About Short Sales

There are many reasons why homes go into foreclosure. Dealing with foreclosure is going to be difficult no matter what the cause. So if you’re facing a foreclosure it’s crucial that you understand as much as possible about the process and what your options are.

What causes foreclosure?

If a homeowner stops making his mortgage payments or is late making payments, the lender is allowed to start the process of foreclosure, according to the mortgage terms. You should definitely know what the number of payments is that is written into your agreement, so you can take steps to avoid reaching the “magic” number.

How long can homeowners stay in their home once it goes into foreclosure?

As laws are different in each state, there is no real rule. In some states, the law may allow homeowners to stay in the home for up to a year. At the other extreme is a time frame of only a few months. In some cases, the homeowner may decide to wait for an eviction notice before moving out.

What is a redemption law and what is meant by a period of redemption?

When a home goes into foreclosure, many states allow a period of time where a homeowner is allowed to repay overdue mortgage payments. This is what is called a redemption law. Even in a situation where a home has been sold at auction, if the homeowner is able to come up with the total money owed, the redemption law gives the owner the right to reclaim his property. This is as long as the payment is completed in a specified time period.

What is a short sale? How does it work?

In a short sale, property is sold but the proceeds from the sale are less than the amount owed. The lender agrees to take the lesser amount, but the seller may still be obliged to repay the difference between the proceeds of the short sale and the amount owed. The advantage to the seller is that they won’t have a foreclosure showing on their credit history. The disadvantage of course is that it ends up costing you out of pocket money to sell your home.

What is meant by deed-in-lieu of foreclosure?

In a deed-in-lieu of foreclosure, the homeowner turns over the deed to the lender. He in turn cancels the foreclosure proceedings and forgives the mortgage loan. This type of agreement will affect your credit to pretty much the same degree as a foreclosure.

Being well informed can help you decide on the best options when you’re dealing with foreclosure.

If you are facing foreclosure, you need help. Get free foreclosure information at http://getforeclosurefacts.com and find out how to avoid foreclosure.

The difficult financial situation of the economy has made it troublesome for many Americans to afford their homes and keep them. Anyone that has to face the possible foreclosure of their home is privy to this devastating reality. If you are worried about your home and your lack of means to keep paying your mortgage, you need to act now to reverse the situation that you are in and stop foreclosure before it is too late. You aren’t alone in this and you can find the help that you need today. While there isn’t a universal solution for everyone, experienced professionals in the real estate industry have a variety of options for homeowners who are struggling.

If you haven’t yet found yourself in an upside-down position with your mortgage, you are definitely in a good situation where foreclosure can be stopped. Upside down is a term used in real estate to describe when a homeowner owes more money than their house is worth in the marketplace. Typically, real estate agents are best able to serve people before this situation arises. The best way to avoid foreclosure is to sell the home quickly through a short sale before a court order can be obtained to seize your home. You can work with an agent to sell quickly and get into a more affordable home.

Even if your property is upside-down, selling your home can at least help you pay off your balance. It is impossible to completely pay it off with the money you earn from the selling of your home, but it is better than losing possession of your home with no sale at all made in your name. Another option to stop foreclosure, however, is to rent out your home to a short-term tenant who pays you a reasonable amount for rent. This turns your condition into a win-win situation, where you retain your residence while helping someone else who may be struggling to afford their own home to have a place to stay for less.

“Subject to” is another method to stop foreclosure in which the homeowner finds an individual to take over payments for a time. The mortgage remains in your name, but the person makes payments in your behalf. A dedicated friend or loving family member may be willing to extend this benefit to you. There is an amount of risk in this method, so be sure you completely trust the person making your payments. For more methods and details about those listed here, take advantage of a no-cost stop foreclosure consultation today.

David Rozansky is a licensed Realtor since 1995 and a short sale professional since 2005. He is a National Trainer of short sales helping to educate people how to navigate through the ever daunting task of successfully negotiating the short sale process.

David Rozansky’s win-win-win approach to stop foreclosure and help a homeowner out of a turbulent financial situation has worked extremely well for all parties involved.

Looking to find the best deal on Stop Foreclosure, then visit www.SoCalForeclosureStoppers.com to find the best advice on Short Sale for you.

Past week I received a question from one person worried to receive an Eviction Notice:

“I have six months not paying my mortgage, and I am worried about it. My question is if the sheriff can take me out with my family anytime now?”

Response: An EVICTION NOTICE SIGNED BY A JUDGE FROM COURT must be shown in order to legally take you out from your home. Nobody can do this without this notice. Check your Eviction Laws, though, because every state is different, so you need to understand it very well. You can go to foreclosurelaw.org to find the legal rules for your case. Check also if your state is a JUDICIAL or NON-JUDICIAL system as this is very important to know.

Generally, this is the whole EVICTION process (some states put different names on each one):

1.- IN DEFAULT.- When you are 30 to 90 days late on your mortgage payment.

2. Notice of Default (NOD).- At 90 days late, you will receive a Notice of Default from the lender, asking for the payment or your house will be foreclosed.

3.- NOTICE OF SALE (NOS).- When you reach the 120th day being late on your payment, you will receive a Notice of Sale stating when and where will be the public sale of your home.

4. Foreclosure (FC).- After (generally) 2 months of the NOS, the foreclosure sale will be made. Some states take more months for this. (you can stay free at the property)

5.- PERIOD OF REINSTATEMENT: If your house was foreclosed, you still have a chance to find a loan to buy this property again. For this intention, many states allow you to have a Reinstatement Period on which you can also stay making no payments covered by law. NON-JUDICIAL system states dont have this rule.

6.- EVICTION: Following the foreclosure sale, or the end of the reinstatement period, you will be reached by the new title-holder of the property asking you to leave the property. If the property was bought back by the same lender, they may give you some money to leave the property clean and in good condition (this is called Cash for Key). If you don’t leave, after 30 or 45 days they can start an EVICTION PROCESS AT COURT. The Judge will send you an EVICTION NOTICE including the date when you must leave. If you dont leave that day, the sheriff will go to the property to take you out and change the locks. If they lock the doors with your belongings inside, you cannot take them out anymore.

Don’t forget you have legal rights. Homeowners can stay rent free into their home until receiving an official notice from court. See your eviction laws.

NOT EVEN A SHERIFF CAN TAKE ANY HOMEOWNER OUT FROM HIS HOME WITHOUT THIS NOTICE FROM COURT.

There are a lot of states allowing homeowners to stay into the property up 18 months without making payments to their mortgage. You need to check the laws of your state.

My best recommendation is TO LEARN HOW TO AVOID FORECLOSURE. You can do it yourself. Don?t trust on strange companies that can keep your home for them.

Disclaimer: You need to know that I am not a lawyer, or an accountant, or a tax counselor giving you lawful, tax or financial advice. This information is not a replacement for the opinion of a experienced lawyer. Even though I am a Financial Educator in the State of Arizona doing Real Estate investments, Business Coaching, Marketing Coaching, Credit Counseling, Foreclosure Prevention, Residential and Commercial Loans, Mortgage Training and Consulting since 2002, I do not say I am giving you legal counsel in this article to your explicit situation. This article is planned to instruct homeowners in failure of paying their mortgage. Nothing within this article should be interpreted to represent legal advice for your individual conditions. The information given in this article is presented only for individual information. Under no conditions this article stand for a legal counsel to market, purchase or keep any house.