ACT NOW to Save Your Home
Often, a choice is made whether to eat and have electricity or pay the mortgage. If you've missed a payment or a few payments, it is still possible to save your home.
Frequently Asked Questions (click on question for answers)
What is a Mortgage?
A mortgage is a process by which a homeowner, or owner of a property, can make payments on said property without having to pay the full price upfront. When a person prepares to buy a new home, a payment schedule for the mortgage is set up, some lasting as long as 30 years. When the mortgage is paid, the homeowner owns the property free and clear. [Hide Answer]
What is Foreclosure?
When homeowners fall behind on mortgage payments, a foreclosure may occur. A foreclosure is a process in which a financial institution repossesses or sells a piece of property because of a loan default. Mortgage lenders usually consider a mortgage to be in default when payments haven't been made in three months. When a mortgage loan is in default, the mortgage lender can start the foreclosure proceedings on the property.
There are basically two types of foreclosures: judicial foreclosure and non-judicial foreclosure. About a third of the states in the nation use judicial foreclosure. This type of foreclosure involves issuing a lawsuit against the homeowner. If the homeowner does not respond to the lawsuit, the mortgage lender wins the case and the home is put up for sale in an auction. A court official presides over this auction and sells the seized house to the highest bidder. The mortgage lender also puts in a bid during the auction. This bid amount can go up to the amount owed on the home loan. If no bidder beats the mortgage lender's bid, the mortgage lender gets the title to the home. If the bidding goes higher than this bid amount, then the winning bidder is issued the deed to the house.
A non-judicial foreclosure is a foreclosure that does not involve a lawsuit. The mortgage lender issues the homeowner a notice of default and a notice of its intent to sell the homeowner's property. The homeowner has a chance to stop the sale by paying the default amount owed or by coming to an agreement with the mortgage lender. This agreement may include setting up a repayment plan and being allowed the option of delayed payments for a specified amount of time. The homeowner can also stop foreclosure by filing for Chapter 13 bankruptcy. If the homeowner fails to stop the foreclosure, the house is auctioned off in the same manner as a judicial foreclosure.
A foreclosure can also occur without a sale. In a strict foreclosure, the title of the house goes directly back to the mortgage lender without the need to go through an auction.
Once the mortgage lender has the title to the house, it can sell the house through a real estate agent. Proceeds from the sale of the house would go towards paying off the default amount of the former homeowner's mortgage loan. However, if the proceeds of the sale are not enough to cover the owed amount, a deficiency judgment is issued to the former homeowner. For example, if a home sells for $80,000 and the balance on the mortgage loan was $100,000, the former homeowner is still liable for the $20,000 difference. Deficiency judgments, as well as the foreclosure itself, could do severe damage to the homeowner's credit.
In other words, a homeowner will lose his home if it is foreclosed on by the lender.
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How Does Foreclosure Happen?
There are a number of reasons why foreclosure happens, all of which are related to a homeowner's inability to make payments on the mortgage loan. These reasons may include:
• Loss of job
• Divorce or separation
• Unplanned home or car repairs
• Filing for bankruptcy
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What are the Effects of Foreclosure?
Foreclosure means more than just losing a home. It can haunt a person for years down the road. Other problems that may result from foreclosure include:
1. Loss of equity earned in your home. The value of your home may increase each year. In many cases the combination of the equity and the increased value of your home can translate into losing thousands of dollars because of foreclosure.
2. Increased taxes. A lender who loses money from the sale of a foreclosed home must report the loss to the IRS. Subsequently, the IRS may require you to report the lender's loss as income on your next tax return and you may be required to pay taxes on it.
3. Inability to borrow money in the future. A foreclosure can destroy your credit profile almost overnight. This derogatory mark on your credit report will label you as a bad credit risk for at least 7 years. This can result in declined applications for credit, the inability to rent an apartment, limited employment opportunities, and a host of other implications that can follow you for a long time.
4. Lawsuits. The mortgage company can go after you for any damages they incurred as a result of having to foreclose on your home.
5. Loss of employment. Some employers require their employees to maintain good credit histories. Notification of a foreclosure may be grounds for dismissal or loss of a chance for advancement and better pay.
6. Loss of self-esteem and self-worth. Emotionally the stress of foreclosure can have serious effects on your well-being. The stress that foreclosure brings can lead to depression, feelings of worthlessness, lack of motivation, embarrassment around family and friends, and the list goes on.
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What can loss mitigation do?
The goal of loss mitigation is to work out an agreement according to the governing guidelines to rectify the mortgage delinquency and/or mortgage change to a more beneficial outcome for the homeowner that will stop foreclosure proceedings permanently. This allows the homeowner to stay in their home and protects their interests and credit history. [Hide Answer]
How do you stop foreclosure?
Our company specializes in resolutions of mortgage delinquencies or home foreclosure claims on behalf of you, the homeowner. We perform a detailed financial analysis and work with you to determine your best alternatives. We review your Servicer's and lender's loss mitigation policies and governing policies and your state's foreclosure law to make sure that we give you the best service within the context of your situation. By working with you and your lender we can tailor a resolution to meet your specific criteria and financial circumstance. This is done quickly and effectively because of years of helping thousands of satisfied customers. [Hide Answer]
How long do I have to act?
