I Can’t Afford an Attorney to Help Me Defend My Home From Mortgage Fraud

“A settled plan to deprive the people of the benefits, blessings, and ends of the contract, to subvert the fundamentals of the constitution, to deprive them of all share in making and executing laws, will justify a revolution.“ John Adams, Novanglus Papers, 1774

AM I SUPPOSED TO JUST STEP ASIDE

AND LET THE LENDER TAKE MY HOUSE?

Originally there were twelve of us working loosely as a group researching individually and then sharing that knowledge. We operated then like members of a club all with similar interests. While we were learning much faster than any individual borrower could have, we were each making our way through court representing ourselves. Is it wrong? Are we going to lose? I have felt both confident and anxious at different times over the last seven years. But, our members have won seven cases in the last eight months, so the answer is, yes it is possible. In fact, I do it full time. In some weird but good way, I feel it is my civic duty.

I have been sitting in court and heard many judges admonish borrowers who are trying to represent themselves as Pro se parties that they “need to get an attorney”. Nearly all of my clients over seven years believed that because the judge told them to, that it was the law. It is not. But, the judge most often felt that the borrower had a better chance of having his side of the story represented with a competent attorney. It is, on a general level, good advice. But, judges today are missing some details about a new type of fraud which was virtually unknown until about 1999, and that can make paying an attorney a sure way to lose your family’s home.

The Borrower can’t afford an attorney anyway at this time. Besides, there are close to zero attorneys that even know mortgage finance law. There isn’t enough room here to go into detail, but it is easy enough to understand if you are lucky enough to meet someone who knows what has changed over the years in the relationship between attorneys and judges. I wish someone would have told me in 2011.

Actually, if it is a fraudulent foreclosure, why should a borrower have to lose his or her home because they can’t afford to hire an attorney? They are victims of a crime. They are not criminals.

So if you are a borrower who is threatened with foreclosure the question is, if you can’t find a good attorney and even if you did you could not pay him or her, do you just give up the greatest and most expensive possession that you will ever own? Maybe. But, I say no. Every day I know more than the day before and on this one subject, I am an expert.

I have taken this whole issue of “Imposter” lenders blowing smoke up the court’s behind and stealing homes without ever “lending” a dime to the borrower very seriously. Yes, back in the days of the real world (before 1994 or so) it was all very simple.

You borrowed from a banker you knew. You signed a Promissory Note detailing the amount you owed and the payment terms you agreed to. The banker needed to know that if you became unable to make your payments that the bank would not lose the money they were loaning you, so you put up the home you were buying as collateral. The document you signed that contained the terms you and the bank agreed on is called a security instrument. In states that use judicial foreclosure rules, that collateral instrument is called a mortgage. In states that use non-judicial foreclosure rules the security instrument is called a deed of trust, in these states there is nothing even called a mortgage. Since, we all use the term mortgage to mean home loans we get mixed up. The foreclosing party is counting on confusing you and the judge. (I cover that more completely in another article).

Now those documents and the terms agreed to is your home loan. The Promissory Note is essential to the deal and it is the most important document you signed. You made these fair monthly payments. You and the banker kept track of the payments, and when your loan was paid off the Promissory Note was marked paid and returned to you. The original Promissory Note was returned to you. Every time. You could trust the finance industry to do it like this. But, to any borrower, attorney, or judge born after about 1980 this sounds like fantasy, because following the laws and statutes on banking has not been an active idea since 1995 (that’s when Microsoft first provided free email at the literal speed of light).

But, since so few Borrowers know any of their rights and because these same crooked finance guys ruined the economy for just about the whole world, very few Borrowers can afford to go plunk down $5,000 for an attorney to tell them their rights. The vast, vast majority of borrowers being wrongfully foreclosed have just tell their kids they gotta change schools and they rent a truck they can’t afford and head for a rental home or apartment that they not get approved for because not only has the false foreclosing party taken their home illegally, they have also reported the foreclosure to the credit rating companies, which has ruined their credit.

Folks, this is not the America that I grew up in!

It is my intent to stick around to tell these victim borrowers that it doesn’t all have to go so fast. That the “Bank” that is threatening to foreclose has no case. This “foreclosing party” cannot and they will not show the real deal proof that they even are the true party you owe. That is because they are not the party you owe.

But if, you don’t stop turn and fight they will and do get away with it. Your case is very good, you just don’t know it yet.

I do that. I am working hard to be that someone that can tell you why you have more than just hope to help you fight back. I am a long time real estate broker, real estate developer, home builder, mortgage broker and a consultant on very large real estate deals around the country. I am supposed to be a real smart guy, and you know what?

Yep, GMAC Mortgage stole my house and it made me mad. Real mad. I have been mad every moment since November 11th, 2011. But I didn’t rent a truck. I fought back. But, like so many Americans in all professions, the economy had seriously damaged my income, so I couldn’t afford an attorney. Back then, I just knew that I had to have a lawyer.

I have held my own house to a standstill in court for now seven years, while dealing with the most outrageous lies from attorneys in court than I could never have dreamed anyone would be brazen (or stupid) enough to tell. Luckily I now know why I could stick around, and if I stuck around neither side would win. The explanation on what is different today is too long for this article, but I think I will make the seven years worthwhile very soon.

OK, so above I have stated much of the problem (not in detail of course) of how does a borrower try to protect his home without the money or information to hire an attorney.

The answer is to do it Pro Se. Pro Se means “I am representing myself”.

That will at first sound impossibly intimidating. Everyone I have ever talked to had a very difficult time even thinking about it. But, it is possible. It is legal. In fact it is your constitutional right.

First of all, you need information. What has your “Lender” done wrong? What have you done right? How can I find my way through the court system? You can’t lie. You have to really know what the truth is and what is happening. If we try to deceive the court with misleading statements, we will look no better than the characters we are up against. The truth is a very powerful weapon when used correctly.

Whoever is threatening to foreclose on you is not the entity that funded your loan. You are not going to claim you didn’t get a loan, because you did. But, not from the Lender which is named on your loan papers. It came from an unknown source in an illegal way. (Just ride along with that thought, you can learn what I mean later).

This means that whoever you think you closed with has no right to collect from you money, nor to “assign” the loan to another entity. Therefore your loan could not have been sold. The Seller and the Purchaser of your Promissory Note cannot have written a contract and transferred your loan through a sale because the Seller had no interest (ownership) in your loan to sell.

But, if you don’t protest it in court they will claim your loan has been sold and now an Imposter/Fictitious Payee (real statute terms in all 50 states) will steal your home. If they make a claim that is untrue, but you don’t object, then the judge must take the lie as the truth by law. In watching borrowers in court, or reading the motions and answers in their cases, I am struck with how little borrowers think they can object. Heck, what did Perry Mason do? Object. What did Barnaby Jones do? Object. What did Captain Kirk do on Boston Legal? Yes, he objected long and loudly. The court is not a church. You should act professionally, but you have every right to have your say.

