Get Out Of Debt

The home mortgage crisis is affecting people all over the world. Every day, families are losing their homes due to defaults or foreclosures. Many times, families do not know what other choice they have other than foreclosure. It seems like the only option is to let the bank take back the house, as the payment is just too much to handle, especially in these times when the economic conditions are stormy and dangerous. Short sale services are only a step away, continue forward with this article:

Although, foreclosure may seem like the best choice, however, there could be a better option if you are getting suffocated under the loan(s) due to the ownership of your house.

If you do wish to foreclose on your home, then a short sale might be the right option for you. Basically, a short sale is when the outstanding obligations of loans against a property are larger than what the property can be sold for.

If you choose to do a short sale, this is the way to save yourself from having to foreclose and be able to pay off the loan by settling with your lender(s). This article will show you how you should go about doing a short sale.

Get the value of your house assessed: If you decide to go through a real estate agent, then your agent will provide you with an estimate of what your property is worth. However, if you opt to sell on your own, you will have to do research on the market value of the area where you live and of your property.

Consider the costs involved: If you have an agent, they will provide you with an estimate of how much it will cost you to close. If you are selling your property yourself, you will need to call a local title company or a real estate attorney and ask what it will cost you as a seller to close.

Confirm the dues that you owe: This is the amount that is due against the property, which is the total of all loans against your home.

Do the math’s: Subtract the total amount of what you owe against your property from the estimated proceeds of the sale.

Do not be alarmed if you get a negative number.

Get in touch with your lenders: Speak to a representative in customer service and explain your situation. They may transfer you to a particular department. If it is possible then ask to speak to a manager; they will have more authority and will be able to help you better.

Inquire about the formalities required to be done for a short sale. Some lenders will be more than happy to work with you by reducing the amount that you owe. Then there are others who will look into the agent that is involved(if one) and any other parties that stand to gain anything from the sale of the house and decide if they are willing to make any concessions to make the deal happen. However, there will be lenders that will tell you that your debt is your responsibility.

Introduction

Eviction (called “forcible entry and detainer” in Texas) is a process by which an owner recovers possession of real property and, if appropriate, a judgment for unpaid rent, attorney’s fees, and court costs against a tenant or occupant. Forcible detainer actions are held in Justice Court which has original jurisdiction over possession. The landlord’s objective is to gain a judgment and a writ of possession.

Foreclosure is the procedure by which a lender obtains both possession of and title to real property or, if the bidding is sufficiently high, liquidates its interest in the property entirely by means of a sale to a third party. Most foreclosures are non-judicial (ie., they occur without participation of a court) and are held on the first Tuesday of every month. The objective is to satisfy the debt and cut off all competing claims to or against the property.

Evictions

Evictions or “forcible detainer” actions are governed by Sec.

24.01 of the Texas Property Code. They are appropriate if there exists a landlord-tenant relationship (with or without a written lease) or if a person is occupying real property without authority to do so. After proper notice is given, the eviction must be filed with the Justice of the Peace in whose precinct the property is located. This Justice Court, and only this court, has original jurisdiction over possession of the property. At an eviction hearing, the judge determines which party has the superior right to possession and what damages (ie., back rent, attorney’s fees, and court costs), if any, will be awarded to the landlord. These are the only issues to be considered by the court. A counterclaim by the tenant, regardless of subject matter or merit, is not permitted. Legal actions by tenants may be brought by separate suit in Justice, County, or District Court.

Within 5 calendar days of judgment, the tenant can appeal to county court, with or without good reason, which results in the file being sent to the county courthouse where it will be heard as a new case. The Justice of the Peace will set an appeal bond, which may be waived if the tenant files an affidavit stating that he cannot afford the bond (also known as a “pauper’s oath” or “pauper’s bond”). Once an affidavit of this kind if filed, the landlord has the right to request a hearing and contest it, although it is generally pointless to do so – it is usually granted, and the file is turned over to the county court.

