Monday, October 30, 2006

Talasim, Interviewed by The Star

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Comments:
it has become very easy to borrow loans these days. Advancements in technology particularly with the Internet have made it convenient for loan seekers to track the loan of their choice. With just a few clicks on a lender's website you can access the desired loan online. The ease with which loans are available online nowadays is the main reason behind the growing number of debt-related problems.

The vast number of loans taken on different occasions may have benefited you many times and may have even been a lifesaver in an urgent situation. However, you may not have known that these loans can pose a threat to you. Now you have to remember which lender to pay, how much and when. Failing to pay any of the installments on the loan may affect your credit score adversely. In such circumstances, debts become a burden. You may get into a life-long debt trap if you don't know how to handle these debts. A debt management program in such conditions can work as an effective debt management tool helping you in reducing the debt burden.

Here are a few debt management tips that can help you in managing your debts and getting your life back on the right track:

Create A Budget
An organized and well-planned budget can help you in keeping control over your monthly expenses. Write down each and every financial transaction you do each month; this will help you stay on track. It will give you a real idea of your finances and thus you can make the decision accordingly. A budget will give you an overview about how many funds you do have and how you are going to disburse the expenses with the available money. Setting up the budget is not enough: what is important is to stick to it.

Consolidate High Interest Loans
Consolidate your debts that carry a high rate of interest with a debt consolidation loan. A debt consolidation loan can work as an effective debt management tool. It will help you in getting rid of the debt burden by reducing the monthly outgoings. With a debt consolidation loan, you will get freedom from all the hassles involved in dealing with several creditors, you will be accountable to only one loan, one lender and one lower monthly installment.

Avoid taking on new credit
If you are already in a debt trap, avoid taking up a new loan. Borrowing a new loan may be of great help to you, but it will be in the short term. It may increase the debt burden and will add to your troubles rather then solving them.

Debt Management Counseling
You can also seek for advice from debt management counselors. The majority of the lenders in the US engage debt management counselors who have years of experience and can provide you with an easy road map to get rid of the debt trap by paying off the existing debts.

Learn To Save
A need for a loan arises when you do not have sufficient funds in your saving account to meet your personal desires. Make saving a habit, try not to overspend on unnecessary things. No, don't become a miser but use the funds carefully, a little sum of money saved today will be highly beneficial for you in the future and will make it easy for you to deal emergency cash need with the available funds on the right time and in the right manner.

Debt management is a time-consuming process. You can save your time and hard-earned money by employing a debt management company who will take care of your debt and can offer effective solutions to all your debt-related problems.

Tips for managing debts employed in the right manner can curb the menace created by debts, helping you get out of debt in an easier way. Paying off the existing debts will help you in securing a smoother and easier life for the future








