When to Refinance a Mortgage and How it is Helpful in Stopping Foreclosure?

If you have searched for the ways to stop foreclosure, you must be aware that there are the options that can let you win the situation, provided that you proceed with the particular option at the right time. More you delay, the possibilities of stopping foreclosure reduce.

No matter which option you have chosen to avoid foreclosure in Houston, you must start the process before it gets late. It varies from one option to another that when you should actually proceed with the particular option and here we are going to discuss Refinancing.

What is Refinancing?  

Refinancing is replacing your current mortgage with the new one that would have a lower interest rate, extended loan term or a lower monthly mortgage. The changes are made to make the monthly mortgage payment affordable for you.

When Should You Refinance the Mortgage?  

Refinancing is one of the best ways for stopping foreclosure in Houston. Though you can approach your lender for refinancing after you miss three mortgage payments but it is always advised to act soon. For an instance, if you have missed a payment or two, you can ask your lender to refinance the mortgage to make it affordable for you.

If you are concerned about the right time for applying for refinancing, we would like to inform you that it would be better to consult your lender soon after you realize that you would not be able to pay the mortgage. It can be due to an increase in your monthly expenses that affording the monthly mortgage payment will become difficult for you but somehow, you can arrange a lesser amount. However, you should only go for refinancing when you are sure about your capability of paying off the monthly payments of a new mortgage without any issue.

How it works for Stopping Foreclosure?

Refinancing can definitely help you with stopping foreclosure in Houston, you just need to have the proof to support your reason. Also, you should remember that refinancing is a good option when you are out of your financial crisis that has let you miss the mortgage payments. For an instance, refinancing would help you if there was the loss of the job or sudden medical expenses of a family member that have resisted you from paying your mortgage installment but now, you are back to normal with your financial condition. It is because refinancing does not free you totally from the mortgage payments but it makes the installment affordable for you. Therefore, you should go for refinancing only if you have moved out or will move out soon of the financial crises that have denied you from making mortgage payments.

Though there are many other reasons to refinance, if you are refinancing for stopping foreclosure, you must prefer seeking help from an experienced foreclosure agent in Houston who would have experience in dealing with the similar cases. By doing so, you can increase your chances of getting the mortgage refinanced as per your requirements.  

  

Can't Afford a Foreclosure Attorney? Here Are the Options You Can Go For....

Foreclosure is such a situation when the homeowners go through financial difficulties; it is not only their house that is at risk but they also need to manage other costs effectively. And it worsens their financial condition further. There occur the cases in Houston when the homeowners are not able to afford an attorney's fee for representing them during the foreclosure. Though the attorney's fee range from hundred to thousand dollars, they are not sure what their attorney would cost and whether they would be able to manage the entire expenses or not.

However, if you are also facing foreclosure but have no money to afford a foreclosure attorney for you, still there are some options you can go for. Here we are enlisting those options.

• Dealing with foreclosure yourself

If you don't have a valid defense to the foreclosure or don't want to fight it, you can easily deal with without seeking any foreclosure help Houston. You just need to be sure of the steps involved in the process and should be aware that how long the process will go (as then you would need to move out of your house).

And if you think that you can manage the mortgage costs and can save your home, you can apply for mortgage modification yourself. You just need to consult with your lender and ask for the process of loan modification. Such a modification will make changes in loan terms to make the monthly installments affordable for you. Although a loan modification can help you keep your home, if it does not work, you will still get some extra time to stay in your house and plan your move.

• Seeking only the consultation from an attorney 

It would really help you to deal with the foreclosure like situation. If you are not able to afford a foreclosure attorney, it would be a great idea to seek only the consultation from a professional attorney. Along with having an in-depth understanding of your case, you will also get to know about the available options. 

However, before having a meeting with an attorney, prepare a list of questions you would ask from him. Also, be sure of his fee before the meeting. During the meeting, let the attorney know your true financial condition, only then he would be able to determine whether you have a defense to foreclosure or not. He will also guide you about what your next step should be. 

