Avoid Foreclosure Now!

Bankruptcy to Avoid Foreclosure

2010-06-27T14:06:00.000-07:00

Chapter 13 Bankruptcy allows homeowners that have fallen behind on their mortgage payments with the need to stop foreclosure to reorganize their finances by eliminating or reducing unsecured debt, as well as, the preservation of both real estate holdings and vehicles.

1. As soon as an attorney files Chapter 13 bankruptcy on the borrower's behalf, an "automatic stay" goes into effect.

2. This stay will stop all foreclosure proceedings on the borrowers home by the lender.

3. While in Chapter 13 bankruptcy to stop foreclosure, the lender cannot contact you in regard to your pre-filing mortgage arrears (the amount you are behind on the mortgage).

4. In most foreclosure cases, you can have up to 60 months (or five years) to cure the delinquency in your mortgage payments. This is set up through the bankruptcy 'plan'.

Disadvantages of a Bankruptcy:

o It is critical to make scheduled bankruptcy plan payments and keep the 'current' mortgage payments up to date. If a mortgage payment is missed after the Chapter 13 is filed, the lender can ask the bankruptcy court to lift the protection of the bankruptcy code. The Lender can also attempt to set aside the automatic stay and pursue foreclosure if you are not in compliance with the terms of your Chapter 13 bankruptcy repayment plan.

o If your bankruptcy plan is dismissed, the lender will immediately start where they left off in foreclosing against your home.

o The attorney must file the bankruptcy petition in time to stop the foreclosure. Borrowers should not wait until the last minute to investigate this option. The borrower must work closely with the attorney to prepare a bankruptcy plan, which must then be filed and communicated (with file number) to the lender, previous to the foreclosure.

o The homeowner can ONLY file a Chapter 13 only if they are employed or have a steady source of income. For the court to approve the Chapter 13 bankruptcy, the homeowner must have enough income to make the Chapter 13 bankruptcy plan payments, as well as all current mortgage payments that come due after you file for Chapter 13 bankruptcy.

Advantages of a Bankruptcy 13:

o Chapter 13 plan payments are fixed so that the homeowner can meet all the living expenses first and then pay any additional income to creditors. An experienced consumer bankruptcy attorney can help the homeowner create a repayment plan that works for borrower and the lender.

o Chapter 13 bankruptcy can be an affordable solution to stop foreclosure for many homeowners. The cost of Chapter 13 bankruptcy may even be less than the costs to refinance or take out a second mortgage, which usually involves significant points, fees and closing costs, as well as a higher interest rate on the new loan.

Bankruptcy Example:
David is a real estate investor that owned 10 duplexes. David managed the properties on the weekends and worked full time during the weekdays. One day, on his way to work, David rear ended by a truck and was injured badly, and did not receive a paycheck for 2 months. In the meantime, 3 of his tenants moved out and he suffered a huge loss of rental income. David recuperated but with a $120,000 hospital bill, over $67,000 in credit card bills and with mortgages about to foreclose, David decided to fill for Bankruptcy 13. The Bankruptcy 13 stopped "stayed" the foreclosure process. David's hospital and credit card bills were wiped away and the outstanding mortgage payments were put into a plan to pay off within 5 years. Although the bankruptcy will be on David's credit report for 7 years, he no longer has the credit card and hospital debt to pay.

K. Patrice Williams has a BA in Economics as well as a law degree. She has successfully managed both residential and commercial multi-million dollar income producing assets and budgets for more than 10 years. As a 1st year law student, Patrice established a real estate development and consulting business and acquired over 30 rental properties. As the housing market values decreased- like millions of other Americans-her properties were negatively impacted by shifting ARM's, combined by a sluggish economy. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: "6 Simple Steps to Avoid Foreclosure".http://www.avoidforeclosuremanual.com

Loan Modification to Avoid Foreclosure

2010-06-04T07:41:00.000-07:00

There are many legal techniques to Avoid Foreclosure. A loan modification is a written agreement between the borrower and the lender that permanently changes one or more of the original terms of your note to make the payments more affordable. A loan modification can be an effective legal strategy that will help you save your home from foreclosure.

1. The borrowers interest rate and/or term of loan is altered extending the numbers of years that must be repaid on the loan, in other words, the mortgage note itself is changed.

2. Common loan modifications include adding missed payments to the existing loan balance or making an adjustable-rate mortgage into a fixed-rate mortgage.

