While The Government Is Busy Bailing Out Wall Street...

...We Are Saving Homes On YOUR Street.

Foreclosure Prevention

Negotiating with your mortgage lender is an important step for foreclosure prevention that could yield a lower monthly payment and reduced interest paid back on the loan. North Texas Real Estate Solutions (NTXRES) provides loan modification that stops foreclosures and offers a fresh start with lower mortgage payment from a foreclosure prevention company who gets results. Many of our lawyers recommend extending the right of rescission to help homeowners who may have been abused by predatory lending practices. Mortgage and loan servicing companies do not want your home and in most cases will work meticulously with a loan modification companies in an effort to prevent a foreclosure.

NTXRES is an Investment Company that was founded by a trusted real estate law firm and a group of mortgage lenders who have been licensed and chartered for almost seven years. We are a focused homeowner advocate group that strives to protect your home and your rights. Our foreclosure prevention company was created to focus on real estate related issues including debt settlement, credit repair and FHA mortgage loans for consumers with impaired credit. Our loss and mitigation team recently created a mortgage marketplace designed for homeowners to get help with foreclosure prevention by means of loan modifications, and short sales.

Ways to Stop Foreclosure

The first step to stop foreclosure is to contact your lender and try and obtain a reasonable loan workout or repayment plan. The quicker you get the ball rolling, the better chance you have of striking a deal with your lender, so you can save your home and your credit Please start making calls, get educated and have all your ducks in a row. The hardest call is the first. It only gets easier after that.

More than 50% of foreclosures would be avoided if people contacted their lender. So be proactive and aggressively pursue all options you have because you do have quite a few tools you can utilize to mitigate as much loss to you, your credit and your family.

If your are short on time and you cannot do it on your own, then please seek help from a Non-Profit HUD approved Housing Counselor, an attorney or a legit for profit that can handle the calls and paperwork for you.

There are quite a few ways that a homeowner can stop foreclosure. I thought I would list them here with some brief explanations.

1. Loan Workout- A loan workout is when you negotiate with your lender any kind of plan that will benefit both you and the lender when you are delinquent or in default. This is a broad term used in the industry to cover the different options you may have such as a loan modification, repayment plan, short sale, forbearance plan etc.

3. Forbearance- This is used most of the time, when a Notice of Default has been filed. You are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions.

4. Short Sale - This is used when all negotiations for a loan workout have failed and you are upside down on your mortgage meaning you owe more than it's worth. The lender basically agrees to cooperate in the sale and take a loss. You place the home for sale and any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what offer to take. The bank controls the negotiations and the homeowner has no say in the process. It's a last ditch effort to save someone's credit from a foreclosure filing.

5. Foreclosure Bail Out Loan - Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.

6. Deed-in-lieu - is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy

In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the current fair market value of the property exceeds the outstanding indebtedness of the borrower. Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.
Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.

7. Chapter 13 Bankruptcy - Is primarily used to stop foreclosure of your home. In order to qualify you will have to have a steady income.The bankruptcy petition would need to be filed before the sale date of your property. After filing, you will propose a plan to repay the amount you fell behind on the mortgage. You will also begin to again pay your regular mortgage payments, which under the operation of law must be accepted by your mortgage company. What many lawyers and people do not know is that a forced loan modifcation can be sanctioned by the courts if it is proved that the borrower cannot afford the curent payments. The concept is similar to debt consolidation, but it permits you, the consumer(s), to pay unsecured debt down without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors. Under a typical plan, you make monthly payments to a court appointed bankruptcy trustee for generally three to five years.

The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. In exchange for stopping any and all collections activity, one proposes to pay all or, in specific circumstances, a portion of the debt through a Chapter 13 plan. The filing of a Chapter 13 bankruptcy stops ALL collection activity though something called the automatic stay.