A "temporary" ban on forclosure, would not be a good reason to stop paying your mortgage. Eventually the moratorium would be lifted and you would still owe thousands of dollars.

Defining the loss mitigation process:

For all practical purposes, loss mitigation can best be viewed as a powerful weapon that can stop your pending home foreclosure dead in its tracks. The loss mitigation process itself is without bounds, but always involves effective communication to be successful. If you are too stressed out about the possibility of foreclosure to represent yourself effectively throughout the loss mitigation process, then you need to employ a professional foreclosure consultant. They, like the loss mitigation teams employed by your mortgage lender, are experts that deal with these issues on a daily basis.

The loss mitigation process involves a set of tools that you as the homeowner are privy to. You can utilize these tools to achieve victory from a seemingly bleak situation. Negotiating with your lender, or having a professional foreclosure consultant to do it for you, is your ticket to retaining ownership of your home. Before we go further, please realize that millions of Americans are at risk of foreclosure even as you read this. Lenders appreciate a motivated homeowner who cares enough to communicate regularly with them and that tries to initiate positive plans of action to bring their loan current. Nobody wants you to lose your home to foreclosure.

The loss mitigation process can do more than just stop the foreclosure process; it can protect the equity that you have built up over the years in your home. With proper loss mitigation techniques employed, your lender will be more than happy to work with you and develop a plan for mutual satisfaction and appeasement. Loss mitigation involves a set of utilities that can stop a foreclosure. They include:

-Partial claims;

-An “In-Lieu” Deed of foreclosure;

-Forbearance agreements;

-Mortgage refinancing;

-Modification of your loan;

- And more…

The ultimate goal for all loss mitigation is to stop the foreclosure process and to establish a mutually beneficial plan for repayment of the mortgage loan including payment amounts and dates. However, nothing is set in stone and unless you are able to convince your lender’s loss mitigation specialists that you are a worthy gamble, they will still elect to go ahead with the foreclosure. Remember: their job is to minimize the losses that will be incurred by the lending institution – not to keep you in your home. If you are unable to thoroughly convince them that your plan is better for them than a foreclosure will be, then they will certainly foreclose. It’s just business in its raw form.

Stopping foreclosure is all about two things: loss mitigation and time. Once the foreclosure process begins, it seems that time cannot be slowed even for a second. The pressures continue to build and it can make you feel helpless – like there’s just no hope. But, there is! Consider having a professional foreclosure consultant assist you with your loss mitigation process every step of the way. It will save you time, money, frustration, worry, embarrassment and mistakes. It will also very likely keep you and your family in your home where you should be. Contact us at Stop Foreclosure Help Today and let’s discuss your possibilities.

 

Igor Mosyak
http://www.articlesbase.com/loans-articles/understanding-the-loss-mitigation-process-can-save-your-home-from-foreclosure-674193.html

Many baby boomers have seen the equity in their homes evaporate in a matter of months. What was supposed to be a nice cushion for retirement has simply disappeared.  Worse yet, many boomers now find themselves in a situation where they owe more on their property than it is worth.  They can’t sell their homes – there are no buyers, no refinancing and the lender won’t take a short sale. Under these circumstances, does it make sense to put your house keys in the mail to the lender and just walk away?

 

In some cases, the answer is “Yes.”  But the situation should be carefully scrutinized before taking that step.

 

First, why would someone take such drastic action?  Well, if you are a baby boomer living on a fixed income who has been straining to keep up with monthly mortgage payments, perhaps your dollars can go further if you get out from under that burden.  What if you could rent or lease a home with less out of pocket expense – does it make sense then?

 

And there are baby boomers who want to retire, but cannot do so as long as they must feed a big mortgage.  Perhaps their children have moved away and they are empty nesters in a large home.  At some point, you have to ask yourself, “Why am I continuing to live under the financial burden of this mortgage for a home that has no benefit to me at this point in my life?”   If you are upside down on your mortgage(s), the decision becomes clear after just a few moments of reflection.

