Archive for December, 2009

Short Sale Basics

Thursday, December 17th, 2009

Short Sale BasicsThere are situations in which properties are in foreclosure with negative equity, where the seller owes more than the property is worth. Under these circumstances, lenders may be willing to accept less than the full amount due. This known as a “short sale.”

For homeowners, this means that if there’s no way to make mortgage payments on time and if the home is worth less than what is owed, a foreclosure doesn’t have to be the only way out. Short sale means selling a house for less than what is owed on the mortgage, given that the lender agrees to it. The rest of the debt is usually forgiven since it outweighs the negative and time consuming effects of foreclosure proceedings.

Short sales are known to be a win-win situation for all parties involved, including the seller, buyer and lender.  The seller doesn’t have to face bankruptcy or foreclosure and is no longer liable for the mortgage. The buyer purchases a home at the market rate. The lender also benefits because the losses are minimal compared to being stuck with property after foreclosure.

If not properly addressed in advance, a short sale transaction can have legal consequences and even lead to loss of investment. Since reductions are taxable, you must complete the short sale correctly, so that the loan balance forgiven is not counted as income on your taxes. It is important to negotiate terms and conditions so that the short sale transaction will not have serious consequences for the homeowner and buyer. That’s just one of the reasons why short sale should be carefully considered and terms should be outlined before-hand.

Seeking the advice of a qualified short sale attorney is advised. An attorney can assist in reviewing the terms and conditions, negotiating disputes and completing a short sale for homeowners and buyers. An attorney is a good resource to have for minimizing risks of potential problems.

If you are considering or are in the process of a short sale and need the assistance of a short sale attorney, call Attorney Search Network. Attorney Search Network can help you locate a short sale attorney in your area with experience in short sales.

5 Questions to Ask About Loan Modification

Thursday, December 17th, 2009

5 Questions to Ask About Loan ModificationDistressed homeowners often find loan modification frustrating and confusing. If you are considering a loan modification, getting as much information as possible before you contact your lender can help you prepare your case and get you the results you need. To help you get through the loan modification process, here are the top 5 questions you can ask your lender:

  1. How can loan modification help me avoid foreclosure? Your lender should explain that loan modification can help you find a solution to making your loan current and halt the foreclosure process at the same time.
  2. Do I qualify for loan modification? Your lender should assess if you will be able to afford the modified payment in the long-run, by looking at your income and expenses. Other factors considered are the number of payments missed, if bankruptcy was filed or if you are facing a financial hardship.
  3. What are the criteria for a financial hardship? Financial hardships are circumstances that cause you fall behind on your mortgage payments.  This could include sudden illness, divorce, loss of job/income, death of a family member, military service and other compelling reasons that can cause financial strain.
  4. What steps do I need to take to start loan modification? Contacting a loan modification attorney can get you one step closer to lower mortgage payments. A loan modification attorney can review your case, deal directly with your lender and help you prepare your application so that it gets processed in a timely manner.
  5. Should I hire a loan modification attorney? A loan modification attorney can get you the best loan modification and the results you want from your lender. Attorneys use legal information to strengthen your case and can help stop the foreclosure proceedings so that you can focus on saving your home.

Depending on your current situation and your lender, the loan modification process can vary. Speak to a loan modification attorney today to find out if loan modification is right for your case, if you qualify for any programs and what long-term benefits it has to offer.

Are you Driving a “Lemon”?

Monday, December 7th, 2009

Are you Driving a "Lemon"?

Plenty of new cars were purchased this year with tax incentives and the ‘cash for clunkers’ program. Unfortunately, not every new car works like it should. There are cars that were damaged in the design or production process that result in problems for their new owners.

If you purchased a new car, it is under manufacturer’s warranty. If you have had to service the car multiple times for the same major issue, you may be driving a “lemon” and you may be protected under lemon law.

Lemon law refers to a proclamation under the Magnuson-Moss Warranty Act created to protect consumers from defects in automobiles. Lemon law can be enforced on any kind of vehicle like a car, truck, van, SUV, motorcycle, boat, etc. If any of these vehicles are found to be defective, a consumer is entitled for either money back, replacement or a cash settlement. To qualify under state lemon laws, the defect must be substantial and must occur within a certain time or mileage period, usually 12,000 miles or one year.

Lemon law also applies to vehicles which have been resold but are still under warranty and meet the mileage and time criteria. Motor vehicle dealers are required to inform you of your rights under the lemon law in your specific state. They also need to disclose whether the vehicle you intend to purchase has ever been returned under lemon law’s “Lemon Buy Back.”

A lemon law attorney can help you send a written notice to the manufacturer describing the nature of the problem. If your written notice is ignored, a lemon law attorney can help you file a lawsuit and reach a settlement that compensates you for your purchase.

If you’re driving a lemon, it is important to seek legal aid from a lemon law attorney. Attorney Search Network can find you a lemon law attorney in your area with years of experience dealing with lemon law cases.

Negotiate your Debts Today!

Monday, December 7th, 2009

Negotiate your Debts Today!

Facing financial problems is not uncommon. Declaring bankruptcy, however, comes with long-term consequences that may be not worth it. Most debtors seek debt negotiation services to help them move forward.

Are you stuck in a debt situation? A good way to fix it may be to negotiate lower interest rates, interest freezes, principle reductions or settle with debt negotiation. Debt negotiation, also called debt arbitration, is the process of negotiating with a creditor to pay off your bills by reducing a portion of the balance that is owed on your unsecured debts.

Debt negotiation can get you a lower payoff of your debt. You can get reasonable settlements and by maintaining good spending habits, you can be on your way to financial solvency.

You may need debt negotiation if you have:

  • Credit card payments that are 60 days past due
  • More than 2 credit cards with payments 30 days past due
  • Installment loan payments that are 60 days past due
  • More than 2 installment loan with payments 30 days past due
  • Housing payments such as rent or mortgage that are 30 days past due

Credit cards, department store credit cards, unsecured personal loans, rent, utility bills and auto repossessions are all eligible for debt negotiation programs. Exclusion are car payments, pay day accounts, military accounts, credit unions, mortgages, student loans, secured loans and income tax payments.

For help with getting out of debt through debt negotiation, speak with an experienced debt negotiation attorney. Attorney Search Network can recommend you to a law firm that can help with your debt negotiation needs.