As the real estate industry continues to struggle in this country, more and more families are being forced into foreclosure. However, it is important to remember that you have options as there are multiple alternatives to foreclosure.
Mortgage Loan Modification To prevent defaulting on the loan, you may be able to modify your mortgage by either refinancing it, or possibly extending the term of the loan. The goal is to modify your mortgage to payments that you can afford, so that you can stay on your house.
Debt Relief & Consolidation This option is a great first step if you are having other debt problems in addition to those with your mortgage. Debt consolidation allows you to consolidate all of, or most of, your debt into one easy monthly payment. In doing this, you are making it easier to manage your finances and mortgage payments.
Private Money Loans Private money loans are issued by lenders other than a bank and come in the form of ordinary loans as well as foreclosure bailout loans. They can usually secure you up to 65% of the value of your home, but keep in mind this is another debt that you will need to eventually repay.
Short-Sale Foreclosures are not good for banks either, and sometimes they will accept a low bid on the house in order to prevent it from going into foreclosure. A short sale is a negotiation between a bank and a buyer to buy the house for less than is owed on it. This will be a loss for the bank, but probably not as much of a loss as a sold foreclosed home would be.
Repayment Plan Some lenders will work with you to arrange a payment plan to pay off your loan in increments that you can afford. This can be especially useful if you are making money, but not quite enough money to keep up.
Principal Reduction In some instances, you may be able to lower your principal loan amount that can help reduce your monthly payments. However, the value of the home typically needs to have dropped by at least $100,000 to qualify for this type of program. This may sound like an easy option, but it is actually very complicated. If you are seriously considering principal reduction then you should seek the help from a trained professional who will know if it is a good option for you or not.
Deed in Lieu of Foreclosure The foreclosure process is a long and messy one, and if you are lucky then your lender will feel the same way. In some situations, you may be able to negotiate with your lenders to hand over the deed of your home in the form of payment. Although this is not an easy option, it is still much better than foreclosure.
About the Author
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Wednesday, March 4, 2009
Loan Modification: Even Celebrities Need It
There really isn't any doubt that a lot of people are suffering from foreclosure these days. The minorities, the lower and middle classes have been greatly affected by it, and others have resorted to loan modification, refinancing, and other options that can help homeowners save their homes. Yet despite this, are you aware that even rich people are also having problems keeping their houses safe from foreclosure? Here are some well-known celebrities that have been (and are in) boiling water right now.
Ed McMahon This former celebrity pitchman has a $6 million dream house in Beverly Hills, although there is a great chance that he might lose it. The reason: He is $644,000 in arrears to this date. It's quite strange that a six-bedroom mansion that is on the market for quite some time is not being swarmed by a lot of buyers. Maybe they're scared that the paparazzi will squat on their lawns waiting for Britney Spears to make a mess of herself again.
Rep. Laura Richardson Like everyone else, she was lured by the real estate boom a couple of eons ago. And like most of them, Laura Richardson also went down big time. Currently, she has had three houses in foreclosure proceedings in the last couple of months. Her Sacramento house was sold in March, while her other properties in San Pedro and Long Beach went swirling into default. However, she was able to keep up with her payments for her Long Beach house and was able to get a loan modification for her San Pedro property.
Michael Jackson One of the life lessons Michael Jackson should remember is that he can't be Peter Pan all his life. Eventually, Peter Pan has to grow up and earn his lettuce for his family. That said, will he now grow up and tearfully say goodbye to his "Neverland" Ranch in Santa Barbara County? Or will he allow an investment company to rescue him and buy his loan? Fortunately for him, he chose the latter one. Reports now say that the company wants him to pay it back by doing a comeback in Las Vegas like what Elvis did in his after-glory days.
Aretha Franklin The singer owed back taxes on her brick mansion overlooking the Detroit Golf worth $714,000 Club and a condo in Bloomfield Township worth $2 million. However, Franklin said that it's the fault of her attorney, and that she will immediately pay off her debts as soon as she finishes belting out her "Say A Little Prayer" song to the public.
So, now you see that even the high and mighty ones fall from their glass thrones from time to time. Therefore, you shouldn't feel bad when you get a foreclosure notice and decide to apply for a loan modification or refinancing to save your home. Everyone's equal when it comes to economic recession, you know.
For more inquiries, you may want to visit Loan Modification or you may call them directly at 1.888.864.1663 (TOLL FREE)
About the Author
A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.
Ed McMahon This former celebrity pitchman has a $6 million dream house in Beverly Hills, although there is a great chance that he might lose it. The reason: He is $644,000 in arrears to this date. It's quite strange that a six-bedroom mansion that is on the market for quite some time is not being swarmed by a lot of buyers. Maybe they're scared that the paparazzi will squat on their lawns waiting for Britney Spears to make a mess of herself again.
Rep. Laura Richardson Like everyone else, she was lured by the real estate boom a couple of eons ago. And like most of them, Laura Richardson also went down big time. Currently, she has had three houses in foreclosure proceedings in the last couple of months. Her Sacramento house was sold in March, while her other properties in San Pedro and Long Beach went swirling into default. However, she was able to keep up with her payments for her Long Beach house and was able to get a loan modification for her San Pedro property.
Michael Jackson One of the life lessons Michael Jackson should remember is that he can't be Peter Pan all his life. Eventually, Peter Pan has to grow up and earn his lettuce for his family. That said, will he now grow up and tearfully say goodbye to his "Neverland" Ranch in Santa Barbara County? Or will he allow an investment company to rescue him and buy his loan? Fortunately for him, he chose the latter one. Reports now say that the company wants him to pay it back by doing a comeback in Las Vegas like what Elvis did in his after-glory days.
Aretha Franklin The singer owed back taxes on her brick mansion overlooking the Detroit Golf worth $714,000 Club and a condo in Bloomfield Township worth $2 million. However, Franklin said that it's the fault of her attorney, and that she will immediately pay off her debts as soon as she finishes belting out her "Say A Little Prayer" song to the public.
So, now you see that even the high and mighty ones fall from their glass thrones from time to time. Therefore, you shouldn't feel bad when you get a foreclosure notice and decide to apply for a loan modification or refinancing to save your home. Everyone's equal when it comes to economic recession, you know.
For more inquiries, you may want to visit Loan Modification or you may call them directly at 1.888.864.1663 (TOLL FREE)
About the Author
A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.
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