Archive for the ‘mortgage modification’ Category

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Need To Refinance To Stop Foreclosure

April 15, 2009

If you are in a position that you need a stop foreclosure refinance for stopping foreclosure immediately, you will be happy to find out that these types of loans are available as long as you have a significant amount of equity in your property.

What this means is that the total balance due on your current mortgage, in addition to any other liens on your property such as a second mortgage, property taxes, unpaid judgments, etc. plus the closing costs of a new loan do not equal an amount greater than 65% of the appraised value.

In your application to the lender, you will need to provide an estimated property value, as well as the identification of the liens on the property and the estimated amount due on each of the liens. If the lender is a equity only lender, and if the information you have provided supports their loan to value criteria, they will proceed with ordering an appraisal immediately from a licensed appraiser who will come to your property to determine its current fair market value.

Documents, of course, will need to be drawn up, and an escrow account will need to be set up just as quickly so that the documents can be delivered hastily to the escrow company so you can sign the new loan documents, and they can be reviewed and accepted by your new lender.

In addition, a stop foreclosure refinance may require an extension from your current lender if the trustee sale is imminent, so that your new loan has time to be completed, which includes the necessary time for the wiring and processing of all funds.

By the way, by researching and comparing the best stop foreclosures services in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper and quicker options.

However, it is advisable going with a trusted and reputable stop foreclosure specialist before making any decision, this way you will save time through specialized advice coming from a seasoned advisor and money by getting better results in a shorter span of time.

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U.S. Home Foreclosure Notices Hit 274,000 In January 2009

March 13, 2009

The number of Americans on the verge of losing their homes fell in January but was still up from the same month a year ago. The numbers would have been higher if not for efforts to stall the foreclosure process.

Across the U.S., more than 274,000 homes received at least one foreclosure-related notice last month. That was down 10 per cent from December, but still 18 per cent higher than a year ago, according to RealtyTrac Inc., an Irvine, Calif.-based foreclosure listing service.

Contributing to the monthly drop was a decision by government-controlled mortgage finance companies Fannie Mae and Freddie Mac to suspend foreclosure sales during the winter holidays. As well, Florida Gov. Charlie Crist brokered a deal in which lenders in that state agreed to a 45-day halt to new foreclosure petitions.

But those efforts may not have much effect in the long run.

“If you don’t do anything to get to the core problem, all you’re doing is extending the housing downturn,” said Rick Sharga, RealtyTrac’s vice-president for marketing. “It’s only a good idea if there’s a corresponding program that dramatically restructures hundreds of thousands of loans.”

Meanwhile, a federal regulator on Wednesday urged more than 800 thrift institutions to suspend all foreclosures while President Barack Obama’s top economic officials develop plans to keep borrowers in their homes.

The Obama administration plans to spend $50 billion to combat foreclosures of owner-occupied, middle-class homes, but is divulging few details. An announcement of the administration’s housing plans is expected in the coming weeks.

Testifying before House lawmakers on Wednesday, Treasury Secretary Timothy Geithner said the government would provide incentives to “try to induce economically sensible restructuring of mortgages,” but offered no specifics.

2 million foreclosures in last year
More than two million American homeowners faced foreclosure proceedings last year, and that number could soar as high as 10 million in the coming years, according to a report last month by Credit Suisse, depending on the severity of the recession.

The RealtyTrac report said nearly 67,000 properties were repossessed by lenders in January as the worst recession in decades, falling home values and stricter lending standards continue to sap the U.S. real estate market. That was up from more than 45,000 repossessed properties in January 2008, but down from 79,000 in December.

Geithner and Shaun Donovan, the new secretary of the Department of Housing and Urban Development, met with officials from housing and other nonprofit groups, top bank executives and industry lobbyists Wednesday to hear proposals for how the new programs to fight foreclosures should be structured.

After the meeting, John Taylor, chief executive of the National Community Reinvestment Coalition, a consumer group in Washington, said he was optimistic the new administration would agree to use government dollars to buy up mortgages and remove them from complex mortgage-linked securities and restructuring them at more affordable levels.

He said support from government and industry officials for that idea was a “giant step forward” compared with opposition to such an approach by the Bush administration.

The Obama administration is also expected to back a push in Congress — opposed by the mortgage industry — to let bankruptcy judges alter the terms of primary home loans. Earlier this week, Obama said it “makes no sense” that judges are not allowed to do so. The mortgage industry argues that this prohibition allows lenders to charge lower rates.