Foreclosure Defense Secrets.com

2. Loan workout - A loan workout is a broad term used in the loss mitigation arena to describe the negotiation with your lender of any kind of plan that will benefit both you and the lender when you are delinquent or in default of your loan.  The term can be used to cover the different “workout” options you may have such as a loan modification, repayment plan, short sale, forbearance plan, etc.

Aside from a full loan modification, a loan workout is usually a temporary solution to a more permanent problem.  For some, the problem is that the house they currently own is worth way less then they owe on it.  For others, the problem is that the monthly payments they are being asked to make are just way too much for them to afford.  Whatever the problem is, a loan workout will stop the foreclosure process until the next time a payment is missed.

Loan workouts are a very valuable tool in foreclosure defense and are deadly to the bank’s ability to take your home, if they are used properly.  Learn how to use loan workouts, and other techniques, to stop the foreclosure of your home at www.ForeclosureDefenseSecrets.com.

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3. Loan Modification- This term has been getting a lot of attention lately and rightfully so. With millions of homeowners stuck in toxic adjustable rate mortgages and no ways to refinance out of them, loan modifications may be the only way to assist struggling borrowers. This term is used when your lender modifies your current mortgage (same loan you have, only changes are made to the note) in order to work with you and make your mortgage more affordable. A modification to your rate, balance of loan, delinquent fees owed, term of loan etc. can be made at the “discretion” of your lender. In the past this was only used when a borrower was delinquent but now we will see it being used before someone is delinquent. This will be the hottest term and the best way to help people avoid foreclosure.

Clearly a modification, especially one in which the principal is lowered, is the goal of 99 percent of all homeowners facing foreclosure, but getting one isn’t always as easy as it sounds.  Sure, the HAMP plan instituted by the Federal government provides for payments to not exceed 31 percent of a borrower’s monthly salary and locks in the interest rate at 5 percent, but that doesn’t mean that the foreclosure process will stop long enough for you to negotiate one.  Learn how to slow the foreclosure process to a halt at www.ForeclosureDefenseSecrets.com.

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4. Forbearance- This is used most of the time, when a Notice of Default has been filed. You are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions.

A forbearance agreement is usually referred to as a stipulation agreement.  The terms of a stipulation agreement require you to waive all defenses to the foreclosure action and for you to make six or more monthly payments of higher than your previous mortgage amount in order to be considered for a loan modification.  I do not recommend entering into a stipulation agreement unless you are happy with the terms of your current mortgage, but had previously fallen on hard times.

For more on how to avoid foreclosure, visit www.ForeclosureDefenseSecrets.com.

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The banks have realized that they would rather not have to foreclose on a property. They have learned that each delinquency and foreclosure is costly to administer, with a typical foreclosure estimated at $60,000, or about 20-25 percent of the loan balance (legal fees alone can cost $4,000), and those costs are expected to be even higher in times of home price depreciation. Banks already have an overwhelming number of properties in foreclosure, and they are finally recognizing their need to accept loan modifications via their loss mitigation departments.  The best time for Loan Modification is now! 

The time has never been better for consumers (who own homes) to take action and request that their loans be modified towards better terms and a lower interest rate. Moreover, with these new economic realities, a loan modification may be the only way for a homeowner to save their home.

Recently, large numbers of homeowners have been trying to complete “loan workouts” or loan modifications with their current mortgage lender to lower the interest rate and improve the terms of their loan. They have learned that negotiating with the bank for a modification of their home loan can be an overwhelming process. Major lenders such as Countrywide bank, Indy Mac bank, Wells Fargo, Bank of America, WAMU, New Century, Quicken Loans, Aurora, Aegis, EMC Mortgage, CITI Mortgage, Chase Bank, are inundated with defaults and foreclosures. Numerous calls, hours of time, repeated delays, transfers from one department to another, voice mails, faxes back and forth.  In order to complete the loan modification, you need to be able to stall the foreclosure process indefinitely.

Stop Foreclosure - It is the most important decision of your life. 
          - Foreclosure is AVOIDABLE. Modify your loan now and keep the roof over your head.
  - Foreclosure is a CHOICE, not an inevitability. Modify your loan now and avoid foreclosure.
  - You DON’T have to settle for foreclosure. Avoid it with a loan modification now.

Learn how at www.ForeclosureDefenseSecrets.com.

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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!

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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.

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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.

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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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Part of President Obama’s Foreclosure Defense Plan was signed into law this week. It establishes protections for renters living in foreclosed homes. One of the often overlooked problems in the foreclosure crisis has been the eviction of renters in good standing, through no fault of their own, from properties in foreclosure. To address the problem of these tenants being forced out of their homes with little or no notice, this legislation will require that in the event of foreclosure, existing leases for renters are honored, except in the case of month-to-month leases or owner occupants foreclosing in which cases a minimum of 90 days notice will be required. Parallel protections are put in place for Section 8 tenants.

While this part of the bill does not protect the borrower, it is a good sign of things to come for a couple of reasons. First, the signing of one part of the bill makes it more likely that other sections will be signed into law. This could include a nationwide moratorium on foreclosure sales, or even a lowering of principal balances to readjust for the lower real estate market. The other benefit from the President protecting renters is that you can keep your tenants in place and continue to collect rent even while facing foreclosure. This means more income for a longer time, providing you can stall the foreclosure long enough to take advantage. Don’t miss out on the benefits of President Obama’s plan. Protect your home from foreclosure and learn how to stall the process for as long as you need to. Get more information at www.ForeclosureDefenseSecrets.com .

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