When the new rules go into effect, unemployment benefits will no longer count as income for determining whether a person qualifies for a long-term reduction in their mortgage payments.

So for people with no income other than unemployment, there will be no loan modifications – the chief tool for preventing foreclosures.

“It’s ridiculous how impractical the guidelines … are,” said Al Ripley, an attorney with the N.C. Justice Center. “They truly do not address the needs of unemployed people.”

This program is the centerpiece of the $75billion federal effort launched in February 2009 to stem foreclosures. President Barack Obama has said HAMP – the Home Affordable Modification Program – would help 3million to 4million people avoid foreclosure through 2012.

But only about 170,000 homeowners received long-term modifications in the first year. The small numbers drive criticism that the U.S. Treasury program is flawed, and that lenders do a poor job of implementing it.

Read more: http://www.charlotteobserver.com/2010/04/11/1369820/foreclosure-program-falls-short.html#ixzz0kr3caTLS

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Foreclosure program little help for jobless

The idea is to set aside $1.5 billion in foreclosure initiatives for homeowners in Nevada, Michigan, Arizona, California and Florida. All have seen at least 20% declines in home values in the past year.

So far, so good. The $1.5 billion is part of Obama’s larger $50 billion Home Affordable Modification Program and will be used to create an “innovation fund” that state agencies can tap for various efforts to reduce foreclosures they deem “preventable.”

Some of those plans include helping homeowners going through unemployment, or simply underwater on their mortage, or even those with multiple mortgages and home equity lines of credit. In other words, people who are in a world of hurt and could use the money.

Here’s where the problem comes in. The treasury estimates there are at least 1.5 million homeowners in these five states that meet the broad criteria set out above. It further estimates the cost of modifying their loans at around $12,000 each.

Let’s do the math, shall we? At 12k a pop, $1.5 billion will only provide help for around 125,000 homeowners ($12,000 x 125,000 = $1.5 billion).

125,000 homeowners will surely appreciate the help, but that is a far cry from 1.5 million that are desperately in need of help.

To be fair, Obama has acknowledged that not everyone will be helped under this latest plan – nor is it necessarily advisable that everyone who took out a ridiculous loan should be allowed to get it modified.

“I’ve got to again repeat — government can’t stop every foreclosure,” said the President. “There’s not enough money in the Treasury to stop every foreclosure.”

Of course, let’s hope that the modifications actually make it to the people who need them most and not to simply irresponsible borrowers who helped create the collapse and have managed to find loopholes to avail themselves of the bailout.

Post from: Obama's ForeClosure Plan Website

Obama’s Newest Initiative Helps … Well, A Few

What About the Foreclosure Rescue Plan

If you watch any of the network news channels, you may actually believe that the economy is turning around and getting better, but have you talked to your friends and neighbors? While the news networks are reporting increases in new mortgages and sales figures, what they are not telling us is that they are bogus numbers! Lets see… the Obama Foreclosure Plan takes effect, millions of homeowners, upside down in their home loans apply for refinance, and since the rescue plan involves getting a new mortgage… NOW you can see why the mortgage rate goes up! They aren’t new home sales, or existing home sales, they are refi’s!

When Will it Hit Bottom?

This really depends on which news network you listen to, but many are claiming it already has! Not! According to RealtyTrac CEO James Saccacio, the drop in home values may be slowing a bit, but its likely that banks and lender seizures will increase in the coming months! “Lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria,” Saccacio said.

Just to add to this, the unemployment rate in the US is showing no signs of slowing… no jobs = more foreclosures!

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So Much for Progress – Foreclosure Rate Reaches Record High!

One of the largest differences in foreclosure law is whether a state uses mortgages or deeds of trust for real estate. “Deed of trust” is a term that’s not heard as often as mortgage, but in essence, they have the same function – they protect the lender from default on a loan that is secured by real estate. The major difference is in the process the lender must use to obtain the right to recover your property and sell it.

When you sign a mortgage agreement with a lending institution, you retain the deed to the property, and have full legal title to it – but you allow the lender to place a ‘lien’ on it. If you do not make the payments on the loan as agreed upon, the lender can foreclose on the property.