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CaliforniaLoanRate.com

Things To Know And FAQ's About Loan Modification
These are common questions that are asked about Loan Modifications or Mortgage Modification
1. What Is A Loan Modification?
A Loan Modification is a negotiation between a lender and a borrower that results in the terms of the existing loan being restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation.
2. How do you do It?
In these market conditions, the banks and lenders have been mandated by the Federal government to do everything they can to work out a payment plan with their borrowers. This is great for today's borrowers, especially for those who are running late on their payments or are having trouble making them on time. The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense foreclosing on the home, hiring a listing agent, rehabilitating a home, and letting it sit empty on the market for months, only to lose thousands in the process. We currently work with almost every major lender and several small lenders and banks to secure a Loan Modification to help them help you. In many cases we actually have taught smaller banks and lenders how to go about completing a Loan Modification. Within 24 hours after receiving your package, our legal team will contact your lender to notify them that they will be negotiating a Loan Modification on your behalf. From then on, they will be working with you and your lender in order to find a solution to your mortgage problems.
3. Are lenders and banks really willing to negotiate?
Definitely! Lenders do not want to foreclose on your home, unless they have no other alternative. If you can present them with a realistic professional proposal that makes sense, they are very open and receptive to the Loan Modification process.
4. Who qualifies for a Loan Modification?
Anyone who can prove they are having a tough time. Especially those who are currently a few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale.
Basically, the bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don't want to foreclose on you. They would rather keep you in your home and create a solution that will be affordable to you rather than go through the cost and expense of foreclosing on your property.
5. Why didn't my mortgage lender tell me about this?
Your mortgage lender is in the business of originating and/or servicing loans. Modification of existing loans and foreclosures are simply a result of being in the business they are in and, as such, they aren't a priority for the mortgage lender.
This program is not that costly and quite frankly, they are so busy dealing with other homeowners who are already going through tough times, that they don't have time to deal with your situation.
6. Why should I choose a Loan Modification?
If you are having trouble and behind on your payments you have several different options to fix your problem.
Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up.
Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time.
Loan Modification - Where you negotiate a restructure of your current loan terms without
refinancing.
Loan Refinance - Refinancing may be an option if you have the equity and credit required.
Forbearance Agreement - Where your lender negotiates a repayment plan and may force you to list your home for sale.
Short Sale - You sell your property for less than you owe but your lender accepts it as payment in full.
Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place.
(requires equity).
Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.
Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment you will be right back in foreclosure.
A Loan Modification is a good solution if you cannot refinance, are behind on your payment or struggling to make your payments, have experienced a genuine hardship, and you want to stay in your home.
A Loan Modification is a permanent solution to your situation and is not meant to be used as a temporary stop to the foreclosure process.
7. Can I negotiate a Loan Modification myself?
In short, yes you can. You can contact your lender or your bank and see about going through the process of Loan Modification.
But, keep in mind that your bank has their best interest at heart. They neither have the time nor the inclination to hear about what troubles you might be experiencing. What usually occurs is that the bank will negotiate an agreement that helps them, but still leaves you with only a temporary solution.
This also takes many hours of communication and back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you. When you contact the bank, they will ask for a "hardship letter" from you. When they receive that letter, they will usually tell you that they will get back to you in about 8 weeks. By the time you get back with them, or if you are lucky enough to get a call from them, you're already in worse shape than when you first started negotiation.
8. How Come You Have More Success?
Our attorneys have been doing hundreds of Loan Modifications every month, working with virtually every bank and lender. They have open lines of communication with most lenders, which gives them the ability to negotiate directly with the person who is in charge of making a decision on your loan.
We also create a professional legal file on your behalf which includes all of your financial data such as income, assets, expenses, and unexpected intangible expenses. They couple this with a full property analysis and package this together in a file that makes it easy for the lender to read and understand, allowing for a more comprehensive and quicker response than you would get through other forms of negotiation.
9. How much does it cost?
The costs associated with an attorney based Loan Modification will vary depending on the value of your property, the type of loan, the lender, and the number of loans held against our property.
The modification cost usually comes close to equaling the same as about one month's mortgage payment. Since every Loan Modification is different, it requires a varied amount of negotiation. After your initial application is reviewed and if the attorneys accept your case, your Loan Modification representative can help determine what the exact cost of your Loan Modification will be.
Our primary goal is helping homeowners who want to keep their homes, find a beneficial solution for their situation. We will work with you to ensure that we can obtain an affordable solution for your Loan Modification needs.
10. What do you need from me to get started?
If our attorneys believe they can help you and accept your case, then we will need to submit a complete Loan Modification file that outlines your current financial situation.
