Let’s face it, as easy as it may seem to just walk away from a home, the haunt of a foreclosure goes on for years to come affecting credit and even employment, in some cases. Many people are not aware that foreclosure even can affect their security clearance levels and future employment. Foreclosure is certainly not the best option, particularly with the advent of HAFA and other alternatives.

Obviously, foreclosure can’t always be avoided, but knowing your options before going into “ostrich mode” would well be worth the time invested. In light of HAFA, which even provides relocation assistance money and eliminates the hovering concern of a deficiency judgment when a short payoff has been accepted, there should be no reason for distressed homeowners not to explore their options versus throwing thousands away.

One of my passions is to inform the public about their options to avoid foreclosure. I setup my Phoenix real estate “Home Rescue Network” website to do just that. Distressed homeowners who have negative equity or who are behind on their mortgage need to take the time to educate themselves. There is a comprehensive list of options to avoid foreclosure available on the site and a questionnaire to help determine eligibility for the new government programs.

With our National network of top agents around the country, we’re able to refer homeowners to the experts in their area to further educate and help them rescue their homes from the black hole of foreclosure. Homeowners or Agents who would like more information can contact me directly.

I believe HAFA will help simplify and streamline the use of short sales and the deed in lieu of foreclosure (DIL) options with the use of the top features HAFA provides including:

1. Providing financial incentives to borrowers, investors and servicers

2. Elimination of deficiency judgments by requiring servicers to release borrowers of future liability

3. The normally daunting short sale process will be standardized and streamlined by using standard processes, documents and timeframes

4. Complementing HAMP by providing workable alternatives to homeowners who are HAMP eligible

5. Financial and hardship information collected in HAMP will require no additional analysis on eligibility in HAFA

6. The homeowner will be allowed to receive pre-approved short payoff terms prior to the listing of the property

Homeowners with negative equity positions in their mortgages are at all time highs – over 11,000,000 (that’s about 24% of all properties with a mortgage) are upside down. HAFA results in providing borrowers a great option to avoid foreclosure through standardizing the process flow, minimizing the performance timelines and standardizing documentation of short sales will be anxiously awaited by me and countless others.

Learn more about Foreclosure Avoidance Options. Stop by Joe Martin’s site where you can find out all about HAFA and Avoiding Foreclosure and what your options are.

Are you clear on what your rights are?

More than 80% of mortgage contracts violate one or more lending laws-and most of them go unnoticed. But these violations can be your biggest weapon in the loan modification process. They can give you the leverage you need to negotiate with your lender and stop foreclosure. Your loan modification attorney can help you understand your rights and use them to get the results you want.

Don’t wait too long.

The foreclosure process is designed so that you have time to get back on your feet and save your home. But that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it gets to get you out of that fix. As soon as you decide you need mortgage help, call for a loan modification help and get started.

Work with your lawyer.

Your Home Loan Modification process depends largely on you and your willingness to get the information needed to the pro’s. These people can help, but you have to do your part and cooperate with your lawyer. Make sure to submit your paperwork on time, answer questions honestly, and give them a clear picture of your financial situation.

Don’t file for bankruptcy, unless you really have to.

Many people think that filing for bankruptcy can help them stop foreclosure. But data from the American Bar Association shows that it doesn’t work that way. In fact, 96% of the people who file bankruptcy end up losing their homes anyway-so they’re left with a foreclosure AND a bankruptcy on their records. In some cases, bankruptcy is still a viable option, but don’t make any decisions without getting professional advice.

Get a backup plan.

Unfortunately everyone wont qualify for a mortgage loan modification. Maybe you’ve fallen too far behind, your lender may be simply hard to work with, or maybe you don’t need it after all. In any case, it’s always good to have a Plan B. Your mortgage modification attorney can help you find the best solution.

Talk to your lawyer about a short sales if you can’t get your mortgage modified. This involves selling your home for less than its fair market value and giving the proceeds to your lender. Although you still lose your home, it’s not as damaging to your credit as foreclosure, so it’s easier to get back on your feet.

Contact a Loan Modification Specialist now to see if you are elgible to save on your mortgage.

If you are someone who has lived in and been making payments on your home for a number of years, you will probably have built up a substantial amount of equity. If that’s the case you will no doubt want to do whatever it takes to keep making those payments. Even though your home has decreased in value you have so much invested that you are hoping the housing market will eventually rebound.

