Why would I want to get out of foreclosure? I heard this from someone who was just entering pre-foreclosure and has no fear of immediately loosing their house. People who are facing this situation are really being given every opportunity to help themselves get out of foreclosure, but many are choosing to do nothing, why? Because they know their lender really doesn’t want their house. So it is much easier to sit back and do nothing, ok they list it with a realtor to show the bank they are trying to make an effort to repay their loan, however they have no intention of selling. Many know that most states are so far behind in the foreclosure process it takes at least a year before their lender can follow up with the paperwork, so they stay in touch with the lender and pretend to be going through the motions of looking for a solution to the problem.
Many people are out of work when they find themselves facing this situation, with no hope of finding employment. Too many people just want to sit home and take advantage of the system, even though they can not afford to pay their mortgage on the amount of benefits they receive.
However there are still many who go out and find employment and while they may not be making the income they are accustomed to they are trying to do everything they can to get out of foreclosure. These hardworking people we will be happy to know there is a group of investors willing to give them the help they deserve. They have set aside 5 billion dollars from their hedge fund to purchase loans that are in foreclosure; after they negotiate the purchase of the loan they then issue a new 30 year mortgage at 90% LTV at the current fair market value of the property, given the homeowner 10% equity back in their home. While they do have to qualify for the loan, which uses FHA guidelines, pre foreclosure, foreclosure and upside down mortgages can qualify. You don’t need perfect credit either. Mortgage principle reduction could be a way for many people to get out of foreclosure. However everyone’s situation is different, a meeting with your attorney or tax advisor could help determine if the program is the right solution.