"I struggled so hard to buy my home for me and my children and thought I got a good deal on a loan. But then I found out that the loan amount was going to go up each month. I wasn't able to afford the new payments. I had gotten a new job after being laid off, but my new job didn't pay as much as the old one. I was really figuring that I was in trouble. I wanted to save my home from foreclosure, but didn't know how. I called 1st Foreclosure Prevention and they treated me with compassion and respect. They knew all about the law, too, and how to stop foreclosure. They gave me a totally free foreclosure evaluation and explained all my options to me. Because of them, I was able to save my home from foreclosure."
"It seemed that every home in our block was up for foreclosure and we didn't think we had any way out. We knew that we owed more on the house than it was worth and were very tempted to just let the foreclosure process play out. Then my husband found out about foreclosure help from 1st Foreclosure Prevention. We contacted them and found that we could get out of the house without having to endure the foreclosure process. This company presented us with options that we didn't even know existed. Not only that, but we're glad we didn't go through the foreclosure process because my husband lost his job, got a new one and the employer did a credit check! This company really helped us out."
"The foreclosure process is a nightmare and I never wanted to go through with it. But I really didn't think that there was anything else that I could do. I tried calling the bank, begging them to help me modify my loan and got nowhere. I finally contacted 1st Foreclosure Prevention and they were able to modify my loan within a matter of weeks! I guess that they are better at negotiating than I am. It was really easy on my part, too, as I didn't have to worry about anything except getting them the right paperwork. They were really nice, helpful and helped to stop foreclosure."
"When we found out that our house was worth a lot less than what we paid for it, we were pretty upset. We thought we had made an investment when we purchased our property, but as it turns out, it was a poor investment. We wanted to get out of the house but couldn't even sell it. We thought about just giving it to the bank, but they didn't want it. We had no idea what to do, but then I found out about 1st Foreclosure Prevention. They were able to give us the foreclosure help that we needed and even helped us with the short sale process. We were able to walk away from a bad investment with hardly any damage to our credit thanks to them."
"We were struggling every month to try to pay our mortgage and kept falling further and further behind on everything else. The place was a mess because we didn't have the money to fix it up, but we didn't think we could sell it because of the state of disrepair. My wife and I were like hamsters on a wheel, just trying to get through each day to make payments on a house we grew to dislike. But we knew that foreclosure would destroy our credit, so we held on. Then we found out about 1st Foreclosure Prevention. They were able to give us foreclosure help and even helped us with the sale of our home. We got to walk away from that mess and have started a new life, without a foreclosure on our credit report."
"We were in way over our heads with our property. We bought it high and when the market crashed, we were upside down with our mortgage. We were about to file for a bankruptcy when we found out about 1st Foreclosure Prevention online. We decided that at this point, we had nothing left to lose. We were already resigned that we were going to probably lose our home anyway and our credit would be shot. We are so happy that we called for a free foreclosure consultation from 1st Foreclosure Prevention and got the foreclosure help that we needed. We did not have to file bankruptcy and the loss mitigation experts were able to work out a deal with our bank. Now our credit is back to where it was before we bought the property - thanks to this company."
Home / Foreclosure FAQs
1st Foreclosure Prevention – FAQ’s
Answers
What is a foreclosure?Top
A mortgage is a lien against your property that is used to secure your property in case you default on your agreement. When you obtain your mortgage, you agree to pay back a certain sum to the lender regularly. If you do not pay, you have defaulted on that agreement and the lender can then move to foreclose upon your property.
In some states, the lender does not even have to go through the court system to foreclose. However, either way the lender will be selling the property to recoup their loss. This means that you are basically having your house sold to pay back what you owe on your mortgage. After the foreclosure sale, you will most likely be evicted by the sheriff if you continue to remain in the house.
In some states, the lender does not even have to go through the court system to foreclose. However, either way the lender will be selling the property to recoup their loss. This means that you are basically having your house sold to pay back what you owe on your mortgage. After the foreclosure sale, you will most likely be evicted by the sheriff if you continue to remain in the house.
Who can foreclose on me?Top
Anytime you get a loan that is secured by your property, the lien holder can foreclose by enforcing the lien be cleared up. This means that even if you have a second mortgage, that lender can foreclose on you. In most cases, the primary lender is the one who initiates foreclosure proceedings.
How long do I have to act before I stop foreclosure?Top
That depends on where you live and the laws of your state. In some states, where the lender can move forward with the foreclosure sale without having to go through the court system, it can take as little as 2 months before your house is sold and you have to leave. You should act as soon as there is a problem by contacting our office so that we can give you a free foreclosure evaluation.
