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Stopping foreclosure phase 1
Okay everyone it’s time to bring out your pen and paper (or just print this page) cause school is in session. Today’s topic Stopping Foreclosure. This is a very simple step by step approach and once you see it in action you first response might be why didn’t I think of that? Well, that’s something you will have to live with …Ready let’s go. The objectives for the first phase are: Collecting information Contact the creditors Negotiate the terms Stop the foreclosure/ proceed to Phase 2 Don’t worry if you dont get it right away everything will come together by the end of this article. The first and most important step in phase one is getting organized if you are organized you won’t get lost or overwelmed. To get organized you will need a box of manilla folders, 3 ink pens and a dedicated notebook ( I prefer the $1.26 mead speckled notebook.) to take notes and draw out schedules. Once you have your materials in order the first thing you must do is collect all of your home owners documents i cluding you payment book or basically everything you had to sign or recieved from your lender when you bought your house. With this material organized you should have a good warm and fuzzy on what you owe and how far behind on payments you really are. Next you will need to collect 1-2 years worth of check stubbs from your employer or 2 years worth of w-2’s, now take all the documents and put them into manilla folders with the home docs in one and the check stubbs or w-2’s in the other. The reason you are collecting this information and organizing it is usually, if your lender is willing to work with you then more times than not they are going to ask for these items. Also, when talking to lenders having this info organized and in front of you will allow you to be better able to follow the process and discussions with the lenders much more efficiently. Next, Take out your notebook. ( The one that is dedicated soley for this purpose.) and draw out a table, on one side you will list monday-friday on the otherside you will write the numbers 1-24 this is millitary time and the chart is for monitoring call times and dates this will also be your schedule for follow up dates. The note book is soo important, I can’t say it enough, it is where you will take all the notes from your talks with the lender. It is where you will list you call and follow up schedule. It is where you will record the names of every person you talk to from the lenders office with exact times and dates of the conversation and what they said. I know it seems like alot of work but this pase is only one 1-1/2 months long so suck it up and get organized for a month or two you can handle it! Rules of engagement. You aren’t the first person to ever face losing their home. In fact, a report by realtytrac.com stated that in 2005 846,982 properties when into some form of foreclosure. As you can understand a list that big had to create a huge volume of phone calls I only mention this because you are going to want to know what to expect when you call. When you talk to your lenders whinning just won’t do. Yeah you’ve fallen on hard times but they have heard that story before. I not saying you lender’s office is full of evil angry little people trying to make you life harder but don’t expect anyone to be overly simpithetic to your cause either. For the next month and a half or as long as you can keep a good dialoge going with the lenders office it is your job to stay attentive, stay responsiv, collect the information you need, supply the documents that are asked for, and above all else stay cool. for the next month aside from work and family time you will live out of your notebook. ( See I threw it in there again.) Now it’s time for the rubber to hit the road…Let’s get ready to make some phone calls. And it begins… If you are facing foreclosure you must first and foremost realize; time is of the essence. From the time you miss your first payment to the final foreclosure sale its not uncommon for six months or more to pass. This sequence is the first line of defense when you are facing foreclosure. I like to call it a pre-emptive strike. This phase should start as soon as you think your going to lose your house and should last as long as you can keep a favorable dialogue going with your lender or until you reach terms. Since six months is not a garuantee at all and sometimes a lender will accelerate your home loan if you are 2-4 months past due, . There are other factors to account for; your states foreclosure law for instance, but most of all is your mortgage lender and how aggressively they want to pursue your case. Understand you have to initiate everything; the phone calls, the correspondence, and the options. Don’t rely on the lender to do this for you . It won’t happen. Whatever you do you must make it completely through phase one. So let’s get ready to make some phone calls Calling the lender. Call your home lending institution and request to talk with the “loss mitigation” or “workout” , loss prevention, or loan retention department. These departments have the responsibility to see if you qualify for a workout program that is currently available for FHA, VA and some conventional loans. Again, You must be proactive! Although lenders do not want to foreclose if it can be avoided, they want to make sure you can follow-through on any promises you make to bring your account current. If your lender agrees to work with you, you need to be prepared to share all details about your financial situation with your lender. Including an explanation of your current financial circumstances and details about your current income. More times then not the lender will review and analyze your situation before presenting a counter offer to bring your loan up-to-date. The main theme is to stay active, get educated and stay creative. If you want to save your home without relocating you have to present realistic solutions. When you talk to your lender you need to present as many options as you can and you have to know the lingo if you want to come to some sort of agreement with your lender. If you really want to make progress so here are a few words you need to know: The first word on the that you need to know is Forbearance If you have ever had a student loan you may be familiar with this term. In forbearance, you are allowed to delay payments for a short period, with the understanding that another option will be used afterwards to bring the account current. Lenders sometimes combine Forbearance with Reinstatement if you know you’ll have the funds to bring your account current by a specific date. The second word is Repayment Plan. If your account is past due, but you can now make payments, the lender might agree to let you catch up by adding a portion of the past due amount to a certain number of monthly payments until your account is current. Your third word of the day is Reinstatement. If by the grace of God you come into a lump sum of cash most lender funny enough become a whole lot easier to work with. If this should happen present it as an option. Even try to combine this tactic with forebarance or a repayment plan. Get creative, it’s your house on the line. Ask for a Wrap around or Mortgage Modification. If you can make your regular payment now, but cannot catch-up the past due amount, You may be able to convince your lender to add the past due amount into the monthly payment of your existing loan, financing it over a long term. Modification might also be possible if you no longer have the ability to make payments at the present level. The lender can modify your mortgage to extend the length of your loan. Your lender has to be convinced that you will do anything it take to keep your home. Make sure you stay solution oriented, you still have options Last step phase 1 Save at least $20.00 a week. This is where the technique differs from what is traditionally taught, I can understand that because most articles about foreclosure aren’t written by someone who has focused on avoiding foreclosures for as long as I have. In phase one the primary goal is to try to save your house and negotiate terms that you can really handle. But, it is also very not very smart to put all of your eggs in one basket. The money is for phase 2. If you can’t reach terms with you lender the money will serve as a buffer that is going to help you with expenses and supplies if you need to continue to the next phase. Do what you have to to sve the money. Substitute name brand for generic, stop smoking, it’s bad for you anyway, just start saving. Consider it a head start but don’t get overly aggressive with the saving at least not yet, $20.00 is enough for now. Phase one should last about anywhere from 1-2 months but you may hear a decision on terms much sooner. If you have been able to work out an agreement with you lender great , pat yourself on the back and stay out of trouble. If you have reached term then its on to phase two.Which will be covered in detail in my next article.

