Foreclosure is a difficult time for anyone. Yet, you must make important decisions about the future of your home. There’s not much time and you need to act fast for the best end result. Thankfully, you do have some choices that can stop foreclosure right away. Read on to learn about methods often used to stop foreclosure fast.

Refinance And Payoff the Loan

A refinance to stop foreclosure only works in some in some cases. If you have enough equity in your home and a steady income, you may be a perfect candidate for a refinance payoff. This is when a bank finances a new loan, supplying the money to pay off the initial mortgage plus any fees and penalties. By paying off the mortgage, you avoid foreclosure. If you have an ARM mortgage that has recently gone up, you may be an ideal candidate for a refinance loan as well.

Bankruptcy Filing

Bankruptcy is generally a last resort option because it comes with many drawbacks. Declaring bankruptcy to stop foreclosure is only effective for a short while. All it serves to accomplish is to delay it until the bankruptcy court says it may go forward. Bankruptcy should not be the answer if the foreclosure is your only major financial problem.

Short Sale

In a short sale, you sell the home for less than the full balance of your mortgage loan and the lender consideres this full payment. Short sales are used in some cases where the real estate market makes is unlikely that the home will sell for full price. To find out if this is a choice you have, you can attempt to negotiate with your bank to see if they would permit it.

Deed in Lieu of Foreclosure

If you have decided that you won’t be trying to keep the property, you can stop the most stressful part of the foreclosure process by offering a “Deed in Lieu of Foreclosure”. This is when you literally offer the bank the deed and in return they stop the foreclosure process. To find out if your bank would consider such an arrangement, you can negotiate it with their loss mitigation department.

All of these are popular ways that people use to stop a foreclosure from happening. In an ideal world, you would have more time to negotiate solutions. When it comes to foreclosure, the more time you have the more options you have as well.

How would you like to buy a car, truck, or SUV for only 10% of its original worth? How about a house? Or perhaps jewellery? Does it sound too good to be true? Well, this time, it is true! Government auctions provide excellent deals and savings on vehicles, electronics, homes, jewellery, and other expensive items that are obtained through foreclosures, repossessions, and seizures.

Imagine how great it would be to purchase a car, truck, or SUV for as low as 10% of the original value. Due to the current housing and finance crisis in the US, many homes, vehicles, jewellery, office equipment, and other expensive items are being sold in every state through government auctions. Your dream vehicle could be up for bid at this very moment for as low as $100! Those of you who own a small business can find great deals on the office supplies. You can also buy many items for very low prices and resell them for more!

These government auctions are held all over the country, yet many people don’t even know about them. Even though the events aren’t always advertised, the general public is sometimes invited. Car dealers and small business owners will often attend them for good deals. If you are interested in participating in a government auction, you may find information about them in your local newspaper or by calling around all the meeting places in your town.

Or if you prefer, you can find government auctions right now on the Internet! You can start bidding on your dream car or home today! A Google search for “government auctions” brings nearly 2 and a half million hits. These government auction sites will allow you to bid on many of the items electronically.

Unfortunately though, many are scams. Many government auction sites will take your money for a “membership fee” and will provide you with nothing more than expired and outdated auctions. Some legitimate sites may charge a membership fee as well, but they will keep their word and deliver real auctions for you to bid on.

So how will you be able to tell the legitimate government auction sites from the scammers? Fortunately there are also government auction review sites as well. These experts provide professional government auction reviews. They research government auctions and offer reviews and evaluations.

Web sites with government auction reviews obtain information about legitimate government auction items, dates, times, and locations. The government auctions are evaluated by certain criteria:

- the total listed and how current they are

- the variety of resources used

- ability to find required item

- the accuracy of the data

- value of membership

The professionals running the government auction review sites have put a lot of time and effort in to their research. You will get a head start over other government auction bidders by visiting a government auction review site to find out the best places to bid. You won’t have to worry about being scammed and let down by the fraudulent sites thanks to the hard work others have put into their research. It will make government auction bidding a lot easier on you by visiting and reading the information provided on government auction review sites!