 

Those who have already retired, or are coming up on retirement, need to step back and take a hard look at their financial situation.  When you add up all your monthly bills, does your current – or anticipated - income cover them and leave some bucks for fun?  If not, where can you cut expenses?  Quite often, housing is the only area where cutbacks can be made to gain additional dollars.

 

That said, it does not pay to walk away your home if any of the following conditions apply:

 

• You still have equity in the property.
• You are under the age of 55 and have “economic recovery” time on your side.
• The terms of your mortgage and/or state law allow the lender to pursue other assets to settle a debt.
• A short sale is possible.
• The benefits of continuing to receive tax deductions outweigh other considerations for your circumstances. 
• Your home can be rented out on at least a break-even basis, taking into account all expenses (including taxes and insurance).
• You are likely to need a good credit score sometime within the next five years.

 

Even if none of the above applies, you still need to do the math to ensure “walking away” is the right choice for you.  After all, you don’t want to leave anything on the table. 

 

For example, suppose your home had a market value of $450,000 in 2006 before the big slide began.  But now, similar homes on your block are selling out of foreclosure at $200,000.  You have essentially lost $250,000 in equity.

 

And suppose you are also upside down on your mortgage.  That is, the balances on your trust deeds total $270,000.  Thus, the current market value of your home is $70,000 less than the amount you owe on it. Will your home one day recover all or some of its lost value?  How long will it take to get to a break-even point on the mortgage(s)?  Is it worthwhile to stick it out in hopes of regaining some equity?  Let’s see:

 

• Assume the real estate market bottoms out by the end of 2009 and home values begin to gradually increase again by the end of 2010, say at an annual rate of five percent.  Well, that means at its current market value, your home will appreciate at the rate of about $10,000 annually (ignoring compounding interest).  Thus it would take roughly seven years (because there is no appreciation during 2009-2010) of mortgage, tax and insurance payments to just get back to a break-even situation where you owe as much on your property as it is worth.
• At a five-percent annual appreciation, it will take roughly 23 to 25 years to recover your loss equity of $250,000.  If you hang on for three years beyond the break-even point (7 years), then you would gain about $15,000 in appreciation.  However, this is not enough to even cover closing costs if you sold the property at the end of ten years.

 

So, are you willing to make mortgage, taxes and insurance payments (plus upkeep) for another ten years or so just to be able to sell the property without damaging your credit?  How much is ten years of your life worth to you?

 

Here is the key to making your decision.  If you are sure you can put a comfortable roof over your head for less than you are now paying for home ownership, then it may make economic sense to walk away.  Let’s say your current cost of ownership is $1,500 monthly for mortgage payments and $400 monthly for taxes, insurance and any association dues.  That’s $1,900 in out-of-pocket expenses every month!

 

Now if you can lease an equivalent or downsized home (or one in a different location of your choice) for $1,000 per month, that would mean about $900 more each month in spendable income!  You would still have some insurance cost under a household policy, but this probably would not exceed $400 annually.  Think how much more comfortable your life could be with that additional income in your pocket and less stress!

 

And at your age, don’t worry about blemishing your credit record.  You’ll still get credit card offers in the mail – they never stop, the rates just get higher.  But who needs them anyhow!  Living debt free is a wonderful feeling.

 

Bear in mind that having the financial freedom to do what you really want to, versus working and sweating to feed a mortgage that no longer makes sense, is a precious thing when you are a baby boomer.  If changing your lifestyle is necessary to achieve that, it is a small price to pay as long as you can still live comfortably and do what you want during your remaining lifetime.

 

A word of caution.  If you do decide to take action, then line up your new rental and make any large purchases (e.g., a new car) before your credit history is dinged.  Be smart about it.  Remember, no one is looking out for you, but you.

 

So baby boomers, take stock of your own situation.  You are approaching the last third of your life and the game has changed.  Sit down and do the math for own personal circumstances.  Deciding whether to walk away from your home is no small thing.  It deserves careful consideration and planning.  But it just may be the right choice for you.  

