Archive for the ‘Finance News’ Category

Five Reasons California was Hit Hard by the Foreclosure Crisis

Finance News | Posted by admin
Apr 14 2011

In the current economic environment you will find that California was hit extra hard by the home foreclosure crisis. Many people are suffering and have lost their homes because of it. Some reasons California was hit so hard could have very well been avoided.

1. Banks were lending to unqualified borrowers 2. Too many builders were over building and dumping properties onto investors 3. Real estate agents were artificially inflating home prices in new subdivision through phase releases 4. Home owners had no financial reserve for a rainy day 5. Homeowners borrowed money on variable rate loans 

Had homeowners, banks, builders and real estate agents avoided these five mistakes California’s home foreclosure crises probably would have been simply a hick-up instead of a crisis. Citizens should have been looking out for each other and not relying on the government for over site. Knowing the banks, builders and real estate agents are in it for the money, we as consumers need to pay close attention to what they are telling us and insure we are not falling into a trap. Don’t get caught in the same trap. Only borrow what you can afford, save 3 – 6 months of income for emergencies and search for a good deal when buying a home.

Tags: California Was Hit, Crisis, Foreclosure Crisis, Was Hit
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What is Obama Home Foreclosure Program?

Finance News | Posted by admin
Apr 11 2011

President Obama’s home foreclosure program, Making Home Affordable, is a program that provides a number of government-subsidized options for homeowners who are struggling. The goal is for these homeowners to avoid home foreclosure, which helps get the American economy back on track.

There are four different programs available to homeowners under the Making Home Affordable program.

The Home Affordable Modification Program (HAMP) allows homeowners to modify the terms of their existing mortgage to make it more affordable.

For homeowners who have a second mortgage, and have already modified their first with HAMP, the Second Lien Modification Program (2MP) provides the opportunity to modify that second mortgage, so that both payments are more affordable.

The Home Affordable Refinance Program (HARP) is for homeowners who have loans that are owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners can refinance these loans into more affordable payments.

Finally, the Home Affordable Foreclosure Alternatives Program (HAFAP) is designed for those homeowners who cannot afford their home any longer but are trying to avoid foreclosure. This program helps homeowners transition to more affordable housing through a short sale or a deed-in-lieu of home foreclosure.

Tags: Foreclosure Program, Home Foreclosure, Home Foreclosure Program, Program
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California Foreclosure and Short Sale Trends

Finance News | Posted by admin
Apr 05 2011

The federal government has recently changed their criteria for short sales, in an effort to stem the flow of foreclosures. The new legislation encourages lenders, through bonuses, to streamline short sales and keep homes from being foreclosed upon. While this looks very good on paper, and may even help some, what about the people who wish to keep their home out of foreclosure with out being forced to sell?

Many people opt for a short sale because they feel that there is no other option left for them to save their home. If given a chance, these people would love to keep their home as they rebuild their lives. Most do not know where to turn for true help.

Reorganization bankruptcy is an option for any home owner facing a California foreclosure. Chapter 13 bankruptcy will prevent a California foreclosure from occurring while the court is restructuring your debt. 

When you file bankruptcy the court will put a stay on any foreclosure proceedings that are taking place. This allows the home owner to remain in the house during the court case without fear of being evicted. Once the court has reorganized the debts of the home owner, the applicant will only need to make the single payment to the court each month to retain their home.

Tags: Sale, Short Sale
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Stop Foreclosure Now!

Finance News | Posted by admin
Apr 03 2011

Stopping a bank foreclosure can seem unrealistic at best. Almost everyone just lets them foreclose and ends up losing their home. There are many options to stall or even reverse this process that not many people know or think about.

The first option is to consult a good foreclosure attorney. Do your research and find one with a good reputation. They can often find details that are missed by a lender based on new laws or regulations that can help you stave off foreclosure.

Another option, although it should always be saved for last, is bankruptcy. A Chapter 13 filing can let you work out a payment plan over a number of years that will get you out of debt. Whatever is left at the end of the term in erased.

If your institution tells you that a bank foreclosure is inevitable, do not automatically believe them. Explore other ways to get around this before giving in to your bank.

Tags: Stop, Stop Foreclosure
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Who Is a Foreclosure Attorney?

Finance News | Posted by admin
Mar 24 2011

Facing foreclosure is a scary thing. Being on the verge of losing your home is one of the worst feelings that a person can go through. A person shouldn’t go through this alone, not if they want any chance of keeping their home. A good foreclosure attorney can help a person keep their home and avoid the heartache of losing it.

A foreclosure attorney can negotiate on your behalf with the bank. There are a few things that they can come up with like mortgage modification, chapter 13 bankruptcy, full payment or even federal assistance programs. Any of these things can get a person to be able to keep their home.

A good foreclosure attorney should preferably be contacted before the foreclosure process begins, but they can help in the middle of the process. Don’t think that just because the foreclosure process has begun that all is lost. A good attorney can help save your home.

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How Bankruptcy Can Help

Finance News | Posted by admin
Mar 21 2011

Keeping your head above water in these uncertain financial times can be tough. Many people are falling behind on bills through no fault of their own. Between falling house values and layoffs, you’re not alone if you have been forced into making financial decisions you swore you’d never make, like charging groceries on a credit card or using a cash advance service.

Perhaps another financial decision you swore you’d never make is to file bankruptcy. Filing, however, may be just what you need to get your head back above water and to help you move forward in a better financial position. While there are certainly lots of factors to consider before deciding to pursue this course of action, don’t decide it’s not for you before really weighing the pros and cons. 

For nearly all people, the pros will definitely outweigh the cons. Bankruptcy can give you a chance to start fresh. It can give you the kick start you need to make other positive changes in your life. It can teach you how to use credit wisely and how to save more effectively. It can help you to take care of your family and provide for their future. 

Bankruptcy doesn’t have to be a shameful secret. It can be the answer for which you’ve been searching. It really can help you!

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