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Who is Andrew Rothbart?
Andrew Rothbart has been helping homeowners who are facing the foreclosure process for over 6 years. First, he founded New Start Solutions LLC. New Start has been Las Vegas' Leader in the foreclosure process for over 3.5 years. To learn more about New Start Solutions please visit the website, www.newstartlv.com or call 702-531-5566. Currently, Andrew founded Foreclosure Counselors of Southern Nevada (F.C.S.N.). F.C.S.N. is a Federal Non-Profit Organization that counsels distressed homeowners. Andrew provides free weekends seminars for homeowners facing foreclosure. You can reserve you seat today by calling 702-617-HOME(4663) or visiting the website at www.stalldefault.com.
What is the Making Home Affordable Program and how can it help make home ownership more affordable for individuals?
The Making Home Affordable Program is a government initiative that helps homeowners facing financial difficulties to lower their mortgage payments and avoid foreclosure. It offers options like loan modifications and refinancing to make home ownership more affordable for individuals by reducing monthly payments and making them more manageable.
What is a Foreclosure bailout?
A foreclosure bailout is the term commonly applied to mortgage loans that homeowners can take out when they are facing foreclosure. Although the loan terms and costs are similar to loans that can be used in other situations, these particular mortgages are marketed to homeowners who have fallen behind in their monthly housing payments. There are two common sources for foreclosure bailout loans, both of which offer somewhat similar programs. The first source is the small number of banks, either state or federally chartered, that specialize in loans based on equity. The second source is hard money lenders, which are essentially private sources of funding that make investments in real estate. The main reason that homeowners consider these types of mortgages is that there is often no credit score requirement. Lenders offering loans to stop foreclosure are aware that late mortgage payments and a defaulted loan can drag down a credit score to below-500. This score would make it almost impossible for homeowners to get a loan through a traditional lender, so foreclosure bailout firms do not rely on credit scoring to quality a homeowner. Closing costs and interest rates are often very high on foreclosure bailout loans. The lenders attempt to front-load the mortgages by charging several points at closing; this allows them to recoup many direct costs when the loan closes, instead of trusting that the homeowners will be able to pay them off through the monthly payments. Interest rates can range from 12%-20%, depending on the lender used, so homeowners may not be able to afford this type of loan if their financial situation has not stabilized. The strict requirements of most foreclosure bailout loans make them somewhat uncommon as an option to save a house. Equity requirements can be quite high, with lenders refusing to go higher than 70% loan-to-value (LTV) on a property, and many will not go above 65% LTV. This requirement prices many homeowners facing foreclosure out of the market for a foreclosure loan, unless they have the equity to qualify or can obtain funds to pay down their mortgage. Income requirements for foreclosure bailout loans are often relatively easy to meet, compared to the equity needed to qualify. Homeowners may be able to use up to 55% of their monthly before-tax (gross) income to meet debt payments (housing and all other debt combined). This is quite a bit higher than many traditional banks or mortgage companies, which require debt-to-income (DTI) ratios to be much lower.
What happens to existing credit cards after foreclosure?
During the foreclosure process, there will not be adverse effects to a homeowners' credit cards if all are paid on time. If they fall behind, of course, they will have even more damage to their credit scores, and may face severely negative consequences from creditors. However, simply being in foreclosure itself will not cause homeowners to lose their credit cards or have interest rates increase or extra charges added. Many credit card companies issue contracts that state that the company may be able to raise interest rates on the card even if the borrowers never miss a payment on *that* line of credit. If they miss a payment on any *other* credit card, said company may raise rates. Even if a credit card is with the same bank as the mortgage, there is little that a mortgage company can do if a borrower's credit cards have not gone into default. However, after a foreclosure has ended, and despite the fact that some owners may have been able to stop foreclosure, there will be severe damage to their credit reports from the late mortgage payments and/or foreclosure. Such homeowners should be careful not to close out any credit lines that they may plan on using in the future. Because of the damage to their credit rating that late mortgage payments or a foreclosure will cause, it will be difficult, if not impossible, to qualify for new loans or credit lines with competitive interest rates for years after facing foreclosure. Unless the homeowners voluntarily close their accounts or fall behind on the payments, the credit card companies will not do very much at all before, during, or after the home foreclosure process. The companies have no reason to take any negative actions against the borrowers just because they are facing foreclosure on a property they own. In fact, as long as the homeowners can keep on top of their credit card payments, they may try and request a higher credit line during foreclosure to be able to use some of that money to get back on top of the mortgage, although >>this is not a very sustainable solution<<. On a somewhat unrelated note, just as homeowners who have Home Equity Lines of Credit on their properties and have had access cut off, credit card customers may also see companies start to decrease the total available to borrowers. Banks are beginning to realize that there may be a larger risk of default in consumer lending and are taking defensive actions to limit access to credit for debtors in the greatest danger of falling behind. So, before facing foreclosure, homeowners may want to consider cutting up their current credit cards and getting used to a life without borrowing money, since their lenders may cut off their access soon anyway.
