January 26, 2012
With the subprime implosion in full force recently, millions of American homeowners find themselves defaulting on loans and facing the nightmare of foreclosure.
As a result of the disadvantages foreclosure offers to both the homeowner and lender, more and more Americans are looking to several other viable options to steer away from the drawn out and at times, risky process which foreclosure offers to both parties. Owner and CEO of I Short Sale, Inc., Eli Tene, suggests four alternatives to foreclosure which can save a homeowner’s credit and the lender’s time and money.
One of the first options a homeowner has to avoid foreclosure is a Loan Modification, or Loan Restructuring, which is simply a permanent change in one or more of the terms of the mortgage loan. For example, if you are unable to make payments at a given rate, a modification could be negotiated with your lender to extend the loan period. If a homeowner runs into temporary financial hardship, the next option is to negotiate for a Loan Forbearance, which reduces or delays payments for a short amount of time with the understanding that the account will eventually be brought to a current status.
While these two options do serve as practical alternatives to foreclosure, they still leave homeowners with the same burden of debt. Homeowners do have the option of offering their lender the deed of their home in lieu of their mortgage debt (Deed in Lieu). However, the homeowner’s credit still may be harmfully affected by negative reports and lenders will rarely accept an offer that would only add to their REO Portfolio, which requires time and money to manage.
The more favorable option, according to real estate expert, Eli Tene, which considerably benefits both the homeowner and lender, is a Short Sale. Short selling is an agreement wherein the lender allows for the homeowner to sell the home at a price lower than the mortgage debt amount. The lender will then take the proceeds from the sale as a settlement for the mortgage debt. Short selling becomes a beneficial alternative when the homeowner’s mortgage debt is higher than the property’s value.
Tene indicates that, “Not only is the homeowner’s credit protected from negative reports when engaging in a Short Sale but, he or she is released entirely from the debt associated with a defaulted loan. What can be better than getting out clean and not having to deal with terrible credit. The lender also benefits by not having to deal with the time and costs of repossessing the home. It’s a win-win situation!”
Whether a Short Sale or any one of the other existing alternatives is good for a homeowner depends on the surrounding circumstances of each situation. Before revealing any information to a lender, Tene advises to contact a specialist first, and at the appropriate time. “Regardless of the homeowner’s options, acting sooner than later is crucial. Sinking deeper and deeper into delinquency can lower the chances of successfully carrying out one of these alternatives to foreclosure.”
###
Posted On: Woodland Hills, CA July 1, 2007
Filed under deed in lieu of foreclosure by 
December 7, 2011
Deed In Lieu as an option for homeowner experiencing a severe financial hardship that is causing them to miss their mortgage payments. Part 2 of a 7 part series brought to you by Short Sale Assistance Group and Ascendant Realty on what the options are for people facing foreclosure on either their home or investment property. We interivewed one of the top financial planners and credit repair professional in Minnesota in April 2009 about how these options are working in todays economy.
Filed under Short Sale by
Americas Watchdog & its Homeowners Consumer Center are offering important tips for all US homeowners to survive the mortgage meltdown and other very useful information about being a smart homeowner in 2008. According to the group, “the worst is yet to come so homeowners need to be very smart with respect to the choices they make in 2008″.
Americas Watchdog and its Homeowners Consumer Center are the premier consumer advocates for homeowners in the United States. The Homeowners Consumer Center is one of the best known homeowners advice, or homeowners information resources in the United States. The Homeowner Consumer Center has just released its top seven list for smart homeowners wishing to survive the 2008 real estate disaster, along with some hard cold truths about the future of the US real estate markets. As follow:
1. Home prices will continue to fall in the US. Americas Watchdog’s National Mortgage Complaint Center expects a 10% decrease in 2008 and at least a 10% decrease in 2009. According to the Federal Reserve, currently 1 out of 7 US homeowners owes more on their home than it is worth. Americas Watchdog expects that by mid 2009 1 out of 5 US homeowners will owe more on their home than it is worth. This is because with 2 million expected foreclosures in 2008, banks are slashing home prices by as much as 40%, to get rid of the property. Americas Watchdog says, “dramatic sales price reductions by banks has the affect of creating new comparable home sales data for a neighborhood, and by doing so the value of all homes in a neighborhood is decreased. The National Mortgage Complaint Center’s web site is located at Http://NationalMortgageComplaintCenter.Com
2. Potential homeowners or real estate investors should be extremely wary of real estate auctions or foreclosure events according to the Homeowners Consumer Center. The group says, “why buy a house in 2008 that will be worth 15% less in late 2009″.
