Loan Modification Information

Four Ways to Avoid Foreclosure

by marsmet461

Four Ways to Avoid Foreclosure

Along with the economy and the financial sectors, the housing market is in a free fall and home mortgage lenders are tightening the purse strings. In the foreseeable future and recent past, experts estimate nearly three to four million people (1) will be unable to avoid foreclosure and will lose or have lost their homes due to the current recession. These are alarming numbers, especially when coupled with the fact that this statistic is projected to pass the number of homeowners who lost their properties during the Great Depression.

But is foreclosure always necessary? Could today’s homeowners, if prepared with the right kind of knowledge, avoid foreclosure? The answer is a resounding yes – in many cases, homeowners with a little foresight can work with their home mortgage lenders and often avoid foreclosure or stop it from occurring in the first place.

Whether you’re struggling or you know someone who is, there are alternate means to avoid foreclosure. Begin by speaking with your lender to see what he can do for your particular situation. In most cases, home mortgage lenders and/or lending institutions can work with you to get better rates or help you make your payments in a timely fashion.

Below are four services that home mortgage lenders and institutions routinely offer to their clients. And with a little anticipation, you can avoid foreclosure and prevent it from happening in the future by being more informed and armed with some tricks of the trade!

This is one of the most common activities to avoid foreclosure in the mortgage industry in which the homeowner tries to decrease his interest rate by paying off the actual balance on the mortgage. This is possible by creating a new mortgage with a different lender for a lower interest rate, with the possibility of paying off the actual mortgage and consolidating other debt such as credit cards, auto loans, student loans, or home equity loans) in order to make just one monthly payment.

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Generally offered by home mortgage lenders or even the homeowner’s financial institution, loan modification is made to either the rate or the balance of the mortgage. This happens when home mortgage lenders change the interest rate or the balance on the mortgage in order to decrease the amount of the monthly payment. This is one of the simplest processes to reduce monthly payments and avoid foreclosure because it’s done by the current lender, meaning the paperwork is minimal and there are no closing costs, which is ideal in those situations.

This service is only offered by home mortgage lenders to homeowners who are delinquent on their monthly payments. With this process, home mortgage lenders will add a portion of the past due balance on the mortgage to the monthly payment in order to pay off that late balance in a shorter period of time without paying extra interest. This option is generally offered to borrowing homeowners who have experienced a significant loss of income (or an increase in living expenses), but still have enough monthly income to correct the delinquency and re-instate the loan. Repayment of the loan must occur within the duration of a scheduled monthly plan, which can be achieved either through gradual repayment of the delinquent amount or through both repayment and loan modification.

With this process, home mortgage lenders and homeowners agree on selling the house for less than the balance on the mortgage in order to pay off the debt and avoid foreclosure. These circumstances are usually related to the current real estate market and the borrower’s financial situation. A short sale is typically executed to avoid foreclosure and prevent subsequent damage from appearing on the customer’s credit score for years into the future.

Take your future into your own hands! Oftentimes, simply knowing the steps of how to avoid foreclosure can be successful in preventing a problematic state of affairs from escalating by making efforts well in advance to remit or resume payments. This is a sticky situation you want to avoid at all costs – a foreclosure remains on your credit report years down the road and can significantly harm your credit score to the point where it may be difficult to purchase a house ever again.

Your lending institution wants to help you avoid foreclosure, keep your home, and for you to stay in it. Be proactive and, above all, be armed with the necessary knowledge to save your home and property!

1. http://www.virginia.edu/uvatoday/pdf/foreclosures_2009.doc

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How can I increase my Homes Value? Top 5 ways to Get more Cash!

by *n3wjack’s world in pixels

How can I increase my Homes Value? Top 5 ways to Get more Cash!

Article by Keith D. Harris

How can I Increase my Home Value? As an Illinois licensed broker, specializing in such a broad and diverse region as the Greater Chicago land area, I get this question asked several times a week at least. Sellers, buyers and consumers in general are looking to get educated on the things they can do to make the most of their investments in these times of economic uncertainty. Just yesterday reports were released confirming foreclosures surging 3% to an all time record high of 95,364 for the month of August 2010 according to realtytrac. However, on a positive note, foreclosure activity in the 10 largest Metropolitan areas dropped on a year over year basis for the second month in a row.

