Real Estate News

San Francisco is relatively behind in the Foreclosure rate compared to other cities of California. But foreclosure rates have been rising lately. When property reverts to the lender, namely the Bank, it is called as Real Estate Owned (REO) property. Investors who wish to make hay while the sun shines need to keep certain facts in mind when they use San Francisco Foreclosure Listings for buying REO properties.

Finding an REO Listing is the first task. This is relatively simple. You have to just decide on a budget and a geographic area, check yellow pages or online postings of San Francisco Foreclosure Listings. Then you zero on to a property foreclosed by a bank.

There are special considerations with Real Estate Owned by Banks properties in San Francisco foreclosure listings.

• Banks do not do more than basic maintenance of foreclosed properties. They don’t paint nor replace carpets. Be prepared to make a sizeable expenditure to get the property in shape after you purchase it.
• Remember that Bank owned properties may be discounted but they are never total give aways. The Bank usually determines the asking price after consulting several real estate agents in the area. Once the bank has an asking price it will hold for a period of time. If they don’t get that amount in three or four weeks, they will lower the price a little more.
• Very often they can draw multiple offers. This is because there is a fierce competition in people trying to buy foreclosed properties.
• They are sold in ‘As-is’ condition. May be the foundation is shaky, the appliances all in not working condition, the carpets all torn and tattered. Make sure you take these factors into account while making your offer. Like in the case of usual home purchases arrange for home inspections. You must add fix up costs to the total asking price so you don’t suffer later.

If you buy from owner occupants it is a lot different from buying bank owned property. The owner occupant can give you lot of information about the property but the Bank has limited information about foreclosed property.

Before you make an offer, you must be ready with your finances. Banks and owners are aware of how difficult it is to procure a house-mortgage. So you must come prequalified for a mortgage.

Next you approach real estate auctioneer selling hundreds of foreclosed properties on the behalf of banks. These are usually in good condition with clear title deeds. Very often, all pending liens have been cleared. The Bank is eager to get the property off its hands. It doesn’t want to have a public image of having bad debts. So REO properties are sold at reasonable discounts and within short periods.

Recent statistics showed that foreclosure filings reached one million in May with indications that the number could swell to 2.4 million by the end of 2009. Unfortunately, much like filing bankruptcy, the ramifications of a foreclosure filing will follow these families around for a long time. The first issue following a foreclosure, however, is an immediate one; finding a new place to live. Many families, in the battle to remain in their home, will use up most or all of their funds prior to foreclosure. That leaves them empty handed once the foreclosure is done. Combined with a credit score that reflects the foreclosure, the lack of funds can make a prospective landlord queasy about approving an applicant in this situation. Solutions include:

* Writing a letter of explanation to accompany the lease application. Putting a story behind the current situation, along with a detailed solution can go a long way.

* Offering a larger deposit than required. It may have to be borrowed or saved during the last stages of the foreclosure but the offer of a larger deposit will serve to lessen the risk perceived by the landlord.

* If there is a solid income history, leasing a property at a small fraction of the total income will ease the concerns of a landlord.

The second issue is the inevitable hit on the homeowner’s credit score. Credit scoring is now integrated so that a foreclosure will not be an isolated event. Once a foreclosure hits a report, credit card interest rates will skyrocket and credit limits will be slashed. Carrying a high balance on credit cards can be prohibitively expensive at interest rates above 27%. It will also be difficult and expensive to get approved for any other type of loans. Solutions include:

* Debt settlement – Defaulting on consumer debt and then doing nothing doesn’t make it go away. Additionally, staying current on your cards with rates at 30% is going to take precious money away from lease deposits, etc. If your credit score is going to take a pounding anyway, entering a debt settlement will cut your payments in half and pay the debt off within 48 months.

* Be proactive regarding your credit score. Be sure to note your scores when balances are paid off. Your credit score can be re-built over time as you get out of debt.

Like bankruptcies, prospective employers are now focusing more attention on foreclosure filings in terms of judging the character and financial responsibility of the applicant. Credit checks are now a regular part of the screening process, especially when there are a number of applicants. A foreclosure can tip the scales if everything else is equal between two applicants. A possible solution is to have a letter of explanation detailing the events that led to the foreclosure. Total honesty is going to be the best approach here and, who knows, if the person hiring you is going through his own set of financial challenges you may just find some common ground which to you getting a break.