Al Kernek
http://www.articlesbase.com/economics-articles/baby-boomers-time-to-walk-away-from-your-mortgage-695248.html

If you are having problems in paying your mortgage you are not alone. Problems paying your mortgage is not uncommon and there could be many reasons why you may have been faced with this. In all corners of the globe there are in fact millions of people who are suffering from this exact same problem. It could have been caused from simply being laid off but more than likely it was caused due to irresponsible lenders, but foreclosures are big in the news right now.

If you find yourself in the position worrying about how you are going to meet next month’s mortgage payment or you have already fallen well behind, there are several steps you can take promptly which will more than likely avoid foreclosure by your financial lender. Foreclosure is usually not the best option from the lenders point so it is essential to understand that even though the financier wants payment, they will usually do everything they can to get you back in line.

1. Get your budget in line.

First of all start by cutting out any unnecessary expenditures. Go through all your bills thoroughly and be ruthless. Luxuries such as cable TV should probably go immediately. If you have a piling amount of credit card debt, delaying these payments slightly is probably a better option whilst you concentrate on avoiding foreclosure.

2. Inspect your loan documents.

Try and find out exactly what steps your financial lender can take if you should miss a payment. Foreclosure laws will vary in every different state so it is a good idea to contact your states housing office for specific information. An example would be the time period which you are looking at before your financial lender will take action.

3. Notify your lender.

If you anticipate that you will be unable to make next months payment but you are still current with your mortgage payments, make sure you contact your lender straight away. Even if you are behind, don’t ignore the problem as it will not go away. Always remember that the lender wants to avoid foreclosure as much as you do. If you call your lender now you will more than likely find that you can probably work your problem out. One thing that people often do when they know they are behind on their payments is not open the mail from their lender. Don’t bury you head in the sand! What you will find is that typically when you get that first notification the lender will often describe a few options which may very well help you get out of trouble.

4. Start evaluating salable assets.

Start having a look at any salable assets with which you can raise some cash. There are some fairly obvious candidates which will include items such as your second car, camping trailer, boat or even jewelry. This is a difficult time and there is no room for sentimentality when you are trying to avoid being foreclosed on. Cashing in on these assets should tide you over until your personal situation improves.

5. Housing counseling services.

There are organizations in every state that are funded by the US housing and urban development which can offer you housing counseling services at no cost to you. These are more or less similar to credit counseling organizations that help people that have credit problems. If you Google ‘HUD approved housing counselors’ in your town or state you will find one which is near to you. Just be wary of businesses which are offering similar types of services but which are not approved as they will charge you a large sum of money for exactly the same type of services.

Finally, and this is the most important point, be wary of scams by people who offer to enter you into a contract which claims to be able to not only avoid foreclosure but also stop all proceedings against you. Unwittingly, if you are not careful you may sign away the deed to your home.

Brett Muscio
http://www.articlesbase.com/finance-articles/how-to-avoid-foreclosure-on-your-mortgage-727577.html

There is a new streamlined loan modification process that can help hundreds of thousands of homeowners who are currently at risk of foreclosure. For most homeowners, it is preferable to have the assistance of a professional foreclosure consultant in dealing with the entire loss mitigation process. Foreclosure consultants deal with loss mitigation specialists every day and have no emotional attachment to your situation. They are able to remain objective and ensure that you are represented with the maximum of fairness and respect.

The loan modification process involves various elements and can be daunting to say the least for the vast majority of homeowners. Everyone experiences financial hardships from time to time. The economy is not the healthiest that it has ever been currently and there are thousands and thousands of new foreclosure filings every month. In September of 2008, there were more than 81,000 foreclosures initiated in the US. These are record numbers and both the federal government and the mortgage lenders understand that homeowners need to be given all of the consideration possible to catch up on their delinquent mortgage payments.

Here are some of the requirements involved in the loan modification process:

A letter of hardship that explains to the lender why you have fallen behind on you payments. This letter needs to be honest and convincing. You are attempting to get the lender to modify your loan. They are under no obligation to do so;

-Recent pay stubs or alternate financial statements;

-Copies of your tax forms;

-W2 forms;

-More as required by your lender.