Then there are those individuals who went out and bought houses in the past few years with almost no down payment and the promise of low interest rates for the first couple of years. Once the interest rates went up so did the mortgage payments. When that happened many of these people began losing their places to foreclosure.

But what about those who are still working and can afford to make their payments? There is a growing trend among some of these homeowners to just walk away, stop making payments and let their homes go into foreclosure.

The fact is that even though they can afford their mortgage payments they have come to a sobering conclusion. They realize that no matter how much cash they pour into paying down their mortgage, their homes are losing value faster than they can pay them down. They feel that it’s just not worth it to keep paying.

But everything is different when you are dealing with foreclosure that you choose to allow to happen. Before you let it happen, it’s important to seriously think about the long range consequences of your actions. That’s because the same rules won’t apply to you. So just what can you expect if you allow this kind of foreclosure to happen?

Government officials have warned that the “forgiveness” clause that is being applied to homeowners who are legitimately losing their homes to foreclosure will not be available to those homeowners who choose foreclosure even though they have the means to pay. The steps they are prepared to take, if any, to put a stop to this type of walk away foreclosures have not yet been decided upon.

There is no doubt that your credit rating will be negatively affected. It’s quite possible that the penalties may last longer or be more severe. Financial institutions are especially concerned because of the fact that if you’ve chosen to walk away from financial obligations once, what’s to stop you from doing it again at some future time.

If you have a notation on your credit report to this effect, you may have more difficulty getting financing for other major purchases. If you are able to get financing, it’s quite possible that you will pay much higher interest rates. You may not be able to even get a credit card for a long while.

You also have to wonder if banks and mortgage companies will be willing to finance mortgages for those people who have defaulted by choice in the past. How many years will this choice negatively affect you?

There is no definitive answer as to what exactly will happen. But before making the decision to walk away, carefully consider what dealing with foreclosure under these circumstances may mean for you, not just now but in the future.

Need to find out how to stop foreclosure fast? Go to getforeclosurefacts.com/ for free foreclosure information.

If you know someone who has been through foreclosure, you might already know what could happen. Did you know there are several options available when you get a notice of default? It might seem easier to just move out, but you have to think about your financial future. For instance, when you move out, will you be losing your ability to ever own another home?

Whether you’re a homeowner, a real estate agent, or an investor, you need to know all the options for someone facing foreclosure. As a homeowner, your best bet is to get enough information to make an informed decision. As someone who helps homeowners, you need to make sure they understand that information. You need to set realistic expectations for the loss of their home.

Let’s look at the deed-in-lieu option and loan modifications first.

A deed-in-lieu means that the homeowner agrees to simply hand over the property to the bank. It helps the bank make the repossession easier, but it still hurts the homeowner’s credit as if the foreclosure had actually taken place.

What about loan modifications? The government’s Home Affordable Modification Program (HAMP) promotes mortgage loan modifications as being a viable way to deal with the foreclosure crisis. Yet the current rate of success for those loans to go from trial to permanent modification is 4 percent. Using California as an example, roughly 140,000 trial loans have entered into the modification process; however, only 5,600 loans will be modified based on their current success rate (4 percent). California filed over 450,000 notices of default for 2009. Those being helped are few and far between given the current numbers.

Let’s look at some more probable options.

1) Option one: stay in the house as long as possible, using bankruptcy procedures to stall the courts until the foreclosure auction date. It doesn’t prevent the foreclosure, but it does let you stay put at the lowest cost.

2) Try to sell the house for the amount owed on the mortgage, hoping that a buyer will pay the asking price before the auction date. Obviously, it isn’t likely that someone will pay more than the home’s fair market value, so this strategy often fails.

3) The homeowner can list the property with a real estate agent who is willing to wait out the short sale process and encourage buyers to do the same in order to get a discount on the property. The buyer may get a great deal on the house, and the real estate agent may still get credit for the sale, but it doesn’t always work that way.

For instance, the buyer usually has to agree to wait two or three months before they can close on the house and move in. Most buyers need to purchase a property that is ready to close in less than a month.

Several roadblocks can come up during the process of negotiating a short sale if the seller and/or his agent don’t completely understand how to manage those negotiations. Lenders are very careful to train their loss mitigation department in debt collection, so sellers and agents who aren’t as well-trained in short sale negotiation skills can be easily sidelined.

Here’s one example: did you know that it is possible to avoid having to pay the leftover debt after the home is sold for less than the mortgage is worth? Wouldn’t that be a useful thing to know how to do? There is more than you might think to managing the short sale process.

