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Ten Scams and the Scumbags
Foreclosure Self-Defense For Dummies shows you how to identify and evaluate all the options available before, during, and after foreclosure attacks. It also guides you through the process of choosing and working with a real estate agent on the purchase of a new home.
Introduction
You may not be able to save your home, but you can significantly improve your bottom line. While reading this book cover to cover will certainly increase your return on investment, Foreclosure Self-Defense For Dummies takes a jump-and-dive approach.
Warming Up for Your Foreclosure FightYour Foreclosure Fight
You can pick up the book and skim through any chapter for a quick, self-guided mini-course on a specific topic of self-defense in confinement, or you can read the book cover to cover. To make it easier for you to navigate, we've taken the 18 chapters that make up the book and divided them into 4 parts.
Confronting Foreclosure Head On
Digging Your Way out of the Foreclosure Pitout of the Foreclosure Pit
The Part of Tens
Once you've identified some of the options you want to use, turn to the chapters in Part III where we provide information on how and the strategies you need to implement. We hope you will take the advice we offer in this book and move forward - to a more prosperous future for you and your family.
Warming Up for Your Foreclosure
You can sometimes become so overwhelmed that you feel like giving up the fight. In this part, our goal is to calm you down so you can deal with the situation more rationally.
Digging Into and Out of the Foreclosure Hole
As a result of the divorce, only one or one and a half incomes are available, depending on the settlement. A few months of no income or one or two unexpected bills, and they'll probably end up in the same place as you.
From grieving to foreclosure
It hits the pocketbook with higher medical costs and can jeopardize your ability to generate income through work. A death in the family can also be a one-two-three blow, especially if you experience the loss of an important breadwinner.
Say what?! Our house was auctioned off?!
Contact your lender as soon as you suspect you will miss a payment: the sooner the better. When facing foreclosure, pay your property taxes first, your secured debts second, utility and grocery bills third, and your unsecured debts last.
Don’t buy trouble
As long as the bank receives payment within ten days of the due date, you're fine. The forced auction informs you that the bank has started a forced auction and planned sale of your home at auction.
Know your redemption rights
If you can't afford the monthly mortgage payments and you have little, no or negative equity in the house, then your best option may be to stay in the house as long as possible (for free), save your money and move out just before you are evicted. If you can't sell the house for a profit, you might be able to sell it to break even and pay off your mortgage, so you won't have the foreclosure on your record.
Bad or no credit history?
Wrapping Your Brain Around the Foreclosure Process
Your mortgage loan may contain a clause that gives the bank the right to foreclose if you do not pay as stated in the mortgage loan. This gives the bank sales power. If you live in a state that allows force of sale and your mortgage includes one.
Can’t I just send the missed payments now?
Power of Sale Determination: If your mortgage contains power of sale language, all the bank needs to do is publicly advertise its intent to foreclose and notify you (or at least attempt to notify you) prior to sales (which happens). at auction). A short sentence like “This mortgage gains sales power through advertising” may be all it says – but that's all the bank needs.
Know your redemption rights!
Bank's right and interest: The bank's claim to the property and how much money it wants to collect. If no one bids on the property, the bank "bids" for the amount owed and receives the sheriff's deed.).
Ignoring the notice of forfeiture
If you cannot stop the seizure in time to come up with a reasonable solution, you may delay the process in court. Attend all hearing dates. If you are required to bring proof of payments or other information, bring it.
Regaining Your Emotional Composure
In the following sections, we reveal the most common negative feelings you're likely to have at some point during the foreclosure process. To work your way out of this difficult situation, you need a clear and level head, focused on the task at hand.
Who’s really to blame?
Yelling at them rarely makes them work better or faster, and they are likely powerless to stop the foreclosure without your cooperation. Once you have a fairly clear understanding of the overall process, start gathering more information about the foreclosure process in your state and county.
What you should really be afraid of
Once you understand the basics of what you're dealing with and the timeline of the process, you can begin to assess your options and formulate your plan of attack. You probably have people around you who know you, love you, and just want to help you, but if they don't know (and believe it or not, few people actually know you're incarcerated), it can't help.
Asking dad for help
Lay all options on the table, no matter how unrealistic they may seem right now
Rank the options in order from those that seem most attractive to those that seem least attractive.
Arrange the options in order, from the ones that sound most attractive to the ones that sound least attractive
Move any options to the bottom that are likely to land you right back in the same place where you are now (or worse)
Protect the children. You and your partner may be able to find a solution that keeps the kids in the dark about everything. Discuss the negative in private, steer the children away from any unnecessary anxiety, and let the adults handle the situation.
Touching Base with Key People Who Can Assist You
- Gather any and all letters and notices you’ve received, along with some basic financial information, including outstanding bills, credit
- Schedule a meeting with your partner so you can discuss the situation without interruptions or distractions
- During the meeting, provide full disclosure
- Share this book with your partner and go over some of the options for dealing with the situation
Closure can actually strengthen your relationship if you are open with each other and work together to overcome the challenge. If your partner gets angry with you, let her know that you are also upset about the situation, but that neither of you can undo what brought you to this point.