In some states, a deed of trust takes the place of a mortgage. With a deed of trust, you give the deed to the land or property to the lender, but the lender can only use or sell the property if you default on the loan.

In states that use mortgages, foreclosure law makes foreclosure a judicial procedure. A lender must prove to the court that the borrower has defaulted on the loan, and that they, the lender, have made appropriate attempts to resolve the default with the homeowner. There is a definite sequence of events that must be followed as prescribed in the foreclosure law, and knowing that sequence in your state can help you understand your options in terms of resolving the issue before it goes before a judge.

In states that use a deed of trust rather than a mortgage, the lender must go through certain steps of notification as required by foreclosure law in that state, but does not need judicial permission to proceed with a sale or foreclosure on the property to which they hold a deed in trust.

States whose foreclosure law requires judicial action include: Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Pennsylvania, South Carolina, South Dakota, Vermont, Washington and Wisconsin.

To learn more about your own States forclosure laws, check out this page.

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Using Foreclosure Laws to Your Advantage

The First Steps in Avoiding Foreclosure

If you are faced with a mortgage payment you can no longer afford to pay, one of the first things you need to do is contact your lender directly to see if they have some kind of solution for you! If you have ever let someone borrow money of your own, you know the one thing you hate the most, is not being paid back! It only gets worse and can even ruin a friendship when the person avoids your calls and just stops talking to you!

Your lender is not going to go away… and they don’t bite! Sure, they want their money just like you would, but its not personal with them! They don’t know you very well and their main interest right now is the same as yours, keeping you in your home! If you simply prefer trying to go around your lender and finding another solution, there are many loan modification services in the market right now that you may qualify for, regardless of employment status and income!

Learn Your Borrower Rights

A great way to spend an afternoon and understand the foreclosure risk for your home, is to read your actual mortgage loan documents and understand your state’s foreclosure laws. By knowing exactly what the lenders and your own rights are under state law, may just be the best info you can have in your pocket!Although the court systems just overturned a Judges right to modify your loan during a bankruptcy hearing, there are many local laws that are on your side and may keep you in your home for 3-6 months, while you get back onto your feet!

Find Help Using Third Party Services

The easiest way to avoid a foreclosure is not to let it happen at all! As you can imagine, there has been a crop of loan modification services popping up all around the country to try and help you out of this problem! Of course, they make money by matching people who may be in foreclosure trouble with lenders who are willing to help, but many of these new loan servicing companies have an inside track to the right lenders and can make the process quick, easy, and painless to you! With nothing to lose, you can get started by filling out a simple web form, and let them go to work for you today!

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Working Your Way Out of a Foreclosure Problem

Foreclosure Crisis Reality

The truth and reality is… as soon as Obama took office, many lenders placed a voluntary moratorium on foreclosures to give the new administration time to work out a plan that would help homeowners. Well, the foreclosure moratorium ended and as expected, the numbers are rising again!

From the RealtyTrac report:

March Activity Up 17 Percent From February, 46 Percent From March 2008

To put this into perspective, We the People, are being fed only bits and pieces of news from all sources, to try and paint a rosy good picture on a serious issue that’s not going away with a simple administration change, and tossing billions of dollars at it!

Bad Foreclosure News On the Horizon

Whether we all want to believe it or not, the ONLY way to stem this foreclosure crisis is by building wealth at the community level! Dumping billions of dollars into the banking and insurance industry was only meant to keep the investors (aka China, World Bank) happy during the time it took to reverse the foreclosure trends.

I am not an expert in the banking industry by any means… but I predict we are about to hear some very troubling news about home foreclosure rates!

What do you think?

Post from: Obama's ForeClosure Plan Website

Foreclosure Crisis Ready to Explode Again

With the Obama Foreclosure Prevention Plan ready to be delivered to the people this morning, the one main question we are patiently awaiting an answer to:  Will the Plan Save my Home?

Cost of Foreclosure Plan

Are you Ready? $50 Billion Dollars!

Details to Follow

The unveiling of the Obama Foreclosure Plan comes just one day after he signed into law a $780+ billion dollar stimulus bill! Wall Street took no notice of the newest economic recovery stimulus and markets plunged on Tuesday anyhow! Later today, we will outline every phase of the new plan… and look at just how and who it will benefit!

