Save My Home - Saving your home from foreclosure can be a difficult process if you dont get the right kind of help. Borrowers who work together specialist whose focus is helping people refinance out of foreclosure have a much better chance of saving their homes than homeowners who try to face foreclosure alone, or who apply to conventional lenders for help curing a default. Refinancing can be one of the best options for borrowers who want to save their homes with substantial equity in the property. There are many facets of the foreclosure process which can help and hurt you your chances of saving your home.

The major concepts include, but are not limited to: pride of ownership, property value, minimum loan amount, loan to value ratio or LTV, equity, arrears, bankruptcy, below 500 credit scores, notice of default or NOD, judicial & non-judicial foreclosure, lis penden, closing costs, hard money, forbearance, payment agreements, workouts, loss mitigation, foreclosure redemption, cosmetic deferred maintenance, foreclosure bailout for self employed borrowers, stated income vs. full or verified income documentation, refinancing to convert adjustable rate ARM to fixed rate, net tangible benefit, short sale and sale-leaseback alternatives, and much, much more. With so much terminology surrounding the foreclosure process, its easy to throw up our hands and say "How will this help me save my home?". We will briefly discuss some of these topics here, and talk about how they may affect your chances of stopping foreclosure and saving your property.

For more information or to speak with a specialist, please contact us at 414-303-1215 or via email at msearing@mayfairmortgage.com

If you are trying to save your home and need to work out a payment plan to get your mortgage current with your lender you will most times need to talk to the loss mitigation department. This may take a little effort since most calls will be routed to the collections department who normally will just demand you pay or else.

Saving your home from foreclosure begins when you first realize you may be forced to miss a mortgage payment. When times get tight, make your mortgage payment your first priority, over your car and your credit cards. Good mortgage history can help you refinance and cons9olidate all of your high interest bills, but missing mortgage payments is a sure fire way to run the risk of foreclosur.

Property value is one of the most important factors in determining whether or not you can save your home from foreclosure, but just as important is the current condition of the property. If your property is poorly kept, the appraiser may indicate that you have substantial cosmetic deferred maintenance. If your home's interior or exterior has broken fixtures, windows, frames, siding, or other cosmetic items which could stand a coat of paint or some spit and polish, be sure to dress them up for the occasion prior to an appraiser or realtor showing up. Cosmetic deferred maintenance in excess of a few hundred dollars will indicate to the investor that you lack pride of ownership, which we define elsewhere in this article, and may prevent you from obtaining the mortgage refinance you need to save your home.

When attempting to refinance to avoid foreclosure and save your home, very often your credit cannot be considered for the purposes of qualifying for the loan, either because your credit score is below 500 or you have received a notice of default or are 90+ days late on your mortgage. For this reason, all lending decision made by the investor or lender who helps you refinance are based on the property value first.

Property values are so important in refinancing to save your home that investors will often require 2 or more valuations before finally agreeing to help you. This is because when they can't rely on your credit score to help them make a lending decision, they must rely on the value and condition of your property, because if you default again, they need to know they can recover their investment.

A popular type of property valuation, used in almost all refinance transactions, is an appraisal. You probably had an appraisal conducted when you purchased your property, or the last time you refinanced it. In a full appraisal, a state licensed and certified professional whose specialty is in valuing homes will visit your property, inspect it inside and out, and take photographs, measurements and other key information about the property. The appraiser will then look at sales of comparable properties throughout the neighborhood to help him develop a value for your home. A well written and researched appraisal from an experienced appraiser can be the difference between saving your home and losing it, so work with your refinancing specialist to identify an appraiser who really knows the neighborhood well and has a clean administrative and disciplinary record with his licensing body.

