Lending institutions were overwhelmed after the housing crisis hit in 2008

September 9, 2013 by

In a foreclosure, the lending institution will require that the homeowner appear at a mandatory conference, which includes the banks legal team, and other advisors.

The meeting provides the homeowner a chance to meet the lender face to face. This is one of the last ditch efforts by the bank to save the homeowner from a foreclosure. The bank will make gestures, and provide real solutions, and attempts to resolve the crisis.

If the settlement process fails to produce a favorable result for both the lender and the homeowner, then the lender will move ahead through the court system. Prior to the 2008 housing crisis, banks were usually granted a judgment against the homeowner.

Following the whirlwind of foreclosures over the past few years, some states have increased the pressure on lending institutions, and in some cases, homeowners have defeated the motion by the lending institution. Usually the lender wins in the courts.

A Judgment of Foreclosure and Sale is issued after the judgment. This gives the lender the right to sell the property at auction. Once this is issued a Notice of Sale is then published, followed by an auction sale. [Read more...]

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A “short sale” allows the homeowner to sell off their mortgage to a third party buyer

September 9, 2013 by

One thing that all homeowners have in common is they are fully responsible for the fate of their home. Some homeowners make the decision early on in the foreclosure process that they are interested in relocating, and look to sell their home.

Lenders, aside from your own lender may suggest, and even offer you, a way to sell your property. Even your own lender may mention the possibility of a short sale in order to avoid a foreclosure. A “short sale” allows the homeowner to sell off their mortgage to a third party buyer, usually at a significantly lesser amount than the outstanding balance on the mortgage.

Completing a short sale is contingent on your lender; the lender must agree to accept less than the outstanding balance on the mortgage. Furthermore, the homeowner will be asked for a financial disclosure addressed to the lender, which acknowledges that you, as the homeowner, will be in effect, foregoing the initial investment, and will not receive the net proceeds from the sale of your property.

Once the home is sold you, as in the old homeowner, are often relocated in agreement with the buyer. If the buyer does not agree to float the costs of a relocation than the seller is responsible for finding a new home, and needs to cover all moving costs. [Read more...]

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A third party will represent your interests legally

September 9, 2013 by

At a certain point a homeowner will be overwhelmed with the amount of notices and letter he or she will receive from the lending institution. Receiving numerous solicitations, and offers to modify your mortgage can also be tiring.

What you need is a team of experts, and advisors who will point you in the right direction. A homeowner has choices, and the sooner they learn what options are at hand the better off they will be. They must also decide whether or not they wish to remain in their home, or if they prefer to sell it in what is commonly referred to as a short sale.

Although the home has received many offers for a loan modification, there is absolutely no guarantee that you will qualify for the modification. Your lender can and should provide assistance, and answer your questions with a certain level of professionalism. The interaction between the lender and the homeowner is unfortunately very rough as the foreclosure looms. A lender may not help the borrower at all; this is usually the case.

Your lender has the ability to help you. If the bank is reluctant to offer you assistance, then you will need to find a third party to intervene on your behalf. A third party will represent your interests legally, and with your best interest in mind. There are many benefits of finding an experienced third party organization to move you through the foreclosure process. [Read more...]

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