They will contact you directly if other paperwork is required by the lender in order to negotiate a successful Loan Modification. They will also determine the current value of your property and put together a professional proposal for your lender.
11. What makes you different from other companies?
We are not a store front Loan Modification company, but a service provider helping you find the right legal representation needed to negotiate on your behalf. Loss mitigation departments at major banks and lenders give much more credence to modification proposals submitted by attorneys. Maybe it is fear of a lawsuit if they do not negotiate in good faith, but banks and lenders are much more responsive to attorneys than they would be with the actual homeowner or other third party negotiator.
12. Will I have to meet with my lender or deal with any of their paperwork?
Absolutely not. We take care of all the paperwork and all of the negotiating on your behalf.
13. How long does the process usually take?
It can be completed in as little as five days but usually takes from 5 - 12 weeks depending on the lender, type of loan, and individual situation.
14. What paperwork do I need to complete the process?
We provide you with a complete list of the documents the attorney will need in the file to complete the process and will help prepare the file. Of course, no legal representation can begin until counsel has been properly retained and you have given written authorization to proceed.
After we receive these items from you, we can begin your Loan Modification process.
Please contact us with any other questions or concerns. Remember that time is not on your side, so if you are having problems or struggling to keep up with rising mortgage payments, don't delay and call us immediately for a free and confidential consultation.
We want to help you keep your home, period.
15. By utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?
Mortgagee Letter 00-05, page 21, paragraph F, "Allowable Provisions" states: "All or a portion of the PITI arrearage (principle, interest, Taxes and Insurance) may be capitalized to the mortgage balance. Foreclosure costs, late fees and other administrative expenses may not be capitalized.
16. Does the repayment plan have to be completed prior to completing the Loan Modification documents, or can the mortgagee attach the plan once the option has been completed?
It is a mortgagee decision as to when to complete the repayment plan for outstanding fees, costs and administrative expenses.
17. When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?
HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states:
Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.
18. Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?
If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will
subordinate the Partial Claim.
19. When an asset is modified is the homeowner eligible for the upfront premium refund at payoff of the loan?
It depends upon when the closing date occurred. For assets closed: After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect. On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies. On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.
20. Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
The mortgagee should consult with their legal counsel to determine the legality and validity of such a mortgage instrument.
21. I'm unemployed. My spouse does have a job, but her name isn't on the mortgage. Can I qualify for a Loan Modification?
This isn't a simple question that can be answered "yes" or "no". What typically happens in situations like this is that the mortgagee - your lender - will conduct a financial review of your household income and expenses to determine if the spouse's income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrears. Once this process has been completed your lender will then get together with their legal counsel to determine if you're eligible for a Loan Modification, since the spouse is not on the original mortgage.
22. Are there any guarantees on the outcome of my Loan Modification?
It would be impossible for us to guarantee that some other entity (the lender) will do what we suggest that they do. We can say we have a VERY high success rate in obtaining
modifications for our past clients. If no modification is achieved, then you get some or all of your retainer back.
23. How does Loan Modification affect my credit?
If we are successful in obtaining a modification for you, the loan will, from that point forward, be reported as being paid as agreed. Assuming you make all of your payments on time, you may see your credit begin to get better over time. Obtaining a Loan Modification is the least damaging to your credit when compared with a short sale or a foreclosure.
24. Will having a Loan Modification affect my taxes?
We are not CPA's or enrolled agents and therefore can't offer you tax advice. We suggest
you check with your tax professional.
25. Do I have to be behind on my mortgage to qualify?
No. Although falling behind on your mortgage payments is an obvious indicator of financial hardship. Some clients are forced use reserves or credit cards to keep there mortgage payments current. In this situation it is only a matter of time before they fall behind. If an obvious fanatical hardship exists a modification may be possible although the payments are current.
26. Do I have to owe more than my house is worth to qualify?
No. The basic formula is to have less than 20% equity in your home. The less equity you have in your home, the more the investor stands to lose in a foreclosure situation. If you
have negative equity, that is even more incentive for your lender to work with us.
27. Can I have my 1st and 2nd mortgage combined?
Yes. In some cases where the first and seconded mortgage are with the same investor that investor may elect to combine both mortgages into one. Keep in mind if the investors are
different a combined mortgage outcome is VERY unlikely.
28. I'm about to or already filed for bankruptcy, is it too late?
No. If you are currently in bankruptcy and your property is not included in your bankruptcy and you meet all other qualifications you are eligible immediately. If your property is included in your bankruptcy you may be able to ask your bankruptcy attorney to remove it from the bankruptcy. Keep in mind your bankruptcy attorney may charge an additional fee for service to pull the property out of your bankruptcy.
29. I already have a sale date for my home, can I still save my home?
Yes. Traditionally we need a minimum of ten days prior to the sale date to be able to achieve a postponement of the sale. In some cases we are able to postpone the sale as late
as the day before.
http://Californialoanrate.com
 

