Payments During Foreclosure

As you know, foreclosures are rising in the U.S. quickly; people who finally got a mortgage a few years ago are now facing perilous times. Imagine - foreclosures were up 93% this July 2007 over the same period a year ago according to RealtyTrac. They claim this was because of the home market that has gone soft and because there are so many of those sub-prime mortgages - those adjustable-rates that ballooned to un-affordable rates.

This happened, and if you are victim you can attest, some mortgage agent promised you that you could refinance at a lower rate than the high balloon mortgage rate - right?

Made worse for homeowners who have lost their jobs or have unexpected medical bills - anything that curtails your income - you start falling behind on your mortgage payments. And it doesn't get better. These will lose their home, then get a black mark on their credit - messing up their ability to even rent a place in the future.

If you're in that position, listen up.

Don't wait at all when you know you're in trouble. Don't wait until you're behind on your mortgage payment. Next thing - and I know you're going hate doing this - but you must tell your mortgage company what's going on with you. They'll just assume you don't want to pay and will come after you with with a collector.

Okay, now that you have a problem, sit down and write out a plan. How are you going to manage? If you can't manage on the money you are making - maybe you bit off more house than you can chew.

Your next steps are increasing your income. Get more skills, rent out one of your rooms, but don't take smaller jobs - you won't make it. Cut expenses now. Cut off stuff you normally lived with. Work it out step by step - you'll be fine if you plan, plan, plan.

Capital One GreenPoint Mortgage Closes

One of the latest casualties of the subprime mortgage crises is Capital One's GreenPoint mortgage unit. And yes, this is one of those subprime loan houses, with non-conforming loans - that is - they don't meet up to the government standards of Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac are the government sponsored mortgages.

GreenPoint worked in the area that is now hardest hit - the Jumbo loans above $417,000 and Alt-A loans. They made these available to people who have little to no documentation on their assets or income.

GreenPoint will be closing immediately, some 31 offices, and 1,900 people working there will be let go.

How to Make Money with Foreclosures

If you've been around at all, you've heard of the so-called "Government auctions", where you can walk away with a car or boat seized in some drug raid for pennies on the dollar. Do those things really exist? Can you really buy a car from a government auction? And if so, where are the YouTube videos of people proudly displaying their "goods?" If it sounds a little fishy... well, as mom said - if it sounds too good to be true; it probably is.

There are dozens of literal wanna-be's, companies that merely buy lists of property they get from government sources. These are free resources, just like you can get, if you know where to look. Sort of like Matthew Lesko who offers directions to resources you could have gotten, but don't likely qualify for.

Then enter a company called Cyweb Holdings Inc. They do also deal with the government, but on a different level. Although we don't agree you'll qualify for everything they list on their website Government Auctions, we did check out the government foreclosure listings and took interest. Cyweb not only lists current foreclosures, but you can access any list from any state for one simple fee. In our case, we put in foreclosures in Florida and got this response:

VIEW Photo Type City Zip Bed/Bath Price
VIEW ---- Pre-Foreclosure SUNRISE 33323 / $
VIEW ---- Pre-Foreclosure MIRAMAR 33023 / $
VIEW ---- Pre-Foreclosure DANIA BEACH 33312 / $
VIEW ---- Pre-Foreclosure FORT LAUDERDALE 33304 / $
VIEW ---- Pre-Foreclosure PALMETTO 34221 3/2 $
VIEW ---- Pre-Foreclosure SARASOTA 34238 4/3 $
VIEW ---- Pre-Foreclosure PARRISH 34219 / $
VIEW ---- Pre-Foreclosure BRADENTON 34209 3/2 $
VIEW ---- Pre-Foreclosure HOLLYWOOD 33027 / $
VIEW ---- Pre-Foreclosure FORT LAUDERDALE 33306 / $

As you may know, Pre-Foreclosure is the best time to talk to anyone about their home and how they might want to save their credit. And with what has happened in the subprime market, this list will grow with more selections.

We thought that Cyweb - Government Auctions did a good job detailing information that would have taken us hours to put together. Sure, there is competition, but with this list, you can make sure you are the first to be aware of the upcoming foreclosure auctions. The list updates regularly.

Finally, there is much more than foreclosures on the site. And yes, you can probably buy a car, boat, or plane as well. This site, because of its long-time in the business, many testimonials, is probably as legitimate as you're going to find. We thought they were first class.

Behind on Mortgage - Foreclosure Looming

The people that keep an eye on the mortgage and home lending business say that a million homes will be likely candidates for foreclosure this year. That's up 30 percent from 2006. And more and more people are getting behind on their mortgage or house payments. Scams have arisen, too, making things worse.

What to Do

First of all, when you feel you have a problem with that upcoming payment - you don't see how that you're going to have the money - contact the lender. Most all that we know and have dealt with want to help you keep your house.

Next, if you do get any piece of mail from your mortgage company regarding your loan or that your payment is late; answer them promptly. Don't get discouraged and just shut down. The lender has no idea what's going on. You just have to communicate. Later, when things get worse, the legal notices start appearing, and you just don't want that to happen.

Dig out your loan papers and start reading. Many of the clauses that you'll be dealing with if you are behind on your mortgage or home payments is right there in the documents. Use the Internet to find out about foreclosure laws in your state. Each state is a little different, so try not to let an uncle or friend living in another state tell you what will happen.

Get your spending in order. This means to put money where it needs to be by priority. First should come health care. Next, should really be your mortgage. Keeping your home should come right after keeping your health. This means paying your mortgage at the expense of your credit card debt.

Our website here looks at so many options, but one thing you will never find here are "foreclosure prevention kits" or promotion of any fee based companies where they say they'll help you if you pay them first. Avoid these scams. Don't sign anything from anyone claiming they will stop your foreclosure. There's a scam now called "equity skimming" where a buyer will offer to repay your mortgage if you sign over your deed and move out. Of course you're left with the debt and he has the house.

Finally, get help with the Housing and Urban Development arm of the US Government. HUD offers low-cost and many times "free" counselors and great information on avoiding foreclosure. Call 1-800-569-4287 to seek a counselor in your area.