What is the process for determining the equity in a property facing foreclosure?
The process for determining the equity in a property facing foreclosure involves subtracting the amount owed on the mortgage from the property's current market value. If the result is positive, it indicates equity in the property. If the result is negative, it means the property is underwater, and there is no equity.
Who is Andrew Rothbart?
Andrew Rothbart has been helping homeowners who are facing the foreclosure process for over 6 years. First, he founded New Start Solutions LLC. New Start has been Las Vegas' Leader in the foreclosure process for over 3.5 years. To learn more about New Start Solutions please visit the website, www.newstartlv.com or call 702-531-5566. Currently, Andrew founded Foreclosure Counselors of Southern Nevada (F.C.S.N.). F.C.S.N. is a Federal Non-Profit Organization that counsels distressed homeowners. Andrew provides free weekends seminars for homeowners facing foreclosure. You can reserve you seat today by calling 702-617-HOME(4663) or visiting the website at www.stalldefault.com.
Where can one get help with foreclosure?
One can get help when facing a foreclosure from The Hope Now Alliance, the Federal Treasury and housing departments, and nonprofit counselling agencies.
What is in a mortgage contract that releases the mortgagee from the contract if the property value decreases to negative equity?
There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.There is no such clause in the usual mortgage. In fact, negative equity is a huge problem worldwide at the moment. Millions of homeowners are "upside down" on their mortgages, many are facing foreclosure and many are simply walking away from their homes.
Trying To Avoid Foreclosure Check Your Local Housing Authority?
Housing foreclosures have become a serious problem across the United States. According to foreclosure-information provider RealtyTrac.com, foreclosure activity in the United States rose 4 percent in August. That comes out to one foreclosure filing for every 381 U.S. housing units. Those homeowners who are struggling with their own mortgage payments do have at least one source to turn to for help: their local housing authority.States across the country feature local housing authorities that provide financial assistance and counseling to homeowners who are in danger of losing their homes because they are falling behind in their mortgage payments.These local housing authoirities usually offer what are known as foreclosure prevention programs. These programs come in many different forms:Some authorities work with struggling homeowners on budgeting and changing negative spending habits. Others work with both homeowners and their mortgage lenders to craft compromise agreements that result in lower monthly mortgage payments.Other housing authorities hold regular foreclosure-prevention workshops. Lenders, government agencies and credit counselors talk at these events, and provide their advice on how homeowners can best avoid foreclosure or take steps to prevent it once lenders initiate foreclosure proceedings.Finally, many local housing authorities provide their own financial aid programs designed to help homeowners make hteir monthy payments and retain their homes.The federal government's Home Affordable Modification Program provides an additional level of support to struggling homeowners. This program, launched in 2009, provides financial incentives to mortgage lenders and banks that modify the mortgage loans of struggling homeowners so that these homeowners have lower payments each month. The program's goal is to reduce the soaring number of foreclosures across the nation.Applying for a loan modification through this program can be a daunting task to many homeowners. That's why they shoud check with their local housing authority. Many will help guide homeowners through the Home Affordable Modification Program process.All of these foreclosure-prevention prorgrams offered by housing authorities are important. Housing foreclosures help no one. They obviously devastate families that lose their homes. But foreclosures also drag down housing values in neighborhoods. It's hard for homeowners to sell their homes for $250,000 when foreclosures in the same neighborhood are selling for $200,000.Consumers facing a foreclosure should contact their local housing authority. They might find that their authority has the resources to help prevent them from losing their homes.
To whom would one go for advice regarding a home foreclosure?
In the United States, there are government programs in place to help homeowners avoid foreclosure on their home. Some of these programs can help to lower monthly mortgage payments and interest rates. The USA Government website is an excellent source of information for someone facing foreclosure.
You Can Prevent A Bank Foreclosure On Your Home?
