Secrets To Stop Foreclosure (part 2)
This is Part 2 of my article on the "Secrets to Stop Foreclosure." In Part 1, I discussed the secrets of
how to communicate with your lender and how to find the appropriate person at the lender's office. In this article, I'll discuss
the secrets of finding someone with authority at your lender's office, getting your files organized, and learning to understand
the foreclosure clock.
A. Find Someone With Authority to Stop the Foreclosure
As you develop a strategy to stop your foreclosure, the secret is to be in close contact with someone at your
lender's office who has authority to stop the foreclosure. Don't waste your time negotiating with a lower-level collection person
who has little interest in your hardship or the reasons you are not making the monthly payments. All he wants to know is when you
are going to pay. The secret here is that collection personnel have no authority to negotiate with you or stop your foreclosure.
You need to find someone with authority. Here is another secret. If a collection person calls, politely say goodbye and hang up.
Then call the main office of your lender. Ask for the names of the branch manager and the senior loan officer. When you get the
information, thank the person you're spoke to, and hang up again. Wait one hour, call back and ask for the branch manager or
senior loan officer specifically by name. Once you are connected, request an appointment. If you can't get through and no one
returns your call, send a letter. Be sure you send a copy to the president of your lender. Wait several days and call again.
Sooner or later, you'll reach someone with authority. This is the person you will want to meet with.
B. Get Organized
It is important to gather together all the documents that relate to your property and your loan. In a typical real estate
transaction, you signed a purchase contract, escrow instructions, a promissory note, and either a mortgage or deed of trust.
Organize and review as many of these documents as you can in order to understand how the foreclosure process applies to you.
Here's what you should get:
Copies of the promissory note, mortgage or deed of trust,
Copies of all documents and letters in your escrow file (contact the escrow company or title company that handled the purchase of
your property to get copies).
A "property profile" which contains information on all documents recorded against your property. You can obtain a free copy of a
property profile from the title insurance company that originally insured your purchase of the property. Also ask the company for
copies of all documents recorded against your property in the county recorder's office.
Copies of all letters you sent to and received from your lender, along with the envelopes the letters from your lender came in,
if you have them.
Copies of your monthly mortgage statements, loan payment stubs, or any other billing and payment information.
Copies of all foreclosure documents you've received, if any. Also save the envelopes of documents you've received, if available.
Label one file folder for each group of documents and put them in the folders in chronological order. You will refer to these
documents again and again as you fight your foreclosure.
C. Learn the Clock
Foreclosure involves very specific timetables in which notices must be carefully served, mailed, recorded, posted, and published
before your lender can legally foreclose.
Foreclosures can be conducted either judicially or nonjudicially, depending on your state. You need to know which type lenders in
your state use. Each kind of foreclosure has its own procedural rules, so you need to know whether you are facing a judicial or
nonjudicial foreclosure. Here are the particulars:
Judicial foreclosure. Most foreclosures of mortgages are judicial. This kind of foreclosure starts when your lender files a
lawsuit in the court in the county in which your property is located. You must be served (provided with) with a copy of the
Summons and Complaint for foreclosure. A judicial foreclosure can take anywhere from one to two years.
Nonjudicial foreclosure. Most foreclosures of deeds of trust are nonjudicial. Your lender avoids the court system entirely by
having a trustee (a third party who conducts the foreclosure) follow a specific series of notice procedures, then sells your
property at a public auction. A nonjudicial foreclosure can take anywhere from three to four months depending on your state.
Knowing the foreclosure clock is another secret to successfully stopping your foreclosure. Once you understand the time
constraints within which you are working, you can customize a strategy that fits your particular situation. For example, if you
have two to three months until the foreclosure sale, you still have time to bring your loan current, negotiate with your lender,
or refinance your property. On the other hand, if you have less than a week before the foreclosure sale, your only option may be
to file for bankruptcy. Remember, the secret is that these time periods are for your benefit--not your lender's. This is your
opportunity to apply a strategy that can most effectively stop the foreclosure.
By: Lloyd Segal
Article Directory: http://www.articledashboard.com
This article was written by Lloyd Segal. Lloyd is a mortgage banker, attorney, and author of "Stop
Foreclosure Now." His new book helps homeowners understand the foreclosure procedures in their state and develop strategies to
stop the foreclosure. More on his book can be found at www.stopforeclosurenowbook.com
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