4) The real estate agent could list the house as a short sale, while arranging the purchase by a short sale investor who doesn’t mind handling the paperwork, negotiating a successful short sale on the seller’s behalf, and waiting for the lender’s approval before closing on the house. The homeowner would avoid a foreclosure, the agent would still get the commission, and the buyer would get the home as an investment property to sell or rent.

Here’s another reason why the homeowner would rather work with someone who coordinates short sales on a daily basis. Did you know that there’s more to the BPO process than just being there when the bank appraiser comes to the door? Do you have any idea how to use the process to maximize the short sale outcome in your favor? A good short sale investor does.

As a real estate professional, you should be able to explain these four options to a homeowner who is facing foreclosure. They can let it go and file bankruptcy, they can sell for the amount of the debt, they can apply for a short sale and wait for a buyer, or they can apply for a short sale with a buyer already waiting for them.

My partners at Strategic Real Estate Coach specialize in educating people about short sale solutions for homeowners in trouble. We offer a free Silver Membership in the coaching program, and the benefits include several reports to help you learn everything you need to succeed!

Attorney Jeff Watson has some great commentary on the legal side of real estate investing. You can find that and more on his blog. Just visit topshortsalelawyer.com.

When you help people learn the truth about foreclosure and how to avoid it, you give them a chance to overcome one of the most difficult times in their lives. Educate each homeowner about their options, and watch them turn a bad situation into a fresh start.

Need to know more about foreclosure options? Get free information from our real estate coaching website! Visit the Uber Article Directory to get a totally unique version of this article for reprint.

First of all, make up your mind that you are going to do everything in your power to not let it happen. If you do this, you stand a far better chance of being able to avoid the trauma of having to move out of your home.

You are probably already skeptical. But the reality is that with so many homes being devalued, and so many people walking away, the mortgage lenders are continuing to take a severe hit right where it hurts them most. So if you can come up with a plan of action, you may just be able to avoid the foreclosure process.

Here are some of the options that you can use to stop a foreclosure.

The first thing you should do is to arrange a face to face meeting with your mortgage holder to talk things over. Be clear that your intention is to work to stop the foreclosure from occurring and you want them to help.

Come prepared with financial statements, paycheck stubs, and anything else that can demonstrate your ability to pay something each month.

Be upfront and honest. Since your home is likely valued at less than you owe, like so many homes today, try to renegotiate your mortgage. Point out that if you are forced to walk away from your mortgage, and your home is sold through foreclosure the lender will not be getting market value.

You are trying to make a real case for an altered agreement with your bank, so you can stop a foreclosure. You have a good shot at being able to refinance if you have a variable interest rate and have had a good credit history in the past. Refinancing will allow you to lock in at a lower interest rate and bring your monthly payments down to a more manageable range.

Another way to refinance is to set up a revised repayment agreement. The agreement should include a provision for paying off at least some of your arrears immediately, so the lender can see that you are acting in good faith.

With this type of agreement you are getting your payments lowered without necessarily getting a lower interest rate. The length of your mortgage will generally be extended in this case.

If you are unable to refinance, you may be eligible for a loan modification. In this case your lender is essentially giving you a completely new mortgage loan which will have a different set of terms and interest rates, hopefully lower. The goal of changing your mortgage is to make your payments more affordable on a monthly basis.

The bottom line is that if you sit back and do nothing, you will lose your home to foreclosure. But hopefully now you have a few ideas that will help you figure out how to stop a foreclosure and avoid losing your home.

For some valuable tips on dealing with foreclosure and for even more free foreclosure information, visit getforeclosurefacts.com.

Commercial distressed properties will overtake residential in the coming year or two. There is a lot more money involved in these properties. Commercial is financed differently than residential. Typically, they have short term 3,7, or 10 year loans on them that need to be refinanced at the end of the term. The problem is the values have dropped 10-50% so it is very difficult to get a loan on them. Many businesses have had greatly reduced revenue which has caused them to downsize or close which put even more pressure on the building owner. Sometimes rent reductions are given to try to keep tenant in the property and in business. Even with this, many companies are closing the doors. Also, the government bailouts have not reached most businesses. (except banks and car manufactures!)

If the owners cannot refinance or pay off the mortgage, the owners may try to hang on, but foreclosure is often the outcome.

Investors are gearing up to tackle this huge opportunity. They can now buy properties for 60 to 90 percent of value. At these rates, often the properties will now cash flow even at reduced rents. Make sure you deal with an investor that has experience in commercial short sales. Also do not pay money up front for negotiations. Legitimate investors will typically do the negotiation with their fees being paid by the lender.