Banks and financial institutions filed a record number of foreclosures against homeowners last year. RealtyTrac, an online provider of foreclosure data, reported that U.S. properties received 2.8 million foreclosure filings in 2009, setting an all-time record. Unfortunately, these numbers haven't fallen much in 2010.There are steps, though, that homeowners can take to prevent a bank foreclosure on their residence.The first, and most important, is for homeowners to call their mortgage lenders as soon as they begin having trouble paying their monthly mortgage bills. It may be an uncomfortable call. But homeowners' mortgage lenders can often work out compromise solutions that keep owners from losing their homes to a bank foreclosure.Mortgage lenders might be able to prevent a foreclosure by lowering the interest rate on homeowners' mortgage loans. This lowers the amount of money that homeowners must pay each month. It might even lower it by enough so that homeowners can now afford their monthly payments.Lenders can also rework the terms of a mortgage loan. By converting a 15-year fixed-rate loan to a 30-year version, lenders will reduce the size of homeowners' monthly payments.For homeowners facing more severe financial difficulties, mortgage banks and lenders can forgive a portion of a mortgage loan's principal balance. This, too, can cause a significant drop in the amount of money homeowners have to pay their lenders every month.Some homeowners may only need a temporary break from making mortgage payments to get their finances back in order. In such cases, lenders might agree to grant homeowners a six-month to nine-month reprieve from making their loan payments.It's important for homeowners to remember that mortgage lenders today are being encouraged to take these mortgage modification steps by none other than the federal government. In 2009, the government launched its Home Affordable Modification Program, which provides financial incentives to lenders who modify the mortgage loans of struggling homeowners. The goal of this program is to encourage lenders to reduce the monthly mortgage payments of homeowners who are facing financial setbacks. The government started the program as a way to cut down on the rising number of bank foreclosures sweeping the country.Today, most mortgage lenders are participating in the Home Affordable Modification Program, something that might make it easier for homeowners to negotiate a lower mortgage payment.
What is the Making Home Affordable Program and how can it help make home ownership more affordable for individuals?
The Making Home Affordable Program is a government initiative that helps homeowners facing financial difficulties to lower their mortgage payments and avoid foreclosure. It offers options like loan modifications and refinancing to make home ownership more affordable for individuals by reducing monthly payments and making them more manageable.
How Can You Stop Your Home's Foreclosure?
If you find yourself facing foreclosure the stress can be overwhelming. A home is a major purchase and losing your home can cause your credit score to drop dramatically. Apartment rents have escalated and you could find yourself paying almost as much for an apartment than your current mortgage payment. Be aware that there are companies who are taking advantage of people who are facing foreclosure and you want to be sure you are speaking with qualified financial advisers. Your situation might appear hopeless to you but there are a few things you can do to avoid foreclosure. The government has allocated funds to help homeowners keep their homes and avoid foreclosure. The government program is called Making Home Affordable and works by allowing you to refinance your mortgage and reduce your monthly payments. The government came up with this plan to help stabilize home prices across the country. It is important that you find out how you can qualify for this program before your home's foreclosure date. Home loan interest rates are at an all-time record low and reducing your payment will ease your financial situation. There are several plans that were designed to help homeowners avoid foreclosure and it is best that you speak with a qualified government program representative. Another solution to your financial situation is to try to sell your home. Try adding a fresh coat of paint to enhance your home's appearance without having to spend a lot of money. A bad credit rating will affect your future and it takes seven years for the foreclosure to be removed from your credit report. You can also enlist the help of a real estate agent who can offer tips on how to make your home look more appealing to a home buyer. Home buyers have a lot of homes to choose from so try to negotiate to be able to walk away from your home free and clear. There are many solutions available to you if you're facing foreclosure and you can avoid having a foreclosure on your credit report. The situation may appear hopeless at first but once you consider these ideas you will find you can succeed.
How can foreclosures attorneys help someone who is facing foreclosure?
Attorneys can often help negotiate alternatives to foreclosure on your behalf. If the foreclosure proceeds, an attorney can help advise you on how best to protect your rights and credit.
Can you still file if the bank has started the foreclosure process?
Homeowners who have recently been foreclosed on can still file bankruptcy even though the bank is pursuing foreclosure in the local courts. Just because the lender has initiated a lawsuit to take the house back does not mean that homeowners are unable to seek protection through the federal bankruptcy court system. Essentially, foreclosure proceedings are a collection attempt by mortgage companies to force homeowners to pay what they owe on the loan, or have their home auctioned off by the county government to satisfy the mortgage. There is nothing else secretive or fancy about the process, and it is little different from a credit card company or other creditor suing borrowers to force payment of a debt. Thus, homeowners are almost always able to file bankruptcy to stop foreclosure up until the time that they are no longer the owners of the home. This typically means that they can wait until just a few hours before the scheduled sheriff sale of the property to file the bankruptcy petition, and this will stop the foreclosure process from being able to continue. Once a borrower files a petition with the bankruptcy courts, the automatic stay goes into effect, which precludes lenders from being able to continue collection efforts. Because the entire foreclosure lawsuit is a collection effort, the mortgage company will have to put its process on hold until the debt is resolved through bankruptcy. Of course, most lenders do not particularly want to deal with the extra hassle this causes, but they have no other choice than to put the foreclosure on hold. So homeowners who are facing a foreclosure or have already been sued by the lender will be able to file bankruptcy and include the house in the petition anytime until the sheriff sale. After the auction, when ownership is transferred into the name of the new owner, then it will be too late to rely on this option to stop foreclosure, because the borrowers no longer have an ownership interest in the property.
