With the nation on pace for over 3,000,000 foreclosures for the second straight year, and over half of all properties sold at foreclosure auction going back to the banks, lenders are willing to modify loans now more than ever. If you are in an adjustable rate note, the lender will offer you a fixed rate. If you have a fixed rate of 8 percent, the lender will offer you 4 percent. In some cases, the lenders are even reducing the principal on loans that are more than fifty percent upside-down from their original appraised value. Your lender wants to modify your loan and keep you in your home, but they dont have enough time or manpower right now to get it all done and help you modify. This is where you need to help yourself.
The court systems are currently overrun with foreclosure filings and the rash of budget cutbacks have forced them to layoff over half of the clerks working at the courthouses. This means that any filings in defense of a foreclosure will delay the foreclosure from being entered at an exponential rate. For a foreclosure proceeding in which the borrower does not file any responsive pleadings, the judgment will be entered againts the borrower and the property is often sold at auction before any loss mitigation or loan modificatioon can be completed.
However, if you file affirmative defenses, motions for extension of time, requests to produce, and the like, you can stall your foreclosure for anywhere from 18 months to 5 years, depending on how you use the legal system and how you time your filings. This is plenty of time to work out a loan modification or short sale, or even to save up enough money that you can move into a nicer home at a lower price without ruining your credit. It might sound impossible, but it is actually quite easy if you know what you are doing. Learn the exact procedure and download the necessary forms at www.ForeclosureDefenseSecrets.com. You can save your home!
California is one of many states instituting temporary moratoriums on the foreclosure of primary residences. While the moratorium is supposed to encourage lenders to work with homeowners on loan modifications, in reality it merely delays the inevitable and buys the homeowner three months to find a new place to live. In order to complete a loan modification, you need to first get the bank’s attention. In order to do that, you need to learn how to be a pest. After all, it’s the squeaky wheel that gets the grease. Learn how to squeak loud enough to save your home at www.ForeclosureDefenseSecrets.com.
While the number of borrowers in loss mitigation has increased, it has been matched by an increasing level of delinquent loans. Loss mitigation is made more attractive by the fact that foreclosure costs are often substantial. Historically, the foreclosure process has usually taken from a few months up to a year and a half, depending on state law and whether the borrower files for bankruptcy.
Loss mitigation is essential to asset protection because it provides the borrower with information necessary to make good decisions. Learning the programs or “tools” available as an alternative to foreclosure is the key to preserving home ownership. Loss mitigation is about keeping the home owner in their home. If that does not seem like a realistic outcome, e very attempt should be made to help the home owner get the most for their home as they possibly can before a foreclosure sale takes place. The sad part is that most people are not aware that legal and effective loss mitigation programs are available that can stop foreclosure quickly and legally. Loss mitigation is there to help save their homes, but homeowners first try to help themselves save their homes before others can help them. The future of their homes still depends mostly to the homeowners.
Loss Mitigation is one of several processes designed to minimize the damage caused by defaulting mortgage loans. It’s a delicate balance between the facts, reality, distorted reality and the art of negotiation. The Lenders loss mitigation department would rather work with you than file foreclosure. Loan modification, often referred to as loss mitigation, may include a partial payment of amounts in arrears and then an extension of the loan terms to compensate for the remainder of the amount of the loan in default. With the repayment plan, it is imperative that the plan be realistic when it comes to the homeowners’ ability to repay the amount the is delinquent. Learn more about loan modification and loss mitigation at www.ForeclosureDefenseSecrets.com.
When I began this blog under a year ago, the climate surrounding the mortgage foreclosure crisis in the United States was drastically different than it is today. The initial assumption was that borrowers facing foreclosure were people who got in over their heads and tried to take advantage of an under-regulated lending system by taking out loans that there was no way they could afford. The public opinion was more in favor of the banks instead of the borrowers, labeling the borrowers as uniformed investors seeking an undeserving bailout. From the time you missed your first mortgage payment until the time a foreclosure judgment was issued against you was about five months.
A few months ago, the public opinion began to shift. The government became aware that borrowers need to be protected and that the lenders need to be coerced into looking into loss mitigation solutions, such as loan modifications and principal reductions, to keep families in their homes at affordable rates, especially when the unemployment levels are so high and the economy is so low. From the time you missed your first mortgage payment until the time a foreclosure judgment was issued against you was about eight months.
Today we have a much more favorable situation. Not only have the media and the government been active in expressing the desire to protect borrowers from foreclosure, but now the courts are aiming to protect borrowers as well. With programs forcing the lenders to attempt mediation prior to getting a foreclosure judgment, judges being instructed to view foreclosure hearings in favor of the borrower, and a general sentiment by judges that there are too many foreclosures and some of the cases need to be dismissed, the courts are begging you to be active in defending yourself against foreclosure. From the time you missed your first mortgage payment until the time a foreclosure judgment was issued against you is about twelve months, if you do nothing, and up to three or for years if you actively defend yourself.
Hiring a defense attorney is expensive and not really worth the money unless you plan on filing bankruptcy. In fact, sometimes the attorney will charge you around $5,000 and hinder rather than help since you will lose the benefit of sympathy and compassion which are crucial when you are dealing with a court of equity, as is the case with foreclosure hearings. Doing nothing is absolutely unacceptable. While the thought of losing your home is scary enough to make you want to put your head in the sand, you would be doing yourself and your family a great injustice if you didn’t attempt to defend yourself and save your home. You are strong enough to beat the bank and keep your home. Learn how at www.ForeclosureDefenseSecrets.com.