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Thursday, December 30, 2010

by Tony Bellenger

So, your house is in foreclosure… Now what? Try to look at the situation without attaching your emotions. From a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and desires and move toward resolving your financial difficulty. One very important thing to remember: Time is of the essence, so take quick action in order to allow yourself enough time to complete the chosen process. There are more than 50 techniques a person can use to save their home from foreclosure. Here ‘s just a few of them below:

1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information.

2. Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.

3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level if they qualify.

5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Partial Claim – A loan from the FHA for a second loan to include back payments, costs and fees.

You should be aware of special rights which you may have! In January of 2001 The U.S. Department of Housing and Urban Development (HUD) issued guidelines mandating that all borrowers with FHA loans that fall under HUD regulations be informed of their rights to mortgage loan work out programs. See HUD ML2002-12. The Veteran’s Administration (VA) also has a great many entitlements that can keep a Veteran out of foreclosure. You may be entitled to federally mandated FHA/HUD or VA loss mitigation assistance from your lender to stop foreclosure by:

  • Reducing your interest rate
  • Extending the time to pay back of your loan
  • Putting your past due payments in to the balance of your loan
  • Putting the past due payments on to the end of your loan
  • Selling your house for less than you owe the bank
  • Giving the house to the bank or the government in exchange for what you owe

NOW get more information at our free stop foreclosures email link below to find out if you qualify.

7. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payments and taxes must be current. Most loan applications ask if this has ever happened.

8. Bankruptcy – This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy preparer (many attorneys use them to fill out your forms and then add their own fees) or a bankruptcy attorney.

Chapter 7 (Liquidation) To completely settle personal debt.

Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3 – 5 years.

Chapter 11 (Business Reorganization) A business debt solution.

Means test may be required If your income is above the median for your area and you file for bankruptcy, the law requires you be subjected to a means test to see if you might have the spare cash for a repayment plan. If you don’t, you get to file for Chapter 7 liquidation, which erases most of your unsecured debt, such as credit card and medical bills.

If the means test says you can afford to pay some of your debts, though, you’re shunted into a Chapter 13 repayment plan.

Filers must attend mandatory credit counseling sessions that do little good according to the credit counselors.

Increased basic filing costs by about $200, as well as the time it takes for a preparers/attorneys to prepare a case, by at least 50%, making the process more expensive for people who already are broke.

The bankruptcy reform act as written requires prioritizing credit card companies ahead of the duties of one’s faith as per the Littlefield decision.

9. Sale – Homeowner may sell the home without lender approval for a conventional home sale. If the property has equity (money left over after all loans and monetary encumbrances are paid), the homeowner will get cash from the sale. At the other end of the spectrum, a short sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your real estate professional if what is owed is more than the property’s value.

10. Short Sale – Negotiated settlement” or “short pay” occurs when a Lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure. If the property is worth less than the amount owed on the loan, then even if the Lender forecloses and takes back the property, they know they are going to take a loss. We can often convince a Lender that they will do better if they take less than what is owed now rather than taking the property back by foreclosure and trying to sell it later…

11. Debt Validation — Ask the Lender to show proof of the debt. Lender has 30 days to show proof or the debt must be removed from your credit report along with all negative remarks.

By now, you may want to learn more about how you can start your own” Debt Negotiations Business” and in the process improve your own credit as well as save your home or others from foreclosure, then email Tony Bellenger at

PS… Sign up to receive your free “How To Save a Home From Foreclosure” as well as your free “How to Improve Your Credit in 90 Days Without Spending a Dime” reports. Also get your free updates by emailing Tony Bellenger at

By-the-way, by now, you may be wondering if you may contact Tony Bellenger (The Money Doctor) for seminars, speaking engagements, investor trainings, personal consultations, business financing, and hard money loans? The answer is yes, email your requests to him NOW at

Copyright © 2005-2010 Green-N-Your-Jeans Publishing, LLC

By Tony Bellenger “The Money Doctor™


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