• Seeking help for free

There are some attorneys who can help you with foreclosure by working on a certain number of pro bono cases. You can seek help from such an attorney to avoid foreclosure in Houston. Confused where to find a pro bono attorney? Well, you can contact your state bar association to find an attorney who would be willing to help you for free. 

"Thus, even if you are not financially able to afford an attorney, still you have some valuable options. You just need to act on time to make the foreclosure case favorable for you."

  

Things That Homeowners Must Know About Foreclosure...

As there is a lot about the foreclosure in Houston, you must have heard or read the term somewhere. But do you know what it is? Well, those who have never bought a mortgage would not be aware of it, but it as you may need to get the mortgage in future, it would be better to have some knowledge of all the related terms and procedures. Here we are going to mention some facts about the foreclosure that homeowners must know.

However, before beginning with the facts, let's give a brief introduction of Foreclosure. Actually, foreclosure is the situation when a homeowner misses his mortgage payments and fails to repay the amount on time. In that case, the lender or the bank (he has bought the mortgage from) seizes the property and organize its sale at an auction. This process of selling the property is known as foreclosure. Also, the properties that go through foreclosure process are known as foreclosures.

As the foreclosure not only lets the homeowners lose their homes but it also affects their credit score and makes them go through the social stigma, you must be thinking that is there any alternative to that. Well, let's make you know that there are many alternatives that work for Houston stop foreclosure but the homeowners are required to take an action on time and choose the right one. Here are the foreclosure facts that every homeowner must be aware of.

• Sooner you act after missing three mortgage payments or knowing that you are going to miss them, more options you will have.
• As you may not be aware of all the options and the results each of these options will deliver to you, it would be better to seek the help of an experienced foreclosure agent.
• Though you must hire the agent who would be experienced with the foreclosure process but depending on your situation, an agent with different expertise can also help you. For an instance, in the case you are filing bankruptcy, a bankruptcy agent or lawyer can provide you better assistance. And in the case you are going for short sale, a short sale agent would be the right choice for seeking foreclosure help Houston.
• Chances are there that you may not be aware that which option will work best for you, the right decision will be consulting with different agents and asking them for the solution. After consulting three or four of them, you would be able to decide that which option will work best for you.   

  

Though the foreclosure will cause stress but rather than wasting your time you must approach an experienced real estate agent to work for you; you will just be amazed to know the options that will help you with Houston stop foreclosure.  

Steps to Get a Great Deal on a Foreclosed Property

As the foreclosure cases are increasing day by day, there is nothing strange to know that about 50% of the properties are foreclosed and many of the remaining ones are struggling with it. Though foreclosure is a bad thing for the homeowners whose properties are foreclosed, it provides great opportunities to the buyers for purchasing a house that otherwise, was impossible for them to afford. Also, the investors and the 

real estate agents in Houston TX make a lot of business from such properties. 

However, purchasing a foreclosed property is not that easy and the process has its own pitfalls. Acting much fast or too slow will leave the buyers in a quagmire. Well, considering some tips and following them carefully will definitely let you get a great deal.

• Look for the overpriced properties

There is no doubt that under priced properties get a ton of offers and are sold fast but you should be aware that the overpriced properties can also let you make a good deal. It is because of the reason that the overpriced properties are shown little interest by the buyers and they remain in the market for more than a year. The bank acts quickly when someone makes an offer for such properties.

• Consider the neighborhood

You must agree that a good neighborhood improves your house's value with time. So, you need to have a look over the neighborhood where you are buying a foreclosed home. It's not enough to score the neighborhood for just the access to shopping malls, market, and commute facilities but you also need to look for a nearby school. A good school near your house will definitely improve your house's value over years.
Also, you need to check the count of foreclosed properties in the neighborhood. In the case, there are a number of foreclosures, chances are there that the home value will decline.

•  Be ready with the funds

When it comes to the sale of a foreclosed property, usually the lenders prefer cash payments and they offer a great discount while making a deal. So, it would be better if you can arrange funds. And if not, then you must get per-approval for the mortgage as it will let to act quickly in the case you like a property.