The way you begin getting your case to court is to file a lawsuit (a Quiet Title Action is common for home loan fraud, but today we have something much better. The average cost around the country to file a foreclosure fraud lawsuit is $100 to $200 or so. Compare that to what an attorney wants up front.

You are now the Plaintiff and no longer the Defendant. You will not go to court for some time, but you will have to demand your rights and the party claiming to have the right foreclose will try to block you with lies. But, this is all on paper through motions using the appropriate laws and not before a judge in court right away. Possibly never, which is how we won 5 times recently. It is my belief because we stay in and fight the foreclosing party decides to pick on someone who does have the strength that knowledge brings.

We can organize your documents and come up with the strategy to prove you did not receive money from the Imposter Lender who is claiming you did. We can answer your questions and help your presentation. That is what we have done for ourselves and we can do it for you. At a fraction of what a full time attorney charges. When the proper time comes you might be using an attorney for a short time in court when you can show the attorney why he can win for you. This will cost you a fraction of what you think to save your home. Did I mention that we can help lower your anxiety with this knowledge?

What is a Short Sale and How Does it Connect to the Foreclosure Process?

The term short sale has been brought up more and more in the real estate world as the property market has corrected to a more sustainable growth level. Depreciation of home values over the last few years has led to homes that are worth less than the mortgages that were used to finance the purchase. This situation coupled with a nationwide recession that has created the need for people to sell their homes despite being “underwater” has led to the recent popularity of short sales.

What Is an Underwater Loan?

A home loan or mortgage that is higher than the actual value of the home is said to be underwater. Over the last few years this situation has become a common occurrence as homeowners who bought at the peak of housing prices with little or no money down have seen their property values decrease, sometimes dramatically. They began with a $300,000 loan on a home that appraised around that value, and now their mortgage amount is around the same, but that same house appraises for less than $250,000.

With the rise in unemployment, many homeowners who have found themselves in this difficult situation have been forced to sell their home because they can no longer afford the mortgage. The problem that occurs is that even if the homeowner sold their home for $250,000, they would still owe the bank the additional $50,000, which holds up the sales process. This hurts everyone involved because the original owners cannot pay the mortgage, so they default on the loan. The new buyers who are excited about the home are not allowed to buy it at the new market price. Finally, the bank that holds the mortgage will not let the original owner sell, does not receive a payment each month for the mortgage, and must now go through an expensive and time consuming foreclosure process to get possession of a home they will only be able to sell for less anyways.

Buying and Selling a Home with a Short Sale

This is where short sale comes into play. In a short sale the original homeowner who is underwater will get an agreement from the bank to complete a short sale and put their home on the market at the current local price. When a buyer decides to purchase the home, the bank agrees to let the sale take place and take a loss on the original mortgage. Ultimately, this type of legal settlement allows the homeowner and bank to avoid a costly and credit damaging foreclosure process. The owner will still take a hit on their credit score and the bank will lose some money on the transaction, but the overall solution is much better than foreclosing on the home.

Foreclosures and Short Sales

Short sales are becoming more common with our current correction in home prices and high unemployment, but many bands still make the process very difficult for the owners because they do not want to take a loss on the loan. For this reason, many banks will not consider the option of a short sale until the homeowners are already several months behind on their mortgage. In addition, banks reserve the right to not accept the price the new buyer offers for the home if they think it is too low. This creates tension between all parties involved, and if unresolved leads to the eventual foreclosure of the home.

What Homeowners Need to Know When Facing Foreclosure

Understanding the Foreclosure Process

What Is Foreclosure?

Foreclosure is the process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a lender files the appropriate documents with the appropriate officials (see below for more details).

Colorado Foreclosure Laws

Colorado foreclosures occur through both in-court (judicial) and out-of-court (non-judicial) proceedings.

The judicial process is used when no power of sale is present in the mortgage or deed of trust. The process begins when the mortgage lender files suit with the court system. The borrower then receives a letter from the court demanding payment. Typically, you’ll be given 30 days to respond with payment or a written response to the bank’s attorney and parties involved. If you do not respond within the time limit given, a judgment will be entered and the lender can request sale of the property by auction. If you file a written answer with the court, there is a hearing and the process takes longer and can even be forestalled. If a judgment is entered, then an auction date will be set, usually several months in the future. Once the property is sold, you’re served with an eviction notice by the sheriff’s office, and you must vacate the home immediately.

The most commonly practiced method of foreclosure in Colorado is the non-judicial foreclosure process. It is carried out by a Public Trustee who acts as an impartial party. The process begins when the lender files the required documents with the Public Trustee of the county in which the property is located. The Public Trustee then files a “Notice of Election and Demand” (NED) with the county clerk and recorder. Once the NED is recorded, the Public Trustee Sale of the property is scheduled to take place between 110 and 125 days of the recording.

Pre-foreclosure Period

Many factors can lead to default of payment on a home loan and eventually foreclosure. Many are not the fault of the homeowner. Perhaps it is due to a hardship (loss of income, military deployment, health or family issues) or to “loan fraud” or “creative financing” by the banks (Adjustable Rate or ARM, Option ARM, Negative Amortization, or Interest Only loan). Whatever the cause, facing foreclosure is not an enjoyable experience.

The foreclosure process usually begins after the homeowner has missed several payments and different attempts have been made by the bank to collect. Let’s look at what typically takes place and what you can normally expect.

Day 1: You miss your first payment

Day 1-15: Grace period (Some lenders only allow 10 days)

Day 16-30: A late charge is assessed

Day 30: Borrower is in default

Day 45-60: Lender sends “demand” or “breach” letter, and phone calls begin

Day 60-90: Lender sends letters and makes phone calls. A repayment plan or a loan modification plan may be offered.

Day 90-105: The lender refers the loan to the loss mitigation department/foreclosure department and retains an attorney to handle the foreclosure.

Day 90-?????: The lender’s attorney files the required documents with the Public Trustee, who then files a NED with the county clerk and recorder. Once the NED is recorded, the property is scheduled to be sold within 110-125 days at a Public Trustee Sale.

Notice of Sale / Auction

Once the NED (Notice of Election and Demand) is recorded, the notice must be published in a newspaper of general circulation within the county where the property is located for a period of 5 consecutive weeks. The Public Trustee must also mail a copy of the published notice to the homeowner within 10 days. At least 21 days before the Public Trustee Sale, the Public Trustee must mail a notice to the homeowner describing how to redeem the property and stop the sale.