Things To Know And FAQ's About Loan Modification
These are common questions that are asked about Loan Modifications or Mortgage Modification
1. What Is A Loan Modification?
A Loan Modification is a negotiation between a lender and a borrower that results in the terms of the existing loan being restructured without refinancing. The rate and terms of your loan are restructured to fit your current financial situation.
2. How do you do It?
In these market conditions, the banks and lenders have been mandated by the Federal government to do everything they can to work out a payment plan with their borrowers. This is great for today's borrowers, especially for those who are running late on their payments or are having trouble making them on time. The banks and lenders would rather take less money and keep you in your home making a payment that you can afford, rather than go through the expense foreclosing on the home, hiring a listing agent, rehabilitating a home, and letting it sit empty on the market for months, only to lose thousands in the process. We currently work with almost every major lender and several small lenders and banks to secure a Loan Modification to help them help you. In many cases we actually have taught smaller banks and lenders how to go about completing a Loan Modification. Within 24 hours after receiving your package, our legal team will contact your lender to notify them that they will be negotiating a Loan Modification on your behalf. From then on, they will be working with you and your lender in order to find a solution to your mortgage problems.
3. Are lenders and banks really willing to negotiate?
Definitely! Lenders do not want to foreclose on your home, unless they have no other alternative. If you can present them with a realistic professional proposal that makes sense, they are very open and receptive to the Loan Modification process.
4. Who qualifies for a Loan Modification?
Anyone who can prove they are having a tough time. Especially those who are currently a few months behind, those with negative amortizing loans, those with loans that are about to adjust, those who are upside down on their loan and those who would rather keep their home than do a short sale.
Basically, the bigger the hardship you are having, the more negotiating power you have with your lender. Remember, they don't want to foreclose on you. They would rather keep you in your home and create a solution that will be affordable to you rather than go through the cost and expense of foreclosing on your property.
5. Why didn't my mortgage lender tell me about this?
Your mortgage lender is in the business of originating and/or servicing loans. Modification of existing loans and foreclosures are simply a result of being in the business they are in and, as such, they aren't a priority for the mortgage lender.
This program is not that costly and quite frankly, they are so busy dealing with other homeowners who are already going through tough times, that they don't have time to deal with your situation.
6. Why should I choose a Loan Modification?
If you are having trouble and behind on your payments you have several different options to fix your problem.
Reinstatement Plan - Where your lender will reinstate the original terms of your loan once you are caught up.
Repayment Plan - Where your lender will tack on an extra amount onto each payment for a set period of time.
Loan Modification - Where you negotiate a restructure of your current loan terms without
refinancing.
Loan Refinance - Refinancing may be an option if you have the equity and credit required.
Forbearance Agreement - Where your lender negotiates a repayment plan and may force you to list your home for sale.
Short Sale - You sell your property for less than you owe but your lender accepts it as payment in full.
Pre-Foreclosure Sale - You agree to sell your property before foreclosure takes place.
(requires equity).
Deed-in-Lieu of Foreclosure - You agree to sign your property back over to your bank and walk away.
Bankruptcy - You have to file bankruptcy to protect yourself, but if you miss one payment you will be right back in foreclosure.
A Loan Modification is a good solution if you cannot refinance, are behind on your payment or struggling to make your payments, have experienced a genuine hardship, and you want to stay in your home.
A Loan Modification is a permanent solution to your situation and is not meant to be used as a temporary stop to the foreclosure process.
7. Can I negotiate a Loan Modification myself?
In short, yes you can. You can contact your lender or your bank and see about going through the process of Loan Modification.
But, keep in mind that your bank has their best interest at heart. They neither have the time nor the inclination to hear about what troubles you might be experiencing. What usually occurs is that the bank will negotiate an agreement that helps them, but still leaves you with only a temporary solution.
This also takes many hours of communication and back and forth information exchanges in order to accomplish. It is not easy to complete on your own and the outcome may not be favorable to you. When you contact the bank, they will ask for a "hardship letter" from you. When they receive that letter, they will usually tell you that they will get back to you in about 8 weeks. By the time you get back with them, or if you are lucky enough to get a call from them, you're already in worse shape than when you first started negotiation.
8. How Come You Have More Success?
Our attorneys have been doing hundreds of Loan Modifications every month, working with virtually every bank and lender. They have open lines of communication with most lenders, which gives them the ability to negotiate directly with the person who is in charge of making a decision on your loan.
We also create a professional legal file on your behalf which includes all of your financial data such as income, assets, expenses, and unexpected intangible expenses. They couple this with a full property analysis and package this together in a file that makes it easy for the lender to read and understand, allowing for a more comprehensive and quicker response than you would get through other forms of negotiation.
9. How much does it cost?
The costs associated with an attorney based Loan Modification will vary depending on the value of your property, the type of loan, the lender, and the number of loans held against our property.
The modification cost usually comes close to equaling the same as about one month's mortgage payment. Since every Loan Modification is different, it requires a varied amount of negotiation. After your initial application is reviewed and if the attorneys accept your case, your Loan Modification representative can help determine what the exact cost of your Loan Modification will be.
Our primary goal is helping homeowners who want to keep their homes, find a beneficial solution for their situation. We will work with you to ensure that we can obtain an affordable solution for your Loan Modification needs.
10. What do you need from me to get started?
