Foreclosure Defense Secrets.com

Don’t let this happen to you. You can prevent the loss of your home and the eviction of you and your family. Find out how to protect yourself from foreclosure at www.ForeclosureDefenseSecrets.com.

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Foreclosures have soared 71 percent in the third quarter, to an average of more than 8,500 homes a day. More than three million homes are now expected to be in foreclosure by year’s end, a million more than even the most dire predictions. On top of that, lenders are taking possession of delinquent properties at twice the normal rate which means more than one million homes are likely to be repossessed by the end of the year.

Why is this happening—especially when the last thing most lenders want to do is repossess a house? For one thing, banks are overwhelmed with the sheer number of troubled mortgages. That’s made it more difficult for them to work out loan modifications. Many mortgages also have second liens attached to them, requiring negotiations with third parties which can take months.

The main problem is that so many mortgages have been grouped together into securities and sold off to investors worldwide. These mortgage-backed securities typically carry terms that severely limit the homeowner’s ability to renegotiate a mortgage. So the banks that typically service the mortgage risk being sued if they deviate from these terms.

The only way to protect yourself from foreclosure is to use the legal system to your benefit. You cannot rely on anyone else to come to your rescue. This includes the Federal government, defense attorneys, and especially the lender. For more information about how you can protect yourself from foreclosure, visit www.ForeclosureDefenseSecrets.com.

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Whose fault is it?  There is a lot of blame to go around.  After all, there is no one person or entity that could cause such an economic crisis, no matter how hard they might try.  As the attorney hired by the banks to execute the foreclosures, I have had the opportunity to interact with all of the possible culprits.

Is it the bank’s fault?  Well, there are two banks to speak of in most foreclosure situations; there is the bank that did the lending and the bank that purchased the Note and Mortgage and is now initiating the foreclosure.  The bank that purchased the Note and Mortgage as an investment is a victim.  They do not want to foreclose.  They thought that they would be collecting mortgage payments and that the loan was a good loan.  They clearly thought wrong.

Is it the lending bank’s fault?  The bank that originally lent the money did so because the borrower met certain qualifications.  The bank reviewed the loan application that was filled out by the borrower or the mortgage broker and lent the money based on that application, however they failed to verify any of that information by requesting proof of employment history, credit scores, or income statements.  They thought the loan applications were filled out honestly.  They clearly thought wrong.

Is it the borrower’s fault?  The borrower was looking at a real estate market that was skyrocketing.  They figured that they could purchase a house now and sell it later for way more than they paid because real estate is the safest investment and the real estate market would continue to rise.  They thought that any loan they would receive today would easily be paid bank with the equity they could pull from their ever-increasing value of their house.  They clearly thought wrong.      

Who is to blame for the mortgage foreclosure crisis?  Everyone.  We all thought we were making correct decisions and we were all wrong.  No one stopped to take the time to educate themselves before taking these unnecessary risks.  The true cause of the massive amount of foreclosures facing the nation today is ignorance.  Suffice it to say, our best weapon against foreclosure is education.  Educate yourself at www.ForeclosureDefenseSecrets.com.

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The biggest enemy to a distressed home owner is the person claiming they can help them when they really just want to take advantage of an unfortunate situation. Take some basic precautions against being taken advantage of:

• Don’t sign any documents that confuse you.  Show them to an attorney.
• Get all “promises” in writing.
• Beware of any loan assumption offers where you are not formally released from liability for your mortgage debt and contracts of sale.
• Check with a lawyer or your mortgage company before entering into any deal.
• If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer.  Contact your state Attorney General, State Real Estate Commission, or local District Attorney’s Consumer Fraud Unit for this information.

If you decide to do business with another foreclosure consulting company, be sure that they are operating within the boundaries of the law.  Many people were fooled by dishonest mortgage brokers. It is important when dealing with loss mitigation that they don’t get fooled again.

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To paraphrase Senator Barack Obama, we need to use the strokes of a scalpel and not the hacks of a hatchet to solve the economic crisis facing the nation today.  While Sen. Obama was referring to the Federal budget, the same advice should be heeded when discussing possible solutions to the mortgage foreclosure crisis.

Recently, Bank of America purchased Countrywide Home Loans and immediately put most of the loans on hold in an attempt to work the loans out with the borrowers.  In order to qualify for possible loan modification, the property must be the borrower’s primary residence and the borrower must have an income substantial enough to make the monthly payments on the new loan.  However, putting all of the loans on hold may not be the smartest move when it is only a small percentage that will be able to be adjusted.

If there were a nationwide moratorium on foreclosure, it would cripple the way the nation currently runs.  Banks would not be able to stay in business.  The finance world would see massive layoffs and unemployment would skyrocket.  Since the banks wouldn’t be permitted to collect on the loans they currently own, they would cease giving any more loans out.  That means no new homes, no new cars, no small business loans, and no financing for jewelry or Christmas presents.  America would stop running.

Perhaps a better plan would to carve out exactly those loans that can be modified.  If the banks simply go through the loans currently on file and foreclose those homes that have been abandoned first, they will be able to turn around and sell those homes to new qualified buyers at a discounted rate.  New homeowners will provide the bank with income and raise the property values of those houses surrounding currently vacant properties, which can sometimes become havens for drug dealers and vagrants.

