About Foreclosure
Question: Why do people fall into Foreclosure.
For some people its just out of emotion or anger, They want to punish their spouse for a divorse. But have they ever stopped to think that buy going into foreclosure they are ruining their lives for a long time. It can be so bad that it not only ruins your credit, but it also can make things like car insurance to go up. And you may even have less job opportuinies when your credit is bad. Now a days companys look at your credit score before they hire you. But did you know there are other alternatives.
You are in possesion of something magic and that is your house and it had something called equity, this equity can save you from foreclosure almost every time. So if you just lost or job, or your spouse, forget about your anger and despressed feelings and here is what you can do. But you need to do it fast.
So read this and learn how to et the money to pay your mortgage in less than 30 days. This is not a scam, it is a known fact. Some people just never try to make things go right, don’t be one of them. If you get a foreclosure notice in the mail, you may think that you have no other choice but to do it, but this is not always the truth. I guess it depends on how many notices you received. But Unless this is the final 30 day notice and you have really bad credit, you can still borrow from your home equity to make a few “ontime” payments until you can sell your house.
Go to a few mortgage brokers and ask them for help. I bet a lot of people do not know this, but some private mortgage brokers can help you even if your credit is bad, They probably will charge you more closing costs, and a much higher interest rate, but they can usually get you a 10,000 or 20,000 loan even if you are unemployed.
The next step you do is you put this money in a bank account and you do not touch it. You use it to make your mortgage and other bill payments on time for at least a few months and you also use the same money to pay for the loans interest payments.
Meanwhile you have stopped foreclosure, you are fixing your credit report, because you are showing that you can make payments on time and now you have a few more months time to list your house for sale and sell it for a good price.
Now if you have good creidit and equitly you can do a lot more. I even know of some people that use equity loans to buy homes, make the down payment and first 6 months of payments on homes that they are fixing up.
Answer: You make it sound so simple,so cut and dried.I am a Foreclosure Counselor.The complexity of some people’s problems is mind- boggling.Take mine for example,I inadvertantly became a client as well as a counselor.I own my home(for over 25 years).I own a small mixed- use building,10-units,worth about $1m.It has a $365k mortgage,plus a $75k,hard money 2nd,that was unbelievably difficult to arrange,and has me on a tightrope.I am making efforts to refinance,but I was 89 days behind,so my fico took a 150 point hit.My situation will work out,but for most of the folks I counsel,my former nightmare, is a dream,that they would relish.People get into foreclosure for a myriad of reasons and solving their problems is very complicated.Lastly I must add,very few are there by choice.dale
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