If our attorneys believe they can help you and accept your case, then we will need to submit a complete Loan Modification file that outlines your current financial situation.
They will contact you directly if other paperwork is required by the lender in order to negotiate a successful Loan Modification. They will also determine the current value of your property and put together a professional proposal for your lender.
11. What makes you different from other companies?
We are not a store front Loan Modification company, but a service provider helping you find the right legal representation needed to negotiate on your behalf. Loss mitigation departments at major banks and lenders give much more credence to modification proposals submitted by attorneys. Maybe it is fear of a lawsuit if they do not negotiate in good faith, but banks and lenders are much more responsive to attorneys than they would be with the actual homeowner or other third party negotiator.
12. Will I have to meet with my lender or deal with any of their paperwork?
Absolutely not. We take care of all the paperwork and all of the negotiating on your behalf.
13. How long does the process usually take?
It can be completed in as little as five days but usually takes from 5 - 12 weeks depending on the lender, type of loan, and individual situation.
14. What paperwork do I need to complete the process?
We provide you with a complete list of the documents the attorney will need in the file to complete the process and will help prepare the file. Of course, no legal representation can begin until counsel has been properly retained and you have given written authorization to proceed.
After we receive these items from you, we can begin your Loan Modification process.
Please contact us with any other questions or concerns. Remember that time is not on your side, so if you are having problems or struggling to keep up with rising mortgage payments, don't delay and call us immediately for a free and confidential consultation.
We want to help you keep your home, period.
15. By utilizing the Loan Modification option to bring an asset current, can the mortgagee include all fees and corporate advances?
Mortgagee Letter 00-05, page 21, paragraph F, "Allowable Provisions" states: "All or a portion of the PITI arrearage (principle, interest, Taxes and Insurance) may be capitalized to the mortgage balance. Foreclosure costs, late fees and other administrative expenses may not be capitalized.
16. Does the repayment plan have to be completed prior to completing the Loan Modification documents, or can the mortgagee attach the plan once the option has been completed?
It is a mortgagee decision as to when to complete the repayment plan for outstanding fees, costs and administrative expenses.
17. When utilizing a Loan Modification option, can a mortgagee capitalize an escrow advance for Homeowner's Association fees?
HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states:
Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.
18. Will HUD subordinate a Partial Claim, should a mortgagor subsequently default and qualify for a Loan Modification?
If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will
subordinate the Partial Claim.
19. When an asset is modified is the homeowner eligible for the upfront premium refund at payoff of the loan?
It depends upon when the closing date occurred. For assets closed: After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect. On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies. On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.
20. Can a mortgagee qualify an asset for the Loan Modification option when the mortgagor is unemployed, the spouse is employed, but the spouse name is not on the mortgage?
The mortgagee should consult with their legal counsel to determine the legality and validity of such a mortgage instrument.
21. I'm unemployed. My spouse does have a job, but her name isn't on the mortgage. Can I qualify for a Loan Modification?
This isn't a simple question that can be answered "yes" or "no". What typically happens in situations like this is that the mortgagee - your lender - will conduct a financial review of your household income and expenses to determine if the spouse's income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrears. Once this process has been completed your lender will then get together with their legal counsel to determine if you're eligible for a Loan Modification, since the spouse is not on the original mortgage.
22. Are there any guarantees on the outcome of my Loan Modification?
It would be impossible for us to guarantee that some other entity (the lender) will do what we suggest that they do. We can say we have a VERY high success rate in obtaining
modifications for our past clients. If no modification is achieved, then you get some or all of your retainer back.
23. How does Loan Modification affect my credit?
If we are successful in obtaining a modification for you, the loan will, from that point forward, be reported as being paid as agreed. Assuming you make all of your payments on time, you may see your credit begin to get better over time. Obtaining a Loan Modification is the least damaging to your credit when compared with a short sale or a foreclosure.
24. Will having a Loan Modification affect my taxes?
We are not CPA's or enrolled agents and therefore can't offer you tax advice. We suggest
you check with your tax professional.
25. Do I have to be behind on my mortgage to qualify?
No. Although falling behind on your mortgage payments is an obvious indicator of financial hardship. Some clients are forced use reserves or credit cards to keep there mortgage payments current. In this situation it is only a matter of time before they fall behind. If an obvious fanatical hardship exists a modification may be possible although the payments are current.
26. Do I have to owe more than my house is worth to qualify?
No. The basic formula is to have less than 20% equity in your home. The less equity you have in your home, the more the investor stands to lose in a foreclosure situation. If you
have negative equity, that is even more incentive for your lender to work with us.
27. Can I have my 1st and 2nd mortgage combined?
Yes. In some cases where the first and seconded mortgage are with the same investor that investor may elect to combine both mortgages into one. Keep in mind if the investors are
different a combined mortgage outcome is VERY unlikely.
28. I'm about to or already filed for bankruptcy, is it too late?
No. If you are currently in bankruptcy and your property is not included in your bankruptcy and you meet all other qualifications you are eligible immediately. If your property is included in your bankruptcy you may be able to ask your bankruptcy attorney to remove it from the bankruptcy. Keep in mind your bankruptcy attorney may charge an additional fee for service to pull the property out of your bankruptcy.
29. I already have a sale date for my home, can I still save my home?
Yes. Traditionally we need a minimum of ten days prior to the sale date to be able to achieve a postponement of the sale. In some cases we are able to postpone the sale as late
as the day before..