After all of the vacant houses are foreclosed, the banks should then focus on modifying those loans that are in default, but with borrowers who are gainfully employed and had fallen on temporarily hard times or whose loans have adjusted to levels higher than they can currently afford.  At this point, the homeowners who are trying to protect their homestead will be successful in doing so, the banks who intend on staying in the lending business will be able to, and the housing market will begin to level out and even show signs of increasing.

Currently, eighty percent of the people in this country own homes.  According to the United States committee on Housing and Urban Development, only seventy percent of adult Americans should ever own a home at any one time.  We dont need to foreclose all eighty percent to save the banks.  We dont need to protect all eighty percent to save the homeowners.  We need to reduce the amount by a mere ten percent.  We need a scalpel, not a hatchet.

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The reason we are in the foreclosure mess that we are in is because the Federal government made it too easy for people to own houses.  Massive deregulation and the lack of Congressional foresight created a nation of greedy mortgage brokers, unregulated lenders, and uniformed borrowers.  Now we are supposed to rest our hopes with the same naive officials that led us into this disaster.  I dont like our chances.   

At any one time, seventy percent of the country should own real property of some kind.  In 2006, this number grew as high as eighty percent.  In order fot the market to correct itself, ten percent of the current homeowners need to lose their homes.  You can either be part of the ten percent to have their home taken from them or part of the seventy percent to keep their home.  The choice is yours.  Find out more at www.ForeclosureDefenseSecrets.com.

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Rent Free Living
Most people mistakenly believe that foreclosure should be avoided at all costs. However, the truth is that foreclosure can be your best option in certain cases. Some homeowners will attempt to complete short sales and deeds in lieu of foreclosure, and that may be their best option, but the foreclosure process is a very slow one which will allow the homeowner to live rent free for as long as they are able to manipulate the system to their benefit.

Evictions
Some borrowers believe that the sheriff will forcibly throw them out on the street once foreclosure proceedings start. In actuality, foreclosure proceedings typically take several months from the time you first receive notice of your default and the time your home is put up for sale at a public auction. Even then, the new owner must follow state legal procedures to evict you, which requires at least some notice (sometimes up to another couple of months) and a court order.

Short Sales
While many homeowners will attemp to complere a short sale, they dont fully understand the consequences of one. A short sale occurs when you convince your lender to let you sell the property for less than you owe on it. The problem is that you have to move out upon the close of escrow, and you therefore give up the opportunity to live in the house for many more months, payment free. Also, you may be forced to pay taxes on the difference between the amount owed to the bank and the short sale amount since the IRS recognizes this difference as a capital gain.

Loss Mitigation
Once foreclosure proceedings have begun, negotiations with your lender must be successful prior to the date set for the foreclosure sale. Lenders often state right up until the date of a scheduled foreclosure sale that the negotiations are on track, and then pull out at the last moment. This isn’t necessarily a deliberate tactic. Rather, it may be a sign of disorganization as the left hand rarely knows what the right hand is doing. You should always be prepared to use the legal system to your benefit as opposed to waiting for the bank to do you any favors.

Learn more about all of these topics and more at www.ForeclosureDefenseSecrets.com.

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This is one of many sad stories being reported every day around this country. The saddest thing for me is to know that there are so many ways that this woman, and all people facing foreclosure, could have saved their house, their money, and their life. The court system is set up to help those people that want to fight, even if they cant afford to hire an attorney to fight for them. I can teach you how to use the current system to your advantage. Not only will you stay in your house, you may be able to stay there with no additional payments made to ANYONE. Learn more about how to fight for your house -and even your life- at www.ForeclosureDefenseSecrets.com.

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You can take it directly from a foreclosure attorney: neither John McCain’s plan to buy up all of the “bad loans” nor Barack Obama’s plan to enforce a nationwide freeze on all foreclosures will help this country. In fact, both plans will hurts us immensely.

The Federal government cannot buy up the bad loans because that will give the banks a blank check to write more bad loans. It will also be a bad investment for the taxpayers since the government will be using taxpayer money to purchase homes that are extremely overvalued, and continue to decrease in value, so that when the government tries to sell or negotiate these loans, there will be no chance of taxpayers recouping the money spent.

The Federal government cannot put a mandatory freeze on all foreclosures because over 70 percent of the houses currently in foreclosure are vacant and the properties will continue to erode. Property values of the homeowners that a current with their mortgage will decrease as the properties surrounding them remain vacant. The other impact to a 90 day freeze on foreclosures is that the banks, already barely keeping their heads above water, will fail because they cannot collect on the loans already issued. This will force further economic collapse as there will be no lending for houses, cars, or small businesses. The nation cannot run without a healthy banking system.

Neither of the candidates have a viable plan for fixing the foreclosure problem facing the country today. The only way to protect yourself from foreclosure is to use the legal system to your benefit and negotiate a modification of your loan with the bank. This will save the individual homeowner and the national economy as a whole. Learn more about how to accomplish this goal by reading the eBook available at www.ForeclosureDefenseSecrets.com.

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The foreclosure disease is still spreading.  No one is immune.  There is a cure.  Read more about it at www.ForeclosureDefenseSecrets.com.

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