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Is Redoing The Kitchen Worth It During Home Sales?
This has been a question that has seen much press and attention when referring to homes sales. Kitchens are a popular room to redo before selling a home as they are one of the classic “show points” in any home show. Also it is a room that can be very easily improved and upgraded. New appliances and countertops can bring new life to a kitchen and indeed this is one of the first rooms that people consider upgrading when closing in on selling time. The question remains; will you be able to justify the costs of the new kitchen in the asking price? This is a question that should be investigated thoroughly from all angles. Take a look at the average asking price of homes in your area. Make sure that you also look at what they are actually selling for. If your home is already worth that amount your new kitchen may price your home out of the local market and that is never good as it becomes much more difficult to sell a home that is higher priced than it’s comps.

Instead of redoing the entire kitchen, why not concentrate on a few things that will spruce up the way it looks? Putting up a new coat of paint is always a good place to start. This goes for all rooms by the way. If your appliances don’t match then this is another thing that should be seen to. Matching appliances seen to bring a kitchen together in a way that paint or wallpaper can’t seem to do. As one of the main social centers of a home a kitchen should be more than just clean and updated. It should have a feeling to it that is warm and welcoming. Kitchen s that are cold and bland seen to feel very utilitarian and lack the warmth of properly done kitchens. This is the one place that your family will gather every day so it stands to reason that it should be the most welcoming room possible. The choice is up to you of course. If you feel that the cost of redoing the room can be supported by the asking price and the likely closing price then go ahead! you will definitely not have trouble impressing buyers with the new custom kitchen.

Eric Badgley is a motivated and professional realtor located in beautiful Whatcom County. For information on <a href="http://www.bellingham-realestate.net/">Bellingham WA real estate</a> contact Eric for <a href="http://www.bellingham-realestate.net/">bellingham real estate</a> or visit online at www.belllingham-realestate.net.