Time is of the essence when you are behind on house payments. Time is definitely not your friend in this situation. Each day that passes makes it that much harder to get an agreement worked out with your lender that you can live with. The home foreclosure process can take anywhere from a few weeks to months, depending on your state law and the method of foreclosure your lender chooses to use. We have encountered many homeowners who did not even know that they had already lost their house! [Hide Answer]
Should I negotiate with the lender myself?
Yes. If you are only a payment behind and you're Servicer/Lender has not hired an attorney to begin foreclosure proceedings you maybe able to negotiate a work out agreement. Just remember, don't waste a lot of time on this. Time is not on your side right now. If you don't have something worked out within 1-2 weeks, then it's obvious that your Servicer/Lender is not serious about working things out with you directly. Most homeowners will use us simply to make sure the Servicer/Lender are abiding by the governing policies that regulate the mortgage, often what happens a homeowner is rushed into and talked into a plan that they cannot do as well as being told by the Servicer/Lender there is no other options, just to find out when it is to late that they could of been represented by us and the homeowner could of gotten a more affordable plan. Most homeowners will choose representation; you will be better served by professional representation. Contact us today to begin researching the best possible solution for your particular situation. [Hide Answer]
How long does it take for you to complete the case once I fill out all of the paperwork?
Cases can be resolved in as short as a day or take up to 2 or 3 months. Time is working against you, and the sooner you apply for assistance the better. Typically it takes several weeks to complete a work out agreement and stop foreclosure proceedings. [Hide Answer]
I understand that this agency does not get paid a fee upfront, similar to when I bought or sold my home as well as when I got my mortgage?
This is correct, your mortgage company, real estate agent or your closing attorney did not get paid any fees until you were provided the services for which they were hired for and it was incorporated into a closing process.
We are a national community housing agency, and we do not get paid upfront. Any fees paid to lenders and/or their agents as well as any legitimate agency are incorporated and settled at closing of the case; after the services has been provided and those services are only those services that are recognized under various Federal Loss Mitigation Tools.
The various guarantors consistently takes appropriate enforcement actions to ensure that mortgagees (lenders/servicers) follow their governing loss mitigation requirements. Among loss mitigation tools, counseling can be effective in helping mortgagors avoid foreclosure when possible. Additionally, effective counseling minimizes the risk to the mortgage insurance funds.
The Agency counselors are professionals' comprised of:
• attorneys,
• mortgage brokers,
• Banker and Loan Officers
• real estate professionals,
• accountants,
• certified public accountants,
• other financial professionals
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When is it too late to save my home?
It is never too late until you give up. We have saved homes that are set to be auctioned the next day, but you take a huge risk by waiting. Even after the home has been sold there are options, but they involve buying your own house back from the bank and these options are expensive. The lesson is, as soon as you get behind, get help from a reputable professional. Click here today for a free eligibility assessment. [Hide Answer]
I'm currently in bankruptcy. Can you still help?
Yes, but your mortgage has to be discharged or dismissed (relief from Stay has been granted) from the bankruptcy proceedings. Our professional loss mitigation consultants can still evaluate your case and explain the best options to save your home. [Hide Answer]
I've already talked with my lender and they just want all their money. Can you still help me?
Yes. Most of our clients have experienced this kind of inflexibility from their lenders before calling us.
Saving your home is not magic No one can make your obligation disappear, but it can be made manageable. We are successful helping people in default because of our financial counseling experience and legal training. It has a lot to do with earning trust, understanding people and knowing the regulatory guidelines that govern mortgage servicing. You want someone you are comfortable with and one who has a track record of getting results. We are an agency that has helped thousands of individuals in financial distress and we don't just offer housing help; we also help with other debts that can be affected by your financial hardship. We offer debt programs to help you consolidate your debt and get it to a manageable level. We are quite qualified as we are trained by HUD, the National Veteran Legal Service Program and are members of the American Society for Loss Mitigation and Better Business Bureau. This is a very serious matter; do not expect anything less from a company. Homeowners call us for help because we are the oldest and most reputable Loss Mitigation Agency in the nation. Click here today for a free eligibility assessment. [Hide Answer]
Should I file for bankruptcy to save my house?
Chapter 13 is one of the options, but it has many disadvantages. If you declare bankruptcy, you will likely end up with BOTH a bankruptcy and a foreclosure on your credit report. We recommend you consult a reputable attorney should you think you need it. Bankruptcy should be the last resort anybody should take, and often a bankruptcy attorney is not going to know about or have full understanding of other options to save your home. [Hide Answer]
If I can no longer afford my home, can this agency still help me?
Yes, if you and your loss mitigation counselor are certain that you cannot afford your home any longer and you wish to sell, we can help you with a non-retention option (short sale payoff or a deed-in lieu of foreclosure) with your lender. [Hide Answer]
Why should we meet?
Saving your home is not magic and no one can make your obligation disappear, but it can be made manageable. We are successful at helping people in default because of our financial counseling experience and legal training. It has a lot to do with earning trust, understanding people and knowing the regulatory guidelines that govern mortgage servicing. You want someone you are comfortable with and who has a track record of getting results. We are an agency that has helped thousands of individuals in financial distress and we don't just offer housing help. We also help with other debts that are affected by your financial hardship. These debt programs can help you consolidate your debt and get it manageable. As mentioned above, our training and professional credentials are second-to-none. Why should you settle for anything less than the best available representation?
If you are in need of professional and reputable help today, you've got nothing to lose by contacting our agency or simply filling out the eligibility assessment to see what we can do to put this difficult and unfortunate financial situation behind you. [Hide Answer]
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