If the homeowner wants to redeem the property and stop the Public Trustee Sale, he must file an “Intent to Cure” with the Public Trustee’s office at least 15 days prior to the foreclosure sale. He then has up till noon of the day before the sale to bring the loan current and redeem the property.

The Public Trustee typically conducts the sale at the courthouse. Bidders must register in advance and have funds available. At the sale, the public trustee reads the written bid submitted by the lender, then any registered party may bid. The winning bidder is given a certificate of purchase.

Redemption Period

There is no longer any redemption period for the homeowner after a foreclosure sale in Colorado.

How to Avoid Foreclosure -What Are Your Options?

FORECLOSURE!

It’s a harsh word that most people avoid thinking about…until they have to. If you are several months behind on your mortgage, without money for professional help, and at the end of your rope…foreclosure may be the ONLY thing you can think about. It preys on your mind and leaves you feeling lost and vulnerable to the come-ons of the unscrupulous ‘professionals’ who say that they are experts in foreclosures, but aren’t. STOP!

You may be in a difficult situation, but it is not hopeless. Foreclosure is not your only option! My name is David Stitt, and I’ve got good news for you. You do have alternatives. You just can’t see them right now. But by the time you finish this short guide, your vision will have cleared and options for your future…good options…will be right before your eyes.

You are not alone! In the United States, foreclosure filings have increased consistently over the past few years, with more new foreclosures reported in every quarter, pushing the foreclosure market to record levels. So you are not alone. But if you’re like the many thousands of people facing foreclosure, you’re scared and confused. You’re overwhelmed by the legal mumbo-jumbo of foreclosure litigation. You don’t know who or what to trust. You’ve undoubtedly been pinned to the mat by Realtors and Attorneys, warning you about the dire consequences you’ll face if you don’t use their services. Or maybe you’ve worked with mortgage brokers. They promise the world – or world-class loans – and then they don’t deliver. And then there’s the holder of your mortgage who is unwilling (maybe after months of negotiating) to budge an inch when it comes to working out a more affordable payment plan.

After all you’ve probably been through, I’m not surprised that you’ve given up hope for a ‘good’ solution and may feel resigned to accepting foreclosure and the years of damage it will do to your credit rating. Once again, STOP! Don’t fall into despair. Things are not as bad as they seem. There are other options.

A helping hand when you need it.

This Survival Guide is exactly what the name says it is: a simple, no-nonsense approach to foreclosures. It was created to help you and other homeowners become better informed about the details of the foreclosure process. I believe that knowledge is power…and I hope that this guide will give you the power to avoid foreclosure entirely.

Once you know the facts, you’ll be able to make a well-reasoned and thoughtful decision and then take action with the confidence that you’re doing what’s best for you.

On the next couple of pages, we are going to take a look at your different options and the pros and cons of each. You will be given the information you need to make a well-educated decision regarding your situation.

What Are Your Options?

Forbearance

Forbearance is a payment plan that a debtor enters into with a lender when they are unable to make timely payments, often due to illness or another temporary situation. In forbearance, the lender will allow you to delay payments for a short period. You agree that after missing payments for a few months you will bring the account current by making larger payments. The problem is, more than 85% of debtors default after the first payment. They cannot continue to make the inflated payments after the forbearance period ends, and they are right back where they started.

Loan Modification

A loan modification is a permanent change in one or more of the terms of a mortgagor’s loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. However, Loss Mitigation Departments are now undermanned, under experienced, and overworked. Nightmare stories abound on the subject of patrons having to hound and harass Loss Mitigation Departments to get their paperwork pushed through to escape foreclosure. After all the hassle, most homeowners are still denied any help and end up in foreclosure.

Partial Claim

Your lender may be able to work with you to obtain a one-time payment (loan to be paid at end of mortgage) from the FHA-Insurance fund to bring your mortgage current. You may qualify if your loan is 4-12 months delinquent and you are able to start making full mortgage payments.

Deed-In-Lieu (Voluntary Foreclosure)

As a last resort, you may be able to voluntarily “give back” your property to the lender. You may qualify if you are in default and don’t qualify for any of the other options, your attempts at selling the house before foreclosure were unsuccessful, and you don’t have another FHA mortgage in default. “Foreclosure” will most likely be reported on your credit report.

Loan Assumption

This is where someone else takes over the payments of your loan, usually in exchange for your property. Loans made after 1988 are almost never assumable.

Bankruptcy

Many debtors will spend a lot of money for an attorney to file a Chapter 13 bankruptcy – which is really a payment plan – only to lose the house. In essence you are paying the attorney instead of the lender. Before acting, know how much the process will cost and what your new increased monthly payment will be. Also know that if you miss one payment, your Chapter 13 will be dismissed and you will need to file Chapter 7. This will cost more attorney fees, assets, including your house will be liquidated and your credit report will still show a foreclosure.

Sale of Property

If the homeowner has equity in the property they can and should consider selling the property. The homeowner will receive a check at closing for equity over and above what is owed and closing costs paid. Most homeowners in foreclosure, however, have little or no equity. Be careful listing with a Realtor that can tie up your property for months.

Do Nothing

When it comes to the threat of foreclosure, procrastination is a prescription for disaster. Doing nothing changes nothing. Unless you take action, you will end up in foreclosure and your credit will suffer for the next 5-7 years.

Pre-Foreclosure Sale (Short Sale)

The pre-foreclosure sale program allows the lender in default to sell his/her home and use the net sale proceeds to satisfy the mortgage debt, even though these proceeds are less than the amount owed. It has two major advantages over a foreclosure: (1) You may be eligible for a new home loan after just 2 years instead of 5. (2) You should be able to avoid a deficiency judgment. When a house is sold at auction, the chances of the foreclosing lender filing a deficiency judgment increases dramatically. They will have years to come after you or to sell it to someone else who will.

As you can see, there are several options to consider – but consider you must! You cannot afford to stick your head in the sand like an ostrich and do nothing. Being in the state of denial is a bad state to be in! And as we said earlier, procrastination is a prescription for disaster.

Questions You Need to Ask

Questions You Need to Ask Yourself

1. If I file Chapter 13 Bankruptcy, will temporary relief from my monthly mortgage payments mean that I will be able to stop foreclosure forever…or will I be unable to keep up with my payments when they resume and I end up in foreclosure again?

2. If I choose Forbearance or a lender payment plan that gives me temporary relief from payments I can’t afford now….will I be able to afford the inflated monthly payments that I’ll have to make in the future, or will I end up in foreclosure again?

3. If I am unable to meet my monthly expenses now, can I commit to a payment plan…or should I just give up my house to a lender with a Deed In Lieu and accept the bad foreclosure mark on my credit history?