This appears unfair to the landlord; note, however, that if the pauper’s affidavit is granted, the tenant is then obliged to make monthly rental payments to the county court. Otherwise, if a cash or surety bond is posted, there is no requirement that the tenant pay rent while the appeal is pending. It is therefore good practice for the landlord’s attorney to file a motion requesting payment of rent into the court registry even if there is no pauper’s bond. A preferential setting should also be requested if the county court in question does not already automatically provide it for eviction cases. If the tenant is a professional deadbeat who has played this game before, the property can be tied up for several months.

If the tenant does not appeal within 5 days, the judgment of the Justice Court is final and the landlord may proceed to enforce the judgment by obtaining a writ of possession. This requires going to the county clerk’s office and paying a nominal fee. The constable will then usually post a notice on the tenant’s door allowing 48 hours to move out. After that, the constable may forcibly evict the tenant and put the tenant’s possessions in storage.

Foreclosures

Foreclosures may be judicial (ie., ordered by a court) or non-judicial (done without court involvement by auction “on the courthouse steps”).

The remedy of foreclosure is available to lenders if the borrower defaults. Defaults may be monetary or technical, ie., a breach of the covenants made by the borrower in the loan documents. In order to determine if there has been a “default,” the loan documents – the note, the deed of trust, the loan agreement, and so forth – must be carefully consulted. Specified notice and other requirements must be followed if the foreclosure is to be valid.

Non-judicial foreclosures are governed by Sec. 51.002 et seq. of the Texas Property Code. Foreclosures are conducted on the first Tuesday of each month between the hours of 10:00 a.m. and 4:00 p.m. at the courthouse of the county in which the property is located. Notices must specify a 3 hour period during which the sale will take place. At least two certified mail notices are usually required, a “Notice of Default and Intent to Accelerate” which affords an opportunity for the borrower to cure the default (at least 20 days for a homestead, although if the deed of trust is on the FNMA form, 30 days notice of default should be given); and a “Notice of Acceleration and Posting for Foreclosure” (at least 21 days before the sale date). “Acceleration” is defined as the declaration by the lender that the entire amount of an installment debt is now fully due and payable.

Both notices are addressed to the last known address of the borrower contained in the lender’s records, but it is wise for the lender to double-check this to avoid later claims by the borrower that notice was defective. It is prudent to send the notices by both first class and certified mail. The content of foreclosure notices is technical and must be correct to insure a valid foreclosure that cannot later be attacked by a wrongful foreclosure suit.

In all foreclosures, the lender should consider doing a title search to ascertain, among other things, if there is an IRS lien. If so, the IRS must be notified 25 days prior to the foreclosure sale if that lien is to be removed. Otherwise, the IRS lien will survive the foreclosure. Stewart Title Services and other title companies do these searches or “down dates” for a modest fee.

In order to determine a fair bid price for the property, the lender may wish to order a broker’s price opinion (BPO). Otherwise, the lender often bids the amount of the debt plus accrued fees and costs.

The effect of the foreclosure is to cut off and eliminate all junior liens, including mechanic’s liens.

If the price at which the property is sold a foreclosure is less than the unpaid balance on the loan, resulting in a deficiency, a suit may be brought by the lender to recover this deficiency any time within 2 years of the date of foreclosure. Federally insured lenders have 4 years. As part of a defense to a deficiency suit, the borrower may challenge the foreclosure sales price if it is below fair market value, and receive appropriate credit if it is not. Any money received by a lender from PMI (private mortgage insurance) is credited to the account of the borrower. One case states that the purpose of this “is to prevent mortgagees from recovering more than their due.”

Lenders generally bid the amount of the debt and often acquire the property in this way. If the sale generates proceeds in excess of the debt, the trustee must distribute the excess funds to other lienholders in order of seniority and the remaining balance, if any, to the borrower.

Compared to other states, Texas is fortunate to have a streamlined non-judicial foreclosure process that takes only a minimum of 41 days (although good lawyers never cut it that close). The advantage for the foreclosing party is that there are no effective defenses to this process except for the borrower to block it with a temporary restraining order or file bankruptcy. For either option, the buyer needs money and an attorney.