•  Don't forget to estimate the repair costs

If the property you like needs repairs, don't forget to estimate the repair costs. There will be no benefit of buying a property at less rate if its repair costs would make up the total value more than the similar properties in the neighborhood.

• Prefer buying at the end of year or a month

This strategy works great for the cash buyers. It is assumed that many a time, the banks want to get the deals closed; so, making an offer at the end of a month, quarter or year will be a great idea as it will let you win a big discount. Don't forget to mention the closing date that should be the last date of the particular month.  

"If you want the process to go more smoothly, it would be a great decision to work with a Houston TX Listing Agent or a Houston real estate agent who would have experience in the foreclosure arena. "

5 Best Tips to Follow While Hiring a Foreclosure Attorney

It is the nightmare of every homeowner to be served with the foreclosure papers. No matter how good you are financially or how good your job is going, the bad circumstances can lead to foreclosure, leaving you stressed. However, the first thing that you need to keep in mind is rather than feeling burdened and stressed, you must think about how you can deal with the situation. 

A number of homeowners in Houston go through the foreclosure and a common mistake that they make is they don't consult a foreclosure attorney. And as the time passes, the options and chances to stop foreclosure reduce. Actually, you need to the understand that the complicated situation like foreclosure cannot be dealt by you only; you need to seek the help of a reputed foreclosure attorney to stop foreclosure in Houston.

However, when it comes to getting foreclosure help, people get generally confused that which attorney they should hire. Well, though you need to make your own efforts to check the reliability of an attorney, here are some tips that would help you to choose a right attorney.

1. The foremost thing that you need to check is whether the attorney is licensed or not. Only licensed and certified attorneys would be able to provide you the right help. Having a license is not enough, you also need to check if your attorney is licensed to offer his services in your area. 
2. The next obvious to notice thing is his experience. Foreclosure is a complex situation and every real estate attorney would not be able to deal with it. So, you must inspect that how much experience the particular attorney is having and approximately how many cases he has resolved. More is the experience, great will his knowledge and better he would be able to resolve the issues. Don't hesitate to ask his success rate as it would let you have an idea about his services. 
3. Next thing is the way of communicating. When you consult an attorney to seek foreclosure help in Houston, he must make you feel comfortable to discuss your situation in detail. If you are not satisfied with the conversation you had with the attorney or you are not comfortable to discuss the issue, you must try another one. 
4. You can also ask him about the reference. Every successful and trustworthy attorney would have some happy clients. In order to ensure that the attorney is able to provide the required help, you can talk to their previous clients.
5. Being in the hard situation of foreclosure, you must try to save as much money you can. So, must hire an attorney that would offer the services at reliable and affordable rates. 

"The above-given tips will let you choose a right attorney. In addition to all these steps, you can ask the attorney about his strategy, the time of working and the chances that your house would be saved."

Consequences of Foreclosure and How it Affects your Future?

Foreclosure is one of those uncertain life events that no one wants to face in his life. But, if you have bought a mortgage, there is no surety that when the life exigencies can make you stand in front of the foreclosure like situation. But rather than being stressed and panicked, you must look out for the available options and should consult an experienced foreclosure agent who would help you to stop foreclosure in Houston.

Foreclosure occurs in a situation when the homeowner fails to pay the mortgage payments for three or more months, or in the case, he has violated the loan terms. The situation is not only stressful, but it is also embarrassing for the homeowners and can lead to long-lasting consequences. Here are the consequences that you can get as a result of the foreclosure:

• You would lose your house.
• You will face the stress of not knowing that when you would need to move out of your house. 
• Chances are there that you may owe deficiency balance on your mortgage even after the sale.
• Your credit card will be affected negatively, as a result of which you may face difficulty in getting credit, new house and even, difficulties may occur in getting potential employment.
• Some alternatives to foreclosure offer you the assistance for relocation, which you will loose with foreclosure. 

 Thus, as the consequences of foreclosure are really serious, the homeowners are assumed to consult a foreclosure agent in Houston soon after they receive the foreclosure notice. If you are not looking for the ways to avoid foreclosure, you are underestimating that how it can affect your future. Here, we are going to tell you the impacts of foreclosure that it may have on your future.

