  I have a good friend who will be at the grocery store and buy most of her food there and then drive all the way across town to pick up a loaf of bread, because it is “cheaper.”

Another financial mistake we all make is to by pass a $10.00 lunch because it’s too expensive, but then go out and buy a new sofa at $2000.  It’s funny how we can trick ourselves out of a lunch, only to rationalize an expensive home furnishing (because it matches the paint).  Some things just don’t make sense and if you truly want to save money, you need to be aware of all your spending habits.

If you are struggling and having finance problems, then its time to make a budget for yourself and follow it.  Be aware of what you are actually spending and crunch the numbers at the end of the month to see if you really are saving.  Remember just because it says “sale” doesn’t mean you have to buy it.

Tips For choosing A Loan Modification Company

A loan modification is when a lender modifies your current mortgage to work with you because of personal economical hardship.  If you are facing foreclosure, a loan modification can make your home more affordable.  The modification will be some form of a rate reduction and conversion of an adjustable rate mortgage to a fixed loan, usually 30 years fixed.

Today a lot of people are advertising themselves as loan modification specialists.  These loan modification imposters have displaced mortgage loan underwriters doing the negotiations. Because of this homeowners should be cautious when choosing a company and only work with a company who has licensed attorneys to do the negotiations.

With the financial downward spiral that has taken hold of the nation, many lenders are busy with homeowners trying to stop foreclosure.  With all the people facing foreclosure, they just don’t have the man power or ability to save everyone.  Some people just get passed over or lost in the system.  You don’t want to end up loosing your home, just because someone doesn’t have time to look at your case.

Homeowners facing foreclosure will not get the same results as someone who has legal representation. When a homeowners fall on desperate times, lender may take advantage them, or their lack of knowledge and negotiating skills may hinder them from finding the help they need.  Homeowners can, and usually do, end up settling for much less, rather than finding professional help.  A lawyer will make sure that your calls get responded to and letters are answered, which can make the difference between saving your home and losing it.  Make sure the company you choose has an in-house attorney who is a leading expert in the field of real estate litigation and negotiations.

A common loan modification scam is to charge a separate fee if you have a second mortgage.  Keep in mind that you should never have to pay a separate fee if you have a second mortgage.  If they try to charge you one that is a sure sign you are being taken advantage of.  It is a very common tactic, so watch out for it and move on to another company.

If you end up using a company that does not use attorneys, one thing to keep in mind is that you should only work with a company that has a 100% money back guarantee.  If company is as good as they say they are, they should haven no problem standing behind their word.  If they don’t have 100% money back guarantee start looking for a new company, there are plenty out that do.  Make sure you get the guarantee in writing as well. But remember, if a company is scamming you, they may offer a guarantee, with no intentions of honoring it. A guarantee is only as good as the company who stands behind it. Make sure you do your research to make sure the company is not a scam.

Finally each loan modification should also come with a Cease and Desist letter to your lender.  This prohibits lenders from contacting you personally and to get in touch with your attorney instead.  You are paying for them to watch your back and take care of you, so make sure that they are.

There is a lot of negative press going on with false loan modification companies, so it is extremely important that you find a legit company to represent you.  They are protecting, something personally dear to you, your home, so use these tip and find the right company to save your home today!

Four Parts To Your Answer To The Foreclosure Lawsuit

©nirots - freedigitalphotos

©nirots – freedigitalphotos

When homeowners receive the lawsuit paperwork in the mail or posted on their property indicating the bank is beginning the legal action of foreclosure, their most common reactions seem to be either to call the bank and desperately try to work something out, or simply avoid the problem for as long as possible. In any case, they usually have no idea how to file an answer to the complaint and little money to hire an attorney to help them defend their home.

But borrowers can file an answer to the bank’s complaint on their own with just a little bit of research into how the courts work and some of the applicable law terms. Much of the legal process is designed to be as confusingly complex as possible, with one trap to fall into after another. But homeowners can still use the system to their own advantage, even without having to hire a lawyer (although this is recommended just to make sure the paperwork is filled out correctly and filed in the correct manner).

When it is time to file the answer to the foreclosure lawsuit, the actual answer has three major parts to it and a fourth part that is used if applicable. The first is a statement denying or admitting each of the allegations the bank makes in its complaint on a line-by-line basis. These statements can be reasonably short and to the point, referring back to the initial complaint paperwork. For example, the borrowers may state that, “Defendant denies the allegation contained in Paragraph 4 of the complaint,” and have stated their position succinctly enough.

The second major part of the answer is defenses the homeowners are relying upon to make their claim that the bank should not have brought the lawsuit into court to begin with and why the allegations made in the complaint are simply wrong. These do not have to be long, drawn-out defenses using hundreds of words; rather, they should be made as plainly and clearly as possible. The discovery process and trial will provide opportunities to obtain more evidence and present more detailed arguments.

