What Are Home Owners Rights during Foreclosure

Home foreclosure is one of the greatest fears of families due to debt. Even though this is true we often take our mortgage for granted in favor of our credit cards. Before we know it bills have easily stacked up and we end up not knowing who to pay first to stop the calls. The current economy is not making this situation any easier.

Even though your house is being foreclosed there are still legal procedures to follow. Your lender can’t just kick you out of the house. There are laws that protect homeowners from these situations. Here are some of the important facts you need to know when facing a foreclosure.

I have missed a few months on my mortgage…can they just toss me out?

Simply put: No. The mortgage lender/bank can only kick you out of the house with a court order. Before they can do that they also have to follow a set of legal procedures.

How long does the foreclosure take before they take my house?

Depending on the state and county the house is in, it can take as long as 6 months. In some cases the lender/bank may push for a faster foreclosure however, this is only when they have a new buyer in mind normally.

After the foreclosure, do I have to leave the house?

No you don’t have to. After the foreclosure auction ends the ownership will be transferred from you to the highest bidder. You will become a tenant of the house. The new owner must also follow legal procedures before he or she can evict you out of the house.

In some cases you can become just a “renter” to the new owner. (this is dependent on the new owner of course)

What happens when I get evicted?

The new owner of the house may send you a notice to leave the premises. The notice usually gives you 72 hours. If you fail to follow the notice the new owner must present his case to the court before a judge to get an order for you to be evicted. The judge will be the one to decide if you should be evicted or grant you more time. If you fail to follow the court order the new owner may procure an execution of the eviction order.

The sheriff will give you a notice of the execution and give you 48 hours to pack and leave. If you fail to follow the notice this is the time when the sheriff can physically move you out of the premises.

Doc Schmyz has invested all over the US and Canada. He built a free website that shares Real estate investing information. Find real estate information by state

Foreclosure Scams What You Need to Know

Home foreclosure is a VERY common problem that people face today. More often than not it starts from one missed payment which then spirals out of control. Before you know it you have missed three or four payments and the lender/ bank wants you to pay everything you owe all at once. Now the home owner panics and is looking for some type of “help”. This is the mindset that sets someone up to become a statistic to a scam artist.

This is when the swindlers and crooks find their way into your mailbox or give you a call. Foreclosure scams are as common as the problem itself. Since homeowners believe that they have no choice they fall for these traps and make their situation much worse than it was before. It is not uncommon for these scams to lead to even greater financial problems then the homeowner faced in the first place. In some cases the homeowner ends up becoming a identity theft case as well.

Scam operators also distribute flyers, advertise online, publish advertisements in the local newspaper, and call homes which are included on the foreclosure list. They call themselves mortgage consultants who offer foreclosure services or advertise with “We buy houses” slogans and signs.

Common scams:

Bankruptcy Foreclosure Scam

This scam operates by promising the homeowner that their house will be saved. In return they will either ask for the homeowner to pay their mortgage directly to them, hand over their deed and pay rent, or obtain refinancing. Of course these crooks never do anything for you…they contact NO ONE on your behalf. They keep all the money and file bankruptcy without your knowledge. Eventually they just skip out on you.

Since the homeowner is not aware that bankruptcy has been filed, they fail to participate in the case. The case is dismissed and the house continues onto foreclosure. Apart from loosing money and your home, you will also have a bankruptcy on your record.

Equity skimming

The scam artist poses as a buyer. They then promise the homeowner to pay the mortgage or given them a sum of money once the property has been sold. The operator then convinces the homeowner to sign over the deed and move out. The homeowner can stay but they have to pay rent. If they opt to move out the operator lets a third party rent the property. The operator does not pay the mortgage and lets the mortgage lender foreclose. and of course they skip town and are never seen/heard from again.

If the house has equity, the operator sells the property and pays off the debt. Then the operator keeps the equity that the homeowner could have had if they sold it. In few cases, the scam operator actually finds a buyer or sells the house. Normally they just set up a p.o.box with a forwarding address for the “rent check”.

Doc Schmyz has done real estate deals all over the US. He built a free website that shares Real estate investing information all over the US. Find real estate information by state

The Bank Short Sale – My Only Choice?

A bank short sale is not the only choice we have to avoid foreclosure – but it is definitely better than some of the other possibilities. If a homeowner is already in this situation, they are already dealing with intense financial anxiety from every angle. If approved for a bank short sale, much of this stress will be alleviated because they’ll be in a great position to purchase another home.

The hardest thing for a homeowner to do is admit the fact that we may not be able to save our home, but if we cannot save it, our primary goal should be to avoid foreclosure. Accepting a bank short sale in lieu of foreclosure is not the only way out – but it may be the best way out. A foreclosure could end up with us having wages garnished, other properties seized, being sued, and harassed for years to come. Not to even mention the damage to our credit. If handled by an expert, a bank short sale could settle all of these issues right now.

