Many people lose their homes because they are too ashamed to act, or they go into denial about the seriousness of the problem. To prevent foreclosure, be decisive and explore all solutions.
Contact your lender at the number on your statement at the first sign of trouble—even if you have not missed a payment but you think you might have to in future. Your lender will make notes about your phone call in your account file.
Reputable lenders and loan servicers should view your contact as an indication that you are committed to fixing the problem rather than avoiding it. The lender may begin discussing possible solutions to your payment problem. If you have already missed a payment and have not contacted the lender yet, do so immediately.
Do not ignore letters or calls from the lender! The longer you wait to act, the fewer options you will have. If your loan is with a predatory or abusive lender, your phone call might not help.
However, it will not speed up a foreclosure since your state's law dictates the foreclosure timeline. If you suspect you have a predatory loan—and especially if you believe you will miss a payment—contact a HUD-approved housing counseling agency or one of the other organizations listed in under Avoiding foreclosure scams.
To prepare for your discussion with your lender or a counselor, have your mortgage bill and account number available plus proof of your income and expenses. Then think about and jot down answers to the following questions:. These counseling organizations are approved by the U. Department of Housing and Urban Development HUD to provide information and counseling in many areas of home buying and homeownership.
Many HUD-certified housing counselors are also non-profit credit counseling services. In addition to foreclosure prevention assistance, they can help analyze your finances, including bills and debt payments and may be able to enroll you in an agency-administered debt management plan that could reduce your monthly payments to other creditors.
Legitimate housing and credit counseling services are usually free or low cost. Some states allow lenders to pursue a deficiency judgment, which means that the borrower is personally responsible to repay any remaining balance on the mortgage after a foreclosure sale.
California law does not allow deficiency judgments on "purchase money mortgages" any mortgage used instead of cash to buy your primary residence.
A certified HUD housing counselor can tell you if deficiency judgments are allowed in your state. This works if you have enough equity in the home to pay off the entire loan balance and all expenses associated with selling the home such as real estate agent fees from the proceeds of the sale.
Such a sale would allow you to satisfy your mortgage obligation, avoid lender-imposed late and legal fees, avoid any damage to your credit rating and protect what equity you have in the property. Scammers, predatory lenders and other con artists keep their eyes open so they can prey on homeowners in trouble. Establishes additional duties of the mediation administrator, including, without limitation, collecting and compiling statistics on the participation of lenders in such mediations.
One such restriction: 1 requires the trustee under the deed of trust to include a form to request mediation with the notice of default and election to sell which is mailed to the grantor of the deed of trust or the person who holds the title of record; and 2 authorizes the grantor of the deed of trust or the person who holds the title of record to request mediation under rules adopted by the Supreme Court.
This bill requires the notice of default and election to sell which is mailed to the grantor or the person who holds the title of record to include a notice provided by the entity designated to administer the Foreclosure Mediation Program which states that the grantor or the person who holds the title of record has a right to seek foreclosure mediation in the Foreclosure Mediation Program.
This bill amends this notice to include: 1 a statement that the person receiving the notice may have a right to participate in the State of Nevada Foreclosure Mediation Program if the time to request mediation has not expired; 2 the telephone number of the State of Nevada Foreclosure Mediation Program; and 3 the telephone number of the Division of Mortgage Lending of the Department of Business and Industry. This lien is prior to the lien of a first security interest on the unit to the extent of charges incurred by the association to maintain certain units which are being foreclosed and to the extent of a specified number of months of assessments.
NRS The Nevada Supreme Court is authorized to adopt rules providing for the conduct of the mediation. This bill authorizes money in the Account to be used for any purpose authorized by the Legislature.
This bill authorizes the transfer of certain funds from the Account to the operating budget for the Supreme Court for the biennium. Under this bill, the trustee must include with the notice of default and election to sell mailed to the grantor or the person who holds title of record an application for a loan modification program or other loss mitigation alternative. If the application is returned to the trustee: 1 the trustee must forward it to the person responsible for analyzing the eligibility of the grantor or the person who holds title of record for a loan modification or other loss mitigation alternative and that must complete an analysis of the application; and 2 the mediation administrator may not issue to the trustee the certificate which must be recorded before the exercise of the power of sale unless the trustee serves on the mediation administrator an affidavit certifying that an analysis of the application was completed.
This bill also provides the procedures to be followed if a loss mitigation application is not returned within 30 days after service of the notice of default and election to sell and the procedures to be followed with respect to loss mitigation applications if mediation is required under existing law.
