In today’s residential real estate market, there is a lot of interest in buying bank owned properties. Some of the information you may read about is convoluted and confusing. Therefore, let this article serve as a breakdown of how purchasing bank owned property typically works.

An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. These properties are now owned by the bank because the properties failed to result in a bid. In fact, most foreclosure auctions do not even result in bids. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees which accrued during the foreclosure process.

Foreclosure sales begin with a…

On October 24, 2011, the Obama administration rolled out a revamped program to help homeowners stave off foreclosures. This plan is for current borrowers who want to get a lower monthly payment through a lower mortgage rate. Proponents of the program say it would help boost the economy by relieving financial stress on homeowners and reducing their mortgage so that they would have more expendable money.

The new initiative, which involves removing barriers to homeowners qualifying for the Home Affordable Refinance Program (HARP), is the latest in a series of steps by the President to defend his mortgage relief efforts and promote his jobs and economic policies.

At its core, the latest initiative would allow homeowners to refinance regardless of how…

To Lease, Own, Or Lease-To-Own Your Home

At some time in your life, you may have rented a home or an apartment, so you may have undoubtedly encountered a lease agreement. If you’ve ever bought or sold a house, you’re familiar with a purchase offer. The lease-to-own agreement is a hybrid of the two – a lease agreement combined with a purchase offer. Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long one intends to stay in the home.

A lease-to-own house purchase (also “rent-to-own purchase” or “lease purchase”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. The borrower pays an…

The typical client is concerned about credit after bankruptcy and how to establish credit again. Rebuilding credit after filing bankruptcy is not difficult, but does take time. It is obviously important to stay current on any new or existing obligations that you have. For example, taking out a new loan, even a small one, and making the monthly payments consistently and on time will cause credit scores to increase. One very important…

LENDERS EXPERIENCING BACKLOG JAM BUT CONTINUE TO PRESERVE RIGHTS AGAINST HOMEOWNER

Here's a startling statistic: The average borrower experiencing delinquency on their mortgage hasn't made a mortgage payment in 17 months.  This is up nearly 11 months from just two years ago! The reason for the increase is in large part due to the delays experienced by Banks and mortgage servicers in completing foreclosure packages.  In effect, the large volumes of default mortgages create a significant backlog that cannot be handled in a timely fashion. In addition to the foregoing, other factors include the reviews of loan modifications and possible review of improperly filed foreclosure documents. 

Experts predict that this delay may very well translate into…

A forensic loan audit is an essential tool for a loan modification attorney. But not all of them are created equal. You can’t make a decision based on price alone. There are some essential elements to an effective loan audit that you should know before you purchase one. It is said that more than 80% of all mortgages contain some kind of lender violation. Therefore, the chances are fairly high that a homeowner could benefit from a loan audit. If a lender violation is uncovered it will provide leverage for the homeowner when seeking out a loan modification, short sale or any other type of residential loan workout.

If a homeowner received a home loan between 2002 and 2008, that homeowner may very well be a prime candidate for a residential loan workout.…

WHAT RIGHTS DOES A HOMEOWNER’S ASSOCIATION HAVE IN COLLECTING ITS FEES AND ASSESSMENTS?

Home Owner Associations (“HOA”) all over the country are too feeling the pinch in the present economy. This economy has shifted the focus of many homeowners and caused many of these people to re-prioritize what expenses get paid first. Unfortunately, for the HOA, it’s not to them. What rights does the HOA have to enforce its rights?

HOA and Condominium Associations have the obligation to collect assessments. An association’s Board of Directors has a fiduciary duty to the owners within the community development to collect assessments and properly handle the association’s financial affairs. To comply with this mandate, the Board of Directors relies on the timely…

Government-sponsored mortgage purchaser  (“FNMA”) is  encouraging certain distressed homeowners to find other alternatives to foreclosure. The price to the homeowner? A seven year ban on any new loan! Troubled borrowers who do not attempt good faith efforts to work out a resolution, but have the capacity to pay, are targeted by this new FNMA policy.

FNMA has repeatedly stated that walking away from a mortgage is bad for borrowers and bad for communities and FNMA’s approach is meant to deter the disturbing trend toward strategic defaults. A strategic default occurs when a homeowner stops making payments on a mortgage despite having the financial wherewithal to do so. It has become increasingly common in communities where housing values fell sharply and…

Legal Avenues for Homeowners to Avoid/Delay Foreclosure Proceedings

Whether your home is in foreclosure or worried about foreclosure in the near future, below are ten techniques and legal strategies homeowners should contemplate during this stressful time period.

Technique number 1-Chapter 7 Bankruptcy 

The first and probably one of the more well known ways of delaying a foreclosure is chapter 7 bankruptcy. Any kind of bankruptcy will immediately stop your foreclosure where ever it is. A chapter 7 bankruptcy will actually dissolve all debt and absolve you of the responsibility to pay your debt. It will temporarily delay foreclosure with the US bankruptcy court. Usually it will buy up to 45 to 75 days, sometimes more sometimes less depending on your…