Home Equity Loans
-What Are Rate-Locks
-Cost of Owning a Home
-Homeowner Tax Breaks
Fixed vs. ARMs
-Remodeling Your Home
-Mortgages in 2007!
Much Can I Afford?
Selling Your Home
Falling behind on mortgage payments can occur as a result of job
loss, family death, or some sort of other type of life-changing
crisis. If you fail to make payments for credit cards bills, not
only will you be faced with
delinquency rates, your
credit rating will be affected. However, when you do not make
payments for your home mortgage loan, your house can go into
foreclosure. Meaning, the lender takes ownership of your property.
Experiencing foreclosure can greatly hurt your chances for getting
approved for any sort of credit or loan in the future.
What should I do if I receive a foreclosure letter?
Definitely do not ignore the letter. Contact your lenders and
explain your situation and why you are late on payments. You will
likely have to provide the lender with your financial information,
i.e. monthly income and expenses. They will need this information in
order to help you.
Are there any alternatives to foreclosure?
There are several.
Special Forbearance - This is when your lender
will offer you a temporary reduced repayment plan. Or they may even
allow you stop making payment for some time.
Mortgage Modification - Your lender will
allow you refinance your mortgage and combine the debt into your
loan. You can also extend the term of your home loan. This will
create lower, more affordable payments that will help you 'catch
up'. Learn more about the refinancing for consolidating debt programs
Star Loan Services
Pre-foreclosure sale - You can avoid
foreclosure by selling your home, usually for an amount that is less
than what you are required to pay. In order to qualify for a
pre-foreclosure sale, your loan must be 2 months delinquent and you
must be able to sell your home within 3 - 5 months.
Deed-in-lieu of foreclosure - This option
allows you to 'give' your home to the lender. You still lose your
home, however, this option does not hurt your credit as bad. You can
qualify for a deed-in-lieu of foreclosure if you are already in
default and can not qualify for any of the other alternatives listed
above. Qualification is also achieved if your attempts at selling
your home before foreclosure were ineffective.
How do I know if I qualify for any of these foreclosure
Contact your lender. They will help you determine what your best
course of action should be.
Are there any 'avoiding foreclosure' scams?
If a solution is presented to you that is too good to be true,
it most likely is. One of the most common types of scams is
called 'equity skimming'. This is when you are approached by someone
looking to help you out of your financial mess by offering to pay
your mortgage or provide you with cash once the property is sold.
They will then suggest that you move out and transfer the deed to
their name. Ultimately, they do not pay the mortgage and the home
goes into foreclosure. The bottom line is, signing over the deed to
someone else does not eliminate your responsibilities of your loan!
How can I avoid becoming a victim of a foreclosure scam?
There are several things you can do to help yourself.
-- Never sign anything that you do not 100% understand?
-- Get ever promise, or guarantee in writing.
-- Make sure that any contract of sale of loan assumption specifically
states that your released from your responsibilities of the home
-- Run any potential deal involving your property by your lawyer and your
lender to make sure that it is legitimate.
-- Contact your local District Attorney, State Real Estate Commission
and/or your state's Attorney General to ensure that there are no
complaints issued against the buyer of your property.
Never take your time resolving foreclosure issues! Delaying will
likely result in you losing your home and destroying your credit!
Fair Market Value
vs. Seller's Market?
Credit Reports and Your Mortgage
Buying vs. Renting