Loan Modification: Don't say the F Word!

Millions of Americans are learning about the foreclosure process for the first time up close and personal. If that describes you, youll want to become prepared for how the process works, how youll be treated, and what your options and protections will be. I hope this brief overview of the process will help.

When foreclosure ends in repossession of the property by the bank, your credit report is stained by that F for 7 years. Its truly the F word on your credit report and should be avoided at all costs. No other stain on your credit report does as much damage for as long. Part of the reason for this is that its actually very easy to avoid. The process provides for your protection during a prolonged period during which you should be able to resolve the issues.




In the 34 states that use Trust Deed instead of mortgages, like California, virtually all purchases involve three parties; the trustor (borrower), the beneficiary (lender), and the trustee (neutral third party receiving the right to foreclose). The trust deed includes a "power of sale" clause that gives the trustee the right to enforce collection of the debt. Collection of the debt is ultimately enforced by the beneficiary's right to sell the house when the borrower fails to make the agreed upon payments.

In a non-judicial foreclosure, the trustee must meet few requirements before selling the property. In comparison to a judicial foreclosure, non-judicial foreclosure is quick because the trustee doesnt need to obtain a court order to foreclose, nor is court supervision required to sell the property.

In California, the timeline of non-judicial foreclosure begins when the trustee files an NOD (notice of default). This letter is sent to the owner notifying them of the default of the loan. The next step is the filing of the Notice of Trustee Sale. No sooner than ninety (90) days after the trustee records the Notice of Default, the Trustee must publish a Notice of Trustee Sale in the local paper and simultaneously file that notice with the County Recorder's Office.

No sooner than twenty days (20) after the Notice of Trustee Sale is filed, the home may be sold at public auction for the amount of the debt plus foreclosure costs

Judicial foreclosures are more complex and, therefore, take longer. They are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens (notice that a suits pending and title is clouded).

Judicial states with notoriously long foreclosure times include Vermont (210 days), Florida (180 days), Nebraska (180 days), and New York (12-19 months!).

You can see how long it usually takes in your state at Foreclosures.com. Just click on your home state.

For more info visit me at http://www.60MinuteLoanModification.com

Category:

News & Politics

Tags:

• loan modification
• mortgage modification
• home loan modification
• foreclosure
• short sale
• hope for home owners
• bailout