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Obama’s Mortgage Foreclosure Plan set to be Delivered Today!

There are so many possible reasons why one would be unable to pay his or her regular monthly mortgage payments. The reasons include like poor financial management of an individuals personal finance, loss of employment, decrease income due to loss of a spouse or loss to second mortgage scams and so forth. When most prized possession like real estate property or home is threatened of foreclosure, you need to seek advice from the professionals.

What you need to understand before your lender can foreclose your property, is that you have options. Foreclosure procedures vary from state to state. Some foreclosure are court proceeding and some are non judicial.

Foreclosures through court proceedings. Here, the lender or creditor will file a suit in a court near the location of the property. Unless the homeowner or the real estate property owner successfully contested the foreclosure, a judgment will be entered in favor of the creditor or lender.

While on a non judicial type of foreclosure, the lenders or creditors simply advertise the home for sale using a legal notice on a newspaper. Some states do allow both types of foreclosure, judicial and non judicial. Now you see why you need to know the regulations preventing foreclosure.

Once burdened or threatened by foreclosure on your property, there are steps you need to take as soon as possible.

First, get legal advice. There is the harsh reality of legal process involve in foreclosures. Obtaining immediate legal help could give possible options that may otherwise not be known to you, the average Joe. Getting legal help prevent any missed opportunity that may still be available to you. Do not wait till your legal rights have passed.

Go to your nearest government or nonprofit organizations or agencies and apply for income maintenance, tax abatement and public assistance programs. These programs are mostly available to seniors or the elderly. You may be eligible for supplemental security income. This process can also be taken with the help of an advocacy organization.

Contact and talk to your mortgage lender or servicer. Negotiate with the mortgage lender or creditor. Work out something with them that may ease up your payment schedules and arrears if any. Try to negotiate a temporary or permanent change in the mortgage terms. Terms like forbearance, reinstatement, or deferral agreements. The lender may also give a temporary rate reduction or a permanent rate reduction. Reamortization and or capitalization of arrears. Extension of the loan period.

Another step the homeowner can do is keeping your current home mortgage payments. Make your home mortgage payments a priority. Skip low priority bill payments like your payday loans, credit card payments, or even your medical bills.

Having equity on your real estate property will allow you to refinance your mortgage. A reverse mortgage especially for the elderly would be very useful. Or consider selling the home before your servicer try to foreclose your home. Thus, knowing the process or regulations preventing foreclosure can give you a more informed plan of action.

For more information and resources on foreclosure prevention, contact or inquire about the National Consumer Law Center on foreclosures, repossessions, surviving debt, stop predatory lending. Regulations preventing foreclosure information gives a better chance in dealing with your mortgage foreclosure.

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Regulations Preventing Foreclosure

John and Mary were an average couple. Both had jobs, a nice home, two cars, and were doing pretty well. However, John’s company was getting squeezed by the economy, so they laid him off, and at the same time the interest rates on their adjustable rate mortgage jumped, making their payment more than ever before in a time when they had less income than every before. Soon they were missing payments and facing foreclosure, frantically looking for foreclosure assistance solutions to help.

When you’re looking for foreclosure assistance solutions, there are several things to keep in mind. You want to make sure you choose the right solution for your needs, so here are several things to look for when searching for a foreclosure solution.

- Look for an Option That Will Help You Save Your Home – When you are weighing the various solutions available to you today, look for an option that will help you save your home if possible. This is not always possible, but the best choice.

- Make Sure You’re Not Getting Involved in a Scam – There are many scams out there, and when you’re trying to find the right foreclosure assistance solutions, keep your eyes open for scams.

- Don’t Pay for Help – There are many solutions out there and you shouldn’t have to pay for them. So, if they are asking for payment, this is not the right solution for you.

Solution #1 – Talk to Your Lender – Probably one of the best foreclosure assistance solutions to employ if you are facing foreclosure is to start out by talking to your lender. You need to let them know what the problem is. They don’t want to foreclose and can often offer you other great solutions to help.

Solution #2 – Loan Refinancing – Loan refinancing is another of the many foreclosure assistance solutions that is a great option for you. When you have an adjustable rate mortgage, this is definitely a top solution, since you can often save quite a bit in interest. This is a top way to avoid foreclosure but is not always an option.