Ralph’s foreclosure fiasco
Let the attorney know that you are available to answer any questions or address any concerns. A local realtor can be your best resource when facing foreclosure.
Deciphering Your Mortgage and Other Documents
Most of what the mortgage contains are clauses and provisions that protect the bank's interests and give its lawyers the ammunition they need when it comes time to foreclose on your home. If your mortgage includes power of sale and your jurisdiction allows power of sale, the bank does not have to go through court to seize your property.
What exactly is a mortgage?
One of the first items you should look for in your mortgage is a power of sale clause. If you default on the mortgage, the trustee has the right to sell the property and distribute the proceeds of the sale to the lien holders.
Settling out of court
The borrower can make a full prepayment or partial prepayments without paying a prepayment fee. The Noteholder will use prepayments to reduce the principal amount due under this Note. Mortgages and notes are the most common contracts used to finance the purchase of real estate, but they are not the only ones.
Confronting Foreclosure
Head On
Dealing with shielding is like confronting a strange dog when you're out walking or jogging. Dog trainers recommend that instead of running away from a strange dog, you stop what you're doing and act as naturally as possible.
Getting a Handle on Your Current Situation
It just means you'll have a harder time qualifying for credit and financing. Zero: Zero cash flow means you're just scraping by and living hand to mouth.
Finding cash under the floorboards
If you have children, getting rid of the fat is more stressful because you can fall into the trap of thinking you are robbing or abandoning your children. Even if you can't afford to make a house payment, you still need to pay your property taxes.
The follies of the self-insured
Sizing Up Your Options and Exit Strategies
If you've experienced a temporary financial setback, you may be able to work with your bank to restructure your payments and get back on track with a forbearance (payment plan). Make sure the investor knows that you are willing and able to take proper care of the property for the duration of the lease.
A short sale case study
Banks are almost never willing to agree to a short sale if it puts money in their pocket. Now you can understand why a bank might agree to a short sale, but why would you agree to a short sale.
Knowing the value of a good attorney
If you have little or no equity in the property, the best option may be to give the property to an investor by signing a quitclaim deed. If you're single and you really don't care, this might be the option of choice.
Stopping the Financial Bleeding
Make payments. If you decide to make payments, your budget must allow you to make the monthly payment every month, otherwise your plan is doomed to failure. If you're facing shortages and can't live without the items on your list, hope remains, but you'll have to make a few additional adjustments.
Do you really need that car?
However, when you're facing foreclosure, you may need to adjust the way you view your finances and get a little more brutal when it comes to cutting expenses. Another vacation expense you may need to cut is in the area of special vacations.
Spending in good times and bad
If you work as hard as you can (or want to) work, and you still can't make it happen, then you need to cut even more costs and maybe even sell the property and move to something more affordable. If you don't have a marketable skill, you can still make some extra money by taking a second job at a local restaurant or store.
You’re not alone
See the section “Consolidating Your Debt into One Low Monthly Payment” later in this chapter for further details.). For more on working with a credit counselor after foreclosure, see Chapter 15, but remember that the earlier you get a credit counselor involved, the more options you have.
Just sell it!
- Add up the fees charged to process the loan, including the loan origi- nation fee, points, and closing costs
- Multiply the monthly payment times the number of months it will take you to pay off the loan in full
- Add the amounts from steps 1 and 2 to determine the total cost of the loan
- Subtract the total amount you expect to pay toward principal over the life of the loan
When you pay off the loan, the bank releases its interest in your collateral and you're on your merry way. If you're not already in trouble, consider opening a home equity line of credit now in case you need to use it in the future.
Steering Clear of Quick-Fix Schemes and Scams
The scammer interviews you and informs you that you are a perfect candidate for the National Investor Foreclosure Rescue Program. You sign all the documents, signing away your legal rights to the scammer's home.
Lois’s foreclosure
The scammer convinces you to hand over the overbidden money to her; in return, she promises that the money will be used to obtain a new mortgage or alternative financing to solve the problem. The scammer then collects the money and disappears. After all, they do alert the homeowners to the existence of the overbidding and facilitate its recovery so that they deserve to earn something for providing the service, but 30 to 50 percent is price gouging.
The overbid rescue
Tax Deed States: In a tax deed state, if you are far behind on your property taxes, the state transfers the property into the treasurer's name and then attempts to sell the tax deed at public auction to recover the amount of delinquent taxes to get . In states with tax deeds, you may not be entitled to a redemption; when an investor buys the tax deed at auction, start packing.
Property tax scam: A case study
In the following sections, we show you how to spot the signs of a predatory lender and how to review your borrower's bill of rights so you can avoid becoming the next victim of a mortgage meltdown. However, Michigan and other state legislatures include a borrower's bill of rights as part of their consumer protection policies.
Predatory lending: A case study
In the following paragraphs we explain the do's and don'ts and try to help you out of trouble. Don't sign something committing yourself to its terms without knowing what duties and liabilities you are responsible for.
So what is joint and several liability?
An unlimited durable power of attorney gives the beneficiary unrestricted power to make decisions and take actions on your behalf. An unlimited, durable power of attorney gives the beneficiary the authority to do virtually anything on your behalf.
Digging Your Way out of the
