I just need 5k to save my home from foreclosure. Can I cash a partial of my son’s structure settlement. This was given yo him due to a dog bite case. Does anyone have any idea where I can get this question answer or get info on this?
Posts Tagged ‘Foreclosure’
What to Do If Financial Trouble Hits – Foreclosure Help
04
Nov
Here’s the good news: Lenders and servicers don’t like to foreclose on mortgages. Foreclosures cost more than can be made back, so lenders foreclose only as a way of limiting losses on a defaulted loan. If homeowners get behind on payments, lenders likely will work with them to bring the loan current. In order to do so, however, the owner must stay in communication with the lender and be honest about the financial situation. If you are not able to spend countless hours waiting on hold or don’t feel comfortable with talking with your lender, foreclosure assistance companies such as Troubled Homeowner can help. Contact foreclosure assitance company in your aware but beware of scam artist.
The lender’s willingness to help with current problems will depend heavily on past payment records. If the owner has made consistently timely payments and had no serious defaults, the lender will be more receptive than if the person has a record of unexplained chronic late payments.
For those falling behind in payments or who know they are likely to do so in the immediate future, they should contact the lender right away about meeting to discuss alternative payment arrangements.
The lender will ask for information about monthly income and expenses. Owners must use realistic figures based on their current financial situations. The lender will also ask about assets and liabilities, including all debts and monthly payments and when they are due. If the lender needs proof of income (pay stubs, unemployment check stubs, tax returns, etc.) he or she will let the owner know. Remember, lenders do not want to foreclose.
Lenders Often Times Can Help
An agreement between borrower and lender to prevent the loss of a home is called a loan workout plan. It will have specific deadlines that must be met to avoid foreclosure, so it must be based on what the borrower really can do to get the loan up to date again.
The nature of the plan will depend on the seriousness of the default, prospects for obtaining funds to cure the default, whether the financial problems are short term or long term and the current value of the property.
If the default is caused by a temporary condition likely to end within 60 days, the lender may consider granting “temporary indulgence.” An example of where this would be considered is a house that has been sold but the sale has not settled; another is a pending insurance settlement. The lender will want documented evidence, such as the sales contract, before granting indulgence.
Those who suffered a temporary loss of income but can demonstrate that the income has returned to its previous level may be able to structure a “repayment plan.” This plan requires normal mortgage payments to be made as scheduled along with an additional amount that will end the delinquency in no more than 12 to 24 months. In some cases, the additional amount may be a lump sum due at a specific date in the future. Repayment plans are probably the most frequently used type of agreement.
In some cases, it may be impossible to make any payments at all for some time. For those who have a good record with the lender, a “forbearance plan” will allow them to suspend payments or make reduced payments for a specified length of time. In most cases the length of the plan will not exceed 18 months and will stipulate commencement of foreclosure action if the borrower defaults on the agreement.
These plans represent last-ditch efforts by borrower and lender to keep the borrower in the home. They are not a substitute for good financial planning and likely will not be available if the borrower’s payment record is poor. Lenders or servicers may work closely with good borrowers who are having a period of real emergency and hardship, but they are not inclined to cooperate with those who demonstrate little financial discipline.
5 Secrets To Short Sale Success In Foreclosure Investing
24
Oct
Foreclosures are reaching new levels and about to go even higher in 2008. It is becoming imperative that Realtors and real estate investors become learn the art of the short sale and to use it to increase their sales production There is a right way and a wrong way to do approach a short sale.
Learning and implementing the following 5 secrets to short sale success will allow you to gain proficiency in doing and successfully completing short sales. If you are investor you can create equity where none existed. If you are a real estate agent you can sell homes that are upside down even in a bad market.
Secret 1 – Submit a complete package. Do not submit an incomplete package to the lender. If you do it will more than likely be put on the bottom of the pile. Make sure to include all the required information in the order specified my the lender and that every item is completely legible. This is an absolutely critical first step.
Secret 2 – Make a careful estimate of the current market value of the property and structure your offer accordingly The initial offer is critical to getting the short sale off to a good start. As you do more and more short sales you will become familiar with how various lenders work and how they react to offers. Most immediately tell you that you have to raise your offer. If they say this you need to find out why they have come to this conclusion.. Your goal is to have the lender order an internal BPO (Brokers Price Opinion) or a full appraisal of the property. Do not settle for just a drive by appraisal. No need to be nasty but be insistent and keep at it until you get the BPO ordered.