Disadvantages of a Loan Modification:

- There are lenders that will only work with borrowers that are 60-90 days behind, only giving the borrower a short window to negotiate a work out option. Once the mortgage is in default, the borrowers credit takes a hit and limits the borrowers options.

Loan Modification Example:

The Truth About the Foreclosure Mortgage

2010-03-08T06:46:00.000-08:00

The foreclosure process for most lenders have set time line or schedule, so the longer you wait the fewer options you'll have:

1. Understand the Foreclosure Prevention techniques

2. Ask to speak to the Loss Mitigation Department

3. Be prepared to review your prepared Balance Sheet with the lender

4. Create your a mortgage lender correspondence log, to track your lender conversations

5. When speaking to the lender, ask about all of your options and document everything

6. If you don't get all the answers you need, or the information seems incomplete, call the lender back, you will get another representative on the phone. Sometimes the representative you are speaking to is new, having a bad day...or just not knowledgeable.

7. Follow up regularly with your lender. Don't wait until the lender calls you...call them once a week...after all, it's your house you are trying to save.

8. Open all of your mail, return all of the lenders calls.

9. Finally, be ready to wait on hold for a long period of time. Its not a good idea to call on your cell phone to rap up your minutes, charge your phone in advance and be ready to hang on the line for a long period of time.

2009-07-31T15:18:00.001-07:00

Foreclosure Company Scams

2009-07-28T05:07:00.001-07:00

I spoke to a friend that I had lost touch with, yesterday, and she told me that she just spent $1,500 with a Foreclosure Company that guaranteed that they would save her home from foreclosure. Whats disheartening is that she hasn't heard from them in over a month and they don't employ any techniques that are different than I teach in my $19.99 book. What's worse that spending $1,500 that you could have put toward your loan modification? Giving up control of the communication to your lender when you are in a time sensitive process as important as the Foreclosure Timetable.

If you have given your hard earned money to a Foreclosure Company, at very least, call the bank right away to see where your process is. The lender will let you know if they have received all the paperwork is (example: is the loan modification in process). Of course, you don't know what loan modification process I'm talking about unless you spring another $19.99 for my book...but its worth the price.

6 Simple Steps to Avoid Foreclosure
www.avoidforeclosuremanual.com
$19.99

www.kpatricewilliams.com

2009-07-23T09:15:00.000-07:00

K. Patrice Williams, the author of 6 Simple Steps to Avoid Foreclosure and 6 Simple Steps to Credit Repair, can be booked for training and speaking engagements at http://www.kpatricewilliams.com

Banks are Accepting Short Sales

2009-06-09T21:15:00.000-07:00

Great news! I just came back from Real Property Retreat in Tahoe (hundreds of Real Estate Attorneys, Law School Graduates and some Law Students attended), and the great news is that real estate attorneys are reporting that lenders are finally started to accept thier clients short sale offers.

It seems the lenders are finally getting the picture. Short sales are a great tool for borrowers in danger of losing thier homes to foreclosure and for the lenders as well.

Wondering what a short sale is: Short Sale. If you can sell your house but the sale proceeds are less than the total amount you owe on your mortgage loan, the lender may agree to a short sale payoff or "short sale" and write off the portion of the borrower's mortgage that exceeds the net proceeds from the sale. When a borrower receives a short sale offer, the borrower should contact the lender immediately. The lender normally takes them a month or two to consider the short sale settlement.

Patrice

6 Simple Steps to Avoid Foreclosure

2009-06-09T17:51:00.000-07:00

6 Simple Steps to Avoid Foreclosure has been revised for 2009, to include government related programs designed to help borrowers keep thier home! http://www.avoidforeclosuremanual.com

Audio version to be released in July 2009.

Best Regards, Patrice

The Truth About the Foreclosure

2008-07-29T21:59:00.000-07:00

The single biggest mistake borrowers make when they fall behind on their mortgage is not contacting their lender. As soon as you realize you have a problem, you've got to make that call. "The sooner the lender is approached, the better," recently said a spokesperson for Washington Mutual. "Even after one receives a default notice, one should contact the lender and open up discussions."

The foreclosure process for most lenders have set time line or schedule, so the longer you wait the fewer options you'll have.
1. Understand the Foreclosure Prevention techniques
2. Ask to speak to the Loss Mitigation Department
3. Be prepared to review your prepared Balance Sheet with the lender
4. Create your a mortgage lender correspondence log, to track your lender conversations
5. When speaking to the lender, ask about all of your options and document everything
6. If you don't get all the answers you need, or the information seems incomplete, call the lender back, you will get another representative on the phone. Sometimes the representative you are speaking to is new, having a bad day...or just not knowledgeable.
7. Follow up regularly with your lender. Don't wait until the lender calls you...call them once a week...after all, it's your house you are trying to save.
8. Open all of your mail, return all of the lenders calls.

