Let’s define Foreclosure In the simplest terms, a foreclosure will occur when a homeowner is unable to make the principal and/or interest payments on the loan. This will ultimately result in the property being seized and sold. The foreclosure allows the lender to recover the loan amount owed either selling or re-taking ownership of the property that was securing the loan. This is the process we have come to know and love as the repossession process. It all starts when a homeowner defaul... Read Full Story

You and so many Americans are asking these questions: Why is there a foreclosure problem? Why are homes being taken over by the banks? Why are people suddenly not able to afford their mortgage payments? The problem really goes back a few years when banks had an abundance of money to lend and decided to lend that money at low teaser rates to people who were of questionable financial risk. These teaser rates were the now famous ARMs (Adjustable Rate Mortgages). This ARM offered a very low inter... Read Full Story

If you are actively trying to keep your house from going on the auction block but are losing the fight, you need to look at the options that might stop foreclosure. Refinancing is the option that most homeowners attempt first but in todays upside down world that might not be a workable option. In the good days YOU had to qualify. Now it’s your HOUSE that needs to qualify. If you owe anything near the current appraisal price, you’re toast. In today’s market a homeowner needs ... Read Full Story

When it comes to credit and credit reports the two most often asked questions are: 1) How does a bankruptcy affect my credit report? 2) How does a foreclosure affect my credit report? The reality is that a potential creditor will evaluate your credit report in total, if they see your credit report at all. In all likelihood the only thing they will see is your credit “FICO” score. A FICO score is a way to determine the likelihood that you will pay your bills. FICO scoring methodolo... Read Full Story

OK, you’re three months behind in mortgage payments and the lender is calling every day. Most people in the situation think selling their home is the best and only solution. It seems everyone knows a realtor and of course they turn to that person for help. After a review by your realtor friend you are told the bad news. Your home won’t sell for enough to pay off the balance of the loan, the fees, and of course the real estate commissions. Many people still try to sell their home b... Read Full Story

Generally speaking, subprime loans are loans that carry a higher interest rate than a prime rate loan. The ideal prospect for a subprime loan is a person with a poor or limited credit history. The higher interest rate is to compensate the lender for the increased credit risk. Very few lenders advertise themselves as a sub-prime lender. The definitive way to tell a subprime lender is with the rates that are charged. Do I need to say, if you can qualify for a prime rate loan, avoid subprime len... Read Full Story

If you own a home and fall behind on your payments you risk foreclosure. The foreclosure spiral begins when your loan payment becomes 16 days overdue. At that point, your mortgage lender will try to contact you to work out a repayment schedule to bring your loan current. If your first payment becomes 30 days delinquent and the next month’s payment looks doubtful, collection attempts begin in earnest. If your payments fall 90 days behind, the lender will likely refer your mortgage to an ... Read Full Story

The Headline SHOULD Read: We buy houses! If you want to sell your house thousands below market value! We’ll make a killing! But instead it says things like: We can Credit"> Credit">save your credit! We pay cash! We buy your home and rent it back to you! My company specializes in helping people just like you! Don’t let the bank take your home; we’ll pay you for it! Most advertisers with ads like these are bottom feeders. They try to profit from your misfortun... Read Full Story

Foreclosures are on the rise. Nevada has the highest per capita foreclosure rate and California has the largest number of foreclosures (they have more houses). Figures for Detroit show that there is one foreclosure filing for every 51 households. That’s five times the national average. Many people are forced to ask the hard question, can I just give my house back to the bank? This is a very common question. The process of giving a home back to the bank is called a “Deed in Lieu of... Read Full Story

About 1.3 million homes received foreclosure related warnings last year, 2007. There are over 1 million already in 2008. Honestly, avoid a foreclosure at all cost. A foreclosure is a legal proceeding that takes away a homeowner’s right of owning or redeeming the home that the mortgage covers. The following are ways to avoid a foreclosure: 1. Don’t ignore your problem. Hiding your head in the sand will only get you further behind on your debt. It only becomes harder to reinstate yo... Read Full Story