Fighting Foreclosure
Posted on February 18, 2010
Filed Under foreclosure investment property |
Fighting foreclosure in the last two years has been the number one issue for homeowners. Homeowners are losing their homes in record numbers. Therefore, how can homeowners survive foreclosure? What are the foreclosure time line and the reasons for foreclosure?
Foreclosure is a legal solution to a contract breach by the homeowner. To cure the problem both parties (bank and the homeowner) must decided upon a solution. If there is no agreement reached between the homeowner and their lender then the lender is forced to act on their own with foreclosure being the end result. Fedral government has regulations in place to protect the homeowner by requiring the lender to prove that they have tried to work with the homeowner. This can come in the form of loan programs or loan modification. Disclosures in the form of written notices will be mailed to you the homeowner regarding a possible foreclosure. .
The lender sometime use a loan servicer to help as a go between to help move the foreclosure process along. This could be a benefit as well a problem. The servicer really could stand in the way of the homeowner not getting the best deal from their lender. So if you find yourself in this position you must be careful when negotiating with your Loan Servicer. The servicers are the ones who move the file to the attorney. Recently some home owners fighting foreclosure have challenged their law suit under the legal question: has to who really own their mortgages? What they found in over 80 percent of the case the lender the mortgage note is not the one filing law suit against them. In fact in some case the note can not be established, that is why fighting foreclosure make sence for the homeowner.
What some of the reasons motivating homeowners to continue fighting foreclosure ? Well consider this : you might come out of it with a lower mortgage rate and lower payment. This fight could protect your equity or the investment that you made into the home when you purchased it and over the years.
george Haughton
http://www.articlesbase.com/mortgage-articles/fighting-foreclosure-686439.html
Comments
5 Responses to “Fighting Foreclosure”
Leave a Reply
Has anyone used the "Produce the Note" strategy in fighting a foreclosure?
My house is in the final stage of the foreclosure process. I believe I have about 6 more months before the sheriffs sale. I heard on the news that you can prolong the foreclosure by making the lender "Produce the Note". Has anyone done this and had success?
I don’t personally know anyone who has done this. But, it is a stall tactic that may or may not be accepted by the judge. I think you would have a lot more success with it, though, if you retain an attorney to represent you.
But, if you have 6 months from the sheriff’s sale, I would imagine that would be plenty of time for the mortgage company to track down the original paperwork (or an electronic copy of it).
References :
I have been interested in this tactic since hearing about it. I can only imagine that many servicing banks are huddled under their collective desks in fear of these 3 words.
I am guessing that those with 80%/20% notes may be the most successful with this ploy.
References :
TX REALTOR
I have talked with a bank loan officer about this and her answer is, "Yes, this will stall until we can find a signed note, or a photostat copy of the note."
So many institutions have sold the papers they hold on loans that it will take the purchaser some time to come up with the paperwork. If a loan has been sold more than once it becomes even harder to produce.
According to my source it could take six months or longer for an institution to, "Produce the Note."
References :
I can not give the name of my source or her employer. She fears if a banker is found to be giving out this information he, or she could be fired.
‘Produce the Note’ is a stall tatic. If you’re going to use it, are you using it because you’re going to attempt to resolve the delinquency by bringing it current or getting on a work out? Are you doing it to get an extra amount of time on the property without having to pay the bill? If you’re just delaying the foreclosure, you’re just delaying the start of the recovery process to your credit. Remember that when the foreclosure process starts over you’re going to get served, the sale will be published, the notice will be placed on the house, your credit will show foreclosure status for the duration of the delinquency until the auction and charge off take place and remain there for 10 years. You will still get a 1099 the year after the foreclosure takes place have to claim the banks loss as your income and then pay taxes on it (i.e. the FC happens in 09, in Jan 2010 you’ll have to pay taxes, if you stall it until 2010 in 2011 you’ll have to pay taxes, etc). The bank and the government isn’t going to give you the house for free and honestly, like any punishment, isn’t it best to just get it over with so that you can start over?
The other thing - Produce the Note is primarily for Sub-Prime notes because of them being bundled and sold repeatedly. Prime mortgages and Bank Owned Properties - the note, if you request it, will be produced immediately. The delay tactic will give you less than a day.
References :
Loss Mitigation Supervisor