• If your house is sold in the foreclosure sale or you gave it to your lender through a deed in lieu, your credit score will be shifted down by 250-280 points. 
• In order to get your credit score reached the point where you will be qualified for the mortgage, it will take around at least three years of the on time and regular credit payments.  
• Even in the case your mortgage company or your lender is entitled to come after you for the difference between the market value of your home and that you owe on the mortgage, at the time of foreclosure, they never do in most of the cases. 
• In the case, you have bought the home, not before the two years or you have made your purchase using the tax-deferred capital gains, there may be the tax implications for the capital gains of your short sale.  
• The mortgage debt that is relieved through foreclosure is taxable as income, depending on the amount of the mortgage. 

"Thus, the foreclosure will result in creating long-term complications for you and your family. In order to stop foreclosure in Houston and to reduce the effects on your credit score, you must look out the ways by which you would be able to stop foreclosure and save your house. "

How Loan Modification is Helpful to Avoid Foreclosure?

Before the foreclosure hits you, you must be aware of the different ways you can go for avoiding it. An action taken earlier before you are late with your loan repayment would be better than acting later and the loan modification is the first option you can go for to keep the foreclosure at bay. In this write-up, we are going to tell you that what is loan modification and how it can help to avoid foreclosure in Houston.

So, What is Loan Modification?

Loan Modification is an agreement between the lender and the homeowner in which the terms of the loan are modified to lower the monthly loan payment and make it affordable for the borrower. The mortgage can be modified by extending the loan term or by lowering the interest rate. And in the case, the homeowner is already in default, the overdue mortgage payments would be added to the principal. Depending on the terms of the loan modification, the overdue payments can be paid over the entire loan term or in a single payment at the end of the loan term.  

Options with the Loan Modification

The main aim of the loan modification is reducing the monthly payment amount and it can be done in some different ways. Here are the available options.  

• Extending the loan term: In this, the loan term is extended so that the homeowners can get more time to pay the loan and as a result of this expansion, the monthly payment amount is reduced. However, the extended period should not be more than the original loan term.

• Reducing the interest rate: The interest rate is reduced for the remaining loan period and this also reduces the monthly payment amount. By making those payments, the homeowners can easily avoid foreclosure in Houston.

• Reducing the principal: In this, the principal of the loan is reduced and it is mainly done for the houses which are depreciated that makes the homeowners owe more than the home's market's value.

• Step rate: In this option, the step rate is reduced temporarily and then is brought back to the original rate gradually. This allows the homeowners get back on their feet and resume payments.

How does it Help?

All the above-mentioned options explain that how each of them makes the loan's monthly payment affordable for the homeowners. They can talk to their lender, explain them their situation, show the proof of monthly income to make sure that the hard time has been over. And then, they can make their lender to qualify them for loan modification according to one of the four options that will be suitable for both the parties. In the case, you are not aware of the loan modification procedure, you can seek the help from an experienced foreclosure agent in Houston.  

" However, don't wait until you default on your mortgage payment; it would be better to apply for the loan modification process earlier. As long as you are able to prove that you may be behind on your payments, your lender would consider you for the loan modification.  "

Strategies to Stop Foreclosure the Last Minute

If you have got a mortgage, there is no surety that when you would need to face the situation of foreclosure. Though no one wants to face this situation, but the exigencies like loss of job, unexpected illness, uncontrolled expenditure and more can make you stand at the point where you see only the foreclosure. If you have received the notice for foreclosure and are sure that you would not be able to bring your mortgage payments up-to-date, you are definitely going to get panicked. But, let's tell you that still, there is a hope and you can stop the foreclosure. Real estate agents use a number of ways to stop foreclosure in Houston that you can follow to come out of the situation.

Below are the strategies that would help you stop foreclosure even at the last minute. It is necessary for you to know these strategies even if there are no chances of the foreclosure because the emergency can arrive anytime.

