10 Things Not To Do If You Want To Stop Foreclosure on Your Home
If people took necessary steps before hand and knew how to stop foreclosure, very few people would lose their homes. There are a certain guidelines that should be followed, if you wish to stop a foreclosure. These could come handy to stop the foreclosure of your home way in advance or just before the auction.
1. Do NOT ignore savings
Many people opt to save, to be prepared for any kind of emergency. Some emergency or the other always stares at us in the face every other day, very often, when we least expect it. When it comes to homeowners, they ought to have at least six months of mortgage payments kept aside as savings.
2. Do NOT get caught without a Home Equity Line of Credit in place.
More than 90% foreclosures might have been delayed or prevented, if home equity lines of credit were activated before hand. Setting up of a credit line at no extra cost can lock rates as low as 4%. There are cases when you dont access the line, but are yet asked to pay for it. When such emergencies occur, it could get hard at times to acquire a loan. This is when a home equity credit line comes handy. You at least have access to money whenever you need it.
3. Do NOT miss a mortgage payment.
Skipping mortgage payments is a serious issue, more serious than missing a credit card or utility payment. Do not spend frivolously, neglect bill payments or spend the savings before the mortgage obligation.
4. Do NOT fail to ask for help.
When you feel that it is high time you ask for assistance from someone, do so. Feeling embarrassed or scared that the request for money would be turned down would only increase the possibilities of losing your home to foreclosure. Usually people do not admit that they have a foreclosure coming up.
5. Do NOT ignore the lender.
Many people harbor wrong notions about moneylenders. However, in times when you are left in the lurch, the moneylenders are the first to come to your rescue. In fact, moneylenders appreciate the individuals initiative to contact. They need to know the reason for the financial emergency and the securities in place.
6. Do NOT overlook the fact that you have a problem.
If you ignore something, it does not just go away. Whether it pertains to daily life or a major financial upheaval, problems do arise at the least expected times. If you are under the wrong impression that the problems will pass by if you dont pay any heed to them, you are wrong.
7. Do NOT be under this impression that you dont have options
There are options to foreclosure woes. You could keep your house and stop the foreclosure. However, timely action is the key, the sooner you act upon this the better.
8. Do NOT spend what money you have on other bills.
Many end up using the minimum resources they have in paying other bills. Do not ignore foreclosure. There could be a time when you will need the money to save your house.
9. Do NOT stop making payments.
Until and unless the bank decides not to take any more payments from you, you should continue with the repayment.
10. Do NOT miss bankruptcy-filing deadlines.
If you file Chapter 13 Bankruptcy in time, you can stop a foreclosure before it gets you. If a person fails to make any payments, the creditors have no option but to initiate the foreclosure.
Kris Koonar
http://www.articlesbase.com/non-fiction-articles/10-things-not-to-do-if-you-want-to-stop-foreclosure-on-your-home-119878.html
Are these companies that write and say they can buy you home to stay out of foreclosure scamming?
We are in foreclosure and filed bankruptcy. In the past few days we have gotten letters stating that they can help stop foreclosure by working toward buying our home. Is this a big scam? What is really upsetting on the envelopes they mention in bold letters things about stopping foreclosure.
Discard them and move on. Yes, they are scamming, and they will end up with your house in the end.
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Scams for sure…
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they will offer you a lot less than the property is really worth and you will still have to pay back the shortfall.
If they are sending unsolicited mail making you look bad to the world sue them for hurt feelings and emotional distress etc;
someone needs to stop these vultures robbing you when you are at rock bottom
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been in the paper; those are hustlers and scammers; that
service is free!!!
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RE broker
Yes they are! Don’t be foolish.
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Scams.
And I say that even though part of my business is sending out cards saying "We Buy Houses For Cash," etc. Or maybe BECAUSE I send out those cards and know what’s involved.
If you have a lot of equity in your house, legitimate "We Buy Houses" folks can buy your house in as-is condition in 7-14 days. The catch is that the price you’ll receive is less than you could get on the open market. Example: A house that’s in fixed-up condition would sell for $500,000. Assume it needs $10,000 in repairs. The most that I or other "We Buy Houses" companies would pay is roughly $315,000. (The formula is: Maximum Allowable Offer=(After Repair Value * 0.65) – Repair Costs.
In that example, though, the owner would have to have a mortgage of roughly $315,000 or less. Today, many people facing foreclosure have no equity. In fact, many are upside down–they owe more than the house is worth. If someone bought a house for $500,000 and owes $500,000, it doesn’t do any good for someone to offer to buy it for $315,000.
So, can foreclosures be stopped by selling a home? Sure. But the purchase price has to be enough to cover the mortgage, arreages, penalties, interest, legal fees, etc.
The other alternative is a short sale. Let’s say you owe $500,000 but the home is only worth $350,000. You could sell it to an investor for $350,000 if the lender agrees to permit the sale (thereby losing $150,000). That sometimes happens. But it’s not a good deal for a real investor. Why would an investor want to buy a home worth $350,000 for $350,000? He wouldn’t. If the home is worth $350,000, a real investor will offer something in the range of $225,000 or less. You’d really need a "retail" buyer–someone who really wants to buy the home and live there.
Hope that helps.
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You will be more than sorry if you reply to these rip off artists.
They know that you are in a weak position and looking for any way to save yourself and your home.
Don’t do it. They will prey on your fear, and you will probably lose your house and some $$$ in the process.
Why not put their business name into Google with the word rip off…see what comes up…
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