The IRS considers the amount of money owed on the mortgage that is not recovered from the sale of the property as income for the homeowner. In any case where debt is forgiven, the amount not paid back will be taxed as income. Solutions here include a congressional pass that exempts the owners of foreclosed property from a tax hit if it was their primary residence and the property wasn’t refinanced with a cash out loan. The tax bill can also be avoided by proving insolvency. If your debts are greater than your assets you’ll be allowed a pass on money owed for forgiven debt.

In the end, the mental toll of being forced from your home and community could be the greatest cost. The best solution is to focus on learning from mistakes, putting the past in the past, and moving forward. Lastly, like filing bankruptcy, the stigma of filing foreclosure doesn’t carry the baggage that it once did. As widespread as foreclosures are and with delinquencies occurring in 12% of homes across the country, they are quickly becoming seen as another part of life, not some sort of massive failure.

Very often, when someone contacts a loan modification attorney they really do not understand how the foreclosure process works or how to stop it. People who do not understand foreclosure proceedings are often scared, timid and unwilling to do what it takes to stay in their homes. Many think that if they just ignore their lenders, they will go away. However, inaction is not any way to respond to a potential foreclosure. The only way to mount a successful defense to foreclosure proceedings is to know how the process works, and talk to the loan modification attorneys who know how to stop it.

Foreclosure Process

The first step in the foreclosure process begins when a lender files a “Notice of Default” with the county recorder. This often proceeds a period of non-payment by the borrower, meaning the homeowner is defaulting on the loan by not making payments. This notice is mailed to the borrower and any other affected parties. This is in no way the end of the process; in fact, up to five business days before the trustee’s sale, the borrower can pay off the default amount plus any addition fees and/or fines and stop the foreclosure process. Obviously, very few people can simply cough up the thousands or tens of thousands of dollars it would take to pay this amount.

The second step comes ninety days after the Notice of Default is recorded. A “Notice of Sale” must be posted on the property and in one local public location, such as a library or town hall. The Notice of Sale is also published once a week for three weeks in a newspaper of some sort in the area. The Notice of Sale must clearly state the date, time and location of the sale, as well as the property address, the trustee’s contact information and any other pertinent information.

Step three usually occurs about four months after the foreclosure process began. The Trustee Sale Auction is held as a public auction at the time and place designated by the Notice of Sale. It is conducted by the lender’s representative, almost always an attorney, and the successful bidder must pay immediately with cash or a cashier’s check. The lender often bids in the amount of the balance due plus costs. If no one else bids (which is usually the case these days), the property reverts to the lender.

Contrary to popular belief, the lender or bank you got your mortgage from does not want your house back. The entire foreclosure process costs the lender far more than it is worth. The lender is not only losing money on the four months you aren’t paying your mortgage, but will most likely lose money paid to the attorney who runs the auction. A loan modification attorney can help you avoid foreclosure and stay in your home. Both you and your lender are interested in you keeping your home, and a loan modification attorney can help you avoid the headache, heartache and embarrassment of a foreclosure.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Regardless of where you are at financially, it is almost never too late to avoid losing your home to foreclosure. Qualified loan modification attorneys know that while it is easy to lose hope and fall into a place of inaction, you have many tools at your disposal.

Options

Contact your existing lender and see if you can get a forbearance, a payment plan or a deed in lieu of foreclosure. A forbearance is an agreement between the lender and the borrower that reinstates the delinquent loan through the payment of a lump sum or a schedule of payments over a period of time. A payment plan is similar to forbearance; in some cases, the lender may agree to a short term payment plan if you can prove you’ve had a hardship (loss of a job, medical bills, etc.). A deed in lieu of foreclosure is a voluntary transference of title to the lender. Most often, this is used as a last ditch effort by the homeowner to avoid the negative consequences of foreclosure.

The problem with all of these options is that they require a great deal of cash on hand, something you most likely do not have available. Foreclosures can be a challenging situation because most people facing foreclosure are not simply lazy people who forgot to pay a bill, they are hardworking people who are facing some sort of financial crisis. These might be options if you have $10,000 or $20,000 on hand, but odds are you do not. With a deed in lieu of foreclosure, the ultimate problem is you no longer own the home, and so now you’ve lost any equity in the house and you are not in control

Other options include refinancing, although that depends upon your credit history which could have taken a massive hit from your financial problems. If you do not have an outstanding credit history, or if your financial challenges are more than short term, a refinancing probably will not happen. A short sale is an option, although there is no guarantee that the lender will forgive whatever debt remains from the short sale. There is also always bankruptcy, but there are so many challenges before, during and after a bankruptcy that it can be a complete waste of time. A bankruptcy will stay on your credit history for up to a decade and provide nothing but headaches during that time. Even afterwards you can face financial challenges, career challenges and legal challenges stemming from the bankruptcy.