3. If a homeowner is currently more than 10% upside down on the value of their home related to their loan amount, they should consider contacting their attorney about going deed in lieu of foreclosure (simply walking away from the home), or doing a short sale (where the bank accepts whatever price the borrower can get for the house). According to the National Mortgage complaint center, why continue to make payments on a mortgage, that is greater than the homes value?”
4. If a homeowner intends to stay in their home, they should gather recent home sales information in their neighborhood, and appeal their county property taxes. US real estate values are down at least 15% to 25% in almost every major US real estate market. Why pay a higher property tax bill than required?
5. All US homeowners who intend to stay in their homes need to update their homeowners insurance policy. Six months ago the Homeowners Consumer Center completed a study where it was discovered that less than 5% of all US homeowners have updated their homeowners insurance policy. Americas Watchdog used to be based in New Orleans, before, during and after Hurricane Katrina. The group is begging all US homeowners to do the following:
- If a homeowner lives in an area that could flood or be impacted by a hurricane, get flood insurance & flood insurance contents coverage (All states along the Atlantic & Gulf Coast)
- If a homeowner has not updated their homeowners insurance in at least two years, they should invite their insurance agent to come by their home & make a list that includes all home electronics, jewelry, home improvements, etc. Have the agent verify in writing the additional items covered.
- All homeowners insurance policies should include loss of use insurance, in the event the home floods, or has a fire. Loss of use will provide rental assistance to a homeowner if their home is undergoing repair work rendering it unsafe to occupy.
6. Americas Watchdog is still demanding that Congress do away with the worst case of mortgage fraud in US history, where banks and mortgage bankers are allowed to get a huge kick back called a “yield spread premium” with no disclosure to the consumer. According to the group, “mortgage brokers are required to disclose this kick back, but banks and mortgage bankers have no such requirement even they get this huge kick back too”. Americas Watchdog estimates that 50 million US homeowners pay a higher monthly mortgage payment than they should have received, because a mortgage banker or bank received a huge hidden kickback for increasing the borrowers interest rate/monthly mortgage payment, with no requirement to disclose it to a unsuspecting consumer. All US homeowners should write their Congress Person & US Senator & demand this double standard be changed. All US Presidential candidates should have to explain this double standard to the voters.
7. Americas Watchdog’s Homeowners Consumer Center is encouraging all US homeowners to review their free mortgage guide. The 20 page guide was designed to assist all US homeowners understand the mortgage process and the tricks of banks and mortgage lenders related to mortgages. The free mortgage guide is located on the Homeowners Consumer Center’s resource page. The Homeowners Consumer Centers web site is located at Http://HomeownersConsumerCenter.Com
Americas Watchdog thinks this is vital information for all US homeowners or potential homeowners. The group asks that readers of this press release forward it onto friends, co-workers and family members.
Americas Watchdog & its Homeowner Consumer Center are all about truthful Homeowners advice, consumer protection and corporate fair play.
###
Posted On: Washington, DC April 2, 2008
Filed under deed in lieu of foreclosure by
Call 888-566-8222 or www.MyOneStop.net or Text “PLAN” to 82257 Loan Modification- Chris- A loan modification is a process where the original terms of a mortgage are modified, giving the homeowner new payment terms that they can handle. It will usually involve a lower interest rate, extension of the term, adding missed payments to the end of the loan, reduction in principle, or a combination of these. Some families find success in modifying their loan, but you must meet all financial, employment and hardship requirements in order to qualify. Deed in Lieu of Foreclosure- Deeding your house title to the lender in exchange for their agreement not to foreclose is called a deed in lieu of foreclosure. You negotiate with the lender to accept the deed and they cancel the foreclosure action. It is not without negative consequence to your credit, but If a short sale or loan modification is not an option, a deed in lieu may be an answer. One difficulty in negotiating a deed in lieu settlement is that lenders do not want the property back because it creates liability issues for them and additional costs. If you are able to negotiate a deed in lieu, be aware of the possible negative consequences. Walk-Away Foreclosure- Foreclosure is rarely the best option for homeowners. In a foreclosure, the homeowner stops making payments and the lender takes possession of the house. A foreclosure creates additional expense and liability for the lender. You may still owe the debt even after a …
Filed under deed in lieu of foreclosure by
August 18, 2008
We Have Creative Solutions to a Bad Wrongful Foreclosure Situation – Which Many Foreclosures are and You Just Don’t Know It
Up to 80% of the time traditional or typical ways of stopping foreclosure do not work at all or these ways are very temporary solutions that buy the homeowner only a little bit of time before the lender eventually forecloses on the homeowner anyway. Click Here For More Information….
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
Foreclosure HelpThe amount of foreclosed homes on the market is on the increase today! However, you don’t have to let your home join the foreclosed home statistics. Chat Today! Click Here |
|---|
-
