|
Secrets
The Mortgage Industry Hopes You Never Learn!
“What
exactly is a note and a mortgage…what’s the difference?”
A note is simply a promise to pay.
A mortgage secures that promise, using real estate as the collateral.
When someone mortgages their property, they are conveying an interest in
their property as security for payment of a debt.
“What
happens if I am in default on my
loan?”
If
you are even one month late on your payment, the bank has the right to call the
entire loan due (accelerate the mortgage).
If you skip a month and try sending in one month’s payment the next
month, the bank may send it back to you. If
they accepted it, they would have to wait until you missed another payment to
start the foreclosure process.
If
your debt problems look severe or long lasting, the mortgage lender may take
steps towards foreclosure. In most
cases, before foreclosure actually occurs the lender will accelerate the loan.
This means you must pay the entire balance immediately.
If you don’t, the mortgage lender is entitled to foreclose.
“Notice of default"
Once
you are in default, the bank will start sending you letters, they will be
friendly reminders at first, and then they will start to become more
threatening…
“Reinstatement period”
This
is the best time to bring the mortgage current again.
However, it gets more difficult each month to do so.
In the second month of default, you have to make a payment equal to two
months payments, and in the third month, the payment must be for three months,
and so on….
“Foreclosure”
There are several steps to the process
known as Foreclosure. If you fall
behind (over 90-120 days) on your house payments, you may receive a Notice
of Default.
A Notice
of Default usually details how late you have been on your payments,
how much you owe in principle and interest payments and how much money the
mortgage company is requiring to be caught up on your payments, thus making your
loan current.
There are laws in place that the
mortgage company follows regarding sending you notices, etc.
If you have received a Notice
of Default, DO NOT WAIT!
The
longer you wait the fewer your options; the more you stand to lose!
Because this is a very difficult
situation for a person to face, many people put off dealing with the problem.
Don’t let that happen to you. After
a certain point, there are fewer and fewer lenders willing to rewrite your loan.
An even if you can find a new loan, it will be at a much higher interest
rate than you’ll want to pay!
“Foreclosure
Time Frame”
30
Days: 30 days late that reoccur cause many additional late fees and
service charges to be added to your payments in order to catch up.
Refinancing may be the best option.
60 Days: 60
days late, results in more fees, more charges, more late payments which continue
to accrue. Refinancing is probably
the best option. A refinance or 2nd
mortgage can lower your payments, pay off some debts, collections and/or liens
to make it possible for you to continue making your payments on time and keep
your home.
90 Days: This
is a serious delinquency, more fees, more difficult to find a lender who will
refinance your house or consolidate your debts.
120 Days: You
are probably at the point of not knowing what to do.
If you act now you still may be able to receive help.
There are very few lenders willing to refinance at this point and the
ones that are willing, want high rates and a lot of equity.
150 – 180 Days: In
most cases, at this point you have been given notice of the Sheriff’s Sale.
Your chances of recovering are very slim, short of a miracle.
“What do I do"?
Remember, we are not Attorneys and are certainly not
offering legal advice, however here are a few options that available to
you at this point and some items you might think about for each one:
Reinstate the Loan: If the mortgage lender hasn’t accelerated the loan, you can
prevent foreclosure simply by paying the missed payments, taxes, insurance,
attorney fees plus interest.
Get a new Loan: If the mortgage lender has accelerated the loan, you will need
to refinance the entire balance of the loan to prevent foreclosure. However, the longer you wait, the harder it is to find a mortgage company to
refinance your existing mortgage. See “Foreclosure Time Frame" above.
File Bankruptcy:
This only slows the foreclosure process down, it does not stop
it…
Chapter 7 Bankruptcy: If you file chapter 7 bankruptcy you will almost certainly lose your house.
Your mortgage lender will ask the bankruptcy court to lift the automatic
stay (the court order that bars creditors from trying to collect their debts)
and the court will probably grant the request, allowing the mortgage lender to
begin or resume foreclosure proceedings. Except in a few cases, most people will lose
their house to foreclosure.
Chapter 13 Bankruptcy: This is known as reorganization, sometimes called the wage
earner’s plan. The judge will order you to start making your payments and schedule a repayment plan to all
your creditors for the back payments and added fees. If you are not able to follow this schedule exactly,
the whole process starts all over and you are back were you started, owing even more than you can
possibly catch up on. Only a very few people who use a chapter 13 bankruptcy ever save their house and make
the payments as agreed for the three to five years to get the bankruptcy discharged. Most people will lose
their house to foreclosure and have a non-discharged chapter 13 bankruptcy on their credit.
Sell Your House: Your best option at this point might be to sell. If you can sell your house before the Sheriff’s Sale
and pay off the mortgage and all the attorney fees and late charges, you may be able to save
your credit. At least you will not have a foreclosure on your record. Within
a year, with a good credit history, you might be able to qualify for a new
mortgage and get a new house. With a foreclosure or bankruptcy on your credit report it will take
several years with perfect credit afterwards to qualify for a new mortgage.
If you don’t get any offers that will cover what you owe your mortgage lender,
the lender may agree to take less – called a short sale. You still need time to sell it before the Sheriffs
Sale. It usually takes several months to find a qualified buyer and get to the closing. If you have already
received a notice of foreclosure sale, you might not have enough time to sell the traditional way, even with
a quick fire sale at a reduced price.