Secret 3 – Make sure that you personally meet the BPO agent This is the most important part of being successful with your short sale. You must personally meet with the agent or appraiser doing the BPO (Brokers Price Opinion or Appraisal). You job is to provide the person doing the BPO any information that can influence the BPO in your favor so that their price that will justify your offer. You should speak the BPO agent and let him know that the seller is in dire straights and is depending on the BPO. You should have a list of repairs done by a contractor and most importantly have a good list of comparable sales showing that the property is worth substantially less than what is the owner owes. All these items are important but meeting with the person doing the BPO is the most important of all. Do not let them get in the property without you being there and be sure to be early for the meeting.
Secret 4 – Don’t take No for an answer The job of the loss mitigator is to get the case settled for as much money as he possibly can. Of course you have to realize that there are certain circumstances that will limit the amount that the lender will take. Some of these are PMI (Private Mortgage Insurance), Fannie Mae, Freddie Mac, FHA and the VA guarantees. These loans are insured by private or governmental agencies and as a result are limited in the amount of discount that they will take. If it is a conventional loan the settlement amount is arbitrary and determined by the end lender or the investor holding the loan. If you are dealing with a servicer rather than a direct lender your negotiations have to be approved by the note owner before a price is agreed upon. Your continued persistence will determine your success in getting prices that allow you to create a profitable transaction..
Secret 5 – Be sure you are prepared to close promptly Once you have finalized your negotiations the bank will expect your to close quickly. Usually within 2 to 4 weeks. If you are unable to close within this period you can have a very difficult time negotiating an extension and may encounter difficulty negotiating with this lender or servicer in the future. This problem does not usually arise if you are the end buyer but if you are planning on “flipping’ the property out to another end buyer you need to be sure that they are ready to close when you finalize the negotiations for the property. One way you can stall this is to slow down your final negotiations until you secure your end buyer. Sometimes this can really work to your benefit when the loss mitigator calls you to see what is holding up your final acceptance of an offer. Many times you can get an additional reduction in the price.
Certainly there is much more involved in doing short sales but these 5 steps are critical in getting a successful resolution to a short sale case. Remember that you have to be persistent and polite but do not take no for an answer. Push on and you will succeed
How to Avoid Foreclosure – Future Money and Loans
26
Sep
Having a home is the one thing that gives property owners a great feeling of accomplishment and creates a positive attitude towards life as well. Owning a property not only represents a physical shelter and a place to share the best memories with the ones that we love but it can also be a financial shelter for many unexpected problems that can befall us.
Since properties are often thought to be a way out of financial problems, if the right amount of equity has been built over time, refinancing a property sometimes is a good idea. The fact that many home owners incur in many credit card based expenses is a good reason to take a bit of equity to relief the interest rate burden.
The truth is that constant property refinance can lead to no equity when the owner needs it the most. If the home owner has a structured settlement and is receiving periodical payments then this might help, but often this is not the case. Home owners need much more than just a small monthly payment to remain financially solvent and to avoid loosing their precious home.
Foreclosure is a real problem which needs to be addressed as quickly as possible, that is why it is always a smart move to turn a structured settlement into a lump sum. Having these funds available immediately can make the difference of sleeping in an apartment or sleeping on a comfortable bed at home.
When a home owner incurs in foreclosure it often means that he can no longer cover the minimum monthly payments established by the financial institution lending the funds. To the mortgage payments we often see credit card payments, car payments, second mortgage or HELOCs, tuition, utility bills, property insurance, medical bills, interest rate changes, etc.
As you can see, if we add together all of the expenses mentioned above it can add up to incredibly high amounts which almost no property owner is ready for. Structured settlements represent future money which in many cases is quickly depreciated through inflations, lost interest, etc. This particular financial instrument is worth much more as present money instead of future money. We can illustrate this point better by asking the following question: ‘What is worth more, one hundred dollars today or one hundred dollars in ten years?’. By now you should be able to see exactly what structured payments are, and if managed correctly, they can help property owners save their homes.