What are my options to stop foreclosure?Top
The first thing that you can do is to try to work it out with your lender and see if you can come up with a solution. Unfortunately, most lending companies are not staffed properly and you may find yourself hitting a dead end. Other options include loan modification, a forbearance, a refinance, a Deed in Lieu of foreclosure and the short sale. Bankruptcy is also an option, although it rarely saves your home and will destroy your credit. When taking a look at your options to stop foreclosure, you should look at those that will have the least negative impact on you and your family as possible and those that you can afford.
I’ve tried to work it out with my lender and they want everything - what do I do?Top
This is not surprising. Many people think that they can just talk to their lender and that they can solve the problem. In most cases, they are not speaking to a decision maker and in the meantime, when they think that their problem is being solved, the real power behind the lender is hiring an attorney to initiate foreclosure proceedings. The sooner that you seek out foreclosure help from a loss mitigation firm like 1st Foreclosure Prevention, the better your chances to stop foreclosure.
How can 1st Foreclosure Prevention help me stop foreclosure?Top
1st Foreclosure Prevention works with you and negotiates with your lender on your behalf. We can offer you loss mitigation solutions that can help stop foreclosure and in many cases, save your home. We go over the situation with you, take a look at your mortgage documents and current situation. We also evaluate the value of your home. All of this must be considered to come up with a viable solution to stop foreclosure. Then we present you with your options. There is no charge for us giving you this detailed analysis of your case. As every case is different, as are the laws in each state, there are different solutions that may be applicable. We will work with you and your lender to make sure that the foreclosure help you receive has the least negative impact on you and your family.
What can loss mitigation do for me?Top
Loss mitigation is when you try to minimize a loss and can entail either a loan modification, a Deed in Lieu of Foreclosure or a short sale. What loss mitigation does for you is to work out the difficulties with your lender so that you are either off the hook for the amount of the money that you owe on your loan and can start a fresh life or you have different arrangements to pay your mortgage. Loss mitigation strives to prevent foreclosure and bankruptcy as these both have a very negative impact on your credit.
How much can a loan modification save me?Top
If you qualify for a loan modification, you can often save up to 50 percent on your home payments. This may or may not be an option for you. Much depends on your current economic situation, the value of your home and whether you want to just move on and away from the loan. In some cases, a loan modification is the answer to save your home from foreclosure. It works out an arrangement with the lender to freeze the current mortgage so that no foreclosure can proceed and then comes up with a new plan, usually lowering the interest rate and extending the mortgage term for about 10 to 20 years so that the payments can be lowered even more.
Will a loan modification harm my credit?Top
A loan modification will not reflect on your credit report. If we are asking your lender to reduce the monthly payment, the interest rate, and extend the term of your loan, it is counterintuitive to continue making your monthly mortgage payments until the loan modification is complete. Depending on your lender, late mortgage payments may or may not report during the process. Late mortgage payments due to a loan modification can be removed from your credit report by providing proof of the loan modification document to your lender(s) or by using credit restoration services. Your loss mitigation specialist can help you understand this. You should consider a loan modification if you are planning on staying in your home for awhile.
Does loan modification require a certain credit score?Top
No. Many people who opt for loan modification programs have a lowered credit score because of being late on their mortgage. You can opt for a loan modification program through loss mitigation firms with a low credit score as there are secondary markets that make sub-prime loans for those with low credit scores that can help you. In most cases, your lender will be aware of your credit score and will be seeking to recoup their money and avoid foreclosure, so the credit score will not affect the loan modification.
If I am already late, can I still get loan modification?Top
Yes, this is the best time to seek loan modification. Some mortgage companies will not discuss a loan modification until the borrower is behind on their mortgage. However, if you have a situation where you have lost your job or have met with some other catastrophic event, you should seek foreclosure help through loss mitigation experts right away. The general rule of thumb is that the sooner you act, the sooner we can help you stop foreclosure and the more options you will have.
I lost my job - can I still get foreclosure help?Top
This is a good time to get a free foreclosure evaluation. If you feel that you are going to be having problems paying your mortgage, the best thing that you can do is to know your options before you get to the point where you are being foreclosed upon. You should seek foreclosure help if you lose your job or meet with any other unfortunate incident that may prevent you from making your mortgage payments and can lead to foreclosure. If you lose your job and the savings are dwindling, this is the perfect time to get foreclosure help from loss mitigation experts.
