The Pope Law Firm

Save My Home:

The mortgage crisis is an economic breakdown that reaches far beyond the sub-prime lending market. It draws no color lines and affects each and every current homeowner and potential home buyer. Homeowner’s facing foreclosure feel the effects of the mortgage crisis first, but homeowners who are still able to make ends meet will eventually feel the financial burn.

As foreclosures continue to rise in your neighborhood and throughout your communities, you will see an increase in property taxes, an increase in homeowner’s association fees, a decrease in amenities offered in your neighborhood and a decrease in funding to the schools in your community. Foreclosures have a direct connection with the value of your home and the value of the homes in your neighborhood. As the property values drop, the amount of property taxes collected will drop and the funds used to support your community will otherwise begin to disappear. Furthermore, as your neighbors begin to lose the foreclosure battle, the remaining residents in the neighborhood will have to cover the association’s losses and will see a significant increase in your homeowner’s association fees in an effort to maintain a certain level of normalcy and safety in your residential community.

However, all it not lost. You don’t have to lose the foreclosure battle. You can fight back by utilizing some of the following tools when facing a foreclosure:

1. Remain in contact with your lender or mortgage company. Nothing is more important in this current mortgage crisis, than knowing the status of your mortgage loan. Have your payments increased? Is your interest rate scheduled to increase? Is your loan properly escrowed? Take control of your situation, by being knowledgeable about your loan.

2. Know your options.

a. Special Forbearance: Often referred to as a “work-out plan”, this option is a repayment plan based upon your current financial situation and may even provide for a temporary reduction or suspension of your payments.

b. Mortgage Modification: Your lender may allow you to restructure the debt and extend the term of your mortgage loan.

c. Partial Claim: Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current, if certain qualifications are met.

d. Project HOPE: By calling 1-888-995-4673, you may find that you qualify for an FHA federal refinance program.

e. Bankruptcy: As a last resort, you can commence a chapter 13 bankruptcy case proceeding, which will stop the foreclosure of your home and allow you to restructure your debt and establish a repayment plan to save your home.

YOUR FRESH START:

What we all need at the moment is a bail out plan from the government to help save our homes and start fresh. But while you wait on a bail out plan for Middle America, what do you do? Well, if you have exhausted all other possible remedies, including those referenced here, you may want to consider other viable alternatives of last resort, two of which are listed below:

1. Deed in Lieu of Foreclosure: This is an alternative that will allow the homeowner to simply give the property back to the lender and be able to leave the property behind without having a foreclosure on your credit. You will have to request this alternative. Most mortgage companies are not going to voluntarily let you know this option exists. The only downside with this alternative is that the mortgage company must be in agreement in order to execute the deed in lieu of foreclosure.

2. Bankruptcy: Unlike what some of you may have heard…bankruptcy is NOT illegal and is still a viable and practical solution for some individuals. Although an option of last resort, bankruptcy refers to the federal law that permits certain entities and individuals to obtain permanent relief from many debts and obligations. The intent of the bankruptcy law is to enable debtors to get a “fresh start” in their financial affairs. Although a bankruptcy will remain on your credit for ten (10) years, after fully assessing your financial situation, and attempting to fight the foreclosure battle, you may find that the immediate relief and protection afforded by the bankruptcy case filing, is a viable and practical alternative for you.

There may be more options available to help you fight and win the foreclosure battle during this mortgage crisis, but you must first take a hard look at your financial situation, consider some of the options and alternatives listed here and make the decision that best fits your needs. These are tough economic times, but each of us will get through it in our own way. Hopefully, the information presented here, will help you make a more informed decision, allow you to save your home and start fresh.

James Pope

The Pope Law Firm

Compassionate Attorneys on YOUR side!

http://www.d-mars.com

• Get in contact with your agent as quickly as possible. Let him know about your losses. If you are relocated temporarily, let your agent know your temporary address.

• Make only those repairs necessary to prevent further damage to your home or business. This must include covering breaks in a roof, walls or windows with plywood, canvas or other waterproof material. Do not have permanent repairs made without first consulting your agent. Unauthorized repairs may not be reimbursed. Please remember, SAFETY FIRST. Don't make any repairs that could endanger you or cause injury.

• Wait for an insurance adjuster to arrive to appraise your damage. Following a catastrophe, insurance companies schedule adjusters so that the most serious losses get priority treatment. Those policyholders are the most in need.

• Keep all receipts for expenditures you’ve made to repair damage or to estimate the extent of your damage.

• Prepare a detailed inventory of all damaged or destroyed personal property for the adjuster. Be sure to keep a copy. Your list should be as complete as you can make it and should include: a description of the item (and number, if more than one); date of purchase or approximate age; cost at time of purchase; and estimated replacement cost today.

• Take photographs of the damaged property before making any necessary repairs to prevent further damage.

• Collect cancelled checks, invoices, or other papers that will assist the adjuster in obtaining the value of the destroyed property.

• If you feel it is necessary, secure a detailed estimate for permanent repairs from a reliable contractor and give it to the adjuster when he arrives. The estimate should contain detailed specifications of the proposed repairs, and detailed repair cost prices and replacement prices.

• Take photos of the damaged areas. These will help you with the presentation of your claim and will assist the adjuster in his investigation of your claim. Even if home or business furnishings and effects look like “total losses,” do not get rid of them until after they have been examined by an adjuster.

• IMPORTANT:Remember to make copies of all photos, receipts, estimates, etc. to give to the insurance adjuster. Do not give the adjuster your only copy.

provided by the Texas Department of Insurance.

DON'T GET "LOCKED OUT" OF YOUR HOME BY A BANKRUPTCY SCAM OPERATOR

Are you having trouble making your home mortgage payments? Are you facing foreclosure on your home? Get all the facts before you pay someone to help you work out your mortgage problems.

These scam operators may promise to take care of your problems with your mortgage lender or to obtain refinancing for you. Sometimes they also ask you to pay your mortgage payments directly to the scam operator. They may even ask you to hand over your property deed to the operator, and then make payments to the operator in order to stay in your home.

A bankruptcy filing often stops a home foreclosure, but only temporarily. If a bankruptcy is filed in your name but you don't participate in the case, the judge will dismiss the case and the foreclosure proceedings will continue.

• Calls itself a "mortgage consultant," "foreclosure service," or similar name.

   

• Contacts or advertises to people whose homes are listed for foreclosure.

   

• Collects a fee before it provides services to you.

   

• Tells you to make your home mortgage payments directly to the individual or company.

   

• Tells you to transfer your property deed or title to the individual or company.

If you can't pay your mortgage, call your mortgage lender or contact a lawyer for help.

If you think an individual or company is running a mortgage foreclosure scam, contact the local office of the United States Trustee. The United States Trustee is a Justice Department official who monitors the bankruptcy system. Look for your local United States Trustee's telephone number in your telephone directory or on our web site at www.usdoj.gov/ust.