FHASecure is an initiative that enables homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently “reset.” It is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market.

The program allows homeowners to refinance even though they have become delinquent due to the increased mortgage payment following the reset. For homeowners who have demonstrated their ability to meet their mortgage obligations, this program permits them to refinance into a prime-rate, FHA- insured mortgage. In many cases, homeowners may be permitted to include mortgage payment arrearages into the new loan amount, subject to existing geographical statutory mortgage limits and FHA loan-to-value limits.

The FHASecure initiative, requires that the loan application be signed no later than December 31, 2008

Homeowners eligible for refinance under FHASecure

The mortgage being refinanced must be a non-FHA ARM with or without an interest-only feature. Homeowners current mortgage must be serviced by Wells Fargo in order for me to assist them. If the homeowners current mortgage is with another lender they can contact their lender  to find out if they qualify for the FHAsecure.

If the existing mortgage is one of the following, it is not eligible for FHASecure:

 • Conventional Fixed Rate Loans (including fixed rate interest only)

• Payment Option ARMs

 • VA loans

• FHA loans

The requirements for eligibility are as follows:

• The mortgage being refinanced must be a non-FHA ARM that has reset.

•The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments. The homeowner’s mortgage payment history during the six months prior to the reset showed no instances of making mortgage payments outside the month due.

• If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments. See Maximum Loan Calculation later in this section.

• Under certain conditions explained below, FHA will insure first mortgages where the: o existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or o borrower obtains a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits.

 

I can provide assistance in all 50 states. If you are a homeowner or know of a homeowner that would need my assistance please give me call or shot me an email.

 

Sound Investments Group said it has created a solution to help aid home owners in foreclosure. They said they now have a website called Atlantacashoffer.com that would allow homeowners to get a cash offer on their home in order to prevent them from foreclosure.  Their website provides three solutions in getting the homeowner cash offer.

 Their solution are as follows:

              1) The first solution is make sure all your options are exasted and their absolutely isn’t another solution to help you keep your home.

              2) They’ll find professional investors who will make an all cash offer on your home  and close on your home in a matter of days.

              3) They have hand selected top selling realtors throughout the georgia area that have buyers who has purchased properties from them a monthly basis.

           

This company has become one of Atlanta’s number one foreclosure prevention company.

“We’re focused on helping homeowners salvage their credit, and this is an important milestone and validation for us,” said Will, Sound investments founder and general partner.

Sound Investments specific areas of focus include consulting homeowner on their options on keeping their home, credit restoration, real estate marketing. Sound investments has assisted hundreds of homeowners on solutions for prevent foreclosure. You don’t have to foreclose!

Sound Investments is currently providing a free consultation to homeowners looking for solutions to prevent foreclosure, as well as helping them reestablish their credit.

Will said he’s overly concerned about the homeowners losing their homes. He said his commitment to each homeowner is to find a solution to help salvage their credit. Your credit score: Those three little numbers can have a six-digit impact on your life

http://Atlantacashoffer.com

Acceleration Clause — A provision that allows the lender to demand the entire balance of the mortgage loan when the borrower fails to make some installment payments.

Affidavit — A written statement, usually given while under oath or in the presence of a notary.

Appraisal — The process by which a licensed person gives an estimate of property value.

Annual Percentage Rate (APR) — The annual interest rate covering the interest and other costs. The Truth in Lending Act requires announcement of APR by lenders.

Assignment — The transfer of property to be held in trust or to be used for the benefit of the creditors (lenders).

Balloon Payment — Large installment payment required at the end of the term of the mortgage note to pay off the entire mortgage balance.

Bid — The amount for a foreclosed property for sale at auction.

Clear Title — A title that is not burdened with encumbrances or defects.

Credit Bid — A bid on behalf of the lender at a foreclosure sale. The bid amount must be less than or equal to the balance of the loan in default.

Decree — A judicial decision.

Deed — A signed document that shows ownership in property and allows the transfer ownership of property from one party to another.

Deed In Lieu of Foreclosure — A voluntary transfer of title by the borrower to the mortgage company to avoid foreclosure action.

Deed of Trust — An instrument signed by a borrower, lender and trustee that conveys the legal title to real property as security for the repayment of a loan. The written instrument in place of mortgage in some states.

Default — A mortgage is in default when the borrower fails to make the payments as agreed to in the original promissory note.

Deficiency Balance — A judgment against the borrower for the balance remaining after the property is sold at auction or foreclosure sale.

Encumbrance — Mortgage, lien, tax, or any restriction on the use of land.

Equity — The value of real estate less the outstanding mortgages and debts pledged against the property.

Fair Market Value — The price a property would sell for on the market.

Fee Simple — Common term used to indicate complete legal ownership of a property.

FHA — Federal Housing Administration under U.S. Department of Housing and Urban Development (HUD).

Foreclosure — Legal action taken by the lender when the borrower fails to pay monthly installments.

Grace Period — Period between the due and the overdue date during which no late payment penalty applies to the mortgage payment.