When you bought your home, you signed on the bottom line without reading all that fine print. Who really reads all that fine print anyway? First of all, you’d need a magnifying glass to see it, and, second, you’d need to be a law professor to decipher it. Realize, though, that you’re not alone. There are many people who signed on that dotted line without really understanding what they were signing. Just like you perhaps, these people are finding that their interest rates on their loans have jumped suddenly and they are no longer able to make their payments. They’re facing the ugly mess of a foreclosure.

If you are facing foreclosure, which means the bank is coming to repossess your home, there are some things you can do. In most of the cases, foreclosure happened because of shady lending business practices. You should have been told what you were signing. But that’s all in the past. You must work on securing your future.

Contact Your Bank or Mortgage Company

If you are facing foreclosure, one of the first things you should do is contact your lender. If your lender should be a bank, contact the bank directly to find out if there are any arrangements that can be made. You must realize that a bank does not like to go through a foreclosure any more than you do. They would much rather you make your payments and stay in your home. Because of this, they will do all that they can to work things out for both parties.

When a bank conducts a foreclosure proceeding, they run the risk that the house will remain vacant for an extended period of time. Even if they do happen to sell the house, they usually end up getting far less than they would have if you had stayed in the house and continued payments. If you find yourself in difficult times financially, don’t hesitate to contact them and ask for help. Always remember, you are not alone in this circumstance, and the bank will most likely work with you toward a solution.

Contact Your Lawyer

If you’ve been the victim of lending fraud or shady business practices, you may have a case that you can take to court. Contact a lawyer and see if one will help you. Lawyers can be very expensive and most would think, “If I can’t pay for my house, how am I going to pay for a lawyer?” While this may be true, some lawyers will work on contingency on your case, which means they won’t charge you unless there’s a settlement or a judgment in your favor. It’s worth a try so that you don’t have to go through a foreclosure.

Don’t Run Away From Foreclosure

The very last thing you want to do when facing foreclosure is to skip out on your obligation. You could ruin your credit rating for an extended period of time and lenders then will be less likely to trust you with even a small account in the future. Besides, you’ll be left to the streets with no place to go. Do everything you can to avoid and prevent a foreclosure. Call the bank, call the lender or mortgage company or call a lawyer (depending on your circumstances). Don’t let pride get in the way. You could even call and ask your church or a local charity for help. Remember, you are not alone in facing difficult times. Do what you can to assure that you do not lose your home to foreclosure. Owning a home is part of the ‘American Dream’don’t let that get away from you.

If your bank or lender is threatening to take your home through foreclosure, you are no doubt looking for solutions to stop the foreclosure from happening. In this article, we are going to look at some simple things you can do to avoid losing your home through foreclosure.

You Can Live With These Two Simple Solutions

There is more than one way you can stop the bank from foreclosing on your house, yet most foreclosure solutions involve one simple step: first talk to your bank or lender. It is more than likely that it is not in the bank’s or lender’s best interest to foreclose on your property. They will probably be more willing than you think to help you find a solution to your foreclosure problem. In doing so, you can keep your home and they keep receiving their payments.

The first option is to refinance your home mortgage. Some banks will offer you a chance to refinance your home at a lower rate, effectively reducing your payments. This may help some people get their budget under control in addition to getting the bank off their back. A refinanced loan is a new loan that will start payments over again. You can ‘roll’ any late payments into the refinance amount so that you now become current on your home loan.

In addition to starting fresh, with the lower interest rate your payments will be less. This is if you keep the exact same term as your other loan. If you were to opt for a longer term, although there are reasons this is a bad idea, your payments would be even less. While lower payments may seem great, if less of your money is going to equity and more towards interest then this could prove to be detrimental in the long run. However if the bank is breathing down your neck, then this is one of many foreclosure solutions that can help get you out of hot water.