4. If I do something now, will I have more options available to me…or should I wait until the sheriff is at my doorstep with an Order to Vacate and hope that he/she will show me mercy?

5. If I consult with an experienced Real Estate Investor, will I be able to get out of this situation without ruining my credit…or is my only option to spend thousands of dollars for Attorney fees, Realtor commissions and still run the possibility of losing my house?

Questions to Ask Your Mortgage Broker

1. Do you guarantee in writing that you will close my loan before my case goes before a judge in court?

2. What interest rate will you charge?

3. How many points do you charge?

4. What will my monthly payments be compared to what they are now? Higher? Lower? The same?

5. What will the total of all closing costs be?

Questions to Ask Your Attorney

1. If I file for Chapter 13 bankruptcy, will it stop foreclosure or just stall it?

2. What are your fees for filing bankruptcy papers and handling my case?

3. What will my monthly payments be compared to what they are now? Higher? Lower? The same?

4. What happens if I default on my payments because I can’t make them?

5. Can’t I file a bankruptcy myself at the courthouse and save thousands of dollars?

Questions to Ask Your Realtor

1. Do you guarantee in writing that you’ll sell my house before my case goes before a judge in court?

2. Do I have to pay your commission if I find someone on my own who wants to buy the house?

3. How much do I owe you if you don’t sell the house and I lose it to foreclosure due to a judge’s ruling?

4. If the sale price doesn’t cover my indebtedness and your commissions, do I have to reach into my own pocket to pay you?

5. How long will your listing contract tie up the house and entitle you to a commission?

Questions to Ask Your Foreclosing Lender

1. Can you work out a payment plan (forbearance) with me and will you put everything in writing before I agree to it?

2. If I agree to these terms, will you agree in writing to stop the foreclosure?

3. What will my monthly payments be, compared to what they are now? Higher? Lower? Same?

4. If I’m late on this payment plan, do you start where you left off with the foreclosure?

5. Since forbearance means a big increase in monthly payments, can you tell me how many people end up back in foreclosure because they cannot afford the monthly payment?

What To Do Now

Step 1: Get answers to your questions.

Not only do you need answers to the questions above, but there may be other questions you are asking yourself. Don’t be intimidated by the ‘experts’ you’re consulting. Remember they work for you.

Step 2: Make a decision…and follow through on it!

Once you have the facts you can decide on how to proceed and who you need to help you. The sooner you act, the sooner you can reverse the downward spiral and change your credit from bad to better.

Step 3: Act Now!

After you’ve done your homework and feel you’ve come to an informed decision, you’re halfway there. Don’t let inertia set in. Don’t procrastinate. ACT NOW before your window of opportunity closes.

One final thing to consider: Get a Forensic Loan Audit!

A large majority of the loans made during the last 10 years, especially sub-prime and adjustable rate mortgages were not done properly and have errors and violations.

The Forensic Loan Audit is the FIRST STEP you should take to properly prepare for any type of litigation or any type of solution when dealing with your lender. Audits are used as a valuable tool to get your file to the top of the lender pile and to get your case noticed and heard!

The more violations found in your mortgage, the more LEVERAGE you have to argue your case against your lender. With millions of homeowners requesting financial solutions, it is increasingly more difficult to get the results you want when you need them. You need every tool, every amount of leverage possible! The Forensic Loan Audit is that tool!

The Intersection of Bankruptcy and Loan Modifications Aka Loss Mitigation

Is your house in foreclosure? Have you have been working with the mortgage company for months to try and get a loan modification which could solve the issue? Does the mortgage company seem to be dragging their feet, asking you for the same documents over and over and yet you do not seem any closer to actually accomplishing anything? Now seemingly out of the blue there has been a notice of Trustee/Sheriff’s sale. You panic. There is an option that will save your house and enable you to continue to work on obtaining a loan modification. That option is a chapter 13 bankruptcy. The chapter 13 will stop the sale now and give you a repayment plan which if you complete will put you right where you should be with your mortgage (your mortgage will become current). The filing of the chapter 13 does not mean that loan modifications are not possible, but if you had already started, you will likely have to begin again. This time, however, there will be no threat of losing your home. If on the other hand, you are surrendering the home, there are still option you should pursue while you are in the bankruptcy.

After you file the case and the sale is stopped, you can then restart the loan modification proceedings by requesting a loss mitigation package from the lender or servicer. When you do this they usually send out a “waterfall” package. This is an application that would check for eligibility for a HAMP loan modification, an in-house modification, eligibility for a shortsale, and eligibility for a deed-in-lieu of foreclosure, and possibly eligibility for a short payoff. This post will explore all of those options and additional loan mod options other than HAMP.

After you receive the loss mitigation package, it is important to make sure that you have all of the requested paperwork together prior to sending it to the mortgage company or servicer. They will generally ask you for 2-3 months of bank statements, a Dodd-Frank Certification signed and dated, copies of your most recent pay stubs for 2 pay periods to 3 months or longer, a form 4506-T form signed and dated with your phone number and filled out correctly, copies of your last two years of taxes, and a hardship letter. A number of those are self-explanatory, some of them are probably unfamiliar. The Dodd-Frank Certification just needs signed and dated, no big deal there. The 4506-T form has to be filled out perfectly or your loss mitigation application process will be delayed by months. You really need to check with your attorney to ensure that you are filing it out correctly. Generally, you need to fill out the top completely, select the type of transcripts that you want them to send the mortgage company, you need to list the years that you want them to send, it is generally 3 years and they generally want the date format to be 12/31/2012, 12/31/2013, 12/31/2014 for example. You then need to sign it, date it, and put your phone number next to the signature line. As for the hardship letter, it should indicate why you began to fall behind on your mortgage, and when or why that hardship is or has ended so that you will be able to make some payment in the future.

Part of the application process also requires you to fill out your household income and expenses. A common mistake that people make is to under report their income/ over report their expenses. Keep in mind that part of the process, if you are seeking to modify the loan, is that the modification review has to go through underwriting. That means that they will be checking to see if you will be able to afford the new payment that they can offer. If you cannot show that you will be able to make the payment, you will not be offered a loan modification.

