Posts Tagged ‘foreclosure

25
Apr
11

FAQ regarding deed in lieu of foreclsoure

Q. What is the definition of a deed in lieu of foreclosure?

A. The homeowner exchanges his or her ownership interest in the house, represented by a deed, back to the mortgage holder in order to avoid mortgage foreclosure and in some cases forgiveness of a mortgage deficiency.

In basic terms, you give the keys to your home back to the bank and you walk away;  the bank agrees not to foreclose or ever ask you for any more money.

Q. Under what circumstances would a homeowner do a deed in lieu of foreclosure?

In general, two sets of homeowners pursue a deed in lieu of foreclosure as a way out for mortgage trouble.

  • Homeowners who do not want to keep their home under any circumstances
  • Homeowners who, despite a wish to keep their home, reached the assumption that no foreclosure prevention alternatives will allow them to keep their house.

Q. Why would someone want to forfeit their home as a first choice?

  •       Homeowner does not like the house itself.
  •       The location is no longer right.
  •       The house is no longer the right size or right type.
  •       Neighborhood or zoning degradation.
  •       Repair, renovation or structural issues.
  •       Homeowner no longer needs a house at all anymore.

Q. How does a homeowner end up at the conclusion that they must give up the house?

  • Mathematically beyond hope
  • No applicable methods to stop foreclosure
  • Exhausted all options

If you are facing foreclosure, contact us for a FREE initial consultation:

619-800-3082

info@financialfreshstart.org

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31
Mar
11

Mortgage Help Is Declining Fast

Last summer, officials revealed  a $1 billion program to provide loans to aid the unemployed pay their mortgages until they could obtain employment. It was scheduled to go into effect before the end of the year but the program has yet to accept any applications.

Now the existence of the main program, the Home Assistance Modification Program, is in doubt.

The House, controlled by the Republicans, voted this week to terminate the foreclosure relief program. The Democrat-controlled  Senate will seek a rescue.

The housing assistance effort has failed to end a tsunami of foreclosures and a decline in home values.  There were 225,000 foreclosure filings in February nationwide.

If you have questions about a foreclosure contact us at

619-800-3082

info@financialfreshstart.org

 

 

10
Jan
11

show me the assignment! Mass Supreme Court stops foreclosures.

The Massachusetts Supreme Court recently ruled against Wells Fargo and U.S. Barncorp in two foreclosure cases in which the loans were packaged into securities.  The Supreme Court upheld a decision to void two foreclosure sales because the owners of the loans could not establish that the loans had been assigned to them.  Both of the loans had been assembled into mortgage-backed securities sold to investors.

This is an example of “show me the paper” defense. Cases in California where homeowners have attempted to establish a defense that the party foreclosing on their home could not produce the original note have not been successful.

Individual loans often are sold to an investor, with the new owner’s name left blank in loan documents to limit paperwork hassles as the loan subsequently changes hands before being combined with other loans into mortgage-backed securities.

Justice Robert J. Cordy concluded in a concurring opinion that the two banks showed “utter carelessness” when they “documented the titles to their assets.”

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