I’ve been on medical leave but you can’t keep a good woman down so I’M BACK!!! I’ve also resumed writing my 1st Ebook and book entitled, “The Preforeclosure Bible: Successful Proven Techniques On How To Stop A Foreclosure (Inside Secrets Your Lender Won’t Tell You!” Just wanted to leave you a few tips on here and I will add more as time permits.
1. Catching up on your arrears – That will, obviously, stop your foreclosure. However, it’s unrealistic and a joke in my professional opinion. Your property is more than likely “underwater” as all of the rest across the country. It’s just a matter of how much value it has lost so why would you want to catch up or even continue to pay on a property that does not have the value your original mortgage was secured for it? Well, you wouldn’t because it’s like throwing money into the fireplace. It just doesn’t make any sense to do so but your lender and their attorneys will ask you for it. Therefore, I will continue on to the next tip.
2. Special Forebearance – Is a temporary measure whereas your lender can suspend your payments for awhile to give you time to recover from your distress ie) 3-6 months is the norm. Then they can put your arrears on the end of your loan. My motto is, “always ask….all they can do is say, “no.” It’s a motto my mother taught us as children, by example, and I promise there was rarely, if ever, that she didn’t get what she asked for no matter what it was in life! Generally, if you can prove that your distress is temporary and that you can quickly recover this would be the way to go.
3. Loan Modification – would be the next tip, if you desire to try and keep your home. First of all, it’s all contingent upon what type of loan you have as to the policy so you would want to contact your lender and ask for their Loan Modification Package. For example, if it’s an FHA and you are over 12 months in arrears that violates the FHA Loan Modification policy and you will be automatically be denied. In the Loan Modification scenario you would still have to prove to your lender that you are, in fact, capable of resuming payments on the property. A lot of times property owners have experienced a traumatic issue in their respective lives ie) death, divorce, loss of job, illness, etc. and loss partial or all of their income. Then a few months or so later they are back on their feet but just can’t catch up on the arrears.
You need to sit down and do a budget which outlines all of the income coming in for the parties on the mortgage and any others in the household that you can prove. Then itemize your debts (bills) all on a monthly basis. Do NOT include cable bills and a lot of extra’s that your lender may consider a luxury or it will hurt you! Your budget can NOT be in the negative. You need to modify it to show that you have a surplus of atleast $300-500 per month and no more. If you show too much excess funds, then they won’t modify the loan and will expect you to pay your regular monthly mortgage. Modifying it means that you are requesting your lender to lower your mortgage payments and possibly your interest rate, as well as putting ALL arrears at the end of the loan. Please do NOT fall for any lenders trick of asking you how much money you can send in to them before they will approve a loan modification.
Keep in mind that Lenders do NOT know how much money you have unless you tell them OR if your savings and/or checking account is with them. I’ve been doing this for 15+ years (saving families from foreclosure). I suggest to all of my clients to have two bank accounts. One is to show little or no money to their lender and the other is to put away all of the money they have saved up since they got back on their feet. You do NOT tell your lender about the second account. That is the account you need to survive and/or to move on should you not be able to negotiate some kind of resolution to avoid foreclosure. You do what is best for you and your family NOT for your lender! Believe me they will survive without your little money
I will add more tips asap so check back periodically “OR” if you are in distress and urgently need my assistance, please email me directly at email@example.com I will be happy to discuss your options of avoiding foreclosure and will explain my Preforeclosure Consultation Session that we can do via telephone. Thank you for your time and have a wonderful day!
Your Real Estate Guardian Angel,
Dana Harris Carter, Realtor