Solution #3 – Forbearance – Forbearance on your loan can help you reduce your mortgage payments or even delay them for a time period without legal action. If you have dealt with a job loss or extreme financial problems, this is one of the top foreclosure assistance solutions to check into.

Solution #4 – Pre-Foreclosure Sales – If you are not interested in keeping your home and you’d rather make sure that you save your credit and avoid a foreclosure, pre-foreclosure sales can provide you with an excellent option.

Solution #5 – Repayment Plan – Some companies will offer special repayment plans that are great foreclosure assistance solutions. This is a very common method used and includes your lender allowing you to repay the past due amounts by adding part of it to your monthly payment each month so you can get caught up.

Solution #6 – Short Sale – A short sale is not one of the top foreclosure assistance solutions, and it means you’ll be giving up your home, but it is a good option as a last resort. It allows you to sell your home for less than the mortgage amount, but you’ll have to get your lender to agree to it.

Solution #7 – Deed in Lieu – Last of all, deed in lieu is another one of the many foreclosure assistance solutions available, but there are some big disadvantages. While it does help you to avoid foreclosure, it can still damage your credit.

These are just a few of the top foreclosure assistance solutions options that you have today. It’s important that you understand your options and how they work so you can make sure that you don’t get caught off guard by foreclosure. There is help for you if you are dealing with a possible foreclosure, so take the time to find out more about these solutions that are available to you.

Post from: Obama's ForeClosure Plan Website

The Top 7 Foreclosure Assistance Solutions Options

The foreclosure spiral

Most lenders have mortgage loan time frames. From the day the mortgage payments are due, you still get to have 16 days until you are reminded of your delinquency. Afterwards, expect your lender to be in frequent contact with you for delayed payment. Also, an extra fee for late payment is appended to your balance. After the 30th day mark and you still have not been able to pay your monthlies or any balance due, a foreclosure demand or breach letter will be sent. You will be given more or less 30 days to still pay your debt. Afterwards, a foreclosure case is filed unto the local court and legal proceedings will determine the consequence of the foreclosure.

How to deal with the foreclosure spiral

The best way to deal with the foreclosure spiral is to prioritize your debt and pay back as soon as possible. However, when this becomes impossible, the only other option is to avoid or stop it. In avoiding foreclosures, make sure to contact your lender right away. After all, unless you’re a scammer, your lender will provide any foreclosure assistance whenever appropriate. What you need to do is to disclose any information or reason/s why you were not able to meet the deadline. From hereon, the lender will provide foreclosure solutions which you may opt for. One way is to modify your mortgage status. However, if you are deeply entrenched in the foreclosure spiral, more often than not, the lender might just cut its losses rather than lose more in tax payments. Either that or they may recommend a mortgage short sale.

When mortgage payments become impossible for the borrower or when any mortgage status modifications become useless or have already been exhausted, a mortgage short sale can be arranged. You may be wondering what a short sale is. Lenders will sometimes allow this as a sort of last option for both sides to cut back on losses. During a so-called redemption period, the lender allows the borrower to either buy back the property or sell the property for a price that is less than the loan amount, within a limited period. The latter is involved with short sale foreclosures or real estate short sale. The period may last for a month or extend to 90 days. The short sale process is quite simple in essence but is often harder to execute. The borrower simply needs to find a buyer who is willing to buy in such a short span of time.

This is where Cashout Options comes in. CashOut Options is a company that is very experienced and is known to be good at stopping foreclosures. They are a company that buys almost any kind of property whether it be two-storey houses, apartments, bungalows, in whatever state of condition and in any location within the country. They have provided many people with foreclosure help by mediating in these sorts of instances. Because they immediately buy your property directly from you, they could help in mortgage short sales in order for you to get out of the foreclosure spiral and from being evicted from your own home. What is more is that, depending on the circumstance and agreement/s that may transpire between you and the company, they could answer for the remaining balance of your loan. Thus, when keeping ownership of your home does not become an issue, you not only escape the legalities and embarrassing consequences of a foreclosure but also maintain your credit as a borrower and possibly keep your home as tenants.

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Escaping the Foreclosure Spiral