Your Credit

What Is Foreclosure?

When Will This Book Help You?

This book will help you understand the foreclosure process and find out what you can do to stop it. This book will also help you analyze whether or not you want to keep your property by taking a long, hard look at your options and deciding which options will ultimately benefit you.

What Types of Property Does This Book Cover?

If you are reading this book, there is a good chance that your lender has already started foreclosure proceedings. But this book will also be helpful if you've missed payments on a home loan and your lender is threatening to start foreclosure, or you're struggling to stay on top of a home loan but expect you won't be able to keep it. the payments for much longer.

What Types of Foreclosures Does This Book Cover?

Your goal should be to learn all you can about foreclosure so you can anticipate what might happen and develop a strategy to stop it. A cross-reference to another section of this book, or a suggestion to consult another book or resource.

Don’t Panic

Can You Really Do It Yourself?

Be aware that no matter how many times you read this book and how carefully you prepare, you will probably be nervous the first time you approach your lender, trustee, or sheriff. As long as you combine your common sense with the principles and techniques described in this book and are not afraid to ask people questions if you need help, you should be able to represent yourself competently and effectively.

Will This Book Help You If You Do Have an A orney?

How to Use This Book

Get Organized

Learn the Clock

Decide Whether or Not to Keep Your Property

Develop a Plan of Action

Deed of Trust

If this security instrument is owned by lease, the Borrower must comply with all provisions of the lease. Copy of the Borrower. A conformed copy of the Note and this Security Instrument will be delivered to the Borrower.

Mortgages

This Security Instrument is governed by federal law and the law of the jurisdiction in which the Property is located. Upon payment of all amounts secured by this Security Instrument, the Lender releases this Security Instrument.

Reviewing Your Deed of Trust or Mortgage

The reinstatement period begins as soon as the Notice of Default is issued and ends before the trustee's sale subject to state law. Typically, publication must be made at least three times between the date the trustee issues the Notice of Sale and the date of the trustee's sale. Depending on state law, the redemption period consists of the last few days before the trustee's sale.

There is always the possibility that the trustee (or auctioneer) may conduct the auction improperly or something else may occur that would give you grounds to file an action to set aside (reverse) the trustee's sale.

Notice of Default and Election to Sell

The Reinstatement Period

Notice of Trustee’s Sale

The Redemption Period

Trustee’s Sale

Overview of a Judicial Foreclosure

Your lender will have copies of the complaint, along with a document called a Summons (notice of lawsuit), which is served (delivered) personally on you and each of the other defendants. Venue in the Court for the County of Essex is proper under the laws of the State of New Jersey because the property subject to this action is located in Essex County. Your lender must then mail a copy of the Lis Pendens to you and each of the other defendants.

Defendant admits that the location of the Essex County Court is appropriate under the laws of the State of New Jersey because the property subject to this action is located in Essex County.

Negotiating With an Institutional Lender

Negotiating With a Private Lender

Negotiating With HUD and the FHA

Negotiating With the U.S. Department of Veteran Aﬀ airs

Should You Use a Mortgage Broker?

A mortgage broker is an individual (or company) who, for a fee, will help locate lenders willing to refinance your property. But just like everything else in life, there are good mortgage brokers and bad mortgage brokers. The advantage of a good mortgage broker is that he will have a pulse on the ﬁnancial markets and know which lenders give loans to foreclosed borrowers and on what terms. Mortgage broker can comparison shop between many lenders - and much faster than you ever could.

On the other hand, some mortgage brokers tend to get too cozy with a handful of favorite lenders with whom they regularly do business.

Will You Qualify for Reﬁ nancing ?

Lenders will only lend money against the property (regardless of whether it is in foreclosure) when there is sufficient equity to support the amount of the loan. The loan-to-value ratio (“LTV”) is the percentage of a property's appraised market value that a lender will lend on. Mortgage brokers also regularly advertise in the classified property section of the Sunday paper.

To determine your property's equity, the lender will hire a licensed real estate appraiser to determine its current market value.

Overview of Reﬁ nancing

Sign the loan documents If you accept your loan to go through, you will receive a phone call and/or email, and shortly thereafter a formal letter announcing that your loan has been approved. The letter will include a form confirming that you agree to the terms of the loan and your formal request that the lender prepare the loan documents. When you submit the form, your lender will schedule an appointment to sign the loan documents in front of a notary public (the "closing"), assuming the borrower is local.

Also, make absolutely sure that any promises or representations your lender makes, such as the initial interest rate, or the terms of the loan, are included in the loan documents.