Hazard Insurance — Insurance against the destruction of the property.

Judicial Foreclosure — A foreclosure that is processed by a court action.

Legal Description — A formal description of real property so that one can locate it by reference to government surveys or approved recorded maps.

Lien — A claim, or mortgage, on real estate for payment of debt.

Lis Pendens — Pending lawsuit.

Mortgage — A written pledge that uses real estate to secure repayment of a loan.

Non-judicial Foreclosure — The right to sell real estate without a court decree as allowed in some states.

Notice of Sale — A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where property is located and advertised as stated in the security document or as dictated by state law.

Posting — To publish, announce or advertise by physically attaching a notice to an object.

Postponement — Postponement means to put off to a later time. In the case of a foreclosure sale, this is generally done by announcement at the original sale or by posting notices establishing the new date and time the foreclosure sale will take place.

Refinance — Paying off one mortgage loan by obtaining a new mortgage loan.

Right of Redemption — A borrower’s right to reacquire property lost due to a foreclosure. This right allows the owner to recover property lost to a foreclosure judgment, or sold after a foreclosure sale, within a certain period of time. The redemption period varies among the states.

Request for Notice — A recorded document requiring a trustee send a copy of a Notice of Default or Notice of Sale concerning a specific deed of trust in foreclosure to the person who filed the document.

Subject To — The purchase of property with an existing lien against the title without assuming any personal liability for the liens payment.

Title — A deed showing ownership to real estate.

Trustee — A neutral party who advertises the foreclosure property for sale and conducts the auction to sell the property to the highest bidder.

Trustee Sale or Sheriff Sale — An auction of real property conducted by a trustee. Also referred to as a Sheriff’s Sale.

-  Judicial Foreclosure Available: Yes

-  Non-Judicial Foreclosure Available: Yes

-  Primary Security Instruments: Deed of Trust, Mortgage

-  Timeline: Typically 90 days

-  Right of Redemption: Yes

-  Deficiency Judgments Allowed: Yes

In Georgia, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of

sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

A foreclosure notice must be mailed by certified mail, return receipt requested to the borrower no later than 15 days prior to the date of the foreclosure sale. The time period begins the day the letter is postmarked. The notice must be mailed to the address given to the lender by written notice from the borrower. No waiver or release of the rights to notice is valid if it was signed at the same time as the original documents.

The notice must be published in a newspaper of general circulation in the county where the sale will be held once a week for four (4) weeks proceeding the date of the foreclosure sale.

The sale must be made by public auction on the first Tuesday of the month between 10:00 am and 4:00 p.m. at the courthouse.

Lenders may seek a deficiency judgment in Georgia

<a href=”http://www.foreclosurelaw.org” mce_href=”http://www.foreclosurelaw.org”>Foreclosure Summary copyright, © ForeclosureLaw.org</a>

-  Judicial Foreclosure Available: Yes

-  Non-Judicial Foreclosure Available: Yes

-  Primary Security Instruments: Deed of Trust, Mortgage

-  Timeline: Typically 90 days

-  Right of Redemption: Yes

-  Deficiency Judgments Allowed: Yes

In Georgia, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of

sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

A foreclosure notice must be mailed by certified mail, return receipt requested to the borrower no later than 15 days prior to the date of the foreclosure sale. The time period begins the day the letter is postmarked. The notice must be mailed to the address given to the lender by written notice from the borrower. No waiver or release of the rights to notice is valid if it was signed at the same time as the original documents.

The notice must be published in a newspaper of general circulation in the county where the sale will be held once a week for four (4) weeks proceeding the date of the foreclosure sale.

The sale must be made by public auction on the first Tuesday of the month between 10:00 am and 4:00 p.m. at the courthouse.

Lenders may seek a deficiency judgment in Georgia

The foreclosure process may differ depending upon your state. Generally, the downward spiral into foreclosure begins when your loan payment becomes 16 days overdue. At that point, your mortgage lender may try to contact you to work out a repayment schedule to bring your loan current. If your mortgage payment becomes 30 days late and the next month’s payment looks suspect, the collection calls will come on a regular basis. If your payments fall 90 days behind, the mortgage company will likely refer your mortgage to an attorney that will start formal foreclosure proceedings.

Again, the foreclosure process varies by state, and the best source of information about how the foreclosure process might proceed in your case is a local attorney. Generally, the lender must serve a notice of default on the homeowner after a certain time period from when the payment becomes past due. This time period varies by state. The notice will give the homeowner a time period and an amount necessary to be paid in order to “cure” the default and avoid foreclosure. If the homeowners cannot pay the delinquency and costs of foreclosure within this time, then the lender will set a foreclosure sale date. The lender will then sell the property at public auction. If the sale price isn’t enough to cover the outstanding debt and costs associated with the sale, the mortgage lender can and probably will pursue a deficiency judgment-a court order requiring you to pay the remaining balance to the lender.

