Secrets The Mortgage Industry Hopes You Never Learn!
“What exactly is a note and a mortgage…what’s the difference?”
A note is simply a promise to pay. A mortgage secures that promise, using real estate as the collateral. When someone mortgages their property, they are conveying an interest in their property as security for payment of a debt.
“What happens if I am in default on my loan?”
If you are even one month late on your payment, the bank has the right to call the entire loan due (accelerate the mortgage). If you skip a month and try sending in one month’s payment the next month, the bank can send it back to you. If they accepted it, they would have to wait until you missed another payment to start the foreclosure process.
If your debt problems look severe or long lasting, the mortgage lender may take steps towards foreclosure. In most cases, before foreclosure actually occurs the lender will attempt to accelerate the loan. This means they are demanding payment in full on your note immediately. If you don’t, the mortgage lender will proceed with the foreclosure.
During the grace period, using 1-3 months, the bank will start sending you letters, they will be friendly reminders at first, and then they will start to become more threatening...
This is the best time to bring the mortgage current again. However, it gets more difficult each month to do so. In the second month of default, you have to make a payment equal to two months payments, and in the third month, the payment must be for three months, and so on...
There are several steps to the process known as Foreclosure. If you fall behind (over 90-120 days) on your house payments, you may receive a Notice of Default.
A Notice of Default usually details how late you have been on your payments, how much you owe in principal and interest payments and how much money the mortgage company is requiring to be caught up on your payments, thus making your loan current.
There are laws in place that the mortgage company follows regarding sending you notices, etc.
If you have received a Notice of Default, DO NOT WAIT!
The longer you wait, the fewer your options; the more you stand to lose!
Because this is a very difficult situation for a person to face, many people put off dealing with the problem. Don’t let that happen to you. After a certain point, there are fewer and fewer lenders willing to rewrite your loan. An even if you can find a new loan, it will be at a much higher interest rate than you’ll want to pay!
“Foreclosure Time Frame”
30 Days: 30 days late payments that reoccur cause many additional late fees and service charges to be added to your payments in order to catch up. Refinancing may be the best option.
"60 Days: 60 days late, results in more fees, more charges, more late payments which continue to accrue. Refinancing is probably the best option. A refinance or 2nd mortgage can lower your payments, pay off some debts, collections and/or liens to make it possible for you to continue making your payments on time and keep your home.
90 Days: This is a serious delinquency, more fees, more difficult to find a lender who will refinance your house or consolidate your debts.
120 Days: You are probably at the point of not knowing what to do. If you act now you still may be able to receive help. There are very few lenders willing to refinance at this point and the ones that are willing, want high rates and a lot of equity.
150 – 180 Days: In most cases, at this point you have been given notice of the Sheriff’s Sale. Your chances of recovering are very slim, short of a miracle.
"What do I Do?"
You have a few options available to you at this point.
Reinstate the Loan: If the mortgage lender hasn’t accelerated the loan, you can prevent foreclosure simply by paying the missed payments, taxes, insurance, attorney fees plus interest.
Get a new Loan: If the mortgage lender has accelerated the loan, you will need to refinance the entire balance of the loan to prevent foreclosure. When you contact us, we can discuss this option. But the longer you wait, the harder it is to find a mortgage company to refinance your existing mortgage. See “Foreclosure Time Frame" above.
Sell your House: Your best option at this point might be to sell. If you can sell your house before the Sheriff’s Sale and pay off the mortgage and all the attorney fees and late charges, you may be able to save your credit. At least you will not have a foreclosure on your record. Within a year, with a good credit history, you might be able to qualify for a new mortgage and get a new house. With a foreclosure or bankruptcy on your credit report it will take several years with perfect credit afterwards to qualify for a new mortgage. If you don’t get any offers that will cover what you owe your mortgage lender, the lender may agree to take less – called a short sale. You still need time to sell it before the Sheriffs Sale. It usually takes several months to find a qualified buyer and get to the closing. If you have already received a notice of foreclosure sale, you might not have enough time to sell the traditional way, even with a quick fire sale at a reduced price.
