Spring Seasons Brings Out The Antsy Buyers, Here Is What To Expect From A Short Sale

Tuesday, February 26th, 2013

During the spring and summer months tend to be the busiest season for buying a home. The weather is warming up, homes landscaping begins to look new again and those who have children tend to move when they are out of school. For those who have been looking to buy a new property for some time now may want to know what to expect come a short sale.

You found a home you love, but it’s not your standard settlement process, that is why Charles Block real estate lawyers are here to guide buyers through unknown waters. When the mortgage of a home is in default and the current homeowners can’t pay, they use a short sale to avoid a foreclosure. If you happen to be looking to purchase a short sale you most likely want to pay less than what is due on the mortgage. In a real estate transaction such as a short sale, having an experience attorney by your side it important to push this process along a little faster.

By having an attorney represent you, it will make sure the buyers are not being taken advantage of and that they are paying a reasonable price come settlement. This process may take quite awhile due to the fact that the bank has to agree on the mortgage, which is most likely less than what is owed on the house.

Short sales have become more frequent in the economy today, so homeowner’s avoid foreclosure because it affects their credit. Charles Block real estate attorneys know the ins and outs of the market and will be able to help potential buyers when looking into a short sale to make sure they are getting a good deal, although there is the added paperwork. So when considering buying a short sale, be sure to have an experienced lawyer by your side this spring season.

Alternatives To Avoid Foreclosure

Thursday, September 6th, 2012

There are many options available to local residents facing foreclosure. The type of mortgage loan you have may determine what types of alternatives you may be eligible to pursue in order to avoid foreclosure. Keep in mind that it is important to contact your lender to discuss which alternatives you are eligible for, and which one is best for your situation.

Bring Your Payments Current (reinstatement)

Homeowners can reinstate a mortgage up to the day before a final foreclosure sale, and it doesn’t require lender approval. You may also pay your lender the full amount due, including all back payments, fines and fees.

Rent The Property

Renting the property is an option for homeowners who have mortgage payments low enough that a rental payment allows the loan to be paid. However, keep in mind that with rental properties, many expenses, taxes, insurance and landlord responsibilities are a factor, and rental income may not cover the full cost of ownership and maintenance.

Loan Modification

If you can make payments on your loan, but don’t have enough money to bring your account current, your lender may change the terms of your original loan to absorb your delinquent payments and make the payments more affordable. Your loan could also be permanently changed by adding the missed payments to the back end of the existing loan balance, lower the interest rate, make an adjustable rate fixed, or extend the number of years you have to repay your loan.


If you have enough equity in your home and your credit is still in good standing, you may be able to refinance an unaffordable loan and achieve lower payments.

Payment Plan (forbearance)

A forbearance agreement means you pay only a portion of your regular payment or no payment at all for a specific period of time based on your current financial situation. This temporary solution provides time to save money, pay off other bills, find employment or additional employment, or recover from injury or illness. At the end of the forbearance period, you begin making regular payments as well as an additional amount to pay off the past due amount.


In some situations and in some states bankruptcy stalls the foreclosure process and may allow you to live in your home and repay your lender under different terms.

HUD Partial Claim

If your loan is an FHA insured loan, your lender may be able to obtain a one time payment from the FHA Insurance Fund to bring your mortgage loan current with payments.

Ways to Avoid Foreclosure

Thursday, June 14th, 2012

The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.

Do not ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some options your lender might propose to you:

Time To Catch Up Your Payments:

Lenders might agree on forbearance. The lender will wait before taking legal action against you and let you work out a repayment plan that is affordable for you.

Forgiving A Payment:

Debt forgiveness is rare. It involves agreeing that you will be current after missing a payment and the lender waiving your obligation.

Spread Out The Missed Payments Over A Longer Term:

A repayment plan allows you to pay your missed payment over a few months to a year. For example, if your payment is $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up.

Changing The Terms Of Your Loan:

If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable.

Add The Back Payments To Your Loan Balance:

If you have sufficient equity and meet the lender’s lending guidelines you might be able to refinance. Here the lender might increase your loan balance to include the back payments and re-amortize the loan.

Make A Separate Loan To You:

During a partial claim borrowers who meet specific criteria can apply for another loan, which will pay back the missed payments.

Avoiding Foreclosure

Monday, February 6th, 2012

Foreclosure can happen to anybody in any financial income bracket. Also, it is not something that you should hide from because it never goes away.

There are many ways to avoid foreclosure but you must act on time. Once you miss your first payment it gets hard to catch up and becomes overwhelming

Foreclosure is when a Lending institution repossesses your home because of unpaid mortgage payments. The mortgage company does not typically begin the official foreclosure proceedings until you are 3-4 months past due. The duration of proceedings depends on your State’s Foreclosure laws.

The Obama Administration has put a number of programs in place to help homeowners who are at risk of foreclosure and struggling to make their monthly mortgage payments. Homeowners are encouraged to contact their lenders and loan servicers directly to inquire about foreclosure prevention options available to them.

Programs to Help Homeowners Avoid Foreclosure Include:

.The Making Home Affordable © (MHA) Program: helps homeowners avoid foreclosure, helps stabilize the country’s housing market, and also helps improve the nation’s economy. Homeowners have the opportunity to lower their monthly mortgage payments and obtain a loan at a lower rate. There are also choices available for unemployed homeowners and homeowners who owe more than their homes are worth.

.Home Affordable Modification Program (HAMP): lowers a homeowner’s monthly mortgage payment to 31 percent of their verified monthly gross (pre-tax) income. The HAMP modification usually results in a 40 percent drop in their monthly mortgage payment.

.Principal Reduction Alternative (PRA): was designed to help homeowners whose homes are worth less than they owe, by encouraging servicers and investors to reduce the amount you owe on your home.

.Second Lien Modification Program (2MP):  this program was designed for homeowners whose first mortgage was modified under HAMP SM and they have a second mortgage on the same property. The homeowner might be eligible for a modification or principal reduction on their second mortgage under 2MP.

.Home Affordable Refinance Program (HARP): is designed to help homeowners who are current on their mortgage but have been able to refinance because the value of their home has declined.

.Home Affordable Unemployment Program (UP): designed for individuals who are unemployed and are having a tough time making their mortgage payments. The program provides a temporary reduction or suspension on your mortgage payments for at least twelve months while you seek re-employment.

.FHA Forbearance for Unemployed Homeowners: Federal Housing Administration (FHA) requirements now require servicers to prolong the forbearance period for unemployed homeowners to 12 months. It also requires servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to twelve months also removing any upfront hurdles to make it easier for the unemployed borrowers to qualify.

.Home Affordable Foreclosure Alternatives (HAFA): If your mortgage payment is unaffordable and you wish to transition into more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA SM.