One less appealing choice, your second option, is to sell your house outright. This can be a difficult choice, because under duress and the additional time it will take to sell will put a lot of pressure on you, your family and the bank or lender that is still waiting for you to make payments. If it appears that you are trying to bail out on the loan, the bank may become suspicious and they may not be willing to work with you while you are in the selling process. Another thing to remember is that there are several fees associated with selling a house and the sales price will not be what you receive, so the final price you do get may not be enough to cover you loan balance and obligations.

In the final analysis, the best foreclosure solutions are simple ones that keep you in your home and paying on your current loan. If you have fallen behind in your mortgage payments and looking at a possible foreclosure, finding a way to get caught up and back on good financial ground is the better option. You may even consider taking a second job temporarily or working from home in your spare time to keep you ahead of the game for now while you work on and finalize your other options.

by Caroline Fouts

Bankruptcy Filings are on the Rise

In first half of this year, bankruptcy filings in the US rose 48 percent over the same period for the previous year, with 391,105 households with consumer debt filing for bankruptcy. (Source: American Bankruptcy Institute)

Samuel J Gerdano, the Executive Director of the American Bankruptcy Institute reported that “The new upward trend in bankruptcies reflects the economic reality of households under increasing financial stress. [...] We expect bankruptcy filings to continue to rise for the balance of the year.”

The Foreclosure Epidemic

The sub-prime mortgage meltdown and the resulting spike in foreclosures have contributed to some consumers’ need to file bankruptcy. In October 224,451 foreclosures were filed nationwide, up 94% from October according to RealtyTrac.

According to Daren Blomquist, a spokesman for RealtyTrac, foreclosures could hit homeowners even harder in the year ahead. As the interest rates on many adjustable-rate mortgages reset, mortgage payments could rise beyond some borrowers’ ability to pay.

“The other side of the vise pressing on these people is that it’s harder to refinance because lenders’ standards are tighter,” Blomquist said.

The drastic change in the housing market has even caught some real estate professionals off guard. A couple of years ago, Rob Rozzen, a real-estate agent in Las Vegas, bought 16 homes at the height of the boom. He hoped that the appreciation in his investment properties would provide a comfortable retirement.

When he was no longer able to keep up with the monthly mortgage payments that totaled $45,000, he stopped making payments. The lenders foreclosed on all of his investment properties, which he says caused his credit score to drop from 730 to the high 400s.

Now Mr. Rozzen says he is considering filing bankruptcy. He says he had no other option but to walk away from his investment properties, “You get to a point where your hands are tied.”

Credit CAN be Restored After Bankruptcy

If you’ve got financial troubles, it’s cold comfort to know that you’re not alone. But there is some good news. You can rebuild a good credit rating after bankruptcy, and it can be faster than you might expect.

Anita Burleson filed for bankruptcy a couple of years ago and has had difficulty reestablishing credit. But she knows that some other debtors have successfully borrowed after their bankruptcies.

“When I was in bankruptcy court, there was a couple that had filed for bankruptcy twice prior to this one,” Burleson said. “How could they get enough credit to get them into this much debt (three times)?”

Just about anyone can get credit soon after a bankruptcy, if they know how.

What Effect Does Bankruptcy have on your Credit Rating?

Of course, filing a bankruptcy has a negative effect on your credit rating. A Chapter 7 bankruptcy can stay on your credit report for 10 years, as can a Chapter 13 filing (although 7 years is typical). Plus, debts that are discharged through bankruptcy are not automatically removed from your credit report, and may continue to show as derogatory items unless steps are taken to clean up your credit report.

Lenders are primarily interested in the last 12 to 24 months of a borrower’s credit history. The challenge for the post-bankruptcy borrower is convince lenders that he or she has turned a new leaf… that the bankruptcy is old information, and the borrower now has his or her finances well under control.

Naturally, it is vital that no new late payments appear on your credit report. A consumer wants to distance him or herself from the bankruptcy. To convince lenders that your financial picture has changed since the bankruptcy, you have to show a new, clean credit history. Even one new report of a late payment may cause lenders to believe the potential borrower is still suffering financial difficulties.