Broker Price Opinions, or BPOS, are a very common "appraisal review" which lenders use to determine whether or not a particular appraisal is accurate. In a BPO, a real estate agent, broker or realtor will be asked by the lender to visit your home and to give their opinion of how much it might sell for in 30 days and then again how much it would sell for in 90 to 120 days. The 30 day "quick sale" value is generally the figure which most investors will look most seriously at, because if sales are very slow in your neighborhood this number can be much lower than the 90 to 120 day number, which means that it may cost them quite a bit of money to dispose of the property in the event of a future default. Some BPOs have interior photos taken, some are just "drive-by" appraisal, but all of the develop their property values from comparable sales in the neighborhood. Noticing a trend here?

When you first begin looking into saving your home, we may decide that it may be advisable to run an AVM or Automated Valuation Model appraisal. This is a computerized process by which comparable sales in your area are combined with your square footage and other factors to determine what your home might sell for. AVMs are notoriously reliant on the accuracy of public records of title recorded in your county courthouses, but can help you identify discrepancies in square footage or the number of bedrooms and baths reported for your property, as well getting a ballpark estimate of the property value you may expect to receive, before spending money on more expensive appraisals or BPOs.

A well written letter of explanation often is required as well. You will be asked to explain the circumstances that caused you to fall behind on your mortgage obligations. You will also need to explain how you have remedied your financial situation and why you feel you will be able to make timely payments on your new loan.

Foreclosure Bailout Mortgage - A Foreclosure Bailout Loan is a mortgage designed to save homeowners from having the properties being foreclosed upon by their banks. it is basically a refinance loan. The home owner takes out a mortgage to pay off the current loan thats in default.

When considering a foreclosure bailout mortgage, make sure you are working with a specialist in this area. Anyone in this situation is at risk of loosing their home so mistakes or time delays could have negative impact to the home owner. For example, the Foreclosure lenders know the specific laws and can determine if your current lender is doing everything it should be to help you avoid foreclosure.

Foreclosure Bailout Refinances are based on the value of your home, and how much you owe your current mortgage companies. For this reason, most of these loans require an appraisal and an additional property valuation to complete.

A foreclosure bailout loan should be viewed as step one of a two step process to an affordable mortage payment. Expect a high interest payment on this type of mortgage bewcause of the risk factor. Once you have 12 months of on time new mortgage payments, you can then refinance into a low rate long term mortgage.

Most foreclosure bailout loans require at least 25% equity in the home and credit scores over 500. While many potential borrowers do not fall into this category there are some that do and can benefit from the bailout programs.

Any time a mortage goes 120 days late, most banks will consider that loan in default.

It is important that you have contact information for your current mortgage company's. Your mortgage professional will need to obtain payoffs quickly for all liens on your property to determine your new loan amount. Giving complete documentation to your mortgage professional will expedite your new loan efficiently.

A forclosure bailout loan will be costly and typically carry a higher interest rate because the lender's risk is so high.

When compared to the option of selling your home or loosing the home if foreclosure proceedings are completed, the higher interest rate associated with a bail out is usually the best alternative. These bail out programs are a form of refinance, they are not a lease back program. You still maintain ownership of the property.

In some rare cases you may be able to pay off additional debts as part of a foreclosure bailout/refinance. If you have enough equity in your home this may be exactly what you need to get back on track.

When taking a forclosure bailout loan strongly consider paying the points to remove the prepayment penalty. This will allow you to fix your credit and get in a better loan quicker.

You want to contact a Mortgage Professional as soon as you feel your home is in jeopardy, the longer you wait the more your credit becomes affected and the harder it is to get you into a more stable situation. Time is the key to saving your home.

Be cautious of immoral predators if you are facing foreclosure. Many companies see your bad fortune as an opportunity to strip any remaining equity from your home, often leaving you both homeless and penniless. Carefully research and verify any company that is offering assistance, especially if the offer seems too good to be true.

The type of lender you are looking for in a foreclosure bailout is called an equity lender. They lend based soley on the equity in the home and not necessarily your credit score or credit history. This means they are protected by the higher risk should they have to take the property back. These are usually short term loans designed to keep someone from going to foreclosure. This allows you time to list and sell your property or get back on your feet again and refinance.

Many lenders will lend as soon as 1 day after bankruptcy discharges.