Quite possibly your best option when facing foreclosure is a California loan modification. A loan modification is a change of the terms of the original mortgage loan; the change could be to the interest rate, the length of the mortgage, the principal balance, the late fees or some other part of the original agreement. To get a loan modification, you can attempt to deal with the lender yourself or hire a California loan modification attorney to negotiate on your behalf. A loan modification attorney will often get a quicker response from a lender because he or she will have the law on their side. A lender will consider a loan modification when foreclosure is eminent and the borrower’s income has been decreased, but if the borrower will be able to keep paying the mortgage at a lower monthly rate.

Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

Legal Disclaimer

The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

When facing foreclosure, it may seem hopeless for your financial situation to be salvaged. While the prospect of losing your home is certainly discouraging, it’s extremely important not to give up on getting your finances in order. Having a home foreclosure on your credit history is extremely damaging, and often will prevent you from getting any future financing. Stopping a foreclosure at the right moment can help save your home, and prevent you from possibly serious financial consequenses.

In order to stop a foreclosure in time, there are several important steps that you may take. The first step is to open the communication lines between you and your mortgage company. Most mortgage companies will be open to negotiations to help you make your monthly mortgage payments, since they are also partially responsible for your debt. A foreclosure is expensive to a lending institution as well, as they will also lose money when you lose your home. Speaking to your mortgage company is very important when trying to stop a foreclosure at the right moment.

In some cases, you may qualify for government aid in helping prevent foreclosure on your house. With the recent increase in home foreclosures, many large banking coorporations are now offering federally funded financial aid. These programs are extremely generous, though may require you to meet certain guidelines when applying. This is to prevent the programs from being exploited, so it is important to research the specific aid program of your bank to see if you may qualify.

As long as you are able to prevent a foreclosure before the deadline set by the mortgage company, you will be able to keep your home. If you are not able to make your mortgage payment, it is strongly advised that you research methods to refinance, restructure, defer or negotiate your mortgage. In addition to your mortgage company, there are many commercial or non-profit organizations that offer specific aid to help people struggling with making their mortgage payments. However, some of these companies may have hidden fees or charges associated with their services, so it is recommended that you research the company that you wish to use. If you thoroughly research all of your available options, you will have a much better chance of stopping a foreclosure at the right moment, before it becomes a permanent part of your financial history.

Preventing foreclosure through the services of a loan modification agency like 1st Foreclosure Prevention can be a good thing for anyone to do. This can work to ensure that a person can stay in one’s home and have an easier time paying it off. A person will need to provide plenty of details on one’s finances though. This includes information on one’s income.

Income is needed for entering a plan for preventing foreclosure. Help with foreclosure can be reached as long as a person is going to have the money that is needed to pay off the mortgage. This is especially concerning because nearly one quarter of the 1.2 million people in the United States who have gotten trial loan modifications were kicked out of their modifications due to inabilities to pay off their loans.

A new rule that was passed by the Treasury Department on June 1, 2010 stated that an agency must verify the hardship and income that one has before getting a person into a loan modification. This is to ensure that more people will be able to have successful trail modifications that can become permanent modifications.

The reason for this comes from how difficult it can be for an agency to handle its paperwork when dealing with a person who is applying for a plan. A loan modification plan will require plenty of details on one’s condition. This is so it will be easier for an agency like 1st Foreclosure Prevention to find a better modification plan for one’s needs.

However, the problem is that many people have had to deal with longer trial periods for their modifications because they are not providing enough data on what they earn. This is causing a majority of people to deal with trial periods that are longer than six months in length. It is taking longer for people to get into permanent modifications than ever before.

Working with plenty of financial data is something that can be done to make it easier to get a modification. It will be best for a person to provide a series of pay stubs from one’s work and investments as well as tax return forms. Details on one’s hardship and a proof of that hardship will also be needed.

One noticeable thing about how requirements for preventing foreclosure have changed comes from how some lenders and agencies are having easier times with applications. This comes from how they are dealing with fewer applications. In February 2010 there were about 72,000 loan modification applications. That number fell to around 47,000 a few months later.

The proof of income is one of the most important parts of a foreclosure consulting service. This is needed as a means of ensuring that a person is going to get into a permanent loan modification as soon as possible. This can also work to ensure that a person can get the best possible terms for one’s modification. This is so the risk of being removed from a program will be reduced.