Foreclosures and Debt » Stop Foreclosure

Lease Back Home In Foreclosure

Jacky — Sat, 14 Nov 2009 00:47:29 +0000

In spite of all the good intentions that the Banks and the Obama Administration had in mind when they initiated the Making Home Affordable loan modification program to stop foreclosure for home borrowers that were facing foreclosures, there were many borrowers unable to qualify for the program. Due to the inability of the “Making Home Affordable” program to help stop foreclosure for a large number of ineligible, willing applicants, foreclosures continued to spiral out of control. Many families despite their efforts to keep their homes, were unqualified for foreclosure avoidance programs offered and had to give up their American Dream of home ownership that they worked so hard for.

Not so fast! Fannie Mae have come up with another option for slowing foreclosures, “Deed for Lease™ Program”. The Deed for Lease program announced by Fannie Mae in November, is a program designed to offer up another option for borrowers facing foreclosure who do not qualify for other stop foreclosure programs like loan modifications. The way it works is that qualifying homeowners facing foreclosure may be able to stay in their homes if they sign a lease and at the same time, voluntarily transfer the deed of the property back to the lender, also called “deed in lieu of foreclosure”. The primary aim of the Deed for Lease program is to help alleviate the problems associated with foreclosure, such as uprooting families, decaying neighborhoods and other harddships caused by foreclosures. According to the Vice President of Fannie Mae, Jay Ryan, Deed for Lease is another option for troubled borrowers facing foreclosures;

The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications. This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.

A few of the general requirements to participate in the Deed for Lease program as follows,

borrowers must live in the home as their primary residence
borrower must be released from subordinate liens, i.e. second Trust Deeds etc…
documented proof that new rental rate is less than 31% of gross income

Leases can be up to 12 months, with the possibility at the end of that term, month-to-month extensions may be arranged. According to Fannie Mae, “A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer“, which means you may get a new owner of the property. A new owner, who knows, could go in a good way or a bad way, so be sure to ask as many questions about the program. For more information about the Deed For Lease program, please click here to read the announcement of the program by Fannie Mae.

Under this new program, tenants of borrowers facing foreclosure may also participate which is a drastic change from previous programs where many tenants of borrowers in foreclosure had no recourse but eviction.

For details and information on how to qualify for the Deed For Lease program and other programs, please click here to visit the Fannie Mae site.

Bad Credit Loan To Save Home

Jacky — Thu, 29 Nov 2007 08:35:11 +0000

Home foreclosures facts and figures are in the news, on the t.v. and online almost on a daily basis. This trend can only mean that the number of homeowners facing foreclosure or have been foreclosed on, is growing rapidly. Many homeowners are seeking information on how to save their home and stop foreclosure by any means necessary. Is a bad credit loan the answer?

There are people who were just on the door steps of foreclosure and tried to refinance their current home loan with a bad credit loan or sometimes known as a “hard money loan”, only to be told that hey did not qualify. It seems ironic that if you wanted a bad credit loan that charges more fees and higher interest rates to try and avoid foreclosure, why can’t you qualify? If you have few late payments, you have the bad credit secured with real estate , so why not qualify for the bad credit loan?

Know the difference between a bad credit subprime loan and a hard money loan. A hard money loan is generally based on the value of amount seeking to borrow and the market value of the home, and is a type of subprime loan. If you have any equity in

your home you should try using the tips to save your home as we have here. If you find that you must get a bad credit loan, remember that many credit inquiries for any credit can also cause strikes against you. Do your homework first and check the lenders website for fees, charges and current interest rates if available, before filling out all of the loan applications and credit applications. See if they can really give you a home loan by asking the loan representative if your credit situation is something they can really work with, before setting up an appointment. If you get a bad credit loan, plan to refinance to a better home loan as soon as possible, once you re-establish your payment history. Remember, there may be sharks in the water!

Bankruptcy To Save Home

Jacky — Mon, 17 Sep 2007 00:17:21 +0000

In the last couple of years, the bankruptcy laws have changed in congress and as recent as April 2007. There was a time that a homeowner who came upon hard times could seek protection from creditors under Federal Bankruptcy laws by filing a Chapter 13 , Chapter 7 and other options and stop foreclosure. Now, times and the laws have drastically changed. The process of filing a bankruptcy to try and save your home and reorganize your debts have taken a turn with twists and curves just to be able to consider filing!

The new Bankruptcy laws according to the Department of Justice, were enacted under the following

“The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005″, which opens a new era in the history of bankruptcy law and practice, was passed by Congress and signed into law by President Bush on April 20, 2005.

The bankruptcy changes were put into effect in October of 2005.

In a nutshell, before anyone can file a petition for bankruptcy, they must obtain credit counseling within 180 days before being able to file a bankruptcy. Once you have filed a bankruptcy, you must obtain a debt management education certificate before the bankruptcy is discharged.

Before the new Bankruptcy laws, a homeowner in foreclosure could file a Bankruptcy petition and obtain an “automatic stay” at the time of filing, from the foreclosure proceedings to be able to get their home loans and other debt in order to get back on their feet! Supposedly, the “automatic stay” to immediately stop foreclosure, still exists but only after you have received approval from a counseling service approved by the Department of Justice listed here.

The Pre-Bankruptcy Counseling will cost about $50.00 for individual filers and about 65.00 for married filers. At the time of completion, you should be issued a certificate as proof that the credit counseling requirement before filing a Bankruptcy Petition, was satisfied. Many of the pre-bankruptcy counseling services allows you to complete the course over the internet for your convenience. We will bring you more on Bankruptcy as a home loan settlement process to stop foreclosure, so check back!