Finally, this bill requires the mediation administrator to create standard forms for the required affidavits. This bill provides for the registration, permitting and regulation of asset management companies and asset managers by the Real Estate Division of the Department of Business and Industry.
Asset management companies provide asset management services for real property which is in foreclosure and which is owned by a bank, mortgage broker, mortgage banker, credit union, thrift company or savings and loan association, or any subsidiary thereof, a mortgage holding entity chartered by Congress or a federal, state or local governmental entity. Such companies and persons manage the property, performing services such as securing the property by changing locks, removing trash and debris, cleaning the home and surrounding property, performing maintenance and repairs of homes and disposing of the personal property of homeowners left in homes which are in foreclosure and which the legal owner has deemed abandoned.
Moreover, this bill prohibits such a deficiency judgment regardless of the date on which the obligation secured by the mortgage, deed of trust or other encumbrance on real property was created, unless a deficiency judgment with respect to that obligation is awarded before the effective date of this bill.
The bill requires a foreclosure consultant to post a bond with the Division of Consumer Affairs prior to conducting any business in the state. In addition, the bill provides certain contract rights for owners of a financially distressed residential property, as defined in the bill, who contract with foreclosure consultants, including requirements that: 1 the contract for foreclosure consulting services must be in writing and must contain certain disclosures and notice requirements in point boldface type; and 2 the owner has a right to cancel the foreclosure consulting contract at any time until after the foreclosure consultant has fully performed every service the consultant contracted to perform.
The bill also prohibits certain practices by foreclosure consultants, including: 1 collecting any fee prior to the completion of all agreed upon services, unless compensation for partial performance is expressly agreed upon in the contract; and 2 collecting fees in excess of certain limits as described in the bill.
In situations in which there is a distressed property conditional conveyance, whereby an owner transfers the distressed property to a distressed property purchaser, occupies the property, and retains an option to purchase the property back from the purchaser, or a distressed property conveyance, whereby an owner simply transfers the distressed property to a distressed property purchaser, the bill provides certain contract rights to owners, including requirements that: 1 the contract be in writing and include certain notices and disclosures in point boldface type; and 2 the owner has a right to cancel the contract during certain periods as described in the bill.
The bill provides that any person who violates any provision of the bill is guilty of a crime of the third degree. A person who violates any provision of the bill in connection with a pattern of foreclosure rescue fraud or a conspiracy or endeavor to engage in a pattern of foreclosure rescue fraud is guilty of a crime of the second degree.
The bill also provides that any distressed property conditional conveyance or distressed property conveyance involving the transfer of an interest in fee or a beneficial interest through a trust document, which is made in violation of any provision of the bill, is voidable and the transfer may be rescinded by the owner within two years of the date of the transfer and outlines certain restrictions and rights of owners of such properties.
If an owner or municipal tax lien holder commences such an action, the party may: 1 cause a notice of lis pendens to be filed in the office of the county clerk in the county in which the property is located, pursuant to N. Finally, the bill provides that the director of the Division of Consumer Affairs, within the Department of Law and Public Safety, in consultation with the commissioner of Banking and Insurance, shall enforce the provisions of the bill, and may promulgate regulations necessary to effectuate the purposes of the bill.
A postjudgment deficiency order relating to the foreclosure shall not require the filing of a Statement of Judgment and has no effect on the priority status of lien holders. Permits the local government to issue a citation and impose a fine on the person that fails to comply with requirement to provide contact information.
Requires grantor to pay rent to beneficiary at market rate for residential unit and agree to vacate residential unit not later than 10 days after receiving notice that residential unit has sold.
Provides that agreement to permit grantor to remain in possession does not create tenancy or require beneficiary to assume duties of landlord. Provides that grantor must maintain residential unit in habitable condition and pay for utilities and services supplied to residential unit. Prescribes standards for response. Makes violation of requirement to respond to communication, requirement to provide loan modification request form and process request for loan modification and certain other violations unlawful practice subject to enforcement under Unlawful Trade Practices Act.
Removes sunset from laws that require response to loan modification request. Permits local government to assess civil penalty for each day during which owner fails to remedy conditions of neglect. Sunsets January 2, Classifies use of broker price opinion as unlawful practice. Requires certain notices and procedures for conducting mediation.
Requires trustee to provide grantor with documentation as part of notice of sale that identifies beneficial owner of loan. Prohibits owner of foreclosed residential real property from neglecting real property during periods of vacancy. Modifies provisions related to retaliatory actions of landlord.