Suits for Wrongful Foreclosure

A suit for “wrongful foreclosure” can be filed if there are grounds for alleging that the loan documents (ie., the note and deed of trust) were defective in some way; if the notices leading up to the foreclosure were defective; or if there was some impropriety in the sale itself.

As a general rule, it is more effective to obtain a TRO to stop a foreclosure in the first place. Texas law favors the finality of foreclosures, making wrongful foreclosure suits an uphill battle. Note also that if the property was sold to a third party (ie., the lender did not acquire it) there is little chance that the borrower will get the property back. The borrower’s remedy will likely be limited to monetary damages.

If a wrongful foreclosure suit is being considered, it should be filed quickly so that notice of the suit (called a “notice of lis pendens”) can be filed in the real property records. If the lender was the successful bidder, this notice may result in effectively preventing the lender from transferring the property to a “bona fide purchaser” (a third party who does not have notice of the borrower’s claims). Again, once that transfer takes place, it is unlikely that the borrower will ever recover the property.

Post-Foreclosure Eviction

After the foreclosure is finished, it may still be necessary to evict the borrower in the usual way. If the borrower continues in possession, the owner must give the usual 3 day notice to vacate, file a forcible detainer petition in justice court, get it served, get it heard by the Justice of the Peace, and then wait 5 days for a final judgment and a writ of possession. The lender must then wait until the constable makes time to post a 48 hour notice on the door and then forcibly remove a borrower who is otherwise unwilling to leave. Elapsed time? Three to four weeks at best.

Right of Redemption

Finally, there is no right of redemption after a Texas foreclosure unless the property was sold for taxes (2 years for homestead, 6 months for non-homestead).

Using your sense of spirituality can help you solve your foreclosure. Spirituality can help you solve many of life’s problems by tapping into your inherent ability to connect with the cosmic universe to receive the answers that you are seeking. With rising prices, our currently bad economic crisis and rising unemployment rates, many find themselves facing financial problems; including the epidemic of foreclosures in the United States.

If you are reading this article you have been lead here spiritually in order that you may tap into the universal consciousness to receive the answers and options that you are seeking that will solve this problem. This foreclosure strategy is your “GIFT FROM GOD”, will you accept it?

Spirituality entails having faith in receiving the answers that you seek. However, it is up to you to recognize when the answers are being revealed to you. You must cultivate a sense of knowing that what you need is already given to you.

Spirituality is about knowing that you are already blessed and that you will be taken care of and given what you need to succeed in any endeavor. This article will reveal options to you that you can use to stop your foreclosure dead in its tracks. This little-known option is available to you and will help you solve your foreclosure dilemma immediately.

By implementing this foreclosure strategy which is in full compliance with all state and federal laws, you will force the bank to prove that they are the rightful owner of your mortgage loan, which will usually take several months to many years. You could, in fact, end up owning the property free and clear. However, you must take a stand and decide to fight back.

As you know many of the banks and financial institutions have recently been accused of using faulty documentation and/or illegal tactics. Certain banks and financial institutions have even had to halt foreclosing on homes altogether for a time.

You can now take advantage of this legal loophole. Instead of being taken advantage of by money hungry banking and financial institutions you can now take advantage of the legal loopholes that will catapult a stop to your foreclosure fast.

I am not going to go into the mechanics of the program here because it is well documented elsewhere. However, I am writing this for those who are my subscribers and for those who may be currently facing foreclosure and who have been spiritually looking, hoping and searching for a way out of this foreclosure snare.

I personally recommend this source and I am personally aware that this foreclosure defense has held off the bank or financial institution from foreclosing on a property located in Las Vegas, Nevada for over 4 years. When implemented correctly and with patience and care, using this legal strategy also keeps your credit intact in case you are planning to purchase another home now or in the near future.

I am further personally aware of a situation in Florida where this legal maneuver was used and the property was actually given back to the homeowner free and clear. This is a spiritual gift that I am offering my readers and subscribers — so take advantage of it because it is available to you to help you save your property.