 

CaliforniaLoanRate.com
We will work with you to develop a plan that best serve your particular needs. We will then negotiate with your lender to incorporate any changes that are needed to make the plan acceptable both to you and to your lender. Keeping you in your home is advantageous to the lender. Our job is to help them appreciate that advantage.
SHORT SALES MAY SELL YOU SHORT

You may have been told that a short sale is your only course of action. What you may not have been told is that you may be dealing with the consequences of that action for many years.

DEADLINE SENSITIVITY

We understand that you may be facing immediate deadlines and that any delay can mean a loss of meaningful options for relief.

BEYOND BANKRUPTCY

Though we are happy to assist you with bankruptcy, should that be necessary, we believe it is an option that is avoidable more often than people realize.

TYPICAL RESTUCTURING PLANS

Restructuring plans may include:

Adding delinquent payments and any foreclosure fees to the back end of the loan. This may include a permanent reduction in your interest rate.

Forbearance plans may be used to temporarily halt the foreclosure process for up to four years while you make payments to become current with the lender.

GOALS OF NEGOTIATION WITH YOUR LENDER

In our negotiations with your lender we are seeking to lower your payments, lower the interest rate, mitigate any negative impact on your credit rating, and keep your home from going into foreclosure. The lender benefits by continuing to receive payments on the mortgage, and saving on the costs that would be incurred in a foreclosure.

WHAT WE NEED FROM YOU

We will need to document your income and expenses for the last two years. Documentation will include pay stubbs, tax returns, bank statements and property tax bills, and all of the paperwork associated with your mortgage. We will need copies of your bills to document your financial situation and the factors that led to your falling behind. Please provide any other letters or notices that demonstrate that you faced a reduction in your income or higher than expected expenses.

TELLING YOUR STORY

We will ask you to prepare a draft letter that explains in your own words what factors have led to your need for a modification from the lender. It is important that you author this letter, and that it is not generic. Please include the details that bring to life the financial difficulties that you have faced. If you feel that you were not properly and fully informed regarding the terms of your loan, please describe the process by which you came to sign the loan papers and what your understanding of the terms of your loan was at that time.
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Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one (1) year to redeem the property.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.
The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.

The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale.

Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption..

 
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