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SPRING MONTHLY REAL ESTATE REPORT
"Facing Foreclosure We Can Help"
 Alisa Smith IAARE Marketing Rep Real Estate/Mortgage Consultant Direct Line: (404) 573-8353 alisasmith@yahoo.com | The economic and financial climate has placed a major hardship upon Americans across the country and companies around the world. From extreme plunges in stock market prices to unexpected loss of mass employment, homeowners are experiencing the negative effects of corporate fraud, mismanagement of funds, and financial bailout of banks and financial institutions. Due to this collapse of financial integrity, companies are downsizing, closing their doors, and sending innocent employees home without pay. As a result, homeowners are unable to pay their mortgages. In addition, many are having to sell their homes at monthly foreclosure auctions in state counties. Unfortunately, these homeowners face a tough challenge refinancing the loan due to late payments. Please be aware that if you have already experiened a foreclosure on your property, you may be entitled to a refund from the proceeds of the sale. We are booking Speaking Engagements for meetings or upcoming events. You may be facing financial challenges or facing foreclosure. Below are several options that may be of interest or appropriate to consider with your Lender at this time: |
"CREDIT REPAIR"
This is the simplest way to get started with a lender or creditor. First, admit to be a "slow payer" of bills. Secondly, face the problem by looking at each delinquent account and balance due. Thirdly, make that phone call to your lender. It is good etiquette to write a letter, admit that you have lates and promise to pay the bill on a payment schedule. Sometimes, the lender will reduce the balance for you. However, many people will use a Mortgage Consultant or Financial Advisor to negotiate terms with the Lender. Although this process can be done for FREE with Equifax, Transunion and Experian, we have trained negotiators to assist with this process. You need to know the rules, scripts and protocol to accomplish this task effectively to save time and money.
"INFORMAL FOREBEARANCE AGREEMENT"
This is simply a verbal repayment plan used when the past due amount owed has not exceeded three months. The lender may require you to make a full payment plus 1/4 of a payment up to 1/2 of a payment until the loan is current. Contact the lender's Collection Department.
"FORMAL FOREBEARANCE AGREEMENT"
This is similar to the above but it is a written plan developed by the lender and requires you to make a payment plus a partial payment to make up the delinquent amount owed. This plan cannot exceed 18 months. Contact the lender's Collection Department.
"SPECIAL FOREBEARANCE AGREEMENT"
This is a written plan to reinstate a loan which has been delinquent for a minimum 62 days or more. The total amount delinquent may not exceed 12 months including principle, interest, taxes and insurance (PITI). Late fees generally will not be incurred as long as you abide by the terms of the agreement. Contact the lender's Collection Department.
"LOAN MODIFICATION FROM ARM TO FIXED"
Loan modification is one way to keep your home out of foreclosure. Loan modification is a permanent change in one or more of the terms of a borrower's loan. It allows a loan to be reinstated and results in a payment that the borrower can afford. A lender may consider reinstating if the loan meets the following criteria:
1. Loan is 2 to 3 months delinquent;
2. A minimum of 12 months has elapsed since the loan closing;
3. Loan is not in foreclosure;
4. Owner is committed to occupying the property as their primary residence;
5. Borrower has sufficient income to handle the modified mortgage;
6. Borrower has experienced a verifiable increase in living expenses or loss of income;
7. Borrower does not have another mortgage.
Loan modification options may include 1) interest rate adjustment, 2) adding delinquent amount owed into the loan balance, 3) changing the mortgage payment, 4) or extending the loan repayment term. Contact the lender Loss Mitigation Dept.
"REQUEST A PARTIAL CLAIM"
In a partial claim, the delinquency is cured when the lender agrees to loan a Borrower the funds needed to become current on their loan. A partial claim does not carry interest and does not have to be paid back until the first mortgage is paid in full or no longer owns the property. Below are 8 Qualifications for a Partial Claim:
1. Four payments must be due at the time the Partial Claim not is executed;
2. Mortgage loan cannot be in foreclosure;
3. Partial Claim may not be used to reinstate a loan prior to a sale;
4. Property must be owner-occupied;
5. Defaults must be due to a verifiable loss of income or an increase in living expenses;
6. Borrower must have overcome the cause of the default;
7. Credit report and income verification is required;
8. Borrower must have income to resume monthly mortgage payments.
"PRE-FORECLOSURE SALE" (SHORT SALE)
A Pre-foreclosure Sale allows a borrower in default to sell their property, and use the sale proceeds to payoff the mortgage loan (in full), even if the proceeds are less than the amount owed. This option prevents foreclosure and prevents the Lender from incurring fees involved in foreclosure (legal, selling the property, etc). It is very important to contact your lender and get approval before attempting to advertise a Pre-Foreclosure Sale Short Sale, and will not be accepted without prior approval of the Lender. Here are 5 Borrower qualifications for a Short Sale/Pre-Foreclosure Sale are:
1. Loan must be 31 or more day's delinquent;
2. Default must be due to a verifable increase in living expenses or decrease in income;
3. Property cannot be abandoned;
4. Property must be occupied as the primary residence (lender may make exceptions);
5. Borrower cannot have the resources needed to get current and must fill out a Financial Statement for the lender. In any instance, a foreclosure must be inevitable. Contact the lender's Loss Mitigation Department.
"DEED IN LIEU OF FORECLOSURE"
The Borrower voluntarily gives ownership and collateral of the property back to their Lender in exchange for a release from the mortgage. The property is deeded to the Lender, and the Borrower has no further legal claims or obligations to the property. This option does appear on your credit history. However, it prevents unnecessary expenses associated with foreclosure, i.e., legal fees, etc. Borrower qualifications include the following:
1. Loan must be 31 days delinquent when Deed-in-Lieu is recorded and does not qualify for any other options;
2. Unsuccessful attempts at selling the property is proven;
3. No other liens can be attached to the property.
Contact the lender's Loss Mitigation Department.
"CHAPTER 13 BANKRUPTCY"
This allows a borrower to restructure credit obligations through the state's legal system. The borrower provides a plan for payment of regular monthly payments, repayment of back payments, and a timeframe for doing so. Once the plan is presented to the court, if approved, paid funds are sent to a court appointed Trustee to disburse funds to the lender and other creditors. This will appear on credit report of 7 years. In most instances, you keep your home, and creditors will stop harrassing phone calls. Legal counsel is recommended.
"CHAPTER 7 BANKRUPTCY"
This allows a borrower to be free from all credit obligations including the mortgage. However, if the mortgage on the property is behind, the property is surrendered to the Lender. Legal counsel is recommended.
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If you have questions about information provided in this Foreclosure Report, please contact our Marketing Representative by email below.
