Learning Ways to Avoid and Stop Your Foreclosure

Many of these resources here and on the web are super valuable if you take the time to learn all your options. As I have said, the most important advice: do not neglect to make contact or respond to the mortgage company's attempts to contact you. They are more than willing to solve the past due amount and not have to take your home. They are not in the real estate business!
So, what you do not find on the web or in these articles, consider the materials offered here. They are all backed by a 100% guarantee.
To your success in stopping your home foreclosure,
david

Changes to California Foreclosure Laws

Today, September 10, 2008, 14 hours ago
Effective immediately mortgage lenders must contact California home borrowers to discuss loan modifications by phone or in person before entering foreclosure proceedings under a new law Gov. Arnold Schwarzenegger signed Tuesday.

Senate Bill 1137 prohibits lenders from filing a default notice until 30 days after contacting a borrower or making legitimate attempts to do so. The law by Senate President Pro Tem Don Perata, D-Oakland, also requires that tenants receive 60 days\' written notice to vacate a property once it is foreclosed. And enables cities to impose fines of up to $1,000 a day on property owners who do not maintain vacant homes purchased in foreclosure, a tool aimed at preventing blight in hard-hit neighborhoods.

The Senate in January killed an earlier Perata bill that faced intense opposition from the mortgage industry and had stricter requirements, such as a face-to-face meeting between borrower and lender. SB 1137 did not face opposition and had bipartisan support.

Perata and Schwarzenegger said that the law will help stem the tide of foreclosures in California by forcing lenders to contact home borrowers before starting costly proceedings. They suggested that early communication will encourage both parties to explore payment modifications that avoid foreclosure.

As much as it sounds like a great idea to require more than just letters to notify owners about their foreclosure -- I am not quite sure HOW they will determine what constitutes good communication by the lender and what does not -- or how they will regulate this new law. Stay tuned for more on this, as I learn more here

What Are Foreclosure Terms? A Quick Reference

What Are Foreclosure Terms? A Quick Reference
Do you know what all those legal terms mean? Mortgage Lenders and banks use legal language that is guaranteed to confuse you. It is very important for you to be an informed consumer. Listed below is a quick reference list of the most commonly used terms. Become familiar with these terms when dealing with your lender. (Note: This in only a compiled quick reference list. Each term carries volumes with it. For more complete definition, please to Wikipedia, the free encyclopedia.) This glossary of terms is written in the simplest terms.
Acceleration Clause
A provision that could allow the lender to demand the entire balance of the mortgage loan when the borrower fails to make some installment payments.
Affidavit
A written statement, usually given while under oath or in the presence of a notary.
Annual Percentage Rate (APR).
The annual interest rate covering the interest and other costs. The Truth in Lending Act requires announcement of APR by lenders.
Appraisal
The process by which a licensed person gives an estimate of property value.
Appreciation
The difference between the increased value of the property and the original value.
Assignment
The transfer of property to be held in trust or to be used for the benefit of the creditors (lenders).
Balloon Payment
Large installment payment required to pay off the entire mortgage balance at the end of the term of the mortgage note
Certificate of Sale or Title
A document issued to the winning bidder at a foreclosure sale stating their rights to the property once the borrower’s redemption period has expired.
Credit Bid
A bid on behalf of the lender at a foreclosure sale. The bid amount must be less than or equal to the balance of the loan in default.
Deed-in-lieu of Foreclosure
A voluntary transfer of title by the borrower to the mortgage company to avoid foreclosure action.
Default
A mortgage is in default when the borrower fails to make the payments as agreed to in the original promissory note.
Deficiency Judgment
A judgment against the borrower for the balance remaining after the property is sold at auction or foreclosure sale.
Equity
The value of real estate less the outstanding mortgages and debts pledged against the property.
Fair Market Value
The price a property would sell for on the open market.
Fee Simple
Common term used to indicate complete legal ownership of a property.
Foreclosure
The forced sale of property pledged as security for a debt that is in default.
Grace Period
Period between the due and the overdue date during which no late payment penalty applies to the mortgage payment.
Judicial Foreclosure
A foreclosure that is processed by a court action.
Lien
A charge upon real or personal property for the satisfaction of a debt.
Lis Pendens
A recorded notice of pending lawsuit.
Mortgage
A written pledge of property that is used as security for the repayment of a loan.
Non-judicial Foreclosure
Non-judicial foreclosure is when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of their default.
Notice of Sale
A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where property is located and advertised as stated in the security document or as dictated by state law.
Refinance
Paying off one mortgage loan by obtaining a new mortgage loan.
Right of Redemption
A borrower's right to reacquire property lost due to a foreclosure. This right allows the owner to recover property lost to a foreclosure judgment, or sold after a foreclosure sale, within a certain period of time. The redemption period varies among the states.
Short Sale
A sale where the lender will agree to accept less than the full amount of the mortgage. This allows you to sell the house to an investor or other buyer for a good price, while the lender recovers the bulk of the amount due without having to pursue foreclosure proceedings.
Trustee
A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder.
Trustee Sale (Sheriff Sale)
An auction of real property conducted by a trustee. Also known as a Sheriff's Sale.
Writ
An order or mandatory process in writing issued in the name of a court or judicial officer commanding the person to whom it is directed to perform or refrain from performing a specified act.

