There are a lot of people whose only thought is "How can I save my house"? They bought a little more than they could afford hoping they would be able to grow into the payments. The banks facilitated this idea with adjustable rate mortgages. For a lot of young couples this was a way to enjoy their future dreams today. Who could have predicted a worldwide recession?Now many people are looking for loan modifications. They thought they would be safe when they took out the loan because if they ever got in trouble, they could always sell their home to avoid foreclosure. Along with a global recession, home values fell as much as 50% in some markets.
Filing for bankruptcy is one way that foreclosure can be halted or even avoided entirely. When a person files a bankruptcy petition, this places what is called an "automatic stay" on all debt collection proceedings against the petitioner. This includes foreclosure. In a Chapter 7 filing, this may give a debtor time to figure out how to sell or surrender the home by way of a deed in lieu of foreclosure or a short sale. In a Chapter 13 filing, the automatic stay may not only buy the homeowner time to determine what to do, but past due mortgage payments and penalties may actually be included in the homeowner's repayment plan - enabling him or her to actually save the home and avoid foreclosure.
Chapter 13 bankruptcy is unique in that it is a reorganization of debt. A borrower who seeks bankruptcy protection under Chapter 13 of the U.S. Bankruptcy Code will submit a repayment plan to the bankruptcy court. This plan, which typically lasts for 3 to 5 years, will involve the debtor making regular payments to a bankruptcy trustee, who will then distribute the payment amongst creditors. This payment amount is based upon the debtor's disposable income. This repayment plan can include past due mortgage payments and penalties, and as long as the debtor remains current on these payments and future mortgage payments, he or she may be able to keep the property.
This is a brief overview of how Chapter 13 bankruptcy may affect foreclosure proceedings. Every case is different, and certain factors may affect a debtor's ability to save his or her home. That is why you may find it helpful to consult with a professional. A lawyer who is experienced in handling Chapter 13 bankruptcy proceedings can offer insight as to how your home may be affected if you file. You can also get information about the particular advantages and disadvantages of Chapter 13, such as its ability to protect co-signers or its affects on your credit score. These are all issues that you may want to take into account before making a decision.
Turn on the news nowadays and what you hear is foreclosure, foreclosure, And more foreclosure. The banks, The US Senate, Congress, President Obama and others have Come to the conclusion that we have got to end this downward spiral in foreclosures And help families keep their homes or else refinance. Because of the meltdown in the Financial system and falling house values lenders are looking for solutions to this problem .The most successful method used to combat this Is a loan modification.
How do you make sure you fill everything out and do all the required things so that the clerk accepts your file? Find someone else who did it. If you could just see how someone else did it -- every single detailed step from point A to Z, wouldn't that give you confidence that you could do it on your own too? Then, when you ask yourself how to save my house from foreclosure, your answer can be simple. "I did it myself."
At this time borrowers can get modifications or freezes from their lender for Unaffordable rate adjustments on variable rate mortgages. The earlier The homeowner addresses the issue, the better the likelihood are of negotiating A fixed rate and a payment that is controllable.A key part that is necessary in each loan modification is the existence Of a financial hardship for the borrower. The hardship can be temporary In nature or permanent, but the borrower has got to be able to prove the hardship.
The most effective method is to use a forensic loan audit along with the Use of personal hardship. A Forensic Loan Audit is audit of the loan and it's terms.The audit's#1 goal is to determine Whether there were violations of federal and state law. If these violations Are found, then the client's file has added strength during the loan Modification process. Many folks to have taken control of their mortgage Situation by taking advantage of the loan modification.
Why is this important?Because, if your bank tells you you are in foreclosure, and you haven't yet received notice of Trustee Sale or notice of Sheriff's Sale, there is still time for a loan modification company to intercede on your behalf.They will have a team of dedicated attorneys who will negotiate with the bank or lender to achieve a substantial reduction in interest rate (and maybe loan principal) on your mortgage, to reduce the monthly payment to a level which you can afford on an ongoing basis. To save your home, no less.(If any loan modification company approaches you who do not have their own dedicated attorneys, walk away.)
Loan modification is often times an alternative to foreclosure and the recommended first step to short sale. Loan modification is the process of revisiting the original lender, explaining your current financial situation and simply asking for help. There are different options that the lender may suggest. One such option may be interest only payments for a period of time on the current loan where the principle is collected on the back end of the loan. Interest only modification is popular and cuts down the immediate monthly payment. A loan modification is intended to last a set amount of time and designed to change the monthly payment into an affordable rate.A trusted realtor that is experienced as a professional, certified negotiator and understands your situation can sometimes negotiate with your lending institution on your behalf. This agent should understand the entire short sale and loan modification process. Time is of the essence in these sensitive matters. You will literally be one step ahead of foreclosure. Be patient and let your real estate agent work for you.
