How to Avoid Foreclosure by Writting a Hardship Letter

By Bryan Burbank


One of the biggest problems many Americans live with today is the threat of foreclosure. With so many Americans losing their jobs and the economy shakier than ever the reality of losing your home is realer than ever. In this article I will highlight some of the things you may want to put in a hardship letter to your lender.
First, I suggest you call your lender the minute you feel you may have a problem paying your mortgage. You want to ask for a loan modification. It is essential you follow their requirements exactly. Many lenders require a hardship letter. Along with the letter they may want to see pay stubs, bank statements and tax returns. It is very important that yo do all of these things quickly because time is of the essence. Also while you are working with the bank make sure you keep making your payments.
Second, how you write the letter doesn't have to be very difficult. Make sure you include your name address and loan number and always include a phone number where you can be reached. Tell them in detail why you are behind on your loan. If it is sickness be specific with amounts. If you have lost your job document it. If you have had excessive home or auto repair spell it out and provide documentation. Most important spell out to the bank how a loan reduction will allow you to keep paying your mortgage. Remind them how you have been a loyal customer of theirs for years. You may want to remind them that it is better for you to be paying your mortgage at a reduced rate then for them to be the owner of your home. Fight a good fight, after all it is your home that you are fighting for.
Third, after you have given all the necessary information to your lender stay in touch. You don't want to become a pain in the butt, but you do not want to disappear either. Hiding has never solved any problem. Make sure you have the name and number of the individual who is handling your appeal. Try your very best to keep up with the payments until the lender offers you some relief. If you stop paying and your loan becomes a problem it will be way more difficult to alter your loan. Most important don't give up and keep on top of the situation.
Get Free: Stop Foreclosure Now
How to: Avoid a Foreclosure
Bryan Burbank is an expert in the field of Real Estate and Foreclosures
Article Source: http://EzineArticles.com/?expert=Bryan_Burbank

For more information on how to avoid foreclosures go to http://www.4roadrunnerpromotions.com

What You Should Know About Foreclosures and Short Sales

By Tom Tillman

When a borrower can no longer pay their mortgage loan and defaults on the terms of the loan, the bank takes possession of the home. This is known as foreclosure, and has become increasingly common in the United States over the course of the past few years. Foreclosed and soon to be foreclosed on homes can represent a unique opportunity for home buyers.

Homeowners in default or who are in danger of being in default may try to sell their home before it enters foreclosure. This is known as a short sale. Negotiations take place with the seller once the offer is made, and then the offer is sent to the bank which reviews it for up to 60 days. If the bank accepts the terms of the sale, the advantage to the buyer is that the price they will pay will be less than the asking price of the home.

When considering purchasing a foreclosed or soon to be foreclosed home, it is important to remember that these homes are sold in as is condition. In other words, you owe it to yourself to have an inspection performed on the home to check for major damage and structural repairs that may be present before you enter into a short sale agreement.

Sometimes, however, buyers are not allowed to inspect the homes before purchase, so it is important to be very clear about the terms of the sale before entering into it. Short sales can also take some time to process, depending on the bank, the seller, and various factors.

To find out whether or not a particular home is a good deal for you, be sure to check the public records before making an offer to purchase a home. It is important to hire a real estate agent with experience handling foreclosures and short sales. The right agent can handle negotiations and help to protect your interests and guide you through the buying and negotiation process. Your real estate agent can find out whether or not a foreclosure notice has been filed, and how much the lender is owed. This will help you to determine how much you should offer.

Even with the inherent risks, foreclosed home short sales offer buyers the opportunity to purchase homes significantly below market value, and can sometimes allow sellers to avoid the foreclosure process at the same time. Be sure to do your research, and weigh your options carefully before entering into any type of real estate purchase.

FREE access to over 20,000 foreclosure listings REOs/Bank Owned, and Short Sales properties in Orange County, Los Angeles, Riverside, and San Bernardino

Article Source: http://EzineArticles.com/?expert=Tom_Tillman

For more information on foreclosures go to http://www.4roadrunnerpromotions.com

Huge Profits From Home Foreclosures - Myth Or Reality?