Commercial property owners may be held responsible for the difference amount forgiven for the short sale, and the amount forgiven may be required to act as income on their tax return. Commercial property owners should contact their tax and legal teams before continuing to see how this may impact their overall tax and financial situation.

This method over most others will help the U.S. commercial market regain its stability over the next 3 to 5 years.

Learn more about Commercial Short Sales. Stop by Daniel Wolkoff’s site where you can find out all about foreclosure alternatives and what it can do for you.

categories: Commercial Short Sales

If you’re looking at foreclosure and do not know what to do, there are some options you may use to protect you from bankruptcy or having a massive fat black spot on your credit. It is known as the short sale. It is largely giving up your house for the sum you owe, and walking away from your debt. If you owe more than your house is worth, then your banks will need to accept your house and take the loss.

Now this is something that may be a long process, and you’ll have to open up and spill your courage out to folks who are not your folks. In the long term, it’s much better than having a foreclosure or bankruptcy on your record, and could even save your credit history. If you’re about to do this, you must start as fast as you can, and these are some things which will help you.

First thing you should do is educate yourself on what a short sale is and how much is involved. One way to do this is to sit down with a Realtor who is experienced in the short sell process. The more experienced they are, and especially if you know them, they can act as a liaison between you and your lenders. They can also help you with all the calculations, like what your debt is on your residence compared to its value, as well as any other debt against it.

Since each state has different laws about foreclosure, it’s a brilliant idea to start immediately, or you will lose your chance. Sit down and write your banks a trouble letter, and you have got to be formal about it, just explain the situation in detail why the short sell of your house is the sole option, and be truthful. When you’re done, ensure that you have all of the important papers saying the situation as well, so your banks will know a short sale is your best and single option.

Be prepared both physically and emotional to move quickly. Have your stuff packed and either moved into storage, or ready to move into a rental. Walk through your home, and let go off your emotions, and say your goodbyes. Get down to the basic living necessities, and that’s it. You may only have a short period of time in which the quick sales will take place and you may have to move at a moment’s notice.

You’ll be able to find much more detailed info about the short sell of your house online, including realtors, lending agencies, and sites which will help you with the mathematical calculations required. You can discover what the entire short sale process comprises, how much your credit could be effected, and even support groups that will help you with the strain in these uneasy times.

short sell will help you to save lot of dollars and also foreclosure marking on your credit report. To know about homes short sale visit http://www.homesshortsale.org

First off, contact your mortgage company. Most, if not all, mortgage companies have a Mitigation or Loss Mitigation department. This is the department you need to contact. Let them know everything that is going on. You, likely, will need to show proof of financial stability or instability.

The mortgage industry is well backed, enough that they can help in rough situations. After all, they can still take and sell your home. One of the most common approaches that mortgage companies take is offering forbearance. Forbearance allows you to payback what you have missed over a certain period of time.

Other approaches are available. Mortgage companies may give you another loan for the late amount, add the late amount onto the end of the mortgage, or even consider waiving a payment. All of which are fully dependent upon your exact situation.

When people get into a tight spot, they often think the best thing to do is leave and start over. This; however, is the worst thing you can do. There are HUD counseling agencies that are available to aid you in these situations. The likelihood of receiving their help, if you are already gone, is zilch. You will get more assistance if you stay put in your home.

If you have gotten to the point where your mortgage company has already filed a Notice of Default you have lost some of your options. Calling them, at this point, probably will not do any good. You could consider selling your house to pay off the loan. You will have to sell at a low price, but sometimes that is what it takes to save your credit.

There are a couple other options, at this point, but they will you’re your credit almost as bad as the foreclosure would. Just keep in mind that you have options. Acting before things get out of hand is your best option and will be the one that works for you. Do not let things get to the point that there is no return. If you want to avoid foreclosure, work with your mortgage company immediately.

Learn how to avoid foreclosure by using short sales. Head online today and you can learn how a short sale will help you out.

It is advised that you speak with your financial lender as soon as you find yourself experiencing financial difficulties. For example, when you get laid off or fired from your job, schedule an appointment to meet with your lender and develop a plan, before any problems arise. At the very least, communication should be made when you start receive intent to foreclosure notices. Even if you have a sign on your home stating that the foreclosure process has officially begun, you can still talk to your financial lender. In this instance, the sooner you do so the better.