What Is Foreclosure and the Foreclosure Process?

What Is Foreclosure and the Foreclosure Process?
According to Wikipedia, “Foreclosure is the legal proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor's equitable right of redemption.” (Please follow Wikipedia link for complete definition.)
In a July 2008 U.S. Foreclosure Market Report released August 14th, 2008 from RealtyTrac, a leading online marketplace for foreclosure properties, it shows: “…..foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 272,171 U.S. properties during the month, an 8 percent increase from the previous month and a 55 percent increase from July 2007. The report also shows one in every 464 U.S. households received a foreclosure filing during the month. (Read full report here).
To put it into simple language, mortgage foreclosure is the process a bank or mortgage company uses to take back ownership of your home because you have failed to make your house payments at the appointed time. You are called the creditor and are supposed to pay the installment or mortgage payment every month without fail to your mortgage lender. In case of default your mortgage is considered delinquent and proceedings would be initiated for take over of the home. Foreclosure is basically selling your property, usually by auction, terminating all your rights in that property and evicting you from the premises. To read more, click here for Over 20 Ways To Stop Foreclosure!

Simple Ways to Avoid Foreclosure

Simple Ways to Avoid Foreclosure

Do you want to save your home? If so, then you join the many people facing foreclosure that are first and foremost concerned about losing their homes and are searching for ways to avoid foreclosure and keep their homes. If this is you, then you will want to consider Foreclosure Mitigation Services. This service works to restructure your current delinquency. Other options may include refinancing or Chapter 13 bankruptcy (not recommended). If you have analyzed your situation and know that you just cannot afford to keep your house but are looking for a way to avoid a deficiency judgment plus minimize the damage to your credit score, then there are other options to stop foreclosure that are available.

If you are facing a mortgage foreclosure, keep this in mind: it is not a mystery and it is not a scary thing! But you may feel under pressure to the point it is hard to make the right decisions to stop foreclosure. Never ignore your mortgage lender's warnings concerning your late mortgage payments. They do not want your home back, so even if your situation seems like there is no way out, communication 1st is your best way to save your home from foreclosure. Learn what options you have before it's too late!

So here are some options and do your part to make sure you understand all of them.

These options are:

Restructuring Your Delinquency (The Best Option known as Mitigation)

Deed in Lieu of Foreclosure

Selling Your Property

Surrendering your Property in Chapter 7 Bankruptcy.

Consider which options will the best for you and your family.

Mitigation or Restructuring Your Delinquency
This is the best strategy if you desire to stay in your home. (And protect your credit). In order for you to be able to qualify for this option, you must be able to afford your mortgage. Your current income must be sufficient enough to meet your financial obligations. If your delinquency was caused by a one-time event like illness, loss of job or financial mismanagement, this is your best option!

Deed in Lieu of Foreclosure
This may be an option for you. If you are sure that you cannot afford to keep your house, you may be able to reach an agreement with your mortgage holder. In this option, you simply give your home back to them thus stopping foreclosure. Here the mortgage holder agrees to accept the deed to your home as full settlement and cancel the remainder of your debt. You have to see if you can negotiate this option.Depending upon if you have equity in your house, the amount of your outstanding debt on your home, and what other options are available to you, will determine whether this is a good option for you to stop foreclosure or not. Of course, the mortgage holder may not be willing to enter into such an agreement. But if there exists the smallest chance that you will be able to pay a deficiency judgment, your mortgage lender may decide that it is in their best business interests to avoid the costs of a foreclosure proceeding and stop the foreclosure and accept your deed as full settlement.

Sell Your Property to Stop Foreclosure
Do you have significant equity in your house? If so, selling your home is a good option. You then stop the foreclosure and walk away with money in your pocket! But if your equity is non-existent or limited, it could be difficult to sell the property for market value at this point because of the current housing market and your need to cover your mortgage, plus those other costs associated with the sale, like paying a commission to a realtor if you choose to use one.Another option in the case of zero or little equity is the mortgage lender may agree to a short sale. A short sale is when the lender will agree to accept, as a pay-off, less than the full amount that you owe on your mortgage. This option still allows you to stop the foreclosure and avoid a deficiency judgment. The mortgage lender recovers the bulk of the amount due without having to pursue foreclosure proceedings, which run into the thousands of dollars.

Surrender Your Property in Chapter 7 Bankruptcy
This option is one that will not be covered here as this should be the absolute final option. This is really not an option but rather a choice. You may do a diligent search and study on Chapter 7 and Chapter 13 bankruptcy proceedings.
We are personally familiar with these options as we have saved our home thru the mitigation process (and that on our own!)For more information How To Survive Foreclosure Or Avoid It Altogether!