One of my favorite passages from the Bible is Matthew 6:25.26,27,28,29,30, 31,32,33 which states, ‘Therefore I say unto you, Take no thought for your life, what ye shall eat, or what ye shall drink; nor yet for your body, what ye shall put on. Is not the life more than meat, and the body than raiment?

Behold the fowls of the air: for they sow not, neither do they reap, nor gather into barns; yet your heavenly Father feedeth them. Are ye not much better than they? Which of you by taking thought can add one cubit unto his stature?

And why take ye thought for raiment? Consider the lilies of the field, how they grow; they toil not, neither do they spin: And yet I say unto you, That even Solomon in all his glory was not arrayed like one of these.

Wherefore, if God so clothe the grass of the field, which today is, and tomorrow is cast into the oven, shall he not much more clothe you, O ye of little faith? Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed?

(For after all these things do the Gentiles seek:) for your heavenly Father knoweth that ye have need of all these things. But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.’

If you have found yourself contemplating a way out of your foreclosure dilemma and have been visualizing that your foreclosure situation has been resolved — then you must take a look at the program that I am introducing to you. Go now and check it out and you can come back and thank me later!

If you are looking for a Dallas foreclosure defense attorney, you may or may not be finding it difficult to select one. Foreclosure attorneys specialize in helping people who are faced with the possibility of inevitability of foreclosure. A good attorney will have only your best interest and will do everything in his or her power to help you seek any options available.

Unfortunately, the worldwide recession has caused a huge increase in the number of foreclosures, and there is no sign of the numbers lessening. Many people are unaware that when faced with a foreclosure, there are options available which could help you save your home. The best thing you can do is to engage the services of a Dallas attorney as soon as you are faced with the possibility of a foreclosure. This will boost your chances of getting to keep your house.

While filing for bankruptcy is one option available to some, it may not be the right choice for your situation.

There are other options available, and a Dallas foreclosure lawyer can help bring these options to light, as well as offer any advice towards the course of action they feel would best suit your circumstance. If the lending companies can have lawyers help them through claiming homes, you are definitely entitled and advised to do the same in order to stand a fighting chance of keeping your home.

There are also many mortgage and sub-prime lending fraud that has occurred and uncovering this can lead you to not having to foreclose on your home. Many sub-prime mortgages were assigned to individuals when they should not have been and in this case it is the bank that were committing fraud on the loan application as it should not have been approved.

There are defense lawyers in the Dallas area who specialize in foreclosure and other attorneys that specialize in foreclosure fraud directed towards the banks and financial institutes.

You should know that there are always options available and a foreclosure defense attorney can help you navigate the legal aspects of foreclosure.

Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you.

Credit counseling is a program designed to help those who are in a state of debt and cannot find a solution to their debt problems. They offer services that will allow you to work with a certified credit counselor to devise a plan that is tailored to your specific needs and goals. Credit counseling agencies often provide services for free and will help to educate you about how to avoid financial problems in the future by offering debt management classes or seminars. They do not erase your debt. Instead they work with you to budget money so that you can pay off the debt often times by debt consolidation. Collection will continue while using a credit counselor, however, in most cases companies who are owed money will try and work with you to help you payoff your loans. Credit counseling services often help you to reestablish credit after the loans are paid.

Bankruptcy is very different. It will completely clear your debt in most cases and you will no longer be hassled by collection agencies and their attorneys. There are two kinds of bankruptcy; the one that is right for you will depend on your situation. When filing Chapter 13 bankruptcy you are able to keep property that is mortgaged such as your house or car and are expected to repay debts in three to five years. Under Chapter 7 bankruptcy, you must give up all property and assets that you own. There are exceptions in some states for items such as work tools and household furnishings. Bankruptcy will certainly clear your debts and stop foreclosures and wage garnishments, however, you will be unable to establish credit for up to ten years. Filing bankruptcy can also be very expensive compared to credit counseling.

Take time and research credit counseling very carefully before deciding on bankruptcy as it can save your credit in the long run. Most people feel much better about themselves when they can pay off their debt and become educated about how to stay out of debt rather than filing bankruptcy.