The different types of loan modifications that the bank can or will offer will depend on if they have ever offered you a loan modification in the past. HAMP stands for Home Affordable Modification Program. It is a program that was set up in the aftermath of the subprime mortgage crisis. Generally you receive only one HAMP loan modification offer per loan. This is not a hard and fast rule, however, and I have seen HAMP modifications offered more than once per loan. HAMP modifications may reduce the principal balance, they may reduce the interest rate, they may reamortize the loan over a longer period of time (stretch your loan out), or they may do a number of these things to help you to get a lower loan payment. Offers that include a principal reduction will usually have certain benchmarks that you have to meet in order to ensure that the principal really is forgiven. If you fail to meet these benchmarks, the forgiven principal will return. Generally, you will need to ensure that the loan is in good standing on the first, second, and third anniversaries of the effective date of the trial period. The amount that the principal is reduced by will generally not be treated as taxable income. Speak to your tax attorney or accountant for more information on this. Another type of loan modification that your mortgage lender may provide is an in-house modification. For an in-house loan mod, the lenders are not bound to the requirements of HAMP. They can also offer these even if they determine that you are not eligible for HAMP. The results may not be as good but they should still be better than what you currently have. Unfortunately, you may find that the modification offer is not to your liking. Perhaps it doesn’t reduce the interest rate by much, or maybe it adds 10 years onto your loan and you don’t find that palatable. So long as you continue through your chapter 13 bankruptcy you will finish it with your original loan intact at the original terms and on time per the original payment schedule. (There are some small caveats to this you should ask your attorney about.)

Another option if the modification will not work is to ask for a short payoff. Essentially, you are asking the lender/servicer to settle the remaining balance for something less than is owed. I have seen short payoffs between 10% and 33% so some incredible options are out there if your lender determines that you qualify. You would need to speak to your tax attorney/accountant to see if you will have to pay income tax on the forgiven debt.

Short-Sale, Deed-in-lieu – What if you decide that you don’t really want the property any longer? In that case, you have a couple of options. Simply surrendering the property in a bankruptcy is not enough. If you simply surrender the property in the bankruptcy and then the mortgage creditor sits on their rights and doesn’t move to complete the foreclosure process, you will be stuck with liability on the property if anyone were to get injured or for housing code violations. To avoid this, you can attempt to do a short sale. A short sale is potentially available where you are underwater on the home. If there is only one lien on the property you are much more likely to accomplish a short sale. The more liens there are, the more parties have to be satisfied with the sale offer. The same goes for a deed-in-lieu. A deed-in-lieu, short for deed-in-lieu of foreclosure is where you sign the property over to the mortgage creditor in exchange for them not foreclosing on the property. This can potentially save the banks lots of money and has the benefit to you of getting rid of any liability from continued home ownership.

If this sounds like you, just know that there is help out there. Contact a local bankruptcy attorney with experience in this field to help you out.

Best of Luck,

5 Secret Steps of the Bonded Promissory Note Under UCC and Other Federal Law

The bonded promissory note pays your debts and creates debt for you under U.C.C. and other Federal Law. You already know that your mortgage promissory note and mortgage contract got you into debt when you purchased your home or commercial property, so we will concentrate on the secrets of the bonded promissory note to get you out of debt in the following article. The secrets are:

  1. Knowing the bonded promissory note law is most important.
  2. Filing the complete U.C.C.1 information is the key
  3. Knowing your bond number is crucial
  4. Knowing who to make the bonded promissory note out to is very important
  5. Knowing the judicial side will get you home or commercial mortgage and note debt free

All the products of the economic system are pre-paid by virtue of public policy Law (P.L 73-10), which no longer exists constitutionally, article 8 and 10, authorizing gold and silver money to “pay” at law with. You have the right to discharge any debt public or private since June, 1933. The bonded promissory note can be used to offset any debt. The IRS recognizes bonds as a form of payment. The instrument tendered to the bank and negotiated to the United States Treasury for settlement is an “Obligation of THE UNITED STATES, BANKRUPTCY” under Title 18 USC Sect.8, representing a “certificate of indebtedness… drawn upon an authorized officer of the United States”, and in this case, the Secretary of the U.S. Treasury.

When you file a complete UCC1 financial statement consisting of about 24 pages, you are the Debtor as well as the Creditor of everything you now own or will own in the future. This UCC1 form is recorded with your Secretary Of State and is then public record. This gives you control of your value and property as the executor and administrator of your straw man corporate entity under the HJR 192 law. This is a very important step in the bonded promissory note debt relief process and should not be left out.

The bond behind it started when you were born and birthed, as a ship at dock, under maritime law, then the State issued you an original certificate that is kept in your State Capitol, like a Bill of Lading, or ship’s cargo, that has your bond number series on it in red either on the front of back. This is your bond number(s) with your State and Federal Government, along with your social Security Number, that gives your Straw Man in all capital letters, under Public Policy mandated by 73-10, HJR 192, where the government of the United States took away your gold/silver backing of the currency making it impossible to “pay” at law for anything that makes the bonded promissory note possible for paying your debts. The government seized the gold in 1933, and now must pay the bills for us according to public law HJR 192. It is your very inability to pay at law as a result of this executive order that gives you the ability/authority to demand that the items be treated as pre-paid using the bonded promissory note and/or Bill of Exchange which are considered money under UCC Article 2.

You must make your bonded promissory note to the right person or entity. This depends if you are in mortgage foreclosure or current with your bills. Example: If you make it out to the foreclosing attorney in hopes that it will get to the bank, you just gave the attorney thousands of dollars and your mortgage will be foreclosed on, because the bank did not receive your paid in full tendered payment.

You then must go to court on the judicial side to get your home or commercial mortgage and note debt free and acknowledged by the banks and the world. This is done through a quiet title law suit where you are the plaintiff and the party being harmed.

All 5 steps are mandatory in order to use the bonded promissory note to pay all your debts. This should enable you to be debt free as under Public Policy 73-10, HJR 192, the straw man law of 1933.

What Information Do You Need to File Bankruptcy?

With the changes to the bankruptcy code, came a whole new list of information needed to file bankruptcy. It is much easier to file Chapter 7 bankruptcy than Chapter 13 and that is why there is so much proof needed to file. To qualify to file Chapter 7 a person will have to prove their annual household income and make sure it is below the state’s median household income. This is one area where a bankruptcy attorney is a huge help.

A person filing bankruptcy will be required to come up with their last six months paycheck stubs or proof of income if they are self-employed. They will need a copy of the last two years of taxes and up to two years of bank records depending on the situation. That is the documentation they will need to prove that they qualify to file Chapter 7 bankruptcy.

After qualifying to file Chapter 7, the individual will need to supply their bankruptcy attorney with an itemized list of all their property and the valuations. This list will include from living room furniture all the way down to the shoes in their closet. Although this sounds almost crazy, it could be itemized by groups. For example a person could list their clothes as valued at $500, kitchen appliances $1000 etc. The person needs to value their property based on the formula of replacement cost while taking into consideration the age and condition. Most of the time a bankruptcy attorney will tell the individual to give them swap meet prices. To be successful when filing for bankruptcy it’s best for the person to have the help of a bankruptcy attorney. The bankruptcy attorney will know the ins and outs of what’s expected to get a successful bankruptcy discharge.