Finally, be ready to wait on hold for a long period of time. Its not a good idea to call on your cell phone to rap up your minutes, charge your phone in advance and be ready to hang on the line for a long period of time.

Save Your Credit and Avoid Foreclosure

2008-07-29T21:04:00.000-07:00

Lenders don´t want to foreclose. If you can´t make your mortgage payments, even if you owe more than your house is worth, they´re often willing to work with you. When you call the lender, ask to speak to the "loss mitigation" department.

Calm your nerves and read the following tips before calling:
1. See if your monthly statement contains the phone number to the lender's loss mitigation department. If not, call the customer service number and ask for that department. At most lenders, the loss mitigation department helps borrowers determine which workout option they qualify for. Some lenders have their collections departments advise borrowers on workout options, borrowers may be sent to their collections department.

2. Be ready to wait on hold for a long period of time. Its not a good idea to call on your cell phone to rap up your minutes, charge your phone in advance and be ready to hang on the line for a long period of time.

3. Some representatives in the loss mitigation department are cranky, mean, over worked and not trained. If you are being treated badly or if the information that you are being told doesn't sound or seem correct, remain calm and polite, get as much information as possible, hang up...and then call back.

4. Share all details about your financial situation with your lender.
Your lender will ask a series of questions to assess your financial situation. Some lenders, like Wells Fargo Home Mortgage, have specialists with both the training and technology to pre-qualify a caller for a workout option right over the phone. Other lenders do not have this technology and will send you a "work out package" to complete and send back to them.

By preparing yourself in advance, and having the financial documents including income and expense numbers in front of you when you make the call, you might be able to get a resolution within minutes. The lender will probably ask you to fill out similar documents that describe your financial situation. They will review and analyze the documents before offering a solution to bring your loan up-to-date. So organize your bills, statements, and anything else that will help give an accurate picture of your current financial status.

- An explanation of your current financial circumstances.
- Details about your current income, including pay stubs, statements regarding unemployment, disability, social security, retirement, pubic aid, or and other similar documentation.
- A list of your household expenses.
- An explanation of what occurred to put you in this financial circumstance. Otherwise referred to, as your hardship.

Hardship Letters - A Key to a Successful Loan Modification

2008-07-22T19:03:00.000-07:00

The following are the lenders qualifications to modify your loan. Most borrowers will meet these requirements. Keep them in your mind, when speaking to the lender.

o Commitment to the Lender
o Commitment to the house
o Ability to pay (the most important requirement)

A great hardship letter must be included in your loan modification package to the lender, before the lender will even consider stopping your foreclosure. The hardship letter must include the loan number, primary cause of default and a detailed summary of what caused the hardship that allowed you to become defaulted in your mortgage, and your current ability to pay the mortgage.

An example of all of the elements needed in a compelling Hardship letter includes:

Loan No. _______________

HARDSHIP LETTER:

What is the primary cause of your default? (Check all of those that apply)

[ ] Death/Illness of Mortgagor [ ] Death in Family [ ] Marital Difficulties [ ] Property Problems [ ] Reduction of Income [ ] Excessive Obligations [ ] Employment Transfer [ ] Unemployment [ ] Inability to Rent [ ] Inability to Sell [ ] Military Service [ ] Business Failure [ ] Reduction of Income [ ] Fraud [ ] Payment Adjustment [ ] Payment Dispute [ ] Other ________________________________________________
Please take a few minutes to briefly state below what hardship or difficulties have occurred that caused you to default on your mortgage. If a series of events brought about this financial crisis then begin with the first event and explain how this series of events combined to create the default. Be aware that without fully understanding your hardship, the lender may not be able to help you.

Where possible, please provide support for the hardship (i.e., unemployment paperwork, separation agreement). Should you need more space to write, please attach additional pages. It is important that this letter convey what caused you to fall behind on your mortgage payments.

K. Patrice Williams has a BA in Economics as well as a law degree. Patrice has researched and personally implemented almost all of the pre-foreclosure techniques detailed in the book: "6 Simple Steps to Avoid Foreclosure". http://www.avoidforeclosuremanual.com