Ways To Avoid Foreclosoure

Almost everyone will face hardships at one time or another, especially with the economy in it's current condition. You are not alone in this situation so you don't have to be embarrassed. One of the first and most important Ways to Avoid Foreclosure is to admit there is a potential problem and address it. The foreclosure process is complex and expensive, therefore lenders don't want to go through it anymore than you do.
One of the best Ways to Avoid Foreclosure is by keeping the mortgage company advised of your current circumstances. Instead of waiting for them to notify you of a late or missed payment, get on the phone and make them aware that you are serious about making the loan payments but may require a little more time. Loan companies are more willing to work with someone who is proactive and shows their concern and willingness to be responsible for their obligations.
Foreclosure proceedings can begin as quickly as within two months of missed payments. Time is not always on your side unless you take action quickly by asking for help before any payments are missed. The more time that goes by, the higher the risk, penalties, and other fees will be-not to mention the accrued interest.
More details on Ways to Avoid Foreclosure will be discussed later.

How Bankruptcy Can Help Stop Foreclosure

If pre-foreclosure resources have been expended and the lender had formally initiated foreclosure proceedings, bankruptcy is an option to stop foreclosure if a short sale or obtaining a deed in lieu of foreclosure fails. Bankruptcy can stop all debt and is an option if your debt grows too difficult to clear.
Bankruptcy could be preferable to foreclosure since it erases debt and so the borrower can build good credit sooner. A foreclosure will put a large dent in the credit score and but does not cancel the debt so it may take longer to build credit.
Filing a Chapter 13 or Chapter 7 bankruptcy allows the court to issue an "automatic stay" that directs creditors to cease their collection activities. This stop is active for three to four months while bankruptcy proceedings are held. Be warned that a lender could motion to lift the stay and proceed with the foreclosure if you begin proceedings too late.
Chapter 13 Bankruptcy Advantages
Also known as a wage earner's plan, borrowers can develop a repayment plan to make installments to creditors over three to a maximum of five years. During this time, creditors cannot continue their regular collection efforts. However, borrowers must still make all mortgage payments within the Chapter 13 plan on time. Other secured debts can be rescheduled over time to lower the payments. Borrowers make the payments to a Chapter 13 trustee who then distributes payments to creditors so there is no direct contact between creditors and the debtors.
Chapter 7 Bankruptcy Advantages
Chapter 7 bankruptcy will erase the debt that is secured by a borrower's home. However, the bankruptcy trustee gathers and liquidates the debtor's nonexempt assets to pay the creditors. FORECLOSURE IS NOT CANCELED. The borrower's home will be used as collateral as well.
But during a Chapter 7 bankruptcy, a borrower can live in the home for free during bankruptcy proceedings so the borrower can look for a new place to live during the proceedings.
To be eligible for Chapter 7 bankruptcy, the borrower (1) must have an average gross income six months prior to the proceedings to be less than the state median income and (2) must not be eligible for the Chapter 13 repayment plan.
This article is written by Timothy McFarlin - an experienced loan modification attorney. Tim has over 10 years of loan modification and bankruptcy experience and has helped many corporations and people with securing a better life. You can visit his website at McFarlin and Geurths LPP Law
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Stop Foreclosure-Legal Action You Can Take to Save Your Home

If you are facing foreclosure you want to take charge of the process. Your main goal is to stop the foreclosure. You want to save your home. You also want to protect yourself and your family.

One step in the process is to determine whether you can get the upper hand in legal action with your mortgage company. You may wonder how this can be done. There are several different approaches. Let me review two of these with you.

The first is called "Produce the Note" defense.

After you got the money for your mortgage, your mortgage company probably did not keep your mortgage. They probably sold it to an investor who packaged it with other mortgages and sold investments in that package to investors on Wall St. These investments were bonds.

Technically the note you signed at closing has to be passed on to each party at each step of the way and is to be held by the end investor. With the volume of mortgages done from 2000 to 2006 most companies did not pass the original note on to the end investor. Frequently the original note was misfiled along the way.

