Prevent Foreclosure

Do you want to prevent foreclosure and save your home? Are you one of the thousands of homeowners that are facing foreclosure and are looking for alternatives to prevent foreclosure? If so, this article offers you a number of options to fight foreclosure so you can stay in your home.

If you are facing foreclosure, then you fall into one of two categories:
You’ve seen a reduction in your income such as job loss that has made it hard for you to pay your mortgage
You are one of those who are in a adjustable mortgage loan, and you’ve seen your rates increase beyond your ability to pay
Chances are, if you are looking for ways to prevent foreclosure, then here are 7 things you need to know.

Less than 3% of people who apply for a loan modification gets approved. In a recent interview with an ex-Chase employee, he was quoted as saying “we are in the foreclosure business, not the loan modification business.” Banks say that they can offer you a loan modification but in reality, they make more money foreclosing on you than they do when they offer you a loan modification.

Here’s a dirty little secret banks don’t want you to know. Your loan has been insured by the HUD and Credit Default Swaps. When you go into default (they get their entire loan amount paid..several times over.

With a Credit Default Swap, your “lender” can insure up to 30 times the value of your loan. In other words, they make more money foreclosing on you than they do giving you a loan modification.

People at the loan modification processing centers are charged with looking for as many reasons to deny your loan modification application than to help you prevent foreclosure.

Judge after Judge have ruled that while a homeowner is in a loan modification program…even during the application process, a “lender” can not foreclose on the home.

This should prevent foreclosure and as a homeowner you have the right to be treated fairly. So while you are trying to negotiate with the “lender”, they can not foreclose on you.

This means that you should do everything you can to continue to work with your “lender” to get your loan modification processed as an effective means to prevent foreclosure.

The reality is, your lender is not actually a lender at all. Chances are, they sold the loan onto Wall Street and are now acting as a servicer for the loan. A Servicer is not a lender. A servicer does not own the loan. A servicer does not have the authority nor the ability to modify a loan, let alone foreclose.

You see, once a loan has been sold onto Wall Street under a process known as Securitization, then your “lender” no longer owns the loan. And if they do not own the loan, they can not modify nor foreclose on the property.

The law gives a LENDER the right to foreclose on a property, not a servicer. A servicer is not a real party of interest nor the holder in due course for the promissory note for your home.

Understanding this subtle difference is key towards prevent foreclosure.

When you are negotiating with your “lender”, be sure to get an answer in writing when you ask them whether they have a) the ability b) the authority to modify your loan.

If you can get an admission in writing that they do not have the authority or the ability t modify your loan, then you can prove that they are guilty of false representation and ultimately fraud.

In almost every State, the law gives specific rights to lenders that have secured their debt against real property. Specifically, the party that lends the loan or owns the debt may foreclose on a property.

However, the law is not extended to a servicer. A servicer can only collect the money and pass it on to the owner of the debt…but the foreclosure (or loan modification) can only be done by the owner of the debt.

Many homeowners have been successful in preventing foreclosure by forcing their servicers to admit that they are not the real party of interest on the debt, and as such they can not modify nor foreclose on the loan.

To learn more about this get your free copy of “The Foreclosure Defense Handbook” .

There are literally thousands of companies out there purporting to represent the bank in helping you get a loan modification, telling you that you can qualify for HAMP (the Home Affordability Modification Program). These typically charge thousands of dollars to do nothing other than process loan modification paperwork that they then submit to the “bank” on your behalf. They make no assurance of any success whatsoever. Many even claim to have direct relationships with these “banks”…they don’t.

DON’T WASTE YOUR MONEY. If you need foreclosure help read on. This is why they passed legislations in California to stop loan modification companies from operating in California. 99% of the time, these companies are scams and offer you nothing. You are better off dealing directly with your “lender” directly if you know how to challenge their fraud.

To learn more about how to build a more effective argument to compel your lender to treat you faily, and prevent foreclosure, download the Foreclosure Defense Handbook by Vince Khan. This book sells at Amazon for $12.99 but you can download the ebook version of it for free by joining us at facebook or by entering your name and email in the form below.

Despite what you hear, participation in HAMP is optional. When the government created this assistance program, they naturally assumed that banks would rather work with homeowners than to foreclose on them.

They were wrong.

As we mentioned earlier, banks make more money foreclosing on you than they would giving you a loan modification.

Here’s an example. Let’s say your loan is current at $100,000. Let’s say you are upside down (meaning your home is worth less than what you owe), and you want to modify the loan to $80,000.

In this instance, if you succeed in getting a HAMP loan modification, then the bank would receive $20,000 from the HAMP program.

If instead, they get to foreclose on your home, then HUD will pay them the whole $100,000 (not to mention additional pay outs with Credit Default Swaps).

As you can see, they have absolutely no incentive to deal fairly with you to give you a home loan modification.

Your servicer is not required to participate in the HAMP program. There is no law that requires them to. As such, even though the government has put aside billions of dollars to help homeowners prevent foreclosure, these lenders continue to foreclosure every day.

This is why you need to get educated and learn your rights. A good place to get started is to download the free ebook by Vince Khan called “The Foreclosure Defense Handbook”.

Thousands of homeowners are learning how to prevent foreclosure and suing their lenders around the country. More and more homeowners are winning in foreclosure defense cases because they are able to prove that the servicer does not hold title to the promissory note.

These banks are committing fraud every single day. They are relying on your ignorance to get away with this scam. Don’t be another victim. Learn your rights and protect your home. Prevent Foreclosure today.

To learn more about how you can prevent foreclosure and win, get the free ebook by Vince Khan called “The Foreclosure Defense Handbook”.