How to Get Out of Debt With the Get Out of Debt Guy » avoid foreclosure

I’m Facing Foreclosure and Falling Behind On Other Bills As Well. – Dora

Andy Faria — Mon, 23 May 2011 15:07:44 +0000

From How to Get Out of Debt

“Dear Andy,

IM FACING FORCLOSURE AND NEED SOME HELP,IM FALLING BEHIND AND TO MANY BILLS

I HAVE REAL BAD CREDIT DUE TO MANY UNPAID DEBT AND BECAUSE OF THAT NO ONE CAN HELP ME . CAN U FIND SOMEONE WHO CAN?

Dora”

The Answer:

Dear Dora,

I don’t have a lot of information to work with but from the sounds of it your credit score won’t matter much at this point when it comes to saving your home. Refinancing your loan will not be an option right now if you’re in already in foreclosure, and that is one of the only options I can think of that would require a good credit score.

If you absolutely must save the home, than I would probably say that modifying your loan or filing bankruptcy would give you the best shot. If you haven’t tried to modify your loan yet than you should call the lender right away and ask them what options they have available. Work directly with them, send them the documentation that they ask for, and you just may end up getting your loan out of foreclosure and back on track.

You should also speak with a bankruptcy attorney right away. Bankruptcy could potentially stop the foreclosure and also address any of the other debt issues you currently have. Nobody wants to file bankruptcy but if it truly is your best option, than everything else will just be a waste of time.

If you still have questions or would like to keep us posted on your progress please post them in the comment section below. I am subscribed to this post and will do my best to respond promptly. Good Luck.

Best Regards,

Andy is a licensed real estate broker in Massachusetts and is the founder of Northeast Properties in Norton, Massachusetts. His brokerage is designed to help homeowners in today’s difficult real estate market, specializing in short sales. Andy speaks with Massachusetts homeowners every day, helping them to address their questions or issues with short sale or loan modification. He enjoys helping consumers arrive at the correct solution to their problem, and believes that the only way to correctly do that is by presenting them with all of their options in an un-biased manner.

If you have a mortgage, short sale, real estate, or loan modification question you’d like to ask just use the online form. I’m happy to help you totally for free.

Foreclosure and Loan Modification Consultants Get Jail Time

Steve Rhode — Fri, 09 Apr 2010 21:09:51 +0000

From How to Get Out of Debt

In a clear “warning shot” to unscrupulous loan-modification consultants, California Attorney General Edmund G. Brown Jr. today announced that two women have each been sentenced to one year in jail and ordered to repay dozens of homeowners who were charged thousands of dollars in up-front fees for non-existent foreclosure-relief services.

Marianne Curtis, 69, of Costa Mesa and Mary Alice Yraceburu, 46, of Riverdale, who operated Fresno and Orange County-based Foreclosure Freedom, pleaded guilty last month to 71 criminal counts, including grand theft, conspiracy and unlawful foreclosure consulting. Both will serve one year in Orange County jail and an additional four years of probation.

“Curtis and Yraceburu shamelessly exploited homeowners desperate to avoid foreclosure, charging up to $1,800 in up-front fees for loan modifications that were never delivered,” Brown said. “Today’s jail sentences send a warning shot to loan-modification consultants: If you swindle homeowners, you face serious time behind bars.”

Brown’s office initiated its investigation into Curtis and Yraceburu in early 2008 after receiving a complaint from the Tulare County District Attorney. Charges were filed in Orange County Superior Court on March 19, 2009, against the defendants, and both pleaded guilty on March 24, 2010.

Brown’s investigation located victims in many California towns and cities: Antelope, Avenal, Bakersfield, Crows Landing, Elk Grove, Fairfield, Fresno, Galt, Hanford, Hayward, Hollister, Kingsburg, Mendota, Modesto, Petaluma, Placerville, Richmond, Ridgecrest, Rio Linda, Sacramento, Salinas, San Leandro, Simi Valley, Stockton, Taft, Vacaville, Vallejo and Ventura.