Modifies provisions authorizing tenant to use security deposit or prepaid rent to pay rent when tenant receives notice of foreclosure of property that is subject of tenant's rental agreement. Requires documentation to consist of true copy of original debt instrument and evidence of chain of title from date of original loan to date of notice of sale. Extends sunset date for mortgage loan modification law.
Requires trustee to be resident of this state or have registered agent that meets certain qualifications. Prescribes time within which beneficiary or beneficiary's agent must file affidavit for recording. Requires trustee to send copy of required affidavit to Department of Justice. Requires Department of Consumer and Business Services by rule to prescribe form of affidavit and specifies minimum requirements for affidavit.
Removes certain exemptions from requirement to comply with law governing mortgage loan modifications. Permits grantor to record affidavit stating that grantor requested loan modification in accordance with law and by applicable deadline.
It also requires that any successor in interest to a foreclosed mortgagor continue to provide essential services such as heat, running water, hot water, electric or gas if the foreclosed mortgagor had provided said services prior to foreclosure. This act requires a successor in interest to a foreclosed mortgagor to give tenants written notice to quit at least 60 days in advance. It would further require that assignments or transfers of mortgages be recorded in the land evidence records of the city or town in which the property is located.
Failure upon the part of the mortgagee to provide said notice to the mortgagor of this requirement would render the foreclosure void.
Counseling between the parties under this section would be mandatory, and at no cost to the mortgagee. Furthermore, the mortgagee must include in the foreclosure deed an affidavit of compliance with the provisions of this act.
It also allows for eviction of former owner-occupants who become tenants at sufferance after foreclosure for certain reasons and it requires that the purchaser of property sold at a foreclosure sale give notice within seven days to every household residing in that dwelling unit. Further, the act requires a mortgagee who initiates a foreclosure proceeding against a residential property located in the municipality to maintain the property if the municipality determines that the property is in violation of state and local housing codes if and when the property becomes vacant during the foreclosure proceeding.
This bill states that to be sold to a land bank without a public sale, a property would not need to have a market value less than the total amount due under the foreclosure judgment. This bill also clarifies that a property would be eligible for the sale as long as it does not have a habitable building or an uninhabitable building that is occupied as a residence by a person who is legally entitled to do so. Also, the property owner would not be able to receive any sales proceeds unless the proceeds exceed the total amount due under the tax judgment.
Taxing units would be prohibited from consenting to the sale of a property if the market value of the property as appraised by the appraisal district and specified in the foreclosure judgment exceeds the total amount due under the judgment. This bill: imposes civil liability on a person who violates specified trustee provisions; modifies a provision relating to successor trustees; imposes a duty on a trustee who exercises a power of sale; and requires a beneficiary or the beneficiary's agent to provide notice to a trustor on a residential property if the beneficiary or agent does not intend to instruct a trustee to defer a notice of sale despite a temporary reduced payment arrangement and imposes civil liability for a failure to do so.
The trustee may proceed with the sale i upon the recordation of any assignments not recorded or, if an intervening assignment cannot be located, upon the receipt of an affidavit from the party secured that he is the party secured by the deed of trust, and ii upon the payment by the person who asserts that he is the holder of the obligation of any fees and taxes for recording the assignment.
The bill also provides that a nominee of a grantee or mortgagee for a deed of trust or mortgage has no authority to request that the trustee proceed with any sale of the property conveyed to him by the deed of trust or mortgage.
The bill also requires that the party secured by the deed of trust or mortgage provide notice of his intent to foreclose to the property owner at least 45 days before any proposed sale. The bill also creates a civil cause of action for such a violation in favor of the owner of the property foreclosed upon. Department of Housing and Urban Development.
The measure prohibits the beneficiary of such a loan that is in default status from unreasonably refusing to provide information regarding the status of the loan or to reply to inquiries from the grantor regarding the status of the loan or programs or options that may permit the grantor to avoid foreclosure.
The measure also gives the grantor a new right, exercisable at any time up to the date of the sale of the property, to cure the default, de-accelerate, and reinstate the loan by paying all sums that would have been due in the absence of default and performing any other obligation that the grantor would have been bound to perform in the absence of the default or acceleration. The grantor may exercise the right to cure a default as to a particular loan and reinstate that mortgage once every 18 months.
