I am sorry to say, you are not alone.   Homeowners across the Country are calling us and telling us horror stories about what they are going through trying to work with their mortgage lenders to complete a Loan Modification.  Most homeowners are finding out that it’s not an easy process of just faxing a few documents and making a few phone calls.

Numerous homeowners have told us their lender cannot now find the package that the homeowner already sent them and just a week or so before the lender said they had all the documents they needed and now everything needs to be re-faxed to the lender right away. Not once, not twice, but as many as three or four times! What do they do? How do they get it taken care of?  Where’s the help?

The lender never sent the package they said they were going to send, but the homeowner just received a letter from the foreclosing attorney or court documents about a pending foreclosure! What to do?  How much time is it before a foreclosure sale is set?  How does the homeowner move  forward?

Homeowners are receiving legal documents in the mail that they just don’t understand and the Lender is not returning their calls? What do they do? Now who do they call?

Need Help? United Capital Mortgage Assistance has been getting Loan Modifications and helping homeowners stop foreclosure since 1997.

UCMA Guarantees – we will tell you how things are, no ifs, ands or buts about it. We’ve been telling homeowners how things are for greater than thirteen (13) years and we’re not stopping now!

UCMA Guarantees – we’re not one of these new kids on the block everyone is talking about!

UCMA Guarantees – no one will give you better suggestions or offer better foreclosure prevention information that United Capital Mortgage Assistance.

UCMA Guarantees – no one will do a better job or work harder for you to help you keep your home!

UCMA Guarantees – updates throughout the complete foreclosure prevention process, so you will know exactly what is going on with your case at all times.

UCMA Guarantees – we go through all Agreements with our clients, making sure all the terms are exactly like we were told and making sure that our clients understand exactly what to do and when to do it.

UCMA Guarantees – to help you until the end, verifying that your mortgage lender has received the Agreement you signed and that you are now current on your loan.

Having trouble or problems working with your mortgage lender – Do yourself a favor and call United Capital Mortgage Assistance like literally thousands of others already have – 1.800.474.1407.

Mortgage lenders like the Hardship Letters to include everything that happened to cause the delinquency (the hardship) and when and how the hardship(s) was resolved.

One of the numerous things we offer our clients is a Hardship Explanation Outline, a copy of which follows – with the idea in mind of helping those who would like assistance with writing their Hardship Letter.

HARDSHIP EXPLANATION OUTLINE

Explain the “hardship” that caused your delinquency and explain what has occurred or what you have done to better your situation. Please include dates that the hardship(s) occurred and when the hardship(s) was resolved. Remember anything you say in the Hardship Explanation Letter about what caused your delinquency may need to be verified later, so please hold onto any verification of the hardship you may have.

If you have increased income by any means what-so-ever, including but not limited to part-time work, getting a boarder or roommate, receiving overtime at work or you have increased income by any other means, please be sure to mention it in the Hardship Explanation Letter.

Please explain all expenses you have eliminated, cut back on or have cut off, for example, cut off cable TV, cut off cell phones, eliminated outside entertainment, no more long distance phone calls, cut back on groceries