After the changes to the bankruptcy code in 2005, it has now taken on a new complexity where most individuals should seek legal counsel to be successful when they file bankruptcy. It is still possible for an individual to file pro se, but it is not advised unless the person is willing to do a lot of research on the topic and fully prepare themselves. If someone has a minimal amount of property to protect, filing pro se in might be an option. For someone that has a large amount of unsecured debt and needs to use the bankruptcy exemption laws to the max, it’s best for that individual to hire a bankruptcy attorney. When considering the cost of hiring an attorney first is the amount of debt that is wiped out in the bankruptcy discharge, the cost is really quite minimal.

6 Key Questions to Ask Before You Hire a Forclosure Attorney

The 2008 financial crash put a lot of people out of work. It hurt business owners, emptied personal savings, destroyed American home values and lead to massive foreclosures.

What Many Homeowners Don’t Know

The crony network of big banks, financial institutions, government, politicians, the courts, and their corporately owned media have used propaganda, lies and spin doctors to convince Americans that naïve and greedy homeowners crashed the global credit markets in 2008.

They blamed the crash and current economic chaos on homeowners who bought too much house. Yes, some mortgagers made some people believe they could buy more home then they could afford. However, the blame here is often misleading.

Why? Obscene broker commissions were a big part of originating mortgages. Banks were on a tear to bundle, securitize, sell and re-sell mortgages. It lead to irregular mortgage practices.

The bigger truth has been revealed that there are no mortgages to back the mortgage-backed securities. Thus former treasury secretary Hank Paulson told taxpayers, “We must bail the banks out, or else everything will collapse.”

Iceland Let Their Banks Collapse

In fact, Iceland arrested the financial offenders and put in actual safeguards to restore the capital markets and consumer confidence. We in America got the toothless Dodd-Frank bill that makes it appear legislators are minding the store.

Banking and the financial industry needed major reforms. Instead, after the Wall Street financial crash our American banks actually got 38% BIGGER!

Too Big to Fail and Too Big to Jail

Today banks are bigger than before the economic crash and the Dodd-Frank bill does nothing significant to keep Wall Street from trashing the economy again.

Insanity is doing the same thing you’ve been doing but expecting a different result.

Fast forward and today, these quasi-patriotic cronies continue the lies and prop up the fraud on the taxpayer’s dime. They brazenly continue to cover up their partners’ crimes while still receiving a massive transfer of wealth from taxpayers without impunity.

Can You Name One Banker That Went to Jail?

By the way, in 2008 that 800 billion dollar bail out has turned into trillions out the back door of the Federal Reserve straight into bank coufers.

What few Americans realize is that crony capitalists who fleeced institutional investors out of $17+ Trillion, clouded the title on all the mortgages they originated and supposedly sold on the secondary market.

They stole our pension money, wiped out savings and now they’re still after your home. In fact, more than 4.9 million homeowners were foreclosed since the Wall Street crash and there’s more on the way.

American’s need help staying in their home. If the banks and servicers won’t deliver then where do homeowners turn for guidance through this financial maze of fraud and corruption?

Many are programmed to think, “Lawyer, that’s what I need to stand up for me, to sort out the fraud, to keep my family from being kicked into the streets.”

Are Lawyers Best Suited to Standup For Homeowners?

As Americans we’ve been conditioned to believe that the only people who can help us navigate, legal matters are lawmakers and attorneys. Fortunately, in the realm of foreclosure law, there are a few good ones.

However, when it comes to ferreting out truth or fraud in your foreclosure, few attorneys (Real Estate attorneys included) are equipped or have any desire to fight as hard as a regular educated homeowner.

It’s a fact that no one will ever care more about saving your home than you. If staying in your home is not all that important, then most attorneys will do. But buyers beware.

How Do You Choose the Right Lawyer in Foreclosure Matters?

I’ve personally talked with hundreds upon hundreds of homeowners all across America who routinely pay from $1,000 to $30,000+ in attorney’s fees plus monthly retainers and still loose their home. This is more common than you’d think.

I ask homeowners, “What was the attorneys strategy? Was it to help you buy time until you are evicted or actually stay in your home?”

Many homeowners had not thought the end game through. How often do we hire attorneys? There are no Consumer Reports on America’s best foreclosure strategies, fighting bank fraud or attorneys.

Most Americans are busy trying to make a living, caring for loved ones, keeping their heads above water and would rather avoid the legal realms. Who can blame them?

So, unless new information is introduced it makes perfect sense that many homeowners don’t know what to ask to hire an attorney or figure out what makes one effective over the next.

When it comes to defending your home, the following basic questions will get most homeowners started.

The following six questions came from an interview with Justin James. He is the founder of The Foreclosure Relief Network, a company dedicated to helping homeowners stand up for their legal rights.

The company with its network of private investigators, paralegals and law firm was developed to educate and arm the American consumer with the information necessary to protect families and property against the unlawful actions of banks.

Mr. James emphasizes that “Every homeowner who suspects mortgage fraud or are in foreclosure or about to be, needs to be educated.

They need to know upfront if an attorney will work on your behalf or instead see you as a tool to collect fees while they stall things off in court. By asking these basic but key questions, this is knowable.”

You want to interview an attorney just like you would choose a doctor, dentist, CPA or a contractor to work on your home. You want a good fit.

Write Your Questions Down

Mr. James suggests that before you phone or visit an attorney in person, have your questions written down and refer to them.

6 Key Questions to Ask Before You Hire an Attorney to Get a Modification or Defend Your Home Against Banks

  1. Do you feel that the banks and their servicers commit mortgage security and/or foreclosure fraud? (Yes) Correct answer.
  2. Do you believe that if a bank shows up with a piece of paper that alleges it’s the original Note-do you still believe there’s a chance of winning court? (Yes)
  3. Are you willing to challenge the banks claim of ownership of the note, mortgage, chain of title, etc.? (Yes)
  4. Are you willing to cross exam a witnesses? (Yes)
  5. Will you challenge and call a robo-signer as a witness? (Yes)
  6. Are you willing to be that attorney at the party that went up against the big bankers or challenged a court that seems to lean in favor of big banks? (Yes)

If you get so much as one “no” to the above questions then be aware, your situation may be at cross-purposes with this particular attorney.

To the few that are actually competent and not bluffing their way into your back pocket, these basic but telling questions are not difficult to answer.

Other than the details of your situation, each question does not require you as homeowner to expound any further. Either they know it or they don’t. Either they believe banks can do no wrong or believe in justice for homeowners.

When to Walk Away

Bottom line is that if the attorney interviewed is…

  • Not comfortable breaking down your chain of title if necessary
  • Does not believe the bank is ever wrong about a note or mortgage
  • Not willing to challenge the bank or the courts
  • Not willing to cross examine a witness…

Then why are you there? Why should they take your money? Don’t give them a dime Pack your bags and find another attorney or other expert to interview. Consider…

Who’s Paying Your Bill?

