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The Real Deal on Foreclosure Default Options

By
Services for Real Estate Pros with Ultisky Inc.

It is now estimated that the current unemployment rate is a record high of 9.5%. Plus expected to rise even higher in the coming months. This will mean that hundreds of thousands of people will be without a job and therefore without earnings. Yes, those people who recently lost their jobs will receive unemployment benefits. However, it usually is not enough to cover the mortgage and therefore qualify for a loan modification or a Chapter 13 Bankruptcy to stop foreclosure. So what does this mean for you if you are behind on your note?

The most common options that are in place to assist homeowners in default and keep them from being foreclosed on require proof of the ability to pay on their notes. What if you are one of those people who primary wages comes from a job and you recently lost your job? This means you most likely would not qualify for any assistance from the help options most widely talked about.

Foreclosure Default Options:

HAMP is a government program that stands for (Home Affordable Mortgage Program). It was introduced to entice banks to offer loan modifications by offering tax guarantees in case the loans should go back into default.

A chapter 13 Bankruptcy is basically a structured repayment plan that is authorized by the U.S. Federal Bankruptcy Court where the courts determine a monthly payment to pay down your debt.

If you can't show financial earnings and qualify your chances of being approved are slim for both HAMP and a chapter 13 Bankruptcy plan.

In order to effectively save your home from foreclosure, you must look to other means to keep the lender from taking your house. Do you know that the majority of mortgage loans that were originated before the mortgage market cashed were not properly documented? This was mainly due to the fact that banks were more concerned with making a profit and selling their loans off. This actually provides you with many options and solutions to defend your foreclosure default.

So, instead of being on the defensive, go on the offensive. If you lender has served you with a dreaded notice of foreclosure default the first thing you should do is respond to that notice! You must put the burden of proof on your mortgage company and make them prove that they have the legal standing and right to take your home for non-payment. If you arm yourself with the right information the chances are they will not be able to.

For More infomation on this you can get a free copy of my report Secrets Lender Don't Want You To Know

http://gofightforeclosure.com/freereport.html

 

Roy Kelley
Retired - Gaithersburg, MD

Good post. Thanks for sharing these suggestions. Best wishes for continued success.

Oct 18, 2009 12:08 AM
Debbie Cullen
REMAX Realty Team-Cape Coral, FL - Cape Coral, FL
Your Cape Coral, FL Specialist

Interesting blog Kyle.  In my area Lenders have started calling the homeowner to talk about modifications.  I never thought I'd see the day where the Lender was calling.

Oct 18, 2009 12:29 AM
Kyle Ransom
Ultisky Inc. - East Point, GA

Hi Debbie, me either but don't be fooled. Lenders are only calling for their benefit not the borrower.

Oct 23, 2009 08:14 AM
Kyle Ransom
Ultisky Inc. - East Point, GA

Hi Rob, Thanks for the kind word.

Oct 23, 2009 08:15 AM