I owe more than my property is worth - can I still get foreclosure help?Top
Yes. Unfortunately, you are not alone. There are many people, across the country, who owe more than their home is worth. This is a situation that has affected just about every place in the United States. Fortunately, we are aware of this type of situation and understand options that can help you. In many cases, you may wish to just stop foreclosure from happening but want to walk away from the bad debt. We can help you by evaluating your case, the value of your home and seeking a way that you can either stay in your home and stop foreclosure or can sell the home and get the lender to take less, allowing you to start fresh somewhere else.
What is a Deed-in-Lieu of foreclosure?Top
A Deed in Lieu of foreclosure can be used in some instances to basically turn the property over to the bank to stop foreclosure. This is done as a way to save you from going through the foreclosure process. It also helps the lender out as they do not desire the foreclosure process any more than you do. However, the Deed-In-Lieu of foreclosure is not available in all circumstances. When you get a free foreclosure consultation from our loss mitigation specialists, we can help you decide if this is the right option for you to stop foreclosure.
What is a Foreclosure Forbearance?Top
A Foreclosure Forbearance allows for the mortgage payments to be reduced for a short period of time. In some cases, the payments can be stopped for a couple of months, giving you a chance to get back on your feet and save your home from foreclosure. In many cases, this can be a good option for you, especially if you are selling your property and wish to avoid foreclosure. Loss mitigation specialists can help you get a foreclosure forbearance.
However, this option is not always right for you. It just staves off the debt, does not eliminate it or reduce it and can negatively impact your credit.
However, this option is not always right for you. It just staves off the debt, does not eliminate it or reduce it and can negatively impact your credit.
Shouldn’t I just refinance?Top
Many people seek to refinance when they run into mortgage problems in an effort to stop foreclosure and save their home. However, in many cases this is the wrong move as it only drags out the inevitable. A refinance is an option if you feel that you are going to be in a better financial situation soon so that you will be able to pay off your debt. In many cases, you are better off to start fresh. People often think that things will get better, only to find that the taxes go up or some other financial problem occurs. Loss mitigation firms will be able to advise you on refinance and if it is right in your case.
What is a Notice of Default?Top
A Notice of Default is sent out by your mortgage company to initiate foreclosure proceedings. This is usually the first requirement that the lender has to perform in order to foreclose upon your property. A Notice of Default is a legal document and is also public record. It is recorded against your property. If you receive a Notice of Default, you have no time to lose and should contact us right away so that we can help you before foreclosure proceedings are final. In some states, the lender does not have to go through the court system to obtain a foreclosure and you can be forced out of your house within a couple of months after receiving a Notice of Default.
How much time do I have to act after receiving a Notice of Default?Top
This depends on where you live. Foreclosure laws differ from state to state. Some states require that the lender go through the court system. Others allow for a non-judicial foreclosure that basically begins the sale proceedings without having to go to court. Every state is different and each county operates differently as well, depending on their caseload. In order to find out how much time, you need to get a free foreclosure consultation as soon as possible. This can inform you of how much time, in your state and county, you have before you have to get out of your house. You can still stop foreclosure at this point, but you have to act right away.
What is a deficiency judgment?Top
A deficiency judgment is allowed in some states against a borrower who has been foreclosed upon. After the sale of your property through a public auction due to foreclosure, the amount of money received by the lender for the sale may not cover the debt that you owe. Then the lender, in some cases, can go back to court and get a deficiency judgment for the difference between the amount of your mortgage and the sale price. In some states, they can add legal fees and court costs to the deficiency judgment as well as interest. This cannot be discharged in a Chapter 7 bankruptcy and is something that you wish to avoid. In order to find out if your state allows deficiency judgments, contact our loss mitigation specialists. Your free foreclosure evaluation will tell you whether or not your lender can pursue a deficiency judgment against you.
Will I get money back if the house is foreclosed upon?Top
Equity is the amount of money between what your home sells for and what you owe. If you owe $100,000 on a home that is worth $150,000, you may think that you will receive $50,000 when the bank forecloses upon it and figure to let them just take it - after all, you will still come away with some money, right? Wrong. In most cases, the property sells for a fraction of the worth in public foreclosure auctions, you will be responsible for late fees as well as interest which tend to dissipate your equity and in some cases, you may even be responsible for legal fees. You may find out that you actually owe money instead of getting money back if you go through a foreclosure. Loss mitigation agencies can help stop foreclosure and stop this from happening to you.
How long do I have before I have to move out?Top
If you have been foreclosed upon, the time that you have before you have to move out varies state to state, county to county. Chances are that after the foreclosure sale has been completed, eviction proceedings will commence and you will have about 30 days to get out of your house. You do not want to go this route. Not only is your credit destroyed, but in some cases you may be liable for any damage, eviction costs and legal fees incurred in this procedure. Seek foreclosure help to stop foreclosure and eviction from happening to you and your family.
