subject: Home Foreclosure San Antonio-san Antonio Home Foreclosure [print this page] Home Foreclosure San Antonio Home Foreclosure San Antonio
WHAT IS HOME FORECLOSURE?
Foreclosure is the process of the lender taking back your house if
you default on the loan.
When you owe money to a secured creditor like a bank or mortgage company,
the lender or holder of the promissory note tries to recover the
monies owed to them by selling the collateral. Simply put,
when someone purchases or refinances a home, he or she promises that if they cannot repay the loan, the lender would take the house.
Foreclosure allows the lender to recover the amount owed by selling
or taking ownership of the property, beginning when the borrower
defaults on the loan payments.
We can't emphasize enough the importance of knowing your state laws.
http://www.foreclosure.com and local laws
http://www.sanantonio.gov regarding home foreclosure.
This knowledge can save you from lawsuits and a ton of money.
For example:
In a mortgage-based state, the lender must go to court to initiate the
foreclosure process. Once initiated, the process can take up to one
year to complete. Again, the steps are laid out in the law and if you
live in a mortgage-based state, simply read those sections of the law
pertaining to foreclosure in your state. Because lenders have to
resort to court action, this is referred to as a judicial foreclosure. In Texas, lenders may foreclose on mortgages by either a judicial or non-judicial foreclosure process with a typical timeline of 60 days.
Trust deed state lenders have it easier. Generally, the time frame for a foreclosure is only 121 days without ever having to step foot inside a court room. Because lenders do not have to initiate foreclosure through a court, this is called a non-judicial foreclosure.
Whether the foreclosure is judicial or non-judicial, the process has three steps.
Those steps are:
- pre-foreclosure (short sale)
- foreclosure
- post foreclosure
HOW CAN I AVOID A HOME FORECLOSURE?
There are many remedies, state and federal agencies can provide
additional information.
Basically there are three areas you need to be familiar with.
- The owner reinstates the loan by paying the back payments or default
amount within the grace period known as the "short sale" determined by
state law.
- The borrower or owner sells the property to a third party during the
short sale period, allowing the owner to pay off the loan before the
short sale period expires.
- A third party buys the property at a public auction at the end of
the pre-foreclosure, or short sale.
WHO IS RESPONSIBLE FOR THE FORECLOSURE?
If both you and your spouse are on the deed, you both have responsibilities
and rights to the property. However if there is only one name on the
mortgage meaning only one person signed the promissory note, then they
are the only one responsible for the note. Unless your name is on the
note you have no responsibility for the debt.
HOW DO I STOP A FORECLOSURE?
- Save up and get current on the mortgage
- Work with the lender to put together a repayment plan
- Work with the lender to modify the terms of the loan
- Refinance-- locate a traditional lender that will consider a foreclosure or a refinance loan.
- You could sell to a private investor or someone you know and then lease the property back from them
- Consider a short sale
- You could sell the property outright if it is worth enough and there is an interested and creditworthy buyer.
- File for bankruptcy
WHAT IS A SHORT SALE? HOW DOES IT WORK?
A Short Sale can occur when your lender accepts less than what you owe
on your property or when the outstanding loans against the property
are greater than what the property can be sold for. If you are upside
down and need to sell and can show a hardship, you may qualify to
short sell your home. A mortgage lender may accept a Short Sale
because it is beneficial to them; it costs them less money than
taking the home back as a foreclosure. Simply put short sales are a
way for the borrower to avoid foreclosure on their home and pay off
their loan by settling with the lender.
WHAT STEPS SHOULD I TAKE TO INITIATE A SHORT SALE?
1. Verify the value of the property.
2. Add up all the costs of selling the property.
3. Determine the amount owed against the property.
Do the calculations. Subtract the total amount owing against the property from the estimated proceeds of the sale. On a short sale, this will be a negative number.
4. Contact the lender or lenders. Ask the lender what the procedures are for a short sale.
5. And SELL your property!
HOW LONG CAN I STAY IN MY HOME IF I'M FORECLOSED ON?
Depending on what state you reside in, the lender may post a 3-day
notice to vacate to home after foreclosure. In other states where is
usually a "cash for keys" offer. Meaning if you agree to leave the
home in a clean and orderly shape the lender may offer you
$1000.00 to $2000.00 to vacate the property within 10-14 days.
They do this because the cost of eviction and the risk that the
homeowner will steal something from the home or leave the home
damaged is much greater than the cash for vacating the premises.
In a home foreclosure in San Antonio the "cash for keys" is not very common.
HOW WILL FORECLOSURE AFFECT MY CREDIT?
A foreclosure on your credit can have a severe negative impact on your
credit. It usually will stay on your credit report for 7-10 years.
When you get stable again, ask for an underwriter who will give you a
loan. Just like the old days when mortgages were based on your recent past performance and your character. Many banks will lend to you with a three year stable history and a good track record.
WILL I EVER BE ABLE TO BUY A HOME AGAIN?
Beginning from the date your foreclosure was recorded, the usual waiting period
2-7 years depending in your individual circumstances. Four years is the normal
and most common waiting period.
Your credit report will reflect the foreclosure for 7 years at minimum.
Once you are stable again look for an underwriter who will give you a
loan since they are going to look at you, your character, and your
situation, not just your FICO score.
Many underwriters will lend to you with a 3-4 year stable history and a good track record
of on time payments to your creditors. When it comes to
home foreclosure in San Antonio finding a underwriter to give
you another chance is much easier than other cities in the country.
HOW CAN THIS BE HAPPENING?
Don't feel alone; many Americans are in the same boat as you when it comes to foreclosed homes.
Traditionally when unemployment goes up, home foreclosures go up. There are an approximated
300,000 + family homes foreclosed on this year. The numbers continue to climb.
Foreclosed homes for sale, up about 42% over this time last year. An amazing
900,000+ have been served foreclosure notices this year. As long as the economy falters,
the unemployment statistics will most likely not improve.
The personal and financial loss of foreclosure can be very dishearteneing,
but it is better than getting deeper into debt. You will eventually
get back on your feet and be able to qualify for another home in the future.
Visit http://www.homeforeclosuresanantonio.com and get your FREE Home Foreclosure San Antonio report!