The final major part of the answer is affirmative defenses the borrowers raise. These are effectively “Yes, but” statements, in which the lender may not be wrong in bringing the lawsuit, but judgment should not be awarded to the bank anyway. These can typically include procedural violations, notice violations, and violations of federal or state laws that required the lender to complete some task before it is able to sue. Instances of mortgage servicing fraud, like forced insurance or escrow account misuse, may also be defended here, because the foreclosure may look valid on its face but still be a result of mortgage lender misconduct, rather than the borrower’s default of the terms of the loan.

Homeowners may also include any counter claims in their answer to the lawsuit. These are like little lawsuits made back against the lender with the borrowers requesting relief from the courts for the damages they have suffered at the hands of the bank. It is important to note that any counter claims must be made in the answer itself, rather than be filed later on after the lawsuit has ended. If a lawsuit is brought later on that could have been included as counter claims in the original foreclosure, it will likely be dismissed as violating the rules of civil procedure.

Simply knowing how the courts work and how to file an answer to a complaint will not stop foreclosure entirely, and certainly not every family that has defended its home in court has had an easy time of winning its case. But this tactic, if nothing else, can delay the foreclosure for a long period of time, giving borrowers more opportunities to work out a long term solution or force the bank to negotiate. Filing an answer to the complaint will not guarantee victory, but doing it correctly can put the lender on notice that the homeowners are not willing to go down without a fight and a reasonable solution.

How To Get Cash And Stop Foreclosure

There are many reasons why you may have missed a few of your mortgage payments; sickness, job loss, divorce, or numerous other reasons that can have you worried about foreclosure. You know exactly how the problem started, not having enough money to make your payments. Don’t put it off any longer, explore you options on how to get cash and get out of foreclosure now.

©phanlop88 - freedigitalphotos

©phanlop88 – freedigitalphotos

There a two options most people choose to get the cash to pay off the loan; the first is another form of financing that will bring you back into positive standing with your lender, the second is to sell your house quickly as possible. A cash sale will pay off your mortgage and bring you out of foreclosure before it even happens.

First off you need to remember if you are not able to make your mortgage payment, call your lender right away and explain your situation to them. Hopefully your lender can listen and provide solutions, but if they cannot you need to get busy will other ideas on stopping the foreclosure.

One good thing about the economical crisis is that you will have many more foreclosure solutions than you would of, even a few years ago. Today we have non-traditional loans, longer terms, adjustable rates, and loans that allow you to finance 100% of the cost. You do a lot of work on you home, making it a safe and happy place to live, so what can you do to stop home foreclosure?

You can get cash if you have built up some equity in your home. Most lenders would be more than happy to give you a equity loan. You can then use this money to pay off past due amounts and stop the foreclosure on you home. You also may be able to refinance your entire home and possibly come out with lower mortgage payments.

You should contact local lending institutions or browse online for mortgage lenders who may have many different financing options for you. If you take time to read foreclosure help websites you should be able to find plenty of investors who are willing to do high-risk foreclosure financing. This could be another option for you to get cash and save your home, though you will have to make timely payments back to the investor, or risk losing the home.

Keep in mind when looking for help online and dealing with investors you do need to be aware of scam artists. There are several predatory lenders offering loans at an outrageously high interest rate, have exorbitant brokerage fees, or repayment terms that you could not possibly meet. All of these things will lead you right back into foreclosure, so make sure you read the fine print.

You second option is to sell you house for cash and use it to pay off your mortgage. If you sell your house as a pre-foreclosure, buyers will see that you are serious and that you probably have it priced right. Therefore leading it to sell quicker than just a normal house on the market. Plenty of people in the buying market are looking for a fair price, so they turn to pre-foreclosure. This can work to your advantage and end up in a quick and hassle free sale, giving you cash in just a few days. Overall just remember when you are facing foreclosure, there are options. Whether you want to remain in the house or sell it is up to you.

Foreclosure-What You Need To Know To Stop It

©Stuart Miles - freedigital photos

©Stuart Miles – freedigital photos

Are you a homeowner who is suffering from financial difficulties, which may result in foreclosure on your home? If so, this is the time to get familiar with the foreclosure process. This can by a scary, uncertain time for homeowners, but the more knowledge you have the more you can protect yourself. The scariest part of foreclosure is having no information on what options are available to you. So read up to understand the foreclosure process and what your rights are.

If you have received a foreclosure notice in the mail, it came from a mortgage lender, which is often the bank you received your home loan from. Most likely, if you are facing foreclosure you have received, numerous written notices and telephone calls from them. So the fact that you are facing foreclosure should be no big surprise to you.