By Bruce Swedal

There is always someone eager to uncover a different method of making tons of money with minimum work. Getting rich fast is the ultimate dream; and late night TV seems to tell us that the easy way to quick riches would be through investments in homes that have undergone foreclosure. On a daily basis, we see advertisements which offer to exemplify secrets in purchasing distressed properties, which will give you profits, within 48 hours.

More advertisements inform us of foreclosed homes existing within the area at low purchase prices or how there are several troubled homeowners who are simply desperate to sell. Is there any truth to this? Can money be made easily by buying foreclosed properties?

Home foreclosure happens to be a process where homes are taken from buyers by somebody with liens against said property. Most lenders initiate this when buyers have not made any mortgage payments for extended periods. Lenders aren't truly interested in taking houses back; they would rather have more cash. This will result in foreclosed houses being sold at auctions so lenders have the chance to recoup the investment.

Because of rising rates of interest and house prices, a lot of people find themselves with mortgages which they aren't able to afford. However, are people truly letting go of houses at auctions for mere pennies? Is it possible to purchase foreclosed homes today to sell them in a week for big profits?

The truth is less exciting than advertisements let on. Here are several reasons why:

1. Auctions come with huge competitions. You are not going to be alone when you attend auctions of real estate. In fact, with such sky-high prices, there will be a lot of bidders since everybody hopes to save several dollars. Most hammer prices on these auctions are sure to be close, if not higher than, regular prices on the market. Competition happens to be fierce.

2. You need to instantly pay in full. If you purchase homes in auctions of real estate, you are expected to instantly pay in full. If you do not have liquid cash in six figures, this may not work for you.

3. Many properties are damaged. This is very common, and you might not get to fully inspect the damage or the property beforehand. Beware.

4. There might be issues with the title. It might or might not be a possibility to get clear titles when it comes to the property. The majority of professionals that purchase such property end up spending numerous hours on title research, placing dents within notions that part-time money can be made like this.

5. Think about the homeowner desperately trying to sell prior to the lender foreclosing on him. The market right now is quite lively. Nobody will sell properties at a third-off when it is possible to simply place for-sale signs on their front yard.

The thought of making a fortune doing this is lucrative for people that market related books. For everybody else, it would be a risk, expensive, time-consuming job.

Denver Real Estate Hairstyle Guide for Balding Men. Article Source: http://EzineArticles.com/?expert=Bruce_Swedal

For more information on home foreclosures go to http://www.4roadrunnerpromotions.com

FHA Foreclosure Listings For Free

By Hector Milla

Of course you can find foreclosure listings involving FHA houses. The Federal Housing Administration is of course a government agency. If the Federal Housing Administration ends their non-profit services for the poor then there would likely be riots in the streets. The FHA is a division of the Department of Housing and Urban Development. You can find such free foreclosure listings at the official website for the department that is run by Shaun Donovan.

You must remember that if you are already talking about a home where the Federal Housing Administration has to get involved just to make sure the person who previously owned the home was already likely living below the poverty line. So this means that the home is not located in the nicest of neighborhoods and thus may not be that appealing to many buyers.

Federal Housing Administration foreclosures are available on a state by state basis if you look for it. There is no state that will be left behind. You could be talking about homes in an active college town like Boise, Idaho or a town with seemingly very little opportunity like Colchester, Illinois. Some of the properties in the Midwest that make the federal foreclosure list happen to be farm land so the price of the properties tends to be a bit higher than some buyers are willing to spend on first glance. If you know a lot about farmland you can understand the value of farmland and how lucrative it can be. Of course if you buy farmland this might mean that more bureaucracies end up getting involved in the process.

The United States Department of Agriculture will likely want to know what is going to happen to the land that is being foreclosed upon. Of course if you don't actually do anything with the land as far as growing crops and dealing with issues like that they may not really care what happens to the property as long as you aren't going around and buying crop insurance.

By the way, by researching and comparing the different free foreclosure listing services in the market, you will be able to determine the one that meets your specific requirements, plus the free or cheaper options. This way you will save time through up to date foreclosure listings and money by getting better results over your investment. Hector Milla runs the Best Free Foreclosure Listings website, where you can see a review of the best rated free foreclosure listing service. Read our full reviews, plus hundreds of articles and video training about this subject. Article Source: http://EzineArticles.com/?expert=Hector_Milla

For more information on foreclosures go to http://www.4roadrunnerpromotions.com

Can You Use Your VA Loan After Having a Foreclosure FHA Loan?

