Foreclosure Defense Secrets.com

6. Foreclosure Bail Out Loan – Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.

Hard money lenders are more difficult to find in such an unstable market, but they still exist.  While a foreclosure bail out loan may not be a permanent solution, it can definitely buy you enough time for your economic situation to change or for the housing market to recover just enough for you to sell your house and pay off the loan.  Learn more about how to avoid foreclosure at www.ForeclosureDefenseSecrets.com.

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Another fiscal quarter, another jump in foreclosures.  With the Federal Government attempting to manage the foreclosure crisis, the banks are trying to get as many foreclosure judgments entered as soon as possible.  In the coming months, there will be a push for more mediation, higher filing fees, and loan principal reduction through the court.  The lenders want to avoid these issues so they are pushing the foreclosures through the system as fast as they are allowed by law.  Don’t believe the lender when they tell you they are working on a modification and will notify you shortly.  Don’t think that the foreclosure process will be stopped at all before a judgment is entered against you.  Loan modifications will only become a possibility after you stall the legal process and make a little noise so that the lender pays attention.  Don’t let yourself get pushed through the system and miss out on the bailout that is coming for any homeowners behind on their mortgage payments.  You need to fight the foreclosure and stall the legal process for as long as it takes to get a better deal.  Learn how to fight the process at www.ForeclosureDefenseSecrets.com.

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Foreclosures are not slowing down and the housing market continues to fall. The prospects of completing a successful short sale continue to diminish. Your house is worth more to you than it is to anyone else, including the bank. However, that will not stop the bank from foreclosing and taking your house from you. You need to be able to fight the foreclosure process long enough for the bank to modify your loan and allow you to keep your house at a much lower price. Find out how to accomplish this and save your home at www.ForeclosureDefenseSecrets.com.

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With all of this talk of foreclosure moratoriums, bailouts, and loan modifications, the popular thought is just to let your mortgage enter foreclosure merely to get a better rate from your lender. So, how do the lenders expect to separate all the people who need a mortgage modification from those people who just want one?

The Federal Housing Finance Agency is attempting to implement a program that will modify the loans of certain troubled borrowers until the payments are reduced to 38% of the homeowners’ income. The Agency’s plan is to modify 2.2 million troubled loans by the end of 2009.

It’s not as simple as just asking for the restructuring though. The FHFA program would only be available to homeowners who can first demonstrate some change in financial circumstances. Even interpreted broadly, there must have been some hardship involving death, medical bills, job change or simply a reset in the rate of an adjustable-rate mortgage.

The programs will also require that the subject properties have high loan-to-value ratios, that the borrowers currently reside in the property, and that the borrowers are gainfully employed. But what stops everyone who meets these qualifications and has an adjustable-rate mortgage above the ideal income thresholds from skipping two or three payments to qualify for a reduction?

Sure, a missed mortgage payment may remain on a credit report for seven years and missing several mortgage payments in a row would badly damage a credit score, more so than missing most other types of payments, but credit can be repaired and a modification would prevent a foreclosure from being stapled to your credit report, so that damage wouldn’t be as tragic as a bankruptcy, or the like.

Because of the low level of risk, some homeowners, particularly those with little debt beside their mortgage and little anticipation of future borrowing, will be tempted to take a run at the system. The programs offer reductions in interest rates, extending the loan terms, and principle forbearance, saving potentially hundreds of dollars a month. After all, it’s a lot easier making on-time payments when the payments are thousands of dollars a year cheaper.

Now is the time to take advantage of the current system. There is no need to fear foreclosure if you know how to delay long enough to modify your loan and get a better deal for you and your family. Find out more at www.ForeclosureDefenseSecrets.com.

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The question of why some homeowners are getting bailouts has really been answered by the financial turmoil of the past few months. A huge spike in foreclosures, magnified by derivatives cooked up by Wall Street firms, nearly brought down the global economy. As it stands, we’re still likely to suffer one heck of a hangover in the form of a serious recession.

The foreclosure mess is far from over. Many of the riskiest loans — the ones where homeowners weren’t even paying all the interest that was accumulating on their loans each month, let alone touching the principals — are just now resetting.

Then there’s the whole vicious-cycle effect. As foreclosures rise, banks slash the prices of the homes they recover, putting downward pressure on everybody else’s property values. With more homes “underwater,” more fall into foreclosure when their owners lose a job and can’t sell, or simply decide to walk away.

That’s why the Powers That Be are finally getting serious about working with struggling homeowners. Given how interconnected everything is in our economy, their success in saving your neighbor from foreclosure might ultimately reduce the chances you’ll lose your job.

It may be that a lot of borrowers were complete idiots for agreeing to mortgages that were eight or nine times their incomes (a mortgage that was three times your income used to be considered a stretch in the days before lenders went nuts). Smart borrowers fixed their rates for at least as long as they planned to stay in their homes; dumb ones agreed to adjustable-rate mortgages on their brokers’ assurances that they’d be able to refinance before the payments reset.

The federal government is considering a plan that would help about 3 million homeowners avoid foreclosure. But borrowers didn’t get these loans in a vacuum. Mortgage brokers and loan officers downplayed the risks. So did lenders, who gave the brokers and loan officers fat incentives to push them. The Wall Street machine encouraged looser lending standards and created exotic investment products that wound up multiplying, rather than reducing, the risks. Regulators, meanwhile, stood by and basically did nothing. No one involved is covered in glory.

Neither is anyone getting an entirely free ride. Plenty of people will still lose their homes, and many who get workouts will have to live with trashed credit from the payments they missed before help arrived. The only way to truly protect yourself is to take your defense into your own hands. Find out how to do just that at www.ForeclosureDefenseSecrets.com.

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“We didn’t want to vote for it…”

“The best we’re going to get…”

Are you serious?  The $700 billion bailout proposal passed in both houses of Congress with this kind of persuasive language.  The fact is, one third of the House of Representatives is up for re-election in just under a month and their constituents would be very upset if they had not done anything in response to this economic crisis.  The bailout isn’t the right answer but it is being billed as the only answer. 

The way this bill was passed in the House was to add on a number of “pork barrel” additions such as an excise tax which saves the makers of wooden arrows for children thirty-two cents per unit.  What do children’s toys have to do with the economic crisis facing our nation today?  Absolutely nothing, but it was enough to convince the Representatives from Oregon (where most of the arrows are made) to vote for the bill.  If it weren’t for additions like this one, the bill would have failed again.

The overall feeling, both in Washington, D.C. and at home, is that this bill will not solve the problems facing our nation right now but that something has to be done.  The fact is that the market will work itself out in the long run, but you have to make sure that you are still standing when that happens.  We have to protect ourselves.  We have to educate ourselves.  We have to fight for ourselves and not wait on the government to bail us out.

Educate yourself more at www.ForeclosureDefenseSecrets.com.

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