The first time you receive calls or letters from your financial lender, it is the time to take action. Although it is even better, if you know that you are going to be hitting some financial difficulties, to contact your lender before payments are late. Banks want to avoid foreclosure, just as much as you do. Knowing this should take away any fear you have of talking to your lender. Many times, financial lenders lose money when selling a foreclosed property; this is why they would rather help you keep your home.

Now that you know banks are here to help you and want to avoid foreclosure as well, you should speak directly with your financial lender. Set up a meeting with a high-ranking official, Such as the Chief loan advisor or even the branch’s president. This way you will cut right through the middleman and get the answers and help you need immediately. If your loan is with a larger lender, this will be more complicated, but make sure you are talking to someone who can actually provide help. Don’t waste your time with a customer service rep.

When you have your meeting, it is imperative to go into all your financial details with the lender. This way you both can come up with a plan that will help you; do not hide details, it will only hurt your progress and make you loose out on possible foreclosure solutions. If you can prove to your financial lender that your financial problems are only temporarily and you have intent to get your mortgage back in good standing, your lender may temporarily accept smaller payments.

As for the foreclosure proceedings, the process will depend on the state that you live in. All states have different laws when it comes to foreclosure. You may consider seeking professional help from an attorney, it is important to choose one who is knowledgeable in your state foreclosure laws.

When the foreclosure process has ended and your home has been sold at the sheriff’s sale, it’s time to start looking into other living arrangements. Try to find a more affordable place to live, unless you can come into a large amount of cash to re-buy your home during the redemption period. You are not required to leave your home until you are served an eviction notice by the lender or new property owner. But it will be better for you to face the fact that you will have to leave your home and you need to secure a new place to live.

Foreclosure Bailout Plan Changes and Nationwide Statistics

©Idea go - freedigitalphotos

©Idea go – freedigitalphotos

October 2008 shows that foreclosures are on the rise, approximately 25% nationally compared to last year at this exact time. Lenders began foreclosure proceeding on more than 279,000 in this past month alone. Along with that, 84,000 properties were reported repossessed this past October.

The big questions being: are things going to turn around, when is the economy going to improve and are there laws being put in place to help homeowners. These are all valid yet difficult questions to answer. Right now a combination of strict lending standards, decrease in home values and the poor economy are hindering any improvements for homeowners.

Last month you may remember hearing on the news, the downward spiral of the financial market, forced the government to pass a $700 billion rescue package. The plan was to buy bad assets from the lenders; experts predicted them to have acquired more than a third of all U.S. properties for sale. Last Wednesday it was announced by Treasury Secretary Henry Paulson that the “plan” would not purchase those troubled assets. He said it would take too much time; instead the Treasury will be buying stakes in banks and encouraging them to resume more normal lending.

Housing and Urban Development Secretary Steve Preston also announced on Wednesday that the government could possible let borrowers qualify for a $300 billion program designed to let troubled homeowners swap there risky loans for more affordable ones. The only down fall in this though, is if lenders decide not to participate because of having to reduce the value of a loan and therefore taking a loss. Hopefully this does not happen and the help will decrease foreclosures.

Putting it into prospective- Number of homes that received a foreclosure filing for the month of October 2008:

• Nevada- 1 in every 74
• Arizona- 1 in every 149
• Florida- 1 in every 157

These three states main metro cities hold many of the top ten spots for highest foreclosures filings the month of October 2008:

1. Las Vegas, NV
2. Fort Myers, FL
3. Miami, FL
4. Stockton, CA
5. Merced, CA
6. Phoenix, AZ
7. Riverside/ San Bernardino, CA
8. Ft Lauderdale, FL
9. Modesto, CA
10. Orlando, FL

Now for some good news! Overall, California was down by 18 percent from the previous months. This could be due to some of the new laws delaying the foreclosure process. For example in California lenders have to contact borrowers 30 days before filing a default notices. Other states are now trying to incorporate this law; North Carolina has decided to give borrowers an extra 45 days. Only time will tell if this, along with if the government “bail out plan” will help people avoid foreclosure or just delay the process.

If you are a homeowner and facing foreclosure what is your opinion; can the governments bailout plan succeed? If you were given extra pre foreclosure time, will it help you avoid foreclosure? As a homeowner, what do you think would help your situation the most?

Finding Foreclosure Assistance Top 7 Tips

©401(K) 2013 - flickr

©401(K) 2013 – flickr

With the foreclosure rate ever increasing, the market has been flooded with stop foreclosure programs. There are so many foreclosure assistance solutions available to homeowners it can become overwhelming. Knowing where to start getting help and understanding your options, can be the hardest step of all.

If you started missing payments on you’re house and find yourself falling further behind, it’s time to start looking for help. When looking for foreclosure assistance, you want to make sure you choose the right solution for you personal needs. There are 2 main things that you need to keep in mind when looking for foreclosure help.