Can your loss mitigation help my credit score?Top
We can help you stop foreclosure, which will help your credit score. A foreclosure negatively impacts your credit score and stays on your credit report for 7 years. A bankruptcy pretty much destroys your credit score and stays on your credit report for 10 years. The foreclosure prevention options that we offer can help minimize the impact on your credit score. In some cases, we can give you a fresh start, free from the mortgage burden without foreclosure and with a paid debt that will help your credit score.
Can I get another mortgage sometime down the road?Top
If you choose to stop foreclosure through loss mitigation firms, you will be getting advice on how to stop foreclosure that will negatively impact your credit score. A foreclosure is devastating to your credit and so is bankruptcy. Both can prevent you from getting a mortgage down the road. If you choose loss mitigation to stop foreclosure, you can get back on your feet and be able to get another mortgage shortly down the road as this reflects as a paid debt on your credit report.
What is a short sale?Top
A short sale is one loss mitigation option that many people are finding can help them stop foreclosure and get them away from a bad situation - such as a house that they cannot afford. The loss mitigation specialists work with a team, including your lender, to arrange for the lender to take less than the home is worth to satisfy your debt. A short sale combines a team of realtors, investors and loss mitigation experts to get you out of your mortgage and sell your property without having to go through foreclosure. This is often the best way to stop foreclosure and get a new start on life with as little impact to your credit score as possible. The debt shows up on your credit report as a satisfied debt and you can walk away from the problem without having to go through a foreclosure or a bankruptcy.
How can a Short Sale help me?Top
If you are in a bind with your mortgage and want the opportunity to get a fresh start in life, the short sale is the ideal loss mitigation tool for you. It can help you get out of your bad debt and get off to a new beginning. Because we work for you in negotiating the sale with the lender as well as with the real estate agents and investors, you not only get out of a bad situation and stop foreclosure, but this also reduces the stress that going through foreclosure can bring you. And as the debt will be reflected as a paid debt on your credit report, it gives you options for the future and does not destroy your credit.
Should I negotiate with the lender myself?Top
You can try to do this, but unfortunately, the mortgage companies are very understaffed and you will have a difficult time trying to find someone who can truly help you with this situation. Negotiating with the lender yourself may seem like a good idea, but chances are that you will not be discussing the situation with someone who is in the right department. You may be talking to a customer service representative who not only does not understand about short sales or loss mitigation, but may just be holding you off, trying to collect debt, while the foreclosure department is busy initiating legal proceedings against you. You may end wasting valuable time when you try to negotiate with the lender on your own. This is why you hire a loss mitigation agency. At 1st Foreclosure Prevention, we know who to contact and how to help with your situation to stop foreclosure. Time is truly of the essence when it comes to stopping the foreclosure process so you cannot afford to waste time by talking to the wrong people.
How long does it take for you to help after papers are signed?Top
This depends upon your situation as well as the negotiation proceedings that are done with your lender. Much depends on the lender, the foreclosure laws of your state and how much you owe on your property versus what it is worth. It can take anywhere from a few weeks to a couple of months. But during this time, you are receiving foreclosure help. This is why it is so important to get a free foreclosure consultation as soon as possible so that you can get the foreclosure help you need right away.
Why would a lender take less than is due?Top
The number of foreclosures in the United States is higher than it has ever been. Many lenders are willing to write off debt rather than go through the foreclosure process where they are pretty much guaranteed to take a loss, anyway. The lender would rather get the bad debt off their books than have yet another foreclosure added to them that will most likely sell for a fraction of the price at the foreclosure auction. This also saves them on legal fees and court costs which, in some states, cannot be recouped.
Will I have to pay taxes with the Short Sale?Top
We will work to negotiate a Short Sale in a way that even some seller’s taxes can be picked up by the investor. This also works for past due real estate taxes as well. The package that we offer you will usually get you out of debt, stop foreclosure and allow you to walk away from your home without having to pay more money towards your home. The sooner you get a free foreclosure evaluation, the sooner we can help you stop foreclosure and minimize your losses.
What other things can I be liable for after the Short Sale?Top
In some states, you may be liable for a deficiency judgment in which the lender can go after you for the difference between the sale price and what you owe. But we work with the lender to get them to agree not to pursue a deficiency judgment in most cases. Each case is different - our goal is to help you stop foreclosure and allow you to walk away without incurring more debt or any additional problems with your credit score.