If the deed of trust or mortgage has been assigned more than once, the trustee shall not proceed with any sale unless each assignment has been duly recorded. The bill also provides that violating foreclosure provisions is a prohibited practice under the Virginia Consumer Protection Act. Property secured by deeds of trust entered into prior to July 1, , may still be foreclosed upon using current non-judicial procedures.
The notice shall contain the name and contact information for i the party secured, ii the mortgage servicer, if any, and iii an agent of the party secured who is authorized to modify the terms of the loan.
The failure to comply with the notice requirements gives a private cause of action to the property owner. The bill clarifies that the civil penalty provisions apply in addition to any applicable criminal penalties.
In addition, the bill requires a landlord to disclose in writing to any prospective tenant if he has received any notice of mortgage default, notice of mortgage acceleration, or notice of foreclosure sale relative to the loan on the dwelling unit.
Creates the foreclosure fairness account. Beneficiaries must remit the onetime payment by July 31, Removes the requirement that a foreclosure mediator obtain a waiver signed by both parties stating that neither party may call the mediator as a live witness. Clarifies the time at which an action or proceeding for foreclosure or forfeiture is commenced for purposes of a provisional appointment of a receiver.
Courts are provided flexibility to lengthen or shorten time frames addressed in administering receiverships for good cause. Mediators are provided with immunity while acting as a foreclosure mediator, except in cases of willful or wanton misconduct.
In addition to the mediator's certification being admissible evidence, any and all information and material used as part of the mediation may be considered admissible evidence, subject to court rules, in any litigation relating to a foreclosure action between the parties. A borrower, within 10 working days of receiving this notice, may request loan modifications by sending the request to the mortgagee negotiator. Based on available information, the mortgagee negotiator must determine if the borrower is eligible for a loan modification.
However, for certain residential mortgage loans, the mortgagee negotiator must follow government guidelines for loan modifications. If the borrower is not eligible, the notice must include a statement explaining the eligibility criteria and why the borrower has not met these criteria.
If the borrower is eligible, the notice must include two copies of the mortgage modification agreement proposed by the mortgagee negotiator along with a notice telling the borrower to sign a copy of the proposal and return it to the mortgagee negotiator within ten working days after receipt of the proposal. If the borrower is eligible, the borrower must, to accept the proposal, mail his or her signed acceptance of the proposed mortgage modification agreement to the mortgagee negotiator within ten working days of receiving it.
A mortgagee may only foreclose on a residential property if: 1 the mortgage has been properly recorded; 2 the borrower has defaulted on a condition of the mortgage that gives the mortgagee the right to foreclose; 3 there is a record chain of title for the mortgage, if the mortgagee is not the original mortgagee; and 4 the mortgagee has satisfied the requirements specified above, unless the mortgagee and borrower agreed within the previous three years to a loan modification and the mortgagee but not the borrower complied with the terms of the modification agreement.
If the mortgagee negotiator determines that the borrower is eligible for a loan modification, the mortgagee may only commence the action if the mortgagee negotiator in good faith offered the borrower a mortgage modification agreement and the borrower failed to timely accept it. A court must dismiss the foreclosure action of a mortgagee that has failed to comply with the requirements of the bill.
Membership My Account. Rewards for Good. Share with facebook. Share with twitter. Share with linkedin. Share using email. I'm in the market to buy a foreclosure house. Will I have trouble getting a mortgage? Qualifying for a mortgage With a foreclosure, though, there may be special requirements so that you — and the house — qualify for a mortgage. Retire without a mortgage.
Read Is an adjustable-rate mortgage a good idea? Read Foreclosures spread to middle-income Americans with fixed-rate loans. Verifying the title To avoid a legal hassle down the road, it's best to hire a title company or lawyer to research the title of the home you're interested in to make sure it's free of liens and back taxes, and that the foreclosure was done properly.
Leaving AARP. Got it! If she has to move, she can't be sure she'll go somewhere that allows pets. The actor from Thousand Oaks, Calif. He's working with his lender toward a mortgage modification, submitting page after page of documents, which the bank has often misplaced or waited so long to examine them that they had grown too old to use. His ideal outcome is get the loan modified and get all his late fees waived. He feels entitled to that because the bank advised him to stopped paying in the first place to qualify for one of the government's foreclosure programs.
Before that, he had missed only one payment. Meanwhile, he has cobbled together some income streams -- small acting parts, teaching acting classes and even handyman work. But he feels like he's always under a cloud. I have to have the ultimate poker face in front of my kids.
0コメント