The loan modification process can take time so you want to initiate action as soon as it is possible to do so. It is imperative that you develop an organized plan and then are very communicative with the lender. These are the reasons that so many homeowners find it beneficial to hire a professional foreclosure consultant. Foreclosure consultants are experts at the loan modification process and at dealing with lending institutions in general. They do it every day.

The goal of the loan modification process is to establish a realistic repayment schedule that works for both the homeowner and the lender simultaneously. A successfully modified loan will normally involve:

-Lowered monthly payments;

-An extended loan period;

-A partial repayment of the delinquent amount;

Your foreclosure consultant can also instruct you on just how to obtain a loan from the Federal Housing Authority (FHA) that will bring your mortgage current and stop foreclosure. The important thing to remember is that there is still hope for you and your family to keep your home. Foreclosure doesn’t have to happen. You simply need a solid plan of action for dealing with the loss mitigation department at your mortgage lending institution.

Contact a professional foreclosure consultant at Stop Foreclosure Help Today to discuss all of your options. You can save your home from foreclosure!

Igor Mosyak
http://www.articlesbase.com/loans-articles/stop-foreclosure-by-obtaining-a-loan-modification-from-your-mortgage-lender-673419.html

The holidays are a horrible time to be facing foreclosure. The entire spirit of the holiday is dampened by the foreclosure that is hanging over your head. But rather than focusing on the foreclosure, focus on ways that you can stop mortgage foreclosure during this holiday season.

Here are a few tips to help you focus on what you can do to stop mortgage foreclosure during this holiday season:

1. Focus on what you can control instead of what you cannot. You cannot control who your mortgage company is or what solutions they may or may not be able to offer you. Let go of blaming them. That will get you nowhere with them. You can control how you react to your mortgage company. You can be pleasant to the people that you talk to at your mortgage company. You can choose to work with the people at your mortgage company. You have a far better chance of being able to stop mortgage foreclosure if you are actively trying to work with your mortgage company.

2. Stay away from giving monetary gifts. If you are facing foreclosure, you are certainly going through a difficult time financially. The holidays are a time when we typically express our love through gifts. Instead of giving things during this holiday season, give other kinds of gifts. Gifts of service or gifts of your talents are often more appreciated than gifts that cost money. Your friends and family will understand that you are trying to stop mortgage foreclosure on your house.

3. Focus on what is truly important to you in your life. At the end of the day, a house is a house. A home is wherever you make it. Your family and friends are far more valuable than the house that you live in. Be sure to take time during this holiday season to be with people who love you, care about you, and support you in all that you do. Remember that these are people who will love and support you as you work on being able to stop mortgage foreclosure on your house and they will love and support you even if you are unable to do so. Be sure that you take time to remember who and what is truly important to you in life.

Jill Borash
http://www.articlesbase.com/mortgage-articles/stop-mortgage-foreclosure-this-holiday-season-694355.html

It is sad but true that bankruptcy is a sure-fire way to stop mortgage foreclosure on your home. That being said, you do need to know what you are doing and you do need competent legal help to make it happen. Not everyone qualifies for bankruptcy and you have to file the right kind of bankruptcy in order to stop mortgage foreclosure on your home.

Chapter 13 bankruptcy involves coming up with a three to five year plan to pay back everyone that you owe. This kind of bankruptcy is essentially a way to restructure your debt. You will still need to pay everyone at least a portion of what you owe but it gives you longer to pay them and within terms that work for you. In order to stop mortgage foreclosure with this kind of bankruptcy, you will need to make sure that your mortgage is part of this debt restructuring. A good bankruptcy attorney will make sure that everything is handled correctly to make that happen. This is the only kind of bankruptcy that can stop mortgage foreclosure on your home and allow you to keep your home.

Filing Chapter 7 bankruptcy can delay the sale of your home but you will not be able to keep your home if you file this kind of bankruptcy. This kind of bankruptcy essentially erases all of your debt. If you are willing to give up your home, need to buy some time to find another place to live, and will not be able to pay any of your debt, this may be a good option for you. Again, a good bankruptcy attorney will be able to advise you as to the best option for you.