You are paying the attorney for a service. You wouldn’t go into a car dealership and say…

“I’ve got $400 a month to spend on a vehicle. Just give me whatever you got to drive.”

You’d be surprised how many people would accept poor treatment when it comes to attorneys. Why?

Because some homeowners are intimated and think, the lawyer knows more. That’s usually true about civil law matters. That’s when a good educated attorney makes sense.

But when it comes to foreclosure, commercial law and challenging the banks-think again. I would challenge you to think outside the box.

Defend Yourself? Really?

Others will say, “YES BUT you can’t defend yourself against fraud or a foreclosing bank. You must have an attorney.” Many homeowners felt that way in the beginning. However…

We now know plenty of average homeowners who’ve been educated and succeeded with the guidance of companies like The Foreclosure Relief Network.

But, what few homeowners at first realize is that attorneys are not traditionally schooled in banking and finance.

In fact, I’ve interviewed some well informed average homeowners who educate their attorneys.

You Deserve to Know What You are Getting for Your Time and Money

If your prospective attorney is the real deal, they will understand your need to interview. That’s why it’s important to know…

  • What does the attorney actually believe about banks and foreclosure?
  • Make them lay their cards on the table. Time is of essence.

You simply want to insure that you are investing your energy and money wisely into a winning strategy and NOT prolonging what many attorneys feel is an inevitable foreclosure.

It’s a little known fact that if you, as a homeowner are educated and have a complete and correct strategy then foreclosure is NOT always inevitable.

Follow The Money

If you hire an attorney that did not adequately answer these questions, then be advised you, your family and your home may be taken for a professional ride.

According to Mr. James extensive experience with homeowners, banks and courts across America, rare is the attorney who will answer your call, who will fight banks on behalf of your homeowner and constitutional rights.

Most attorneys will not intentionally do you harm because they genuinely believe what they believe. That banks can do no wrong is just part of their many years of education and training.

As important, attorneys take an oath to protect corporations. It’s what they do.

That said… put yourself in the attorney’s shoes for just a minute. They have a lot of competition. A title, though impressive is no guarantee of success. They are businessmen and women and for many economic times are tough like many homeowners.

Yes, attorneys enjoy a measure of prestige but that doesn’t pay the bills. Like you and I, they have to make a living or find a way to survive. Just make sure it’s not at your expense.

Who Has More Money? Influence?

A homeowner called Mr. James and was livid because he spent over $7,500 on an attorney who believed that his counsel had defected to the bank side.

Even with documented fraud (common today) as the centerpiece of his defense against the bank, this homeowner lost his home.

The homeowner asks, “Who’s got more money here? The Big American Bank or me as homeowner?”

Do you think you’ll ever see this homeowner’s story on the evening news? It’s not likely. Remember who owns and controls media, advertising and reporting.

Of course I don’t expect you to believe any of this. Check it out for yourself.

Bank Walks Away

Speaking of a good homeowner story, while working on this article one of Mr. James clients called about Quiet Title action which forces a bank to produce valid documents.

The banks have to prove they have ownership before they can foreclose. In today’s heavily securtized financial system that’s more and more difficult for banks to validate unless they manufacture documents from thin air. This is known as robo-signing and yes, it’s illegal.

Gary is out of the Midwest. He applied several times for a modification and then found himself in foreclosure. He suspected bank fraud. Gary began looking and found a young and hungry attorney out of law school.

The attorney had not yet adopted “a bank can do no wrong” attitude. However, the first hurdle was overcoming this attorney’s lack of knowledge on foreclosure fraud, banking and securitization, etc.

Remember few attorneys have this profound knowledge, seek it out or even believe it’s possible to help a homeowner to win. It’s not taught in law school.

To compensate, Gary began working with Mr. James to gain the education, knowledge, legal templates and strategies. This also saved him thousands of dollars in attorney’s research fees.

Gary reported that his homework paid off and the bank walked away. Finding a lawyer willing to listen was the exception in this case. However, keep in mind that…

The Courts Are Available to All Homeowners

Remember, you as an American citizen have constitutional rights.

An attorney is not the only way to stand your ground against bad behaving banks. In fact there are far more effective strategies homeowners can and do take every day.

The majority of homeowners do not realize that with the right kind of education they can in fact represent themselves in court. It’s referred to as Pro Se’, a petitioner or simply an American citizen. Often it’s an effective option. Here’s why.

The fact is that the courts cannot hold a regular homeowner to the same standard as they do lawyers. It turns out that with an effective strategy, presented properly, defending yourself against banks often leads to settlements.

Mr. James reports that he sees it everyday and as the courts become more educated, the tides are shifting in favor of homeowners.

Some homeowners combine the idea of Pro Se’ (without an attorney) along with private mortgage investigations to uncover irregularities that stop foreclosures.

Bottom Line-Trust Your Gut

Remind yourself that if your home is worth defending then no one will ever fight for your home like you can.

After interviewing the attorney, if you can’t say yes, then SAY NO FOR NOW.

Keep looking. If the attorney doesn’t feel right-move on. There are viable alternatives. Do your homework.

Finally, if you have a compelling enough why and are willing to do a little legwork, then there are resources that can help you to learn how to stay in your home and prevail even without an attorney.

Short Selling Your Home – The Right Answer?

As the real estate crisis and slumping economy continue to squeeze homeowners, many have sought to escape their mortgages by conducting a short sale of their properties. A short sale is a transaction whereby the owner sells his home for a lower amount than what is owed. The lender must accept the deal, and stories have been circulating of buyers and sellers waiting several months before hearing a decision from the bank. So, is this technique the best answer?

Refinancing and loan modification are more efficient, and lenders such as Countrywide are much more accepting of these programs than a short sale. But if circumstances prevent you from qualifying for these loans, a short sale may get you out from under an unmanageable situation. There are two reasons a bank may accept a short sale: 1) the costs of foreclosure can cost a lender up to 18% of the loan amount, and 2) lenders do not want to carry properties on their books.

Not all homes qualify for a short sale, says our personal financial expert Nathan Threebes. “There must be evidence that home values have dropped in your area, the loan must be in or near default status, and the seller must show that financial hardship and a lack of assets prevent her from making up the difference,” Threebes says.

There are two major consequences to conducting a short sale. First, according to the Mortgage Forgiveness Debt Relief Act of 2007, the IRS allows lenders to issue a 1099 form for the forgiven amount, which you must report as income. Second, your credit report will be blemished though not quite as severely as a foreclosure (but creditors may not see a distinction as your FICO score lowers almost equally).