• Loan modification

It is the option that you can go for at the last minute. It is also known as refinancing. Actually, when you miss one or more payments and there is the fear of foreclosure you can apply for the loan modification. In this, the amount you owe on your mortgage is modified into a new loan with some amendments, like the amount of the monthly payment or the interest rate can be reduced.
Loan modification is a good option if you are clear that you can bring your finances back on the track and would be able to make the payments on time. The process of loan modification is easy and it will keep the foreclosure stopped until you miss your loan payments again.   

• File for Bankruptcy

Filing a Bankruptcy is the most preferred option when it comes to stopping the foreclosure at last minute. Upon filing a bankruptcy, the court will put your foreclosure on hold by issuing orders of the automatic stay. According to the bankruptcy laws, all the attempts made to collect the debts are halted once the bankruptcy is filed. And as foreclosure is the process for obtaining debts, it is put on hold if the bankruptcy is filed. 

However, you lender may file a motion to lift the automatic stay but even if it is granted, the foreclosure will be delayed for a few months. This will give you the time to go for other possible options. Also, you need to be clear that which bankruptcy you should file. If you want to save your house, the Chapter 13 bankruptcy would help you with that and if you just want some more time for arranging funds, the Chapter 7 bankruptcy would be the right option. 

• File a Lawsuit

It is required in a majority of the states that the foreclosure should be processed through the court. In the case, your lender is going with the foreclosure without following the laws or without going through the court, you can file a lawsuit against him. In the case your lender is not able to provide you the proof that he holds a promissory note on your mortgage, you can file a lawsuit against him. However, you would need a proof that your lender is at fault. 

"Last but not least, if due to any reason, you are not able to stop the foreclosure by the above-given ways and are looking for help, you can contact Caroline Allison for Houston foreclosure defense. She is an experienced foreclosure agent who uses the best ways to help the homeowners deal with the foreclosure. "

How to Stop Foreclosure and Get Best Market Price for your House?

No one wants to face a situation like a foreclosure and lose his home, but the life exigencies like divorce, loss of job, medical expenses, etc. often result in the skipped mortgage payments and the situation of foreclosure. As homeowners cannot prevent defaulting on their payments, it is important for them to respond to the situation quickly.

Though there are different ways that can help the homeowners stop foreclosure, but in most of the cases, they don't act quickly. Either they are unable to accept the reality or are paralyzed by the fear and worry of losing their home; as a result of which they don't focus on the options available to them for stopping the foreclosure. What they need to do is considering the options and acting on the one before it gets too late to avoid foreclosure. And among the different ways, a short sale is considered as the best option to get help with foreclosure in Houston.

A short sale is an agreement between the homeowner and the lender where the lender agrees to take less than the amount owed on the mortgage so that your house can be sold at more as compared to the price it would be sold at during foreclosure auction. A short sale is a good option as it provides you the best help with foreclosure. It also lets the homeowners protect their credit score that otherwise, would be greatly affected by the foreclosure.

Furthermore, to get your house sold fast, you need to improve its condition by making necessary repairs and renovations as it would let you get the best price. Here we are going to mention some tips to sell a house before foreclosure in Houston quickly, without compromising on the price.  

•  If you are planning to sell your house yourself, drop the idea. There is a lot of work and as the process needs to be completed quickly, it would be better to get help from an experienced real estate agent. Look for a certified agent who would have repeated success history.
• As the agent will do his work, you must make efforts to present your house to the best. So, keep it clean and make the necessary repairs that would resist the viewers to buy your house.
• When a potential buyer comes to your house, he imagines himself in the house. So, provide him that space by depersonalizing your house and replacing all personal decor items with the neutral ones.
• Price it right; as you need to sell your house as fast as possible, you must offer something attractive to the buyers. So, price it right.   

There are a number of other things that can help with foreclosure in Houston. However, if you don't want to take all this stress yourself then it would be better to sell your house to a company or a real estate agent who would be interested in buying it “as is” at the market price and would offer you the cash. This will not only reduce your stress by reducing the paperwork but you will also get your house sold fast.