What is a Foreclosure bailout?
A foreclosure bailout is the term commonly applied to mortgage loans that homeowners can take out when they are facing foreclosure. Although the loan terms and costs are similar to loans that can be used in other situations, these particular mortgages are marketed to homeowners who have fallen behind in their monthly housing payments. There are two common sources for foreclosure bailout loans, both of which offer somewhat similar programs. The first source is the small number of banks, either state or federally chartered, that specialize in loans based on equity. The second source is hard money lenders, which are essentially private sources of funding that make investments in real estate. The main reason that homeowners consider these types of mortgages is that there is often no credit score requirement. Lenders offering loans to stop foreclosure are aware that late mortgage payments and a defaulted loan can drag down a credit score to below-500. This score would make it almost impossible for homeowners to get a loan through a traditional lender, so foreclosure bailout firms do not rely on credit scoring to quality a homeowner. Closing costs and interest rates are often very high on foreclosure bailout loans. The lenders attempt to front-load the mortgages by charging several points at closing; this allows them to recoup many direct costs when the loan closes, instead of trusting that the homeowners will be able to pay them off through the monthly payments. Interest rates can range from 12%-20%, depending on the lender used, so homeowners may not be able to afford this type of loan if their financial situation has not stabilized. The strict requirements of most foreclosure bailout loans make them somewhat uncommon as an option to save a house. Equity requirements can be quite high, with lenders refusing to go higher than 70% loan-to-value (LTV) on a property, and many will not go above 65% LTV. This requirement prices many homeowners facing foreclosure out of the market for a foreclosure loan, unless they have the equity to qualify or can obtain funds to pay down their mortgage. Income requirements for foreclosure bailout loans are often relatively easy to meet, compared to the equity needed to qualify. Homeowners may be able to use up to 55% of their monthly before-tax (gross) income to meet debt payments (housing and all other debt combined). This is quite a bit higher than many traditional banks or mortgage companies, which require debt-to-income (DTI) ratios to be much lower.
What happens to existing credit cards after foreclosure?
During the foreclosure process, there will not be adverse effects to a homeowners' credit cards if all are paid on time. If they fall behind, of course, they will have even more damage to their credit scores, and may face severely negative consequences from creditors. However, simply being in foreclosure itself will not cause homeowners to lose their credit cards or have interest rates increase or extra charges added. Many credit card companies issue contracts that state that the company may be able to raise interest rates on the card even if the borrowers never miss a payment on *that* line of credit. If they miss a payment on any *other* credit card, said company may raise rates. Even if a credit card is with the same bank as the mortgage, there is little that a mortgage company can do if a borrower's credit cards have not gone into default. However, after a foreclosure has ended, and despite the fact that some owners may have been able to stop foreclosure, there will be severe damage to their credit reports from the late mortgage payments and/or foreclosure. Such homeowners should be careful not to close out any credit lines that they may plan on using in the future. Because of the damage to their credit rating that late mortgage payments or a foreclosure will cause, it will be difficult, if not impossible, to qualify for new loans or credit lines with competitive interest rates for years after facing foreclosure. Unless the homeowners voluntarily close their accounts or fall behind on the payments, the credit card companies will not do very much at all before, during, or after the home foreclosure process. The companies have no reason to take any negative actions against the borrowers just because they are facing foreclosure on a property they own. In fact, as long as the homeowners can keep on top of their credit card payments, they may try and request a higher credit line during foreclosure to be able to use some of that money to get back on top of the mortgage, although >>this is not a very sustainable solution<<. On a somewhat unrelated note, just as homeowners who have Home Equity Lines of Credit on their properties and have had access cut off, credit card customers may also see companies start to decrease the total available to borrowers. Banks are beginning to realize that there may be a larger risk of default in consumer lending and are taking defensive actions to limit access to credit for debtors in the greatest danger of falling behind. So, before facing foreclosure, homeowners may want to consider cutting up their current credit cards and getting used to a life without borrowing money, since their lenders may cut off their access soon anyway.