What do I have to do to get the Short Sale?Top
Contact our loss mitigation team and we can help you with the short sale process. We will give you a free foreclosure evaluation that can determine if the short sale process is right for you. We can also give you other options that can stop foreclosure. The sooner you contact us, the better your options for going through with the short sale or other loss mitigation that can help you stop foreclosure or the foreclosure process. We take care of all of the legwork, such as negotiating with the lender and filing forms and papers. We even work with the agent and the investor on your behalf.
How long does the Short Sale process take?Top
It can take a couple of months to complete this process. Generally, the sooner that you act to stop foreclosure, the better off you are. The process takes longer in some states and with some lending companies. In order to get a rough idea on how long the short sale process will take for you, contact our loss mitigation specialists for a free foreclosure consultation.
What are the roles of the realtor and investor in the Short Sale and how can I find them?Top
One of the best aspects about working with 1st Foreclosure Prevention is that you do not have to worry about finding a realtor or an investor. We will deal with them on your behalf. The realtor will help facilitate the sale of the house and the investor is the person or company that is buying the house. We will work with both parties in addition to your lender on your behalf so that you come away from the short sale with as little negative impact on your credit and your finances as possible.
How does the short sale affect my credit score?Top
The short sale shows up as a paid debt on your credit report so in itself does not adversely affect your credit score at all. If you have been behind in your mortgage payments, your credit score will suffer, but the paid debt will be a plus, not a minus. This is in sharp contrast to the negative effect that a foreclosure or bankruptcy has on your credit score.
I am in bankruptcy - can I still proceed with the short sale?Top
It depends on if a judgment has been issued by the bankruptcy court in your case. Talk to our loss mitigation experts to get more information. You can get a free foreclosure evaluation and find out if the short sale will work in your particular case, or may get other options that can stop foreclosure and bankruptcy. Give us a call.
Do I need a special mortgage for your foreclosure help?Top
Most mortgages are secured by either a Mortgage or Deed of Trust. Some are FHA loans that are backed up by the Federal Housing Authority or VA loans that are backed up by the Veteran’s Administration. We can help with all types of loans and mortgages. You do not need a special mortgage to get foreclosure help from 1st Foreclosure Prevention.
Should I file bankruptcy to save my home?Top
This should be the last thing that you think about. While bankruptcy attorneys will be eager to get you to file bankruptcy, you should understand that in most cases, it does not save your home from foreclosure. Most people end up losing their homes anyway. And Chapter 7 bankruptcy, which is debt forgiveness, is not available when it comes to consolidating debt. You would have to file a Chapter 13 bankruptcy which basically consolidates your debt and makes you pay anyway. Meanwhile, your credit is ruined for 10 years. You can stop foreclosure without filing bankruptcy - why would you want to do anything that will negatively impact you for 10 years?
I am in bankruptcy, can you still help stop foreclosure?Top
As long as there has been no judgment issued, we can still help you stop foreclosure. Bankruptcy proceedings can be halted before a judgment is issued from the court. If you are in this process and want foreclosure help, contact us right away and we will give you a free foreclosure consultation on how we can help you stop foreclosure and even bankruptcy.
What makes 1st Foreclosure Prevention different from other loss mitigation companies?Top
At 1st Foreclosure Prevention, our goal is to help you stop foreclosure with as little negative impact as possible. We understand the foreclosure laws in every state and what can be done to stop foreclosure. We give you a free foreclosure evaluation and consultation, making sure that we can provide you with the foreclosure help that is right for you.
Unlike some foreclosure prevention companies that are only interested in obtaining a fee or getting a sale, we realize the impact that each option can have on you. Some companies, when facilitating the short sale, will not discuss the deficiency judgment and you may find yourself owing more money after the sale is completed. We do not operate that way. We work with the lender to get them to not only stop foreclosure, but also to eliminate deficiency judgments. We work for you, on your behalf, to help you through these tough times and see that you are presented with the best foreclosure help options available to you.
How much do you charge?Top
We do not charge anything for a full foreclosure evaluation. Our loss mitigation experts will examine your unique case, the foreclosure laws and foreclosure process in your state and come up with viable solutions for you to stop foreclosure. The fee that is then charged depends upon the type of foreclosure help that you need. In some cases, our fee can be paid by investors who buy your property in a short sale. You should take advantage of our free foreclosure consultation at any rate to find out the best options that are available to you. There is no cost or obligation to do this and we will give you expert advice on how to stop foreclosure.
Which states does 1st Foreclosure Prevention service?Top
Our loss mitigation company, 1st Foreclosure Prevention, provides services for all 50 states in the United States as well as the District of Columbia. No matter where you live in the US, you can get foreclosure help by seeking out a free foreclosure evaluation from 1st Foreclosure Prevention.