In addition to today’s jail sentences, Curtis and Yraceburu were ordered to repay 36 victims a total of $32,040. If eligible victims not named in the complaint come forward, the court can order additional repayment throughout the defendants’ probation term. As a condition of today’s sentence, both defendants are also prohibited from any future work in the telemarketing and real estate industries.

Brown’s investigation found that from April 2007 until February 2008, the two women paid for access to foreclosure listings so they could directly solicit hundreds of homeowners underwater on their mortgages with mailers promising relief.

When homeowners called the number on the mailer, they were told their mortgages could be renegotiated to a lower monthly payment. Victims, however, were required to pay up to $1,800 in up-front fees and were instructed not to contact their lenders.

Victims were assured the company had “private lenders and specialists exclusive to their company who are very experienced in the options and methods used to renegotiate home loans,” yet neither of the women who operated the company had real estate licenses, legal training or any experience in the home mortgage market.

Investigators found no evidence they had negotiated any successful loan modifications, and most of the victims were either forced into bankruptcy or lost their homes to foreclosure. Bank account records revealed the defendants took over $120,000 from unsuspecting homeowners.

Both Curtis and Yraceburu pleaded guilty to all 71 criminal counts including:
- 34 counts of unlawful foreclosure consulting
- 29 counts of grand theft
- 7 counts of attempted grand theft
- 1 count of conspiracy

By law, all individuals and businesses offering mortgage-foreclosure consulting or loan-modification and foreclosure-assistance services must register with Brown’s office and post a $100,000 bond. It is also illegal for loan-modification consultants to charge up-front fees for their services.

@GetOutOfDebtGuy

I Gave $1,000 to a Loan Modification Company and They Went Bankrupt. I Am Five Mortgage Payments Behind. – Vic

Steve Rhode — Tue, 19 Jan 2010 19:36:13 +0000

From How to Get Out of Debt

Vic

“Dear Steve,

I am currently 5 mortgage payments behind..I tried negotiating with my lender on a modification but was not happy with the results (only lowered my payment by 40 dollars) i did not accept the modification and now they want to foreclose. I recently gave 1000 dollars to a modification co. and found out they are going bankrupt. so I need a modification in a bad way. My mortgage payment is approx 47% of my income and I can barly keep up with everyday expences. when I put everything on paper i am in the hole. Can you recommend somebody?

Vic”

The Answer:

Dear Vic,

It sounds like the reality is that you simply can’t afford your house. No lender is under any obligation to accept a loan modification request and most loan modification companies are dubious at best.

If you want to try to get the straight scoop on what foreclosure avoidance options might be available for you, contact a HUD approved housing counseling agency.

But my gut tells me that you are probably so underwater that letting the house go and following that up with a bankruptcy might be your only option.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Real Long-Term Mortgage Loan Modifications Are a Joke.

Steve Rhode — Thu, 10 Dec 2009 21:24:36 +0000

From How to Get Out of Debt

As I’ve been saying the mortgage loan modification process is broken. People are not getting the type of long-term real mortgage modifications they need to really avoid foreclosure. In the meantime while they sit and sit and sit, waiting for their mortgage company to respond, their financial life goes further and further down the toilet.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

A total of 759,058 trial modifications have been started since the program launched in the spring. The number of troubled borrowers currently in trial modifications rose to 697,026, up from 650,994 a month earlier.

“We’re not satisfied yet with how this program is unfolding,” said Treasury Assistant Secretary for Financial Stability Herbert Allison at the House Financial Services hearing. “The servicers have a lot of work to do, and we’re holding them accountable for their performance.”

Thursday’s announcement came hours after a report showed the foreclosure crisis might be mitigating somewhat. Foreclosure filings fell by 8% in November, the fourth consecutive month of declines, according to RealtyTrac, an online marketer of foreclosed properties. – Source

@GetOutOfDebtGuy

Exotic Dancer Opens Foreclosure Avoidance Company, Advertises on Gospel, Partner Punches Lawyer in Face

Steve Rhode — Tue, 17 Nov 2009 18:59:05 +0000

From How to Get Out of Debt

LOL, OMG, you can’t make this stuff up.