The property may be “redeemed” by the homeowner by paying all delinquencies and costs, up to the time of sale and in some states, for a period after sale. This redemption period varies by state. The law in most states gives the homeowner every opportunity to stop the foreclosure process. As a matter of fact, homeowners have options right up to the minute that the auctioneer’s gavel comes down.

Some of the most common options include refinancing to roll in past-due payments and “start fresh” with your mortgage debt, a debt workout plan, or Chapter 13 bankruptcy. Many people facing foreclosure find that Chapter 13 bankruptcy removes the immediate threat of foreclosure and allows them to catch up past due mortgage payments over time. If you’re facing foreclosure, use this website to learn about your options, and then contact a professional who can help you determine the next steps toward saving your home.

Foreclosure is a legal process by which a mortgage lender takes away a borrower’s right to own his property. The lender proceeds to sell the property at a public auction only when the borrower falls behind on loan payments thereby being unable to follow the terms and conditions of the loan agreement.

The lender starts the proceedings depending upon the terms and conditions on the loan agreement, the note and the mortgage that you signed at loan settlement. There are loans having acceleration clause which allows the lender to call the loan due earlier. Otherwise, whenever a loan is around 150 days past due, the lender files foreclosure. Even after the filing is over, the borrower can occupy the property till the date of sale.

How long can borrower occupy property after the sale?

After the sale is over, the new owner may send a 3-day notice to the borrower so that he quits the property. In case, the borrower does not move out, the new owner may file an eviction lawsuit against him. As per the orders of the local Sheriff, the borrower has to leave the property with or without personal items within a month depending upon the state laws.

Does the borrower pay for deficiency?

If the lender is unable to recover the unpaid loan balance, the borrower has to pay for the deficiency between the unpaid debt and the sale price. However, some states have anti-deficiency laws according to which a borrower need not pay the deficiency if the loan is a Purchase money taken for buying a property which is his primary residence. Such laws are inapplicable on second mortgages and properties which are not used as the borrower’s primary residence.

Can borrower get back property after the sale?

The borrower has the right to save or repossess his property even after the sale. This can be done by paying the purchaser the amount at which he bought the property along with the interest accrued from the time of sale. But a lot depends on whether the purchaser is willing to sell off the property. However, the borrower can occupy the property as a tenant if the purchaser is willing to rent out his home.

What are the effects of foreclosure?

The process helps to wipe out all subordinate liens. If the subordinate lien holders want to recover their interest, they need to bid for the property at the foreclosure sale. They also have the chance to redeem the property by paying the lender the required amount after the sale is over.

As far as borrowers are concerned, they’ll have an unfavorable credit rating on their credit report for about 7 years from the foreclosure sale. Hence, they may not be able to qualify for home loans within a few years and even if lenders are willing to sign a deal with such borrowers, they are likely to charge high interest rates of interest.

A common way to avoid your property being taken away by the lender on account of non-payment of your mortgage is a deed-in-lieu of foreclosure.

Deed-in-lieu is a process in which the borrower failing to satisfy the loan obligation hands over his property to the lender. The lender may then sell the property in order to retrieve a part or whole of the amount borrowed from the sale proceeds.
What is the process all about?
The process involves the signing of legal documents – the Agreement in Lieu of Foreclosure and a Warranty deed, quit claim deed or a grant deed. The first document reveals the terms and conditions of the deed-in-lieu, and is signed by both the lender and borrower. The second document, which is the deed, conveys legal ownership of the property to the lender.

The lender marks the borrower’s note as “paid” and provides the latter with two forms – one which states that the debt is canceled and the other which refers to the waiver of the right to a deficiency judgment (the lender’s right to ask for the unpaid debt amount if it is not recovered totally by the property-sale).

The agreement for deed-in-lieu is executed through an escrow company which receives the borrower’s note (marked as “paid”) from the lender. The escrow then records the deed used for transferring legal ownership of the mortgaged property and sends the note to the borrower. The borrower is thus released from the liability of the mortgage payments.

Does a borrower need to pay tax in the process?
Once a borrower gets a release from the loan, he needs to pay the deed tax on account of the deed-in-lieu. In this process, if the lender cancels the debt, the deed tax is calculated on the basis of the unpaid loan amount along with any accrued interest which is forgiven. However, if the borrower goes for a deed-in-lieu and pays a certain amount towards the unpaid debt, the extra cash serves to reduce the amount of unpaid debt which is the basis of the deed tax.

It may happen, that the lender pays the borrower a certain sum of money in return for the deed-in-lieu when there is some equity in the property. In such a case, the cash offered to the borrower is added to the unpaid debt in order to determine the basis of the deed tax.

A deed-in-lieu may have a negative affect on a borrower’s credit report thereby lowering his score. Even then, it has certain advantages both for the borrower and for the lender. Most often, the borrower gets the chance to free himself from the indebtedness associated with the loan. And, at the same time, he can avoid foreclosure which has greater negative impact compared to a deed-in-lieu. The lender, on the other hand, can avoid spending his time and money in completing the foreclosure.