If you decide to declare bankruptcy to stop mortgage foreclosure on your home, you will need to inform your lender that you have declared bankruptcy. They cannot stop mortgage foreclosure on your home unless they know that you have declared bankruptcy. Bankruptcy is also not a painless solution. It stays on your credit record and will affect any loan that you try to get for the next 7 to 10 years. While bankruptcy can be a good option in order to stop mortgage foreclosure, it is one that has a price. Be sure that you understand what that price is before you decide.

Jill Borash
http://www.articlesbase.com/real-estate-articles/use-bankruptcy-to-stop-mortgage-foreclosure-729204.html

There are many things that you cannot control in your foreclosure process but the key to being able to stop mortgage foreclosure is to focus on what you can control instead of what you cannot. Part of the key here is understanding what is in your control and what is not.

What You Cannot Control
You cannot change who your mortgage company is. You are dealing with who you are dealing with and no amount of anger is going to change that. You will have to deal with your mortgage company in order to stop mortgage foreclosure and you will have to find a way to work with who you have.

You cannot change what the foreclosure timelines are for your state. Much of the timing of your foreclosure is dictated by the laws that govern foreclosure in your state. Being able to stop mortgage foreclosure means finding a way to work within those timelines. Some states have short timelines, others have long ones. Come to terms with what the timelines are for your state and find a way to work within them.

You cannot change the fact that you are currently in foreclosure. Many people try to deny that foreclosure is happening. Accept that it is happening. You can stop mortgage foreclosure on your home but you need to recognize that you are in foreclosure.

What You Can Control
You can control how you work with your mortgage company. You can decide to ignore them or you can actively work with them. The only way I was able to stop mortgage foreclosure on my own home was by actively tracking down someone at my mortgage company who was willing to help me. You have to be persistent in calling them and in communicating with them. But avoid getting angry at the person at the other end of the line. It is not their fault that you are in foreclosure and they simply have a job to do. Recognize that and you will be able to get much further with them.

You can control how you react to being in foreclosure. You have a choice. You can get depressed or angry or you can decide to be calm and confident. The choice is yours. Is it easy to control your emotions in this way while you are in the middle of foreclosure? Of course not and I know that I was not always calm and in control of my emotions. But I can tell you this, I got much further with my mortgage companies when I was calm and rational. If you are going to stop mortgage foreclosure, you will need to be able to calmly and rationally look at your situation and solutions to it.

You can control whether or not you give up. The moment that you decide that there is nothing you can do to stop mortgage foreclosure, you have lost. Be always actively looking for solutions. Spend time every day working on ways to stop mortgage foreclosure and educating yourself about foreclosure. The more you look for a solution and believe that one is available to you, the quicker a solution will present itself. The solution to your problem is not going to come smack you on the face, you have to go out and actively look for it.

Jill Borash
http://www.articlesbase.com/personal-finance-articles/focus-on-what-you-can-control-to-stop-mortgage-foreclosure-681272.html

Landlord stopped paying mortgage for like 6 months and stopped foreclosure by filing bankruptcy on the day of the auction, and told us that bout her 3-6 months before she can file file for bankruptcy again, buying more time, CAN WE Leave?

Her financial problems do not change your lease or rental agreement terms. As long as she still owns the property, they remain unchanged.

I’ve heard rhode island is pretty quick. we cant afford o pay and the mortgage company refuses to pay. How long do we have before we have to be out of the house?
mortgage company wont "help" not "pay"——sorry typo

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

The lender must mail a written notice of the time and place of sale, by certified mail, return receipt requested, to the borrower at his or her last known address, at least twenty (20) days prior to the first publication, including the day of mailing in the computation.

The lender must give notice of the sale by publication in some public newspaper at least once a week for three (3) successive weeks before the sale, with the first publication of the notice being at least twenty-one (21) days before the day of sale, including the day of the first publication in the computation.

Said notice must contain the names of the borrower and lender, the mortgage date, the amount due, a description of the premises and the time and place of sale.