With today's economics, hundreds of thousands of people and this number continues to increase are finding themselves with the situation of foreclosure. Foreclosures don't happen just to people that take risky loans or are over-leveraged, it is happening to people who are getting divorced, needing to relocate for a job, having health issues, and lots of other reasons. No matter what the reason is for falling behind on your mortgage, knowing what to do next is really important. Too often, many people who face foreclosure do nothing. You have to consider what should be done and who you should contact.
If you find yourself possibly facing foreclosure, here are some steps to help you.
Start Now: Stop panicking and look at your finances: look at your income, look at your expenses, and any liquid cash that you may have. The sooner you are honest about your financial situation, the better.
1. Get Counseling: Many agencies offer FREE advice to homeowners who need it. The Department of Housing and Urban Development (HUD) has a list of certified counselors on its website and Neighbor Works has a toll free number (1-888-995-HOPE) that refers you to people in your area.
Also, when dealing with your counselor, get organized. Have the following information below will help your counselor get you better and faster service:
• Two months worth of pay stubs
• Any communication with your lender
• Homeowner's insurance policy
• Foreclosure notices
• Two most recent mortgage statements
• Two most recent tax returns for those listed on mortgage
• Proof of any income
• All bank statement for previous 2 months
2. Talk with your Lender: In reality, your lender does not want your property back. It is not profitable to them. Most lenders are willing to work with homeowners. It will take a lot of persistence on your behalf. You will need to be honest with the lender and let them know that you are not going to be able to make it and if they can suspend the payment or lessen the payment. Consider a Short Sale and contact a real estate agent.
3. Get Creative: Think outside the box. A lot of people are taking in boarders and renting out rooms. Some are renting out their whole house and living with family members until they get back on their feet. Some people are considering a second job that is different from their first job. Others have sold one of their cars and now are taking public transportation
You should also ask yourself if you belong in the house. Did you go over your head when you purchased the house because of the certain loans that were offered at the time?
Foreclosure can be frustrating and draining, but if you seek help and consider the above tips you will be less stress and ready to get back on your feet. Before the bank goes to the foreclosure you should contact them about negotiating a short sale for your property. This would also be a good time to consult a real estate agent who has experience with short sales.
For more assistance contact me at queensshortsales@gmail.com
Friday, June 18, 2010
Wednesday, May 26, 2010
What makes up my credit score and rating?
by Brandon Cornett
What types of information make up my credit score, and how will it affect me when I try to buy a home?
This is a frequently asked question among people buying a home (especially first-time buyers), so it’s worth a thorough examination in this article. In fact, the first half of this question pertains to consumers in general, because everyone can benefit from knowing the “ingredients” that make up a credit score.
Let’s begin by discussing why credit is important for home buyers in the first place. When you apply for a mortgage loan in order to pay for a home, your mortgage lender will examine your financial history from several angles.
For one thing, the lender will review your debt-to-income ratio, which is a comparison between the amount of money you make each month and the amount you owe each month (car payment, credit card bills, other loans, etc.).
And, of course, the lender will also examine your credit scores. Note that I mentioned “scores” in the plural sense. Though most people don’t realize it, you actually have three credit scores, one for each of the credit-reporting companies (Experian, TransUnion and Equifax).
How Your Score is Created
Your credit score is derived from your credit reports, using a special scoring model developed by the Fair Isaac Corporation. You’ve probably heard the acronym “FICO” before? Well that’s what it stands for … Fair Isaac Corporation.
Your history of payments on things like credit cards and car loans is a major part of your credit score. In fact, past payment history is said to account for about 35% of your overall score. If you have a history of paying bills on time, this will help your score. On the other hand, if you miss payments on a regular basis the opposite will be true.
It only makes sense why this history would be important to mortgage lenders, but it shows how you’ve performed over the years in terms of paying back loans. This is extremely relevant to somebody who is considering loaning you money!
The total amount of debt you have is another big component of your credit score. For example, if you have a lot of debt (perhaps more than you can afford to pay off), then your score will reflect this. And it probably won’t help your cause when applying for a mortgage loan.
So with this in mind, two of the best things you can do to improve your score (if it needs improving) are paying all bills on time and minimizing your debt.
© 2009, Cornett Communications.This is a frequently asked question among people buying a home (especially first-time buyers), so it’s worth a thorough examination in this article. In fact, the first half of this question pertains to consumers in general, because everyone can benefit from knowing the “ingredients” that make up a credit score.
Let’s begin by discussing why credit is important for home buyers in the first place. When you apply for a mortgage loan in order to pay for a home, your mortgage lender will examine your financial history from several angles.
For one thing, the lender will review your debt-to-income ratio, which is a comparison between the amount of money you make each month and the amount you owe each month (car payment, credit card bills, other loans, etc.).
And, of course, the lender will also examine your credit scores. Note that I mentioned “scores” in the plural sense. Though most people don’t realize it, you actually have three credit scores, one for each of the credit-reporting companies (Experian, TransUnion and Equifax).
How Your Score is Created
Your credit score is derived from your credit reports, using a special scoring model developed by the Fair Isaac Corporation. You’ve probably heard the acronym “FICO” before? Well that’s what it stands for … Fair Isaac Corporation.
Your history of payments on things like credit cards and car loans is a major part of your credit score. In fact, past payment history is said to account for about 35% of your overall score. If you have a history of paying bills on time, this will help your score. On the other hand, if you miss payments on a regular basis the opposite will be true.
It only makes sense why this history would be important to mortgage lenders, but it shows how you’ve performed over the years in terms of paying back loans. This is extremely relevant to somebody who is considering loaning you money!
The total amount of debt you have is another big component of your credit score. For example, if you have a lot of debt (perhaps more than you can afford to pay off), then your score will reflect this. And it probably won’t help your cause when applying for a mortgage loan.
So with this in mind, two of the best things you can do to improve your score (if it needs improving) are paying all bills on time and minimizing your debt.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author's website at www.HomeBuyingInstitute.com to learn more about this topic.
Friday, May 21, 2010
How to do a shortsale?
WHAT is a short sale?
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. Short sales are a way for homeowners to avoid foreclosure on their homes and still be able to pay off their loan by settling with lender.
Instructions:
- Step 1Verify the value of your property. If you are selling the property through a real estate broker, your broker will provide you with an estimate of market value. If you are selling the property yourself, do your own market analysis of the area and your property.
- Step 2Add up all the costs of selling the property. If you are using the services of a real estate broker, the broker will provide an estimate of closing costs. If you are selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.
- Step 3Determine the amount owed against the property. This will be the total of all loans against the property.
- Step 4Do the calculations. Subtract the total amount owing against the property from the estimated proceeds of the sale. On a short sale, this will be a negative number.
- Step 5Contact the lender or lenders. Talk to someone in the customer service department and tell them the situation. They may direct you to a specific department. Talk to a supervisor or manager if possible; this person will have more authority.
- Step 6Ask the lender what its procedures are for a short sale. Some lenders are willing to work with you by reducing the amount owed or making other arrangements. Others will look to the agents involved (if any) or anyone else who's making money off the transaction to see if they are willing to make concessions to make the transaction happen. Still other lenders will tell you that your debt is your responsibility, one way or the other.
- Step 7
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