Either way, for the layman, a bank short sale or foreclosure can be quite stressful due to all of the complexities involved. There are attorneys, lenders, accountants, complex forms, legal jargon, and the internal revenue service to deal with. On top of that the money is tight on every side. We’ve got to remember in this situation that all parties involved are trying to get as much of their money as they can – so we’ve got to be prepared for anything. Banks are well-known for dropping surprise requests at the last second. Don’t allow yourself to be pushed around!

By having expert legal advice from the outset, we can avoid many of these last minute surprises. Don’t be fooled into thinking you can complete this process without expert advice. A bank short sale involves many aspects of law relating to taxes, lending practices, and real estate. Be sure that you have access to professionals in “each” of these areas. There are services offered by teams of attorneys, accountants, and real estate professionals that will help you complete the entire process – and then get their fees paid by the lenders. As with any service, there are good ones and bad ones – so be careful – but there are some excellent services out available.

Keep in mind is that the bank is not exactly enthusiastic about doing the short sale. Yes, they do want to avoid a foreclosure also, but their attitude towards a short sale is definitely not to be considered positive. They are trying to recoup as much as they can and at times may be rather difficult to deal with. If you keep this in mind, you’ll go a long way in understanding why certain aspects of the process move so slowly when you know in your mind that they should be moving faster. Keep a cool head and be patient. It’s going to be like trying to work out a deal with the government – they’ll answer you when they’re ready – and not a second before.

The entire short sale process is strenuous and all parties may not agree on every issue – but if we can tough it out, we’ll be the winners in the end. We’ll be successful if we avoid foreclosure and bankruptcy, get our debt forgiven, and come out without any unpaid property taxes. This is why a bank short sale is such a sweet deal. It won’t be perfect, but at least we’ll be in a position to buy another home. Completing a short sale puts us in the best position for the future. No, a bank short sale may not be the only way out, but it is one of the better options!

Anthony Mauwer’s short sale advice has helped many distressed homeowners successfully complete a bank short sale. Be sure to check out his short sale blog for tips, advice, and information on how the bank short sale can best work for you.

Mortgage Refinance With Bad Credit

The property market has crashed, the stock markets have taken a beating, the unemployment figures are increasing, and the banks are being bailed out. Times are difficult and financial hardships are affecting many households across the nation. Personal finances can be stretched due to unemployment, and people can find themselves falling behind with their financial obligations. Even if you are buried in bad debt, there is a possible way out of this situation. If you meet the requirements, a bad credit mortgage refinance might be the answer for some. This type of mortgage could be the way out of an unaffordable loan repayment.

The Federal Reserve has cut rates to an all-time low, allowing banks and mortgage providers to offer mortgage rates lower than anything that has been available in recent history. For consumers with credit blemishes, bad credit mortgage refinance is a smart solution.

In the current economic climate, mortgage refinances have prevented the repossession and loss of many family homes. By lowering mortgage rates and therefore lowering house repayments, a mortgage refinance can ease the financial pressures placed on families due to difficult circumstances like unemployment.

Credit status can always be repaired even after bad credit. The poor credit history that results from an individual being unable to make ends meet, will improve over time when the individual makes the more affordable mortgage repayments on time. This in itself will further improve the individuals financial situation due to the effects a positive credit history can have on improving employment and other financial opportunities.

Bad credit home loans will also allow people with less than perfect credit to realize the American Dream by purchasing a home. For those who have already purchased a home, but have a low credit score, and wish to lower the monthly payment, bad credit mortgage refinance will allow them to keep their American dream.

A mortgage refinance can provide homeowners with the funds needed to make essential repairs, home improvements or expansion. Circumstances change, and this can lead to a family’s property being unsuitable. Maybe a family has outgrown the property and it has become too small, or maybe it is just in a state of disrepair. A refinance can raise the cash to overcome such problems.

Also the loss of a loved one is not only emotionally crippling, but can cause significant financial hardship to the remaining spouse. If that spouse has a negative credit history, a bad credit mortgage refinance can help to ease the financial burden of being alone after paying final expenses. This can allow the living spouse to remain in the family home and will ensure that the children have shelter after the loss of a parent.

Another instance where a mortgage refinance can be utilized is in the case of divorce. Refinancing the family home to release a share of the equity for one partner rather than selling the property would allow the other partner and any dependants to remain in the family home and minimize the stress caused when a family is broken up.

No matter the reason for refinancing, it can make lives easier and allow homeowners to meet their goals, even with less than perfect credit. It does not matter if a homeowner is refinancing to lower a monthly payment because of a job loss, or if they are making home improvements to have a more energy efficient home. Bad credit mortgage refinance has been, and will continue to improve the lives of consumers all over the United States.

Johnny Hall writes about bad credit home mortgage refinance and bad credit mortgage lenders

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