A Maryland woman who stole millions from Washington area homeowners trying to avoid foreclosure is a “vulture” whose case should serve as a warning to other con artists, a federal judge said yesterday before imposing a sentence of more than 12 years.

Joy Jackson, 41, a former exotic dancer who became president of the Metropolitan Money Store, carried out the years-long scheme through the Lanham-based business. She used the cash to buy jewelry, fur coats and vacations, and to cover a lavish wedding at the Mayflower Hotel, where Patti LaBelle serenaded guests who feasted on lobster and drank Cristal.

Metropolitan, which advertised on gospel and R&B stations, promised to help people keep their homes and repair their credit. Instead, Jackson and several co-conspirators, including her husband, Kurt Fordham, took titles to properties and drained them of equity.

The case produced more courtroom drama Monday when Assistant U.S. Attorney James A. Crowell IV was punched in the face by a relative of Jackson’s key accomplice, Jennifer McCall, witnesses said.

Read the rest of the story here.

@GetOutOfDebtGuy

What Options Should We Consider to Avoid Foreclosure? – Joshua

Steve Rhode — Fri, 30 Oct 2009 15:12:53 +0000

From How to Get Out of Debt

“Dear Steve,

210,000 mortgage – 196,000 owed
4 months behind, foreclosure has not yet started but may within a month or so KS provides 120 days for the foreclosure process
15-20k unsecured credit debt/medical bills
My wife has 18k in student loan debt
2 cars, not behind on and I’m not certain how much equity really is in them but the debt is 20k 13k for the 05′ highlander, 6k for the 04′ impala
Lost my job 4 months ago
I make 1200 a month on unemployment
My wife makes maybe 800-1000 a month with her jobs.
3 children and on foodstamps.
Trying to find work and if I can find a job that pays 50-70k I’ll do whatever it takes to pay the debt.
No 401k or assets other than what is listed.
Applied for loan modification and BoA denied it.
House is an FHA 6% interest 30 year note. 1600/month payment.

What should I do? I’ve been told to consider bankruptcy, but I have no idea what is really best for us to do and what options we should honestly consider.

Joshua”

The Answer:

Dear Joshua,

This must certainly be an emotionally charged and stressful time for you. I’ve lived through that panic and fear myself and there is nothing fun about it.

While bankruptcy is a legal tool that is available to you it is probably not a reasonable expectation that it will allow you to keep the house. In a Chapter 13 bankruptcy you’d need to make at least the regular mortgage payment plus some to get caught up. I can’t see how the numbers would add up to allow you to do that and still get by.

But it would be worth finding a local bankruptcy attorney you like, schedule a free bankruptcy consultation and go talk to them.

Ultimately the first thing we need to focus on is replacement income. Unemployment is good but will not last forever. That is even more important than the house situation right now. Shelter situations can change and moving is a pain but being homeless sucks. After your unemployment benefits expire, unless you can find income, you could be on the street.

Just don’t let the mortgage situation distract you from the income issue. I know you are trying but it’s time to make a job of getting a job. You might even have to consider doing what I did when I found myself in that jam. I went and applied with every temp agency in my area, took every assignment they could send me on, and got to experience some horrible jobs. But I did them all with a smile on my face and grateful for any opportunity to earn money.

In the mean time, if you have some extra time on your hands, start going through your stuff at home and start throwing away anything you don’t need. It does not hurt to lighten the load now if you have to move latter.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Big Hug!

@GetOutOfDebtGuy

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

How to Get Out of Debt With the Get Out of Debt Guy » avoid foreclosure

I’m Facing Foreclosure and Falling Behind On Other Bills As Well. – Dora

The Answer:

Other Related Articles to Read

Foreclosure and Loan Modification Consultants Get Jail Time

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I Gave $1,000 to a Loan Modification Company and They Went Bankrupt. I Am Five Mortgage Payments Behind. – Vic

The Answer:

Other Related Articles to Read

Real Long-Term Mortgage Loan Modifications Are a Joke.

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Exotic Dancer Opens Foreclosure Avoidance Company, Advertises on Gospel, Partner Punches Lawyer in Face

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What Options Should We Consider to Avoid Foreclosure? – Joshua

The Answer:

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