Kinds of Loans

A home equity loan is nothing more than an old-fashioned second mortgage (or second trust deed) with a fancy new marketing name. Assuming you already have a first mortgage or deed of trust encumbering your property, your home equity loan will come in second position. A home equity loan usually lasts for ten to ﬁ one years, depending on what you negotiate with your lender.

The interest rate for a closed-end loan is usually fixed for a certain period.

How to Find a Lender to Reﬁnance Your Property

Ask about their current interest rates, points, application fees, and other fees for conventional and home equity loans. The positive result is that savings banks process loans faster than commercial banks, regardless of whether it concerns a conventional loan or a mortgage loan. Savings banks, as real estate specialists, tend to be more aggressive in taking out conventional loans and mortgages than commercial banks.

Today, most full-service brokerage firms have a wide variety of loan programs, including conventional loans and home loans.

Closing Costs

Your lender wants to be sure that you have clear and unencumbered title to your property. Your lender does not have to automatically lower the interest rate if you are on active duty. If your lender is unwilling to cooperate, go ahead and file your lawsuit to foreclose.

If it doesn't, you'll need to file a lawsuit to enjoin the foreclosure based on your lender's breach of agreement.

How to Use the SSCRA to Reduce Your Interest Rate and Payments

Regardless of the interest rate stated in your loan documents, your lender must lower your interest rate while you are on active duty, provided you qualify under "substantially affected." Your lender's obligation to lower your interest rate is not affected by whether you are in default or there is a pending foreclosure. Your only obligation is to give your lender a written request to lower the interest rate.

Of course, if your interest rate goes down, your monthly payments will be correspondingly lower.

How to Use the SSCRA to Stop a Nonjudicial Foreclosure

On July 6, 200X, I received notice from Sanctity that it was initiating an extrajudicial foreclosure of my property. Civil Relief Act prohibits the seizure of my property for non-payment of any amount due under the loan during the period of my military service and for 90 days thereafter (50 U.S.C. § 532). The purpose of this letter is to let you know that I am on active duty with the United States Coast Guard.

As a result of my call, and for the duration of my active duty status, I will lose my civilian service income.

How to Use the SSCRA to Stop a Judicial Foreclosure

Overview of a Lawsuit to Enjoin Foreclosure

Of course, if the TRO has been denied and a trustee's sale has occurred, you will no longer need a preliminary injunction. In this case, you will be limited to recovering monetary damages from your lender and not from him. If the judge rejects the preliminary injunction, the TRO will be terminated and enforcement will continue.

On the other hand, if the judge rules in favor of your lender, the preliminary injunction will end and your lender will resume its foreclosure.

How to File a Lawsuit and Get a Temporary Restraining Order

A lawsuit to order a trustee's sale must be filed in the court of the county in which your property is located. A copy of the promissory note is attached to this complaint as Exhibit "A" and incorporated by this reference. A copy of the trust deed is attached as Exhibit "B" to this complaint and incorporated by reference.

A copy of the Notice of Trustee's Sale is attached to this complaint as Exhibit "D" and incorporated by reference.

How Your Case Proceeds Aer the TRO Hearing

How Bankruptcy Works

Which Bankruptcy Is Right for You?

Additional Resources

Hire a Real Estate Agent

Implement a Plan to Sell Your Property

Prepare Your Property for Sale

Oﬀ ers and Counter-Oﬀ ers

Proceeding Through to Closing

Special Rules for Dealing With Equity Purchasers

Arranging a “Short Sale” With Your Lender

Will Your Lender Accept a Deed in Lieu?

Negotiate Terms of the Deed in Lieu

How to Prepare a Deed in Lieu of Foreclosure

Using a Foreclosure Consultant

The Law Library, Internet, and Legal Research

Communicate With Your Lender

Keep a Log of Contacts (Communications Chart)
How to Respond to Lender’s Initial Contacts
Find Someone With Authority to Stop the Foreclosure
Is There Any Equity in the Property?
Does the Property Have Economic Value Apart From the Equity?
Are You Emotionally Aached to the Property?
Other Considerations
Tax Eﬀects of Giving Up or Selling Your Property
Options to Keep Your Property
Options to Get Rid of Your Property

Communication schedule (a kind of log), including the date and time of the communication, the method (by letter, phone call, e-mail, fax or meeting), the name of the person you are contacting. The purpose of the sale notice is to disclose the date, time and location of the foreclosure sale of your property. After listening to the appraisers take you and your lender to court, the judge will determine the fair market value of your property on the date of the foreclosure sale.

If you release your property by paying the redemption price, ownership of the property will be restored. Call the main office of your lender and ask for the name of the branch manager or supervisor. The purpose of the insurance is to insure a borrower's loss in the event of foreclosure.