What is foreclosure?

Foreclosure is the legal process by which a mortgagor (you) of real property is deprived of his or her interest in the property due to failure to comply with the terms and conditions of the mortgage. The bank or lender will send a series of foreclosure notices which could result in the property facing public auction sale date to regain the property.  If you think you are in foreclosure, but not certain, consider these questions:  Have you received a late notice? Have you missed a payment?

Has your bank called you with a reminder to pay? Have you received any communication (mail, phone call…) If you answered yes to any of these questions, more than likely you are in the beginning stages of foreclosure!

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Counselors are available free of charge to assist you in dealing with your foreclosure. These counselors work with a non-profit agency and are experienced and trained to give you information that will make you aware of resources to help you make the best decision for you and your family. Call 877-543-3221 to speak with a counselor today.

Follow these 5 steps to avoid foreclosure.

1. Educate yourself about foreclosures and find a starting point.  There are good companies that will help you gather information, do research, analysis and reveal options to help you implement the right plan for your family. LIFE- Leaders In Financial Education is just one example of credible companies assisting families with their financial needs. http://www.leadersinfinancialeducation.com
   
2. Make a Payment. Unless you are robbing Peter to pay Paul by using credit cards, retirement accounts, kid’s college funds and borrowing from family members, reevaluate your expenses and try to make a payment.
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3. Refinance Your Loan. New laws make is easier to refinance mortgages to historically low interest rates. The government-backed loans are often the only viable option but you must owe 105% of your current mortgage. http://www.free-foreclosure-stop.com
4. Do a Loan Modification. With a modification, the lender can lower your payments by a combination of reducing your interest rate or lengthening the term of your loan. The incentive lenders have to modify your loan is that foreclosure is very expensive, so keeping a borrower in the home is often a prudent thing to do
5. 5. Short Sale Your Home. If your bank agrees to a short sale, hire an agent to find a buyer for the house.  You sell the house at a loss, and with the bank’s blessing, they agree to eat the loss (although they could still demand the homeowner make some kind of payment or share the loss).

Liar loans, officially called “Alt. A loans,” or “stated income” loans where borrowers gave little proof of income, could be the next threat to the troubled real estate market in Las Vegas and California.   They were an important part of the buying boom of 2004 and 2005.  Alt. A loans totaled $368 billion in 2006, up 28% from 2005.  They grew faster than subprime loans, but some believe it can shrink faster than what we have witnessed in recent months.

This was the major reason California passed a 90-day foreclosure moratorium that began June 15, 2009.  Every 30 seconds someone loses a home to foreclosure in California.  90,000 every month. Earlier this year Florida passed a voluntary 45-Day freeze on all new foreclosures. Nevada has yet to pass a foreclosure moratorium but they remain the number one state in the nation in the number of foreclosures, with one out of every 68 homes in foreclosure. If you believe you hold one of these loans, take a few minutes to fill out this questionnaire and ensure your home does not end up in foreclosure http://free-foreclosure-stop.com

Alt. A loans were most popular with buyers seeking investment property in addition to professionals and self-employed people who wrote off a lot of income, so their tax returns did not reflect what they were earning.  Now, five years later, with home prices down, investment property is expensive to maintain and owners are finding it very difficult, if not impossible, to refinance another loan.   Five-year, interest only Alt. A loans are coming due this year.  When the California foreclosure moratorium ends in September will we have more foreclosures hit the fan?  We do not know which Wall Street firms purchased mortgage-backed securities comprised of Alt. A loans.  Will September bring a second wave of foreclosures, lay-offs, and bank closures?

If you are caught in the current foreclosure crisis, or think you may be caught in the next wave, there are answers.  Contact your bank or lender, contact Freddie Mac or Fannie Mae for help with the federal loan modification programs.  Non-profit organizations and companies like LIFE – Leaders In Financial Education www.leadersinfinancialeducation.com offer no cost personal reviews, a financial analysis and options.   Start now, get information before the moratorium ends.  You will be surprised at the number of answers that exist.  http://www.free-foreclosure-stop.com