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Mortgage Scammers prey on People in Foreclosure, Promising to Save Your Home

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The experience of foreclosure is bad enough without mortgage scammers preying on you. When the foreclosure process begins, it is a matter of public record and enough information is published for the scammers to find you and promise to save your home with their unique, creative financing program.

One well known type of scam is the bailout, also referred to as equity stripping. A person or company claims to be able to help you keep your home. They know you’re in foreclosure and public records have given them enough information so they know you have some equity in your home. They talk you into selling your home very cheap; the sale is to be temporary, just while you get your finances back in order. The company pays the

mortgage payments and you pay them rent to stay in your home and you have the option to buy back the home in the future. This could be a good situation if your financial situation is corrected quickly and the company is reputable. You keep your home and the company makes a profit for their services.

Of course, the above scenario is one used by many scammers who have no intention of selling your home back to you. They get a mortgage, pay off all the underlying debt on your home and you sign a one or two year lease with option to purchase at the end of the lease period. The lease they have you sign is very confusing; this is one tactic used when conning the already distressed and overwhelmed homeowner. The lease is written so you will not be able to meet all the terms; for example, the payment ends up being higher than anticipated and default is inevitable. You default, the company evicts you and they sell your home for closer to market value and a huge profit. If your home does not have much equity, the company simply tells you they have taken over your payments, when all they’re really doing is taking your rent money as pure profit and allowing the foreclosure to run its course.

If you are in foreclosure, there are reputable companies who can be of assistance; just be cautious as to how the business is conducted. Don’t fall for promises or guarantees like “I will save your home” or “I will get your

mortgage payments cut in half.” Never sign the title over to another person or company. Do not sell your home without being released of your mortgage obligation. Be sure you understand all the documents you do sign and be aware of what your rights are; as well as what rights you are agreeing to give up.

This article was written by David Smith of U-Move-On, a company who helps people find the best solution to their foreclosure problem. They provide the resources and services for help with the entire foreclosure process, credit restoration, finding another nice home, moving expenses, legal help and more. There is no complicated contract to sign and you do not quit claim interest in your home.

Contact:

David Smith, Founder

400 Ann Arbor Rd #185

Plymouth, MI 48170

734-756-6050

Email: umoinfo@umoveon.com

Website: https://www.umoveon.com


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Foreclosure Options: Short Sale, Mortgage Modification, or Just Walk Away

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The adjustable rate mortgage sure sounded good a few years back; you got 100% financing at a very low interest rate; fixed for 3 years before it resets or adjusts according to the market.You probably had a plan to sell the home soon or refinance before the rates went up.You didn’t count on the values declining to the point where you owe more than the home is worth, making refinancing difficult to impossible.Your rate continues to adjust, the payment increases significantly, you cannot afford the payments and you are in danger of losing your home.

Following are stages of foreclosure and your options:

Miss one payment: Payments that are 30 days late are reported to credit bureaus to be reflected on your credit report and factored into your credit score.

Miss three payments:Typically, lenders file a notice of default at this time; some are very aggressive and some wait up to a year to file.Some hold off if you have contacted them and made satisfactory payment arrangements.Of course, more late payments are reflected on your credit report.

The notice of default is public record; soon you are receiving mail and phone calls from companies promising to save your home or reduce your payments.You are also an easy target for scam artists who promise to take over your mortgage while you pay them rent; they collect your rent, they don’t pay the mortgage and the foreclosure process continues as your credit suffers more damage.

90 days after the notice of default:Lenders typically give borrowers 90 days from the notice of default to make up their payments, late fees, legal fees and any other charges that have accrued.If the arrearage is not paid up, a notice of sale is sent out and the foreclosure sale takes place within the next 30 to 60 days.At this point, your credit report is quite bruised and your lender may or may not be willing to work with you.

Options:It is important to contact your lender and speak to someone in the loss mitigation department as soon as possible; the earlier in the process you are the more options you will have.Resolving issues early will help avoid serious damage to your credit report.You will be more likely to work something out with the lender before the foreclosure sale, also known as sheriff’s sale.

Look into Refinance Options:If you have equity in your home and your lender hasn’t yet filed a notice of default, you may be able to refinance with a more affordable mortgage.An experienced mortgage broker will be able to help you determine your best option.Do not get into another adjustable rate mortgage or interest only mortgage, leaving you vulnerable to repeating the process.

Workout or Modification:If you enter into a workout agreement with your lender it is important to be focused on a plan that works with your budget.You must be able to make the payments as agreed; if you fail to make the payments, the lender will accelerate the foreclosure process.