“Refinance or Sell”
At this point, you might be wondering how we could help. First of all, with our relationship with the mortgage industry, we know were to find the available lenders willing to work with tough situations. Secondly, we're not Realtors®. We are real estate investors and we work with a number of investors who buy houses.
If you think you have enough equity and time, you might be able to refinance. However, the numbers of available lenders are few and far between and the interest rates they want are usually high. Equity is their biggest concern. If you think this option will work for you, we will put you in contact with the right people immediately.
If you think it is time to sell quickly, we might be the solution you are looking for. We have several programs that have worked very well for people in foreclosure. We are able to work with mortgage lenders and attorneys, stop the foreclosure and in many cases we can save your credit, and often we are able to rebuild your credit.
Here’s the game plan to sell your house quickly...
After we agree on the purchase price, and verify the amount you owe on your mortgage, if the circumstances are right, we can close right away!
You get relief from your monthly obligation to the Mortgage Company.
Please don’t misunderstand or assume that we have to steal your house, or that you need a lot of equity for us to be interested. We’ve worked with all kinds of circumstances and have been thoroughly trained to create solutions after so-called “experts” have given up and quit.
One of the main problem solvers we can offer is Peace of Mind. Sometimes the hardest aspect of having to move is actually having your house up for sale and your life in limbo. I am sure you have heard the saying, “Sometimes the not knowing is the hardest part!” When you approve the paperwork with us, you will know that your payments and house are taken care of, so you can start over and have that peace of mind.
We can take care of all the details in about one week. We simply order title-work, and draw up the papers. We can set a date when you can move out and take the house over after that. We’ve even bought houses where the seller just left all the furniture and garage junk for us to dispose of. Clean up, fix up, whatever it takes; we’re prepared to handle your needs.
The best part is your loan doesn’t have to be assumable for this to work! Regardless of the type of loan: assumable, non-assumable, assumable with qualifying, FHA, VA, Conventional – our program works for all transactions. Also you should be able to qualify for a new loan in a short time. With the proper documents, your credit situation might even be stronger after we buy the house, than before you got behind on payments.
As I stated before, our program can work in any situation. We’ll create the solutions, and you pick the one you like best.
What if I was sitting at your dinning room table right now, and told you we wanted to buy your house?
No problem with the non-assumable loan. No problem catching up any payments in arrears. We can probably wrap up the whole thing within a few days.
We don’t know how much you owe, how much it’s worth or any of that. Those details can be handled when we talk.
What I do know… and what you should know is… If you call me and give me the facts, I’ll either tell you on the spot I can’t help or come over and leave you with an offer… within 24hours, or put you in contact with a mortgage broker that can help you refinance.
We will take the financial burden of any monthly mortgage payments off your back, and we’ll also take care of any fix up or maintenance regardless of how minor or how serious. What’s more, we’ll close when you’re ready.
The longer you wait, the harder it will be to stop the foreclosure and save your credit. Every day that passes, more and more of the equity in the property is being eaten up by accruing interest, late charges, attorney fees, taxes, insurance, liens, tax liens, mechanics liens, IRS liens, utilities, judgments and other creditors.
Some people at this point are so overwhelmed, that they simply give up and let the bank take the property back through foreclosure. Don't let this happen to you. I have seen many people expecting a miracle to happen at the last minute, but it never does. They almost always lose their house, and because of the foreclosure on their credit, end up on the street. Don’t let this happen.
You can get on with your life!
Now, I know this is a lot of information to digest at one time, but if you're still with me, chances are you’re interested in doing what it takes to stop the foreclosure, and start out fresh with a clean slate. I do not know of an easier way to sell your house that can give you what you need. No foreclosure and a fresh new start.
If you're ready to act now or if you have some questions, you can contact us now.