By Hector Milla

It will take an individual three to four years at best to be considered eligible for another mortgage, even one that is eligible for a VA insured loan. It doesn't matter if the foreclosed loan was a FHA loan or one held by a private mortgage company. A foreclosure is a foreclosure, and on a credit report it is a very bad scar.

You have to do more than have served in the United States military in order to be eligible for a VA loan. There are certain restrictions as to which veterans are eligible. Furthermore, the VA does not issue the loans, but merely guarantees a certain amount of the loan given by another lender. If for any reason you default or foreclosure begins, that lender is guaranteed to receive at least a portion of the cost as insured by the VA. It is also important to note that if this occurs, you will lose your right to future VA insured loans.

An individual who is serious about obtaining another mortgage after foreclosure will take several steps to make certain that his or her second mortgage is a more successful transaction than the first. The following three critical steps are closely related and will ensure greater success the next time around.

1. Rebuilding credit is a critical step in the recovery process. Lower credit scores mean higher rates of interest, less reputable lenders, and approval for lower amounts than you may need. Absolutely no lender will consider you immediately after a foreclosure has taken place, so it is wise to seize this valuable time and rebuild your foundation one payment at a time. Eliminate excess debt as quickly is possible and make sure that from this day forward your credit is flawless-or at least improving.

2. Preparing a budget is necessary to rebuilding credit. Without a budget, you have no record or accountability for your spending. It is important to make sure all your bills are paid on time. After foreclosure, you have to work several times as hard to prove your viability as a worthwhile credit risk.

3. Saving for a down payment can increase the amount of home you'll be able to buy and help mitigate the overall cost of the home. After foreclosure, you may be required to pay a higher down payment to reduce the amount you will need to borrow. This goes hand-in-hand with budget creation.

By the way, by researching and comparing the best stop foreclosures services in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper and quicker options. However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advise coming from a seasoned foreclosing advisor and money by getting better results in a shorter span of time. Meaning getting your house out of risk as soon as possible.

Hector Milla runs the Stop Foreclosure Loans website, where you can get immediate assistance from professionals serving your state. We have done all the hard work for you and selected the best 3 rated stop foreclosure services.

Read our full reviews of those services, plus hundreds of articles and video training about how to stop foreclose and the best way to do a loan modification in order to stop a foreclosing proceeding.

Article Source: http://EzineArticles.com/?expert=Hector_Milla

For more information about foreclosures go to http://www.4roadrunnerpromotions.com

Are Bank Foreclosures Better Than Other Types of Foreclosed Homes?

By Joseph B. Smith

While foreclosed homes tend to be lumped into one type of property, there are in fact many types of distressed property. Each has their own advantages and potential pitfalls for the buyer:

1) HUD homes. HUD (The Department of Housing and Urban Development) homes are sold by the federal government. The last owner of an HUD home had a government-insured loan. When the owner defaulted on this loan, the lender recouped the money lost on the loan via the government. The government is selling the home. HUD homes are attractive because the HUD offers many special programs for first-time and low-income homebuyers. If you qualify for one of the HUD's programs, you could enjoy substantial savings. HUD homes are also appealing because they can be purchased through an HUD-approved real estate agent, who can guide the buyer through the process.

2) VA homes. VA homes are being sold by the Department of Veteran Affairs (VA). The last owner of a VA home was a member of the army, navy, or another branch of the military. When this owner defaulted on the mortgage, the VA paid for the default amount and took possession of the property. Buying a VA home means that you buy a home with some of the same advantages as a member of the military. For example, you may not have to pay mortgage insurance on the property.

3) Tax sale homes. Tax sale homes are sold through public auction because the homeowner has failed to pay property taxes on the property. In many cases, this type of foreclosure can be purchased for the amount of outstanding taxes - which is often a small fraction of the home's value. However, tax sales are very competitive and the price of these homes quickly rises as bidders vie for the property. As well, tax sale homes are sold with no warranties so that it is often hard to tell whether there are major problems with the home.

4) Foreclosure homes. Foreclosure homes are sold through public auction. Some are sold at deep discount and some are sold for nearly full market value. It is up to the buyer to do enough research to ensure that they are getting a foreclosure deal and not a dud.