As for why you should talk to your financial lender, even at the last minute, they want to avoid foreclosure as much as you do. Often times, lenders lose a considerable amount of money on the sale of foreclosure homes. If you can prove that your financial troubles are only temporary, your lender may give you a reprieve. They may stop the foreclosure proceedings for you. As for what can lead to this, you or your spouse getting a second job can help.

If you are dealing with a locally owned and operated bank, which you have been a loyal customer of, it is important to outright ask what can be done. Offer suggestions yourself, if you do not receive them. Could you continue making all future mortgage payments on time, but develop a payment plan for your past due amount? Can you only pay interest for the time being? Can you be given time to sell your home, as opposed to simply just losing it? These are all important questions that you should ask.

Another way that foreclosures can be stopped, in most states, is with a declaration of bankruptcy. However, this step is one that should not be made on a whim. It is first important to meet with an attorney specializing in bankruptcy. If you file for bankruptcy will the foreclosure proceedings stop? Can you make it so that your home is not considered an asset in bankruptcy proceedings? If so, this is the avenue that you may want to take. However, since bankruptcy can negatively influence your credit, it should only be used as a last resort.

Before you take any action with the hopes of stopping foreclosure, you need to closely examine the situation at hand. For starters, would you like to get out from under your property? If it is a money-pit that needs constant repairs, it might just be easier to go the route of foreclosure or even outright allow your bank to sell the property. If you want to keep your home, make sure that you can honestly do so. It is recommended that you take forty percent of your income and apply that towards your living expenses, this includes mortgages and taxes. If this isn’t possible for you to do, the avoidance of foreclosure now may result in the process starting again in a few months.

Learn more on my site at: www.centerforforeclosure.com

Want to find out more about foreclosures and how to avoid them? avoid foreclosure, then visit NANCY GEILS’s site on how to choose the best strategies on how to avoid a foreclosureforeclosures .

The first step in getting your lender to work with you, to avoid foreclosure, is speaking with them. You will get nowhere by avoiding them. Whenever you receive a warning or an intent of foreclosure notice or a phone call, start making plans to contact your lender. While you may want to head straight to your local bank branch, you may want to take a few hours or a day to reflect on the situation. This will allow you to develop a plan of action, a plan of action that will be successful.

Before meeting with an official at your bank, it is important to know what you will say and how you will say it. This is key to keeping your home out of foreclosure. Although financial lenders want to avoid foreclosures at all costs, they don’t want to keep on losing money. Lenders are usually unwilling to work with those who don’t show true interest in rectifying the situation. That is why a plan of action is required.

As for that plan of action, collect as much information as you can about your current financial situation and the cause of it. For example, are you currently laid off, but looking for a new job? Take your updated resume to with you. It can help to show that you are actively looking for a job and trying to save your home. Let them know of any upcoming interviews you may have scheduled as well.

If you are out of work due to an injury and that injury is only temporary, get notices from your doctor and your place of employment. This will prove to your lender that you still have a job waiting for you and will be able to return to work soon. Proving that you do intend to make your mortgage payment in full and as soon is possible is key to avoiding foreclosure or stopping it.

Next, it is important to consider your appearance and your attitude. Starting with your appearance, it is important to walk into the bank with your head held high. You will also want to dress professionally. Women should wear dresses or pantsuits. For men, pantsuits are also recommended. Avoid casual clothing. For many financial lenders, a borrower who carries himself or herself in a professional manner shows responsibility. Responsibility is another important key to getting your lender to work with you.

As for your attitude, make sure that you don’t have one. As previously stated, financial lenders often become the bad guys when foreclosure is threatened or when the process gets started. No matter how angry you are with your lender, do not let your anger show.

If you learn that your financial lender is willing to work with you, to help you avoid foreclosure, they may offer their own suggestions. You can take these suggestions, but don’t get in over your head. Reduced mortgage payments are nice, even if they are only temporary, but make sure that you can pay them. If a strict deadline is set for the return of the originally agreed upon payments, make sure you can make those payments too. If not, the whole foreclosure warning process will start again.

In short, always approach your financial lender if you suspect foreclosure is on the horizon or as soon as the proceedings start. Since lenders lose money on foreclosed properties, they want to avoid foreclosure just as much as you do.

Learn more at my website: www.centerforforeclosure.com

Want to find out more about how to avoid foreclosureforeclosure, then visit NANCY GEILS’s site on how to choose the best strategies and tipsmodify your mortgage for more help on working with your lender.