• First make sure you are not getting involved in some sort of foreclosure assistance scam. There are people that will take advantage of others in there time of need. Research any companies you plan on getting involved with; make sure they are legit. If there is any question in you mind, move on to someone else.

• Look for options that will save your home, although it may not always be possible. There are plenty of assistance programs out there, look to one whose first priority is to save you home. Some “foreclosure assistance” programs are only looking to buy cheap houses.

Now you know the two main things to keep in mind when looking for foreclosure relief. Read over our top 7 ideas for foreclosure assistance solutions.

1. First thing you should always do is talk to you mortgage lender; this is the number one thing you can do. This way you can find out where you stand and what options are available through your lender. Be honest with your lender, but keep in mind your priority of saving your home, see what solutions they can come up with. The sooner you go to them, the more likely they can help you, especially if you haven’t missed too many payments.

2. Refinancing your loan is always a good idea if you haven’t waited too long. If your adjustable rate mortgage has increased drastically, it should be your first consideration. Lowering your interest rate will save you a lot of money and will most likely help you avoid foreclosure. Refinancing is usually only available when you’ve missed less than 3 payments and still have decent credit.

3. Ask your lender about Forbearance on your loan. Forbearance can help reduce your mortgage payments or even delay them for a time period without any legal action. This is a great option for someone that has had a job loss or extreme financial problems, explain it to your lender, and ask for a Special Forbearance.

4. Selling your home may be a good option for you if you’re still in the pre-foreclosure stages. (have not gotten a actual foreclosure filing) Obviously it takes time to sell your home, so the quicker you get it on the market, the better. Selling your home is a sure way to avoid foreclosure.

5. Some companies will offer you a special repayment plan. This means your lender will allow you to repay your past due amount by adding part of it to your monthly payment each month until you’re caught up. This is a good solution if you just fell behind on your bills due to temporarily money loss and can keep up with the new current payments.

6. You can also find other companies that will do a short sale on your home. A short sale will let you sell your home for less than the mortgage amount, with your lenders approval. This would be more of a last resort, after you have explored your other options.

7. Deed in Lieu is a final option you can explore, where you convey all interest in your property to the lender to satisfy your debt and avoid foreclosure. A deed in Lieu can still harm your credit, so be careful and find professional help before choosing this option.

Make sure you explore all possible foreclosure options before it’s too late. Help is available, you just need to take advantage of it while it’s still available.

How To Stop Foreclosure Using The Pre Foreclosure Time

©Cool1723 - flickr

©Cool1723 – flickr

It is human nature to procrastinate, or put uncomfortable chores off until the very last minute. Some people put off paying bills, until the day they are due, even if there is a rush payment penalty. Procrastination is an unhealthy habit to have and hard to break, there would be a lot more possibilities in life, if we explore all options early on. This is particularly important if you are in the pre foreclosure stage, this is a time you should embrace and not put off. Being proactive against foreclosure will be satisfying, especially knowing that you are doing everything possible to save your home.

So how can you tell if you’re in the pre foreclosure stages; you will start receiving notices from your lenders about your lack of payments, you may be getting harassing phone calls from the bank, threatening foreclosure if you don’t get caught up on your past due payment. Do not just ignore these messages and calls hoping they will go away. They will not go away; in fact you will receive more and more until you are officially foreclosed on. You can’t just turn your ringer off hoping that they will go away. Pre foreclosure is the time you should be talking to your lenders. Speaking to them early on may give you a chance to negotiate with them, explain to them your situation and see what options are available. The longer you put if off, the less options you will have and the lenders may get annoyed with you and be less likely to offer any foreclosure assistance.

There may be many reasons that your home is getting foreclosed on, such as, loss of job, divorce, and an illness preventing you from working. Depending on your situation, you may know exactly when you can start making your mortgage payments again, use this knowledge to strike a deal with the lender and stay true to your word. If you know that you won’t be able to get caught up on the payments, this would be the time to put your house on the market. Some lending companies could be understanding with your predicament and allow your pre foreclosure time to be a bit longer.

If you can’t seem to negotiate a deal that you’re going to be able to keep up with, pre foreclosure gives you the opportunity to put your house on the market. There are many companies that look to buy houses in foreclosure. Don’t be over concerned making a huge profit in the sale of your house; especially if you’re in pre foreclosure, the point of selling it is to stop foreclosure. It is better to try and sell it before it goes into foreclosure, because if the bank decides to foreclose, your home will be sold at a loss and you’ll end up owing more money. Depending on what the bank sells it for you will still be responsible for any left over debt on the home. The bank could possibly sell it for a lot less than you would of and you would end up getting stuck with more debt. Most importantly just do not delay, take advantage of pre foreclosure and make the most out of your time by stopping foreclosure.