From a creditor’s perspective, there are some advantages to lending to someone who has recently filed bankruptcy. The fact that the bankruptcy has discharged old, pre-existing debts makes it easier for many borrowers to repay new debts. Out from under the obligation to repay the old debt, these borrowers are also now free from the threat of potential judgments, wage garnishments or other collection efforts that might limit the borrower’s available funds to repay the new debts.

In addition, federal law prohibits debtors who have had debts discharged by a previous bankruptcy from having new debts discharged for as long as 8 years after the original bankruptcy filing. See 11 U.S.C.A. Section 727(a)(8) and 11 U.S.C. Section 1328(f).) So a lender can be assured that any borrower who has recently discharged debts in bankruptcy won’t be able to discharge any new loan for years. 

Rebuild Credit with a Secured Loan

It’s always safer for a lender to make a loan that is secured by some form of property rather than an unsecured loan. After all, if the borrower should default, the lender can recover the amount they lent from the security property, whether it’s a car, home, or funds on deposit in a bank account.

The safety of having a backup source for repayment makes lenders more likely to offer secured loans to consumers reestablishing credit after a bankruptcy.

Expect to Pay More—but Not For Long

Offering the bank collateral may get you a loan, but it won’t get you a low interest rate—at least initially. Immediately after a bankruptcy, you should expect to pay a higher interest rate on just about any kind of loan.

Steve Rhode, president of Myvesta.org, says families with a good credit history pay an average of $1,100 each month for mortgage and auto loans. But, due to higher interest rates, after a bankruptcy, a family pays almost $1,900 for the same items—an increase of approximately $800 per month.

But the high interest rates don’t have to last forever. Once a consumer has started to re-establish their post-bankruptcy credit, he or she can refinance their loans at lower rates. And it can happen pretty quickly.

“My first vehicle out of bankruptcy (had an interest rate of) 21%,” said Chance Nelson, an Indianapolis man who applied for and got a car loan just a few months after bankruptcy discharged his debts. “After paying this for about two years, I went and traded it in and purchased another (at) 13.99%.” Through a series of re-finances, within 5 years of filing bankruptcy, the interest rate on Nelson’s auto loan was down to just 6%.

Of course, if you plan to refinance any loan, be sure it doesn’t have a pre-payment penalty. As your credit rating improves and lower interest rates become available to you, refinancing becomes an increasingly attractive option. 

Subprime Merchandise Cards at www.CSBCards.com

One type of loan that is available to virtually all post-bankruptcy borrowers is a subprime merchandise card. This is a credit card that is easy to obtain but can only be used for online merchandise. It is NOT a visa or mastercard but reports to the credit bureau like one. This allows you to add new positive credit on your report quickly since virtually everyone is approved.

A subprime merchandise card works by reporting $5,000 in credit on your report and thereby increasing your high credit limit while at the same time lowering your debt to credit ratio. The end result is a significant improvement in your overall credit profile. Again, while it is not a visa or mastercard it does give you the credit benefits of one.

In spite of these limitations, for a post-bankruptcy borrower who needs to establish new credit, a subprime merchandise card is the best option. Many of these cards can be found at the website: www.CSBCards.com

Bankruptcy is Serious, but Doesn’t Last Forever

The decision to file for bankruptcy is very serious and has far-reaching consequences. It should never be entered into lightly. If you are thinking about filing bankruptcy, discuss your legal rights with an attorney.

Credit ratings can plummet as a result of a bankruptcy filing. It usually takes some planning, patience, and the willingness to pay high interest rates for a while to reestablish a good credit rating.

To rebuild good credit, you will have to maintain a history of timely payments, get a couple of new loans, and avoid over using your new lines of credit. But since lenders focus primarily on the last 12 to 24 months of a borrower’s credit history, it doesn’t have to take long to restore your credit and have access to loans at conventional interest rates. Currently, subprime merchandise cards seem to be the credit challenged consumers secret weapon. To find out more about them just visit the website: www.CSBCards.com 

Consumer Publishing Group is the publisher of the Credit Secrets Bible (in print since 1994). To receive Free Credit Tips including “How to Bullet-Proof Yourself From Identity Theft For FREE!” visit their website.