Under new Fannie Mae guidelines, conducting a short sale versus allowing a foreclosure may shorten the waiting period between the sale and obtaining a decent rate for a new home. Homeowners considering using this strategy are advised to seek professional advice.

How to Pass a Property Preservation Quiz For Foreclosure Cleanup Subcontracting Work

As a smaller foreclosure cleanup business, your company can sign up for subcontracting work with larger property preservation companies. You can offer your services on a subcontracting basis for work such as inspections, repairs, lock changes and window boarding, lawn maintenance, winterization, interior trash-outs, exterior debris removal, etc.

Many of the larger companies are increasingly requiring the smaller subcontractor to complete a quiz to be considered for foreclosure cleanup subcontracting work with their companies. These quizzes are simple “weeding out” tactics so the larger companies can get the most qualified subcontractors.

Are You Familiar with HUD Guidelines?

Many of these mini-exams are designed to determine your level of understanding of HUD guidelines for property preservation work. Many of the larger companies get a great deal of their properties directly from HUD Management and Marketing (M&M) Contractors.

The M&M Contractors literally market and manage single-family properties owned by, or in the custody of HUD. (These are homes that had an FHA-insured mortgage where the homeowners defaulted on the payments. The lender or mortgage company that suffered as a result of the default ultimately deeds the home to HUD in exchange for an insurance claim payment.)

A property preservation quiz can range from the very simple to the ultra-complex. Check out some sample questions and answers below.

Sample Questions and Answers

Many quizzes contain common real estate industry definition-type questions as they relate to the Department of Housing and Urban Development. For example, a quiz may ask the following:

Question: What is the definition of Conveyance Condition as it relates to a HUD property?

Answer: You could state something very simple, such as the following: For a property to be in Conveyance Condition, as it relates to foreclosure cleanup, the property must be undamaged (undamaged by flood, fire, hurricane/tornado, boiler, etc.); the grass must be cut; the property must be sufficiently winterized; all debris and hazardous and unhealthy materials must be removed; and the property must be efficiently boarded and secured, including all pools and hot tubs, at minimum.

Another sample question you may come across on a test may be the following:

Question: Please describe in detail the steps you must take when you winterize a property with a dry heat system.

Answer: Dry Heat Systems. The hot water heater and all domestic water supply and distribution piping must be drained in a manner sufficient to prevent freezing and other damage. All valves and faucets are to remain open during process. (After draining has been completed, they should be closed.) An appropriate amount of antifreeze should be placed in all fixture traps, including in toilet bowls and tanks.

To set yourself apart as a potential foreclosure cleaning subcontractor, you could go into greater detail in your answer. For example, using the above winterization question, you could elaborate on the answer by describing winterization requirements in greater detail by pulling information from HUD guidelines (which can be found pretty easily by scouring the internet).

For example, you could include the following in your answer:

Answer — Generally properties are to be winterized once between October 1 and March 31, though there can be exceptions based on local requirements. Unless otherwise specified, winterization should include cleaning toilets and draining of all heating systems and plumbing in a manner sufficient to prevent damage and freezing. Air pressure, or in some cases antifreeze, can be used to clear system and prevent freezing.

All tasks should be performed taking local and state codes and regulations into account. Before and after photos, along with other supporting documentation, must be submitted for reimbursement.

More Sample Questions

Here are a few more sample questions you my come across when taking a foreclosure cleanup subcontractor quiz (see if you can find the answers online yourself):

During a trash-out you notice there is a motorcycle in very good condition in a detached garage. What should you do?

When does grass cutting season start and end in your geographic coverage area?

Describe services performed during a formal trash-out?

What steps should you take if you arrive at what is supposed to be an empty property with an order to secure it and you find out it is occupied by someone?

All of the above answers can be found in the HUD Guidelines, which, again, can be found pretty easily online.

Don’t Let a Quiz Deter You

Though many of the larger, more formalized, companies require completion of a quiz to register your foreclosure cleanup business with their companies, many do not. So search around the internet, and if a company seems to be a fit for your business service-wise and geographically, don’t let a quiz prevent you from signing up as a potential subcontractor with their company.

Forging Alliances is the Key to Growing Your Business

Do your research and attack the quiz with fervor. As a smaller foreclosure cleanup company, getting subcontracting work via the larger preservation companies that service your area can add exponentially to your bottom-line.

Many of these larger companies often service hundreds of properties at one time, across several states. Forging an alliance with the larger property preservation company is the key to really growing your foreclosure cleanup business.

Many wishes of success with your foreclosure cleanup business.

5 Tips For a Home Mortgage Loan Approval

Not everyone knows the most important things that he or she should keep in mind when applying for a mortgage loan. At times, they go to buy a home when they see that the interest rates and the prices of homes are coming down. However, it’s important to know that the process of applying for a home loan is different from the process of renting an apartment or applying for a car loan. It’s important that you educate yourself. Given below are 6 tips that may help you get approval for your home mortgage loan.

1. Review Your Credit Rating

Some people don’t review their credit history prior to applying for a home loan. Actually, they assume that their credit rating is already high enough, which is not the case in some cases. A lower credit rating is a big hurdle when it comes to the approval of a mortgage application. So, it’s important that you check your credit history and fix errors before the submission date.

2. Get Some Cash

Often, the requirements for a home mortgage loan change. If you are going to apply for a loan, make sure you have enough cash in your pocket. If you have no cash, your application will be rejected. You need to make a down payment. The minimum amount of down payment can be different based on a lot of factors like the type of lender and the type of loan.

3. Don’t quit your job

It’s important that you keep your job while you are going through the process. Actually, changes to your income status or job may have a negative impact on the home mortgage process.

Most lenders grant approval on the basis of the information given in the loan application. During the process, if you quit your existing job, the lender may have to evaluate your finances once again to ensure you still qualify.

4. Get rid of your debt

Having a balance on your credit card won’t stop you from getting a mortgage loan, but it’s better to have no debts to pay. Actually, your debts is a large factor that can help the lender find out if you should get a mortgage. The amount of loan you can get also depends upon this factor.

Generally, it’s a good idea to avoid making big purchases unless your application has been approved. What this means is that you shouldn’t use your credit card to finance a car or buy expensive home appliances.

5. Consider Your Budget

You should consider your budget when it comes to a mortgage loan. You shouldn’t make this decision based on the dictation of your lender. Typically, lenders figure out the pre-approval amount on the basis of your credit report and income. They don’t care about how much someone spends on fuel, groceries, insurance or daycare. So, it’s better that you stay within your budget limits.

The Takeaway

You may not want to lose heart if you don’t qualify for a mortgage loan. Instead, you should work on your finances and credit rating. You should put together a realistic plan and work accordingly.