In court action lawyers specializing in foreclosure have asked the judges to have the mortgage company produce the original note to show that they, in fact, were the true owner of the mortgage. When the mortgage company cannot produce the note, the case has been thrown out.

This first happened on a case in Florida. In 2007 14 foreclosure cases were thrown out in a court in Ohio when the mortgage company could not produce the note.

This tactic is primarily designed to get a delay in the foreclosure. The goal of the lawyer representing the person facing foreclosure is to get the mortgage company to negotiate a monthly payment more favorable with their client. This payment is a lower one that the person can make every month. It will enable them to keep their home.

This defense is not as successful as it was originally. Mortgage companies are now making sure that they have the original notes before going to court.

The second and more successful action is to show that at the time you got your mortgage, the mortgage company made legal errors. In the process they misled you and violated federal or state laws.

Your lawyer will review all of the documents that you signed at closing when you got your mortgage. They will ask you if your mortgage company or loan officer said anything to you which was different from what appeared in these documents.

If there is a prepayment clause in your mortgage was that disclosed to you before closing? Did you know what that prepayment penalty was?

Was the interest rate on the closing documents the same as what you agreed to with your loan officer? Were you led to believe that you were getting a regular thirty year mortgage? At closing did you find out that it was a 2/1 or 3/1 Adjustable Rate Mortgage?

Your lawyer can use any legal misrepresentations to help you gain the upper hand and to stop the foreclosure process. It also enables them to have the upper hand in negotiating a more favorable settlement for you with your mortgage company.

As you can see, it's a two way street. Your mortgage company can take legal action against you. You can also take legal action against your mortgage company. To take control of the foreclosure process you may want to go to court.

If you feel legal action is in order, don't make the mistake and try to represent yourself. Hire a lawyer who specializes in foreclosures to represent you. They are skilled in knowing what to do and how to do it. If you try to represent yourself, your chance of being successful is greatly reduced.

As a real estate investor since the 1980's Mark Elkins has seen the devastating impact foreclosure has had on common ordinary people. This has led him to study and gain much knowledge and insight into how to help people in foreclosure to take the offensive, reverse the process, save their home and minimize their losses. Please visit his website, http://www.stopforeclosureanswer.com

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Foreclosure Imminent? A Foreclosure Attorney Can Offer Other Options to Losing Your Home!

Many of us have either seen or experienced first-hand the effects that the economy's downfall are having on households. Whether it is the loss of a job, vehicle, or even a home, many people are experiencing such losses on a daily basis. Michigan residents may be surprised to find that when it comes to foreclosure, they might still have a chance to save their house, with the help of a Detroit foreclosure defense attorney.
A Detroit foreclosure defense lawyer who specializes in home foreclosure cases will have a great deal of knowledge and experience in dealing with debt protection and debt relief laws which can be vital in helping you keep your house. Your lawyer will sit down and explain your options to you, and you can both discuss which would be the best option to help you save your house.
You may find that one of the most popular ways to avoid foreclosure on your home is to file bankruptcy. While this may not be for everyone, it is one alternative to losing your home. A Detroit attorney can help explain to you the different types of bankruptcy you can file (known as "chapters"), as well as offer any advice that may help you make your decision. Your attorney will also be aware of the new laws that have recently been put into place which may prohibit filing bankruptcy in certain situations, in which case they will try to suggest an alternate method.
If bankruptcy is not an option, your lawyer can inform you about other options that can help you to keep your home. Debt consolidation, refinancing, and other options may be available and the lawyer can help you to gain access to these options.
So, if you want to find a foreclosure defense attorney, you might want to start out by searching on the internet. You can make your search as general or specific as you want, although it is recommended that you try to limit your search within traveling distance of your home. This will ensure that you are able to get to your lawyer quickly in the event that you have an emergency or last-minute meeting.
http://detroitforeclosuredefense.com
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