Refinance or Sell: At this point, you might be wondering how we could help. First of all, with our
relationship with the mortgage industry, we know were to find the available
lenders willing to work with tough situations. Secondly, we're not Realtors®. We
are real estate investors and we work with a number of investors who buy houses.
If you think you have enough equity and time, you might be able to refinance. However, the numbers of available
lenders are few and far between and the interest rates they want are usually high.
Equity is their biggest concern. If you think this option will work for you, we will put you in contact
with the right people immediately.
If you think it is time to sell quickly, we might be the solution you are looking
for. We have several programs that have worked very well for people in foreclosure. We are able to work with
mortgage lenders and attorneys, stop the foreclosure and in many cases we can
save your credit, and often we are able to rebuild your credit.
Here’s the game plan to sell your house
quickly…
After we agree on the purchase price, and verify the amount you owe on your mortgage,
if the circumstances are right, we can close right away! You
get relief from your monthly obligation to the Mortgage Company.
Please
don’t misunderstand or assume that we have to steal your house, or that you
need a lot of equity for us to be interested.
We’ve worked with all kinds of circumstances and have been thoroughly
trained to create solutions after so-called “experts” have given up and
quit. One
of the main problem solvers we can offer is Peace
of Mind. Sometimes the
hardest aspect of having to move is actually having your house up for sale and
your life in limbo. I am sure you
have heard the saying, “Sometimes the not knowing is the hardest part!”
When you approve the paperwork with us, you will know that your payments
and house are taken care of, so you can start over and have that peace of mind.
We
can take care of all the details in about one week.
We simple order title-work, and draw up the papers.
We can set a date when you can move out and take the house over after
that. We’ve even bought houses
where the seller just left all the furniture and garage junk for us to dispose
of. Clean up, fix up, whatever it
takes; we’re prepared to handle your needs.
The
best part is your loan doesn’t have to be assumable for this to work!
Regardless of the type of loan: assumable, non-assumable, assumable with
qualifying, FHA, VA, Conventional – our program works for all transactions.
Also you should be able to qualify for a new loan in a short time.
With the proper documents, your credit situation might even be stronger
after we buy the house, than before you got behind on payments.
As
I stated before, our program can work in any situation. We’ll
create the solutions, and you pick the one you like best.
What if I was sitting at your dinning room table right
now, and told you we wanted to buy your house…?
No
problem with the non-assumable loan. No problem catching up any payments in
arrears. We can probably wrap up
the whole thing within a few days. We
don’t know how much you owe, how much it’s worth or any of that.
Those details can be handled when we talk. What
I do know… and what you should know is… If you call me and give me the
facts, I’ll either tell you on the spot I can’t help or come over and leave
you with an offer… within 24 hours, or put you in contact with a mortgage
broker that can help you refinance.
We
will take the financial burden of any monthly mortgage payments off your back,
and we’ll also take care of any fix up or maintenance regardless of how minor
or how serious. What’s more,
we’ll close when you’re ready.
The
longer you wait, the harder it will be to stop the foreclosure and save your
credit. Every day that passes, more
and more of the equity in the property is being eaten up by accruing interest,
late charges, attorney fees, taxes, insurance, liens, tax liens, mechanics
liens, IRS liens, utilities, judgments and other creditors.
Some
people at this point are so overwhelmed, that they simply give up and let the
bank take the property back through foreclosure.
Don't let this happen to you. I
have seen many people expecting a miracle to happen at the last minute, but it
never does. They almost always lose
their house, and because of the foreclosure on their credit, end up on the
street. Don’t let this happen.
You
can get on with your life!
Now, I
know this is a lot of information to digest at one time, but if you're still
with me, chances are you’re interested in doing what it takes to stop the
foreclosure, and start out fresh with a clean slate.
I do not know of an easier way to sell your house that can give you what
you need. No foreclosure and a
fresh new start.
If you have a house and want to sell, and if you're
ready to act now or if you have some questions,
Click Here to EMAIL US RIGHT NOW!
Call us right now! 505-474-5621
P.S.
Your home is an asset... sell it as an asset. Don't let it become a liability, a
burden and the proverbial “monkey on your back” Even
a Dream Home can become a Financial
Nightmare. There is a
real good chance we can help… contact us today!
|
DISCLAIMER
This publication is intended to provide accurate and
authoritative information with regard to the subject matter covered. It
is offered with the understanding that neither the publisher nor the
author is engaged in rendering legal, accounting or other professional
services. If legal advice, or other expert assistance is required, the
services of a competent professional person should be retained.
….From the Declaration of Principle jointly adopted by
a committee of the American Bar association and a committee of
Publishers and Associations….
Every effort has been made to reflect current tax
law and interpretations as of the date of publication of this report.
However, this is a dynamic field of endeavor in which new laws are
enacted, old laws revised and/or reinterpreted on a continuing basis,
and where precedential case laws, Revenue Rulings, Treasury Policy and
tax laws area constantly changing. Readers are advised to proceed with
caution before implementing the strategies contained herein and to
consult with appropriate professional advisors prior to committing time
and financial resources as a result of the material contained in this
report. It is for instructional purposes only.
|
Back to Top
|