That being said, the question remains “How can I increase my homes value? Raising the value of your home is the key to building equity and getting the most out of your investment. Here are the Top 5 ways to get more cash!

1. Curb appeal. So often overlooked but so vital to the sale, curb appeal is the first impression a potential buyer has of your home. If you are lacking here, chances are the buyer will not even consider what the rest of the property has to offer unless your buyer happens to be an investor in which case the chances of you getting top dollar is not likely anyways.

You can increase curb appeal by keeping your lawn manicured and keeping the hedges trimmed. Make sure the exterior, or any trim, including doors has fresh paint. Get your home power washed if needed. Replace or clean any broken or cracked windows. Make sure the concrete along your walkways and sidewalks are repaired if needed. Replace or add light fixtures to exterior for security (buyers love motion detected security lights).

2. Kitchens and bathrooms. Assuming you’ve taken care of your exterior and have massive curb appeal, you have somehow managed to keep the buyer interested enough to see the interior. If you have prepared properly, your kitchen should definitely impress. If you have not, this will probably be the end of the showing. Studies show that buyers place the most emphasis on kitchens and bathrooms. Neglecting either will only result in having your home on the market for months, if not longer or taking a very hefty hit on all if any offers you may receive.

First off, remove clutter. Second, remove clutter. Hide your appliances or put them away during showings. Organize your cabinets, drawers and pantry. Buyers will open and examine these spaces to determine if their belongings will fit adequately. Lighting fixtures should be modern and appealing or recently replaced. If you are including appliances in the price of your home, make sure to clean them thoroughly and discard any old or outdated food items. If you are adding fresh paint look at neutral colors that are subtle but warm and maybe add a contrasting color to the trim or borders. Repair or replace any cracked tiles or flooring issues you may have in the kitchen. Oh yea, if you have carpet in your bathroom, please remove it and replace with tile, enough said.

3.Systems and roofing. When was the last time you had the roof checked out? Does it have any repairs that are needed? If so, get it repaired or replaced asap. The last thing a buyer wants is to have a bad roof over their heads. How is the heating and cooling system working? Make sure to have an inspection done to prevent any surprise problems from appearing. Make sure you replace or repair any lighting fixtures or electrical outlets that are faulty. Check the sump pump and hot water heater. It’s always a good idea to have a backup battery for sump pumps in case of power failure. Make sure the garage door opener works properly. A thorough walk through of your homes systems is crucial to avoid any unwanted surprises. Once you are confident, offer a home warranty to ease the mind of potential buyers.

4. De-personalize. If you have bright pink paint as a focal color in your home, chances are it’s not going to appeal to a vast majority of buyers. Remove books and photos from shelves and walls. That collection of Elvis Presleys greatest hits in your spare bedroom should be packed away or stored elsewhere. When a buyer enters your home, they are trying to imagine what their items and belongings will look like in the house, not yours. So the more you remove clutter the easier this becomes for them. Try not to view this as your home, but as a house or an investment. This simple shift in mindset can pay off big dividends in the end. increasing your homes value is the goal here so keep your eye on the prize. Buyers buy homes, sellers sell houses.

5. Get rid of smells. Although you may not notice them, potential buyers will. If you have a cat or dog or any pet for that matter, or if you tend to cook foods that are spicy or pungent in nature, these odors become infused in your homes carpet, furniture and anything else that can hold an odor. If you are a smoker you may want to consider smoking outside during the marketing of your house. Many deals have been killed because of cigarette smoke and could have been easily avoided or rectified. Painting can help with odors, but you may want to consider replacing carpet and or draperies. A can of air freshener can go a long way as well.

Lastly, whether you are interested in a sprawling luxury estate or an open spaced lofts in Chicago, for more information contact me and I will be happy to assist.

I hope you’ve enjoyed the article and good luck in all your real estate endeavors!