Personal Finance guide

Loan Modifications and the Race Against Foreclosures

While there have been recent signs that the economy and real estate markets may be in the early phases of stabilizing, the foreclosure crisis appears to be rolling along unimpeded. The most recent evidence comes from a new study from RealtyTrac, Inc., an Irvine, California based housing research organization which reports that foreclosure filings in the form of default notices, scheduled auctions, and bank repossessions totaled a record 360,149 in July.

The total represents a monthly increase of 7% from June and a 32% rise from July of 2008. The month’s total of foreclosure actions broke the existing record for the third time in five months. Continue reading ‘Loan Modifications and the Race Against Foreclosures’ »

Short sale as the best option for financially troubled homeowners

If you are one of the many homeowners that are facing possible foreclosure on your home or your home is worth less than you owe on it, you may want to consider a short sale as an option.

A short sale is the process of selling a property for less than is owed on it. In a short sale, the lender agrees to discount the loan and allow the property to be sold for less than is owed on it because of financial hardship of the debtor. The owner sells the house and the proceeds of the sale go to the lender. The lender typically forgives the remaining balance of the debt. This is one of the better ways to get out of a bad situation, rather than going into foreclosure. Continue reading ‘Short sales as an alternative to foreclosure’ »

As the housing crisis continues to build momentum across the country, successful home loan modifications are the only course of action standing between homeowners’ ability to stay in their homes and being forced to move due to a foreclosure. If events leading to a foreclosure are unfolding quickly, a modification becomes a one shot chance that must be done correctly and as efficiently as possible. The following are the five big mistakes homeowners commonly make which can slow the process to a crawl or result in non-approval. They are:

1. Being unrealistic – If you are falling behind on your mortgage payments without a foreseeable change such as a raise or a higher paying new job, the problem is not going to go away on its own. Start pulling your paperwork together, learn as much as you can about loan modifications, and begin interviewing to get the best representation possible for your situation. Continue reading ‘Five Big Home Loan Modification Mistakes’ »