Real Estate Information Archive

Please take a look at the following article, from RISMedia, written by Susan Tompor.  There are links included in the article as well as at the end that may be helpful, as well.  You can also search the website for other helpful info, if you wish (http://rismedia.com).

 

http://rismedia.com/2009-06-29/how-long-will-a-foreclosure-or-bankruptcy-affect-credit/#ixzz0KVmCxdJe&D

 

 

Millions of Americans have fallen under the impression that they can make a monitary investment to enlist the help of third party companies to help them get their "credit repaired" and improve their credit scores!  Please take a look at the link provided below to get SCAM ALERT info about what is going on with "credit repair" companies, and how to avoid falling victim to their promises!

The link is for an article written by Sid Kirchheimer, author of Scam-Proof Your Life, published by AARP Books/Sterling.  One thing to focus on from this article, is in the sectoin about KNOW THE REALITIES, and it says that "under federal law, debt remains in a credit report for about seven years; bankruptcies stay listed for 10 years.  And it's illegal in many states to accept an advance payment for any debt-adjusting service".

http://bulletin.aarp.org/yourmoney/scamalert/articles/credit_repair_s_dirty_business_.html

Alternatives to Foreclosure

 

You may be facing foreclosure…so what are your options?!? Try to look at the situation more from a financial standpoint rather than an emotional standpoint. This way you can more successfully analyze which option might best suit your needs and desires to move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence. Take time to think through your situation and make a decision. Then, take action right away so you have enough time to complete the solution you choose.

 

Options When Facing Foreclosure

 

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. Not the best option.

 

2.      Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually this is 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- Pay 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. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

 

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 lender for a 2^nd loan to include back payments, costs and fees.

 

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 payment 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 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.

 

9.      Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid).  The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale.

 

10.  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. You receive NO MONEY.

 

I have read this form and understand that I have several options available to me and that there may be more than those listed above. I have been advised that I should consult an Attorney and CPA.  I have chosen to use Bob & Rita Driver of Re/Max All Stars to assist me in negotiating the short sale of my home.

 

_________________________________________________    _________    

 Name                                                                                                                      Date                  ________________________________________________________      ___________         

 Name                                                                                                                      Date

The Driver Team

Bob & Rita Driver

2845 N. Houston Levee, Suite 103

Memphis, TN 38016

901-387-1199

901-387-1070

Don't be afraid to call us for expert advice in the short sale process.  Forelcosure is not the only choice to be relieved of the house debt that you may have looming over you each and every month.  Please, call us as soon as you realize that you may be in over your head.  You do not have to be behind on your mortgage to use the short sale solution.  call Bob or Rita Driver of The Driver Team of RE/MAX All Stars for your private and confidential consultation regarding your real estate needs.  We are the ONLY Certified Distressed Property Experts in Memphis Tennessee and the surrounding areas.  We have gone to great lengths to stay abreast of the information taht you will need to complete the short sale process and avoid the permanent damage of foreclosure on your credit.  Call us today!

Bob and I have worked diligently to stay on top of this industry change.  It is still changing everyday.  You would be shocked at the number of people that give up and go to foreclosure without the option of the short sale route.  Don't give up until you have done everything that you can possibly do.  Call us, we can help.

We just want to let everyone know that there are alternatives to foreclosure.  Call us for assistance and to weigh all of your options.  Don't feel frustrated and alone.  Let us help you if we can.

Hi Visitors:  I wanted to take a moment to share with you the basic definition of the short sale.  A short sale is when you sell your home for less than what is owed to the mortgage company.  The mortgage company has the final say in whether they will allow a short payoff on the mortgage that is currently owed.  Also, there must be some additional criteria that have to be met prior to the acceptance of a short sale by your mortgage lender.  Please feel free to call me for a private consultation.

There are some sellers in our area that are distressed and need assistance in marketing their home in a short sale attempt to mitigate the damages to themselves and possibly the lender they are currently financed through.  If you know someone who could use our experience and assistance to delay their foreclosure and attempt to sell their home on a short sale, please have them call us or visit our sites and request a free consultation.  We keep all calls confidential and private.

Hello visitors:  I just wanted to invite any distressed seller to give me a call and allow me the opportunity to speak with you privately and confidentially regarding your real estate needs.  I believe that some of the extra training and information that I can share with you may be able to assist you to avoid foreclosure and be on the road to recovery faster than you had hoped.