5) Pre-foreclosure homes. These foreclosed houses have not gone into foreclosure - yet. Usually, the homeowner is facing a financial crisis and is willing to sell the home for less than full market value in order to avoid foreclosure. Pre-foreclosures vary widely. Some offer a good discount while some homes have too little equity to make a good bargain. It is up to the investor to put together a deal that is attractive to the homeowner and a good business plan for the investor.

6) REO real estate. REO (Real Estate Owned) properties are sold as foreclosures through a lender or a lender's representative. Usually, REO homes have failed to sell at auction or were purchased by the lender at auction. Usually, these homes do not offer a huge discount. In fact, some are priced at full market value or even above. Still, some REO houses are a good bargain. One major advantage of buying an REO home is that title problems are usually taken care of by the lender, so there is less risk buying this type of property. As well, some lenders are willing to offer great rates on loans for buyers of REO homes.

7) Distressed properties. "Distressed properties" is an umbrella term for any property that has some disadvantage that may affect its asking price. For example, foreclosures are often called distressed properties, as are homes that need some repairs or renovations.

8) FSBO homes. For Sale by Owner (FSBO) homes are sometimes pre-foreclosure homes although they can also be homes that are not at risk of foreclosure. Some FSBO properties are sold at below market value because the owner is motivated to sell and is saving money on a real estate agent - a savings he or she passes on to the buyer.

Joseph B. Smith has been educating buyers on the finer points of foreclosures at ForeclosureDeals.com for over ten years. Contact

Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith

For more information on foreclosures go to http://www.4roadrunnerpromotions.com

Foreclosure Houses For Sale - Huge Discounts on Real Estate If You Know Where to Look

By James Ferris

Whether you're looking for a new home for your family, a rental income property, or a house that you can fix up and rent for a quick profit, properties that have been repossessed by banks or government organizations offer investors an opportunity to pick up properties at substantial discounts and it's easy to find foreclosure houses for sale if you know where to look.

When most people hear the word foreclosure they probably think of bank owned properties known as REO's. REO stands for real estate owned and these are properties in which the banks have lent money and property owners have defaulted on their loan payments. To find bank REO's you can contact a number of local real estate agents until you find one that specializes in bank owned properties.

Banks are not the only institutions that end up owning unwanted real estate. There are a number of government agencies that end up with properties for sale for one reason or another. The IRS will sometimes have properties for sale that have been confiscated in order to pay tax bills. County governments in some states will repossess houses when people fail to pay their property taxes.

A good source of government foreclosure houses for sale is the VA, or the Veterans Administration. The Veterans Administration gives loans to people who serve or have served in the military and they do so at favorable interest rates, often with low down payment requirements. Unfortunately some of these loans go into default and then the VA would take back the property in order to sell it and recoup some of their losses. Some time spent searching online for VA foreclosures could uncover some great investment opportunities.

Another great source of government foreclosure houses for sale are HUD homes. HUD stands for the Department of Housing and Urban Development. The FHA or Federal housing administration insures loans from banks and when people default on a loan insured by the FHA the Department of Housing and Urban Development takes ownership of the house and is responsible for then selling these properties. There are some real estate agents that specialize in HUD homes and you can also find quite a bit of information about these homes by doing a little research on the Internet.

You could spend all your time contacting various banks and government agencies to get information about any possible foreclosure houses for sale or you could also find several real estate agents that specialize in some of the different types of foreclosures but they're also a number of inexpensive services that compile all of this information for you. The services put together a list of all the different types of foreclosures from bank REO's to government owned properties and even some private auctions. For a small fee, these services will compile a comprehensive list of investment opportunities that is far greater than you can possibly uncover on your own. It is also a huge time saver to have a service supply you with a list of investment opportunities so that you could spend your time looking at individual properties and making offers rather than tracking down the opportunities in the first place. The services are thorough and inexpensive and many of them even offer a trial period and have a full moneyback guarantee.

Get home foreclosure listings and find foreclosed homes at huge discounts. Learn where to go to find local bank foreclosures, HUD homes, VA homes, IRS repos and more in your area http://www.smartcreditblog.com/foreclosure-lists.html

Article Source: http://EzineArticles.com/?expert=James_Ferris

For more information on foreclosures go to http://www.4roadrunnerpromotions.com