Short Sale:If you owe more than your home is worth, it is sometimes in the lender’s best interest to accept a short payoff on the mortgage balance.This saves having a non-performing property on the books that continues to lose value in today’s declining market.A short sale will have less damaging effect on your credit report as you are doing something to meet your obligation to the lender.

Deed in Lieu of Foreclosure:You can offer to sign your home over to your lender in exchange for being released from the mortgage obligation.This keeps you from having to pay off the mortgage and the lender avoids further legal costs to complete a foreclosure.The lender does not have to accept a deed in lieu of foreclosure; typically, he will require that you try to sell the home first.

Credit Counseling Services:Legitimate credit counseling services typically have housing counselors who can analyze your situation and help you evaluate your options.

Let Foreclosure Run its Course:You should save this for your last option after all other methods to avoid foreclosure have been exhausted.In some states and some cases, the lender can go after you for any deficit between what the house eventually sells for and what he is owed.

Foreclosure, though devastating and overwhelming, is not the end of the world.You can get through this difficult time, reorganize and rebuild your life and your credit score.You will be able to get another mortgage and with knowledge and experience gained from this situation, you will be less likely to go through this a second time.

This article was written by David Smith of U-Move-On, a company who helps people find the best solution to their foreclosure problem. U-Move-On assists in evaluating the individual situation and explains all one’s options.They provide the resources and services for help with the entire foreclosure process, credit restoration, finding another nice home, moving expenses, legal help and more.There is no complicated contract to sign and you do not quit claim interest in your home.

 

Contact:

David Smith, Founder

400 Ann Arbor Rd #185

Plymouth, MI48170

734-756-6050

Email:umoinfo@umoveon.com

Website:https://www.umoveon.com

Life after Foreclosure: Michigan Foreclosure Recovery and Rebuilding Credit

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Life after foreclosure is a difficult time; you have just lost your home. Perhaps you’re living with family or renting an apartment. You may have lost a lot of your belongings for lack of storage space or inability to move them. Living conditions vary for those who recently went through foreclosure. No matter what your situation is, there is one thing you have in common with one another; your credit has suffered. While rebuilding your life, you also need to rebuild your credit.

Foreclosure Recovery Tips:

  • Establish a Budget: And stick to it! Be realistic on what you can afford; try to set at least a small amount aside each month for an emergency fund. An emergency fund should have enough in it to cover at least 6 months of monthly bills and living expenses. Proper planning is critical for survival and rebuilding your life after foreclosure.

  • Get a copy of your credit report: You can visit annualcreditreport.com to receive a free copy of your credit report from 3 major bureaus. It is not uncommon for credit reports to differ between bureaus or to contain errors. Look them over and be sure errors are corrected.

  • Restore your Credit: A credit restoration (or credit repair) kit can be purchased at most office supply stores. They contain step by step instructions and sample letters to credit bureaus and creditors. This is a long process and should be started immediately.

  • Rebuild your Credit: If you still have active credit cards, use them and pay them off each month. Otherwise, establish a credit card account; you may have to get a secured account, but that’s a start. Use it and pay it off, on time, every month. After about 6 months, apply for store credit or a car loan. Keep balances very low, make timely payments.

  • Educate yourself on Alternate Financing: It will take some time before you will be able to get a traditional <a href=”https://www.umoveon.com”>mortgage</a> or other financing. Learn all you can by researching financing alternatives for credit challenged people. The next home you purchase could be with a land contract or lease option. Find out how each works, tax advantages and payment terms to see if it fits your current financial situation.

Life after foreclosure is an overwhelming time. There is major loss to recover from and you need to rebuild. Start with a good financial plan and write down reasonable goals for the next year. Learn as much as you can about personal financial planning and saving while you are going through the process of rebuilding your credit. <a href=”https://www.umoveon.com”> Foreclosure</a> is not the end of the world; you can recover.

This article was written by David Smith of U-Move-On, a company who helps people find the best solution to their foreclosure problem. They provide the resources and services for help with the entire foreclosure process, credit restoration, finding another nice home, moving expenses, legal help and more. Dave enjoys using the many skills he has learned during his career to help people in foreclosure “Move On” with their lives in the best possible way.

Contact:

David Smith, Founder

400 Ann Arbor Rd #185

Plymouth, MI 48170

734-756-6050

Email: umoinfo@umoveon.com

Website: https://www.umoveon.com