Filing for bankruptcy is one way that foreclosure can be halted or even avoided entirely. When a person files a bankruptcy petition, this places what is called an "automatic stay" on all debt collection proceedings against the petitioner. This includes foreclosure. In a Chapter 7 filing, this may give a debtor time to figure out how to sell or surrender the home by way of a deed in lieu of foreclosure or a short sale. In a Chapter 13 filing, the automatic stay may not only buy the homeowner time to determine what to do, but past due mortgage payments and penalties may actually be included in the homeowner's repayment plan - enabling him or her to actually save the home and avoid foreclosure.
Chapter 13 bankruptcy is unique in that it is a reorganization of debt. A borrower who seeks bankruptcy protection under Chapter 13 of the U.S. Bankruptcy Code will submit a repayment plan to the bankruptcy court. This plan, which typically lasts for 3 to 5 years, will involve the debtor making regular payments to a bankruptcy trustee, who will then distribute the payment amongst creditors. This payment amount is based upon the debtor's disposable income. This repayment plan can include past due mortgage payments and penalties, and as long as the debtor remains current on these payments and future mortgage payments, he or she may be able to keep the property.
This is a brief overview of how Chapter 13 bankruptcy may affect foreclosure proceedings. Every case is different, and certain factors may affect a debtor's ability to save his or her home. That is why you may find it helpful to consult with a professional. A lawyer who is experienced in handling Chapter 13 bankruptcy proceedings can offer insight as to how your home may be affected if you file. You can also get information about the particular advantages and disadvantages of Chapter 13, such as its ability to protect co-signers or its affects on your credit score. These are all issues that you may want to take into account before making a decision.
Turn on the news nowadays and what you hear is foreclosure, foreclosure, And more foreclosure. The banks, The US Senate, Congress, President Obama and others have Come to the conclusion that we have got to end this downward spiral in foreclosures And help families keep their homes or else refinance. Because of the meltdown in the Financial system and falling house values lenders are looking for solutions to this problem .The most successful method used to combat this Is a loan modification.
How do you make sure you fill everything out and do all the required things so that the clerk accepts your file? Find someone else who did it. If you could just see how someone else did it -- every single detailed step from point A to Z, wouldn't that give you confidence that you could do it on your own too? Then, when you ask yourself how to save my house from foreclosure, your answer can be simple. "I did it myself."
At this time borrowers can get modifications or freezes from their lender for Unaffordable rate adjustments on variable rate mortgages. The earlier The homeowner addresses the issue, the better the likelihood are of negotiating A fixed rate and a payment that is controllable.A key part that is necessary in each loan modification is the existence Of a financial hardship for the borrower. The hardship can be temporary In nature or permanent, but the borrower has got to be able to prove the hardship.
The most effective method is to use a forensic loan audit along with the Use of personal hardship. A Forensic Loan Audit is audit of the loan and it's terms.The audit's#1 goal is to determine Whether there were violations of federal and state law. If these violations Are found, then the client's file has added strength during the loan Modification process. Many folks to have taken control of their mortgage Situation by taking advantage of the loan modification.
Why is this important?Because, if your bank tells you you are in foreclosure, and you haven't yet received notice of Trustee Sale or notice of Sheriff's Sale, there is still time for a loan modification company to intercede on your behalf.They will have a team of dedicated attorneys who will negotiate with the bank or lender to achieve a substantial reduction in interest rate (and maybe loan principal) on your mortgage, to reduce the monthly payment to a level which you can afford on an ongoing basis. To save your home, no less.(If any loan modification company approaches you who do not have their own dedicated attorneys, walk away.)
Loan modification is often times an alternative to foreclosure and the recommended first step to short sale. Loan modification is the process of revisiting the original lender, explaining your current financial situation and simply asking for help. There are different options that the lender may suggest. One such option may be interest only payments for a period of time on the current loan where the principle is collected on the back end of the loan. Interest only modification is popular and cuts down the immediate monthly payment. A loan modification is intended to last a set amount of time and designed to change the monthly payment into an affordable rate.A trusted realtor that is experienced as a professional, certified negotiator and understands your situation can sometimes negotiate with your lending institution on your behalf. This agent should understand the entire short sale and loan modification process. Time is of the essence in these sensitive matters. You will literally be one step ahead of foreclosure. Be patient and let your real estate agent work for you.
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