Foreclosure Solutions

By
Mortgage and Lending with Jacob Dean Mortgage

Foreclosure Solutions

Our goal is to stop your foreclosure and give you a fresh start. Our success rate is 99%.

We are specialists in working with your lender, or lenders, to restructure your current loan(s) by providing you with a unique, professional plan that you and your lender can accept.

We fully understand that you have a serious problem and only a short time to overcome the real possibility of losing your property.

The lender wants to see a provable relationship between the homeowner's income and expenses that will ensure them and the federal regulators that the homeowner will be able to make his payments in the future.

KNOW THE LAW - Every State has different foreclosure laws that govern how long it takes a lender to foreclose on your home. Time can vary from 60 days to 9 months. Contact us and let us know what State you're in and we will send you your rights, in your State

Typical results of our restructuring plans:

LOAN MODIFICATION - 99% of all «A» type lenders and 70% of sub-prime lenders (with high interest rates) will negotiate a loan modification where your delinquent payments and foreclosure fees are added onto the back of the loan. Your loan payments will remain approximately the same. In some cases the interest rate will be reduced temporarily

FORBEARANCE PROGRAMS - Typically 30% of sub-prime lenders (with high interest rates) will only offer a workout program that requires you to immediately pay at least 20% of your total delinquencies including foreclosure fees, plus the balance of the delinquency will be added to your regular monthly payments over a period of 6 to 24 months. A few will offer 48 months

FORBEARANCE PROGRAMS OFTEN FAIL IF THE LENDER IS NOT FORCED TO CONSIDER THE ABILITY OF THE BORROWER TO PAY. WE REQUIRE THEM TO CONSIDER YOUR ABILITY TO PAY

Please note: we believe that bankruptcy is the absolute last resort

GREAT NEWS!!

FHA and VA loans CAN BE MODIFIED. FHA can give you a no interest and no payment loan to bring your loan current.

Comments (4)

Richard C. Decker,P.A.-Realtor Broward County FL
RE/MAX Partners - Fort Lauderdale, FL

Hi Brian -Thanks for your post!  SHORT SALE is being used all the time and everywhere.. but that is an option after the bad news arrives, I know that you said all states do not have the same policies regarding foreclosures.  I would like to know your opinion on what to do when.. It seems like the 'talking to the lender' is something that is done before they are speaking at you. What remedies should owners in trouble be looking at and when? And then I reread your article and now it looks like all these options are after you are behind in payments...  You can't talk short sale to the bank until a contract and the short sale packet is complete with hardship letter and all - but is there a time before things get really bad that the seller can call the lender and say they are in trouble and help is needed... Or does the Lis Pendens trigger all this and not before? I only see the loan modification as a probable option. I just see it a little unfair that if a owner has the courage to contact the lender, that the lender should not be loading on all the fees penalties and extras because they can not talk about the problem before something hits the fan..

Nov 23, 2007 01:42 PM
Brian Piper
Jacob Dean Mortgage - Vienna, VA
BestVirginiaHomeLoans.com

Okay, although all situations are different, there are some general timelines depending on what the borrower intends to do with the property. If a borrower intends to hold on to the home, the minute they are behind or think they will fall behind, they should contact their lender (multiple times, if they don't feel they are getting the attention they require). Forbearance agreements allow lenders to accept half the past due amount to begin with, then break up the remaining arrear-age over 3-12 months. Provided all payments are made, this gets the borrower back on track. The downsides... borrowers may not have half the past due amounts (especially if they are multiple months behind), they still need to have the financial ability to cover the payments and they are still reported late to the credit bureaus until the  plan is complete and they are actually caught up.

Another option includes someone else "helping them" by providing the money to get caught up. There are many flavors of foreclosure-help advertised, but borrowers need to completely understand what is happening in the transaction and be EXTREMELY CAUTIOUS if they hear the words QUIT-CLAIM, LEASE BUYBACK, RENT-TO-OWN, etc. Ideally, for a portion of your equity, someone will front the money to get you caught up with the intention that you will sell your home or refinance within a certain period of time to pay back the original money plus profit. The downsides to this plan... if you quit-claim yourself off title, you don't really own your home anymore, even though you still have a mortgage. You may find yourself "renting" your own home and hoping the real owner is making the payments (otherwise your lender will still foreclose),; if you fall behind, you can be evicted by the new owner; and these deals typically are only profitable if you have 30% equity in your home.  For more information, please read "Dreams Foreclosed" by the National Consumer Law Center, a non-profit group.

http://www.virginialoanpro.com/resources/ForeclosureReportFinal.pdf

Quick Breakdown of some other alternatives:

The new FHA Secure program: still a full doc program, must have a history of on-time mortgage payments prior to an ARM adjustment, but now allows lenders to accept mortgage delinquency and get an FHA approval

Loan Modification: becoming more common, ideal scenario runs something like this. "I was okay, but then ______ (insert the specific event that caused you to fall behind). Now I'm back on track/back to work/out of the hospital/ etc and able to make the payments. I just need a little help." 

Deed in Lieu of foreclosure: The key to a successful negotiation is to allow the opportunity for a lender to take possession of the house without the time and expense involved in legal foreclosure, especially if foreclosure is inevitable.

Short-sale: THESE TAKE TIME and the latest figures I have seen indicate that less than 10% are approved by the lender and easily take 45-60 days. Sometimes, the only option at this point is foreclosure.

 

Nov 25, 2007 12:21 PM
Richard C. Decker,P.A.-Realtor Broward County FL
RE/MAX Partners - Fort Lauderdale, FL
Thank you Brian for your informative response - makes the alternatives much clearer now.
Nov 25, 2007 01:12 PM
Brian Korte
Korte & Wortman, PA - West Palm Beach, FL
Saving on home at a time
How about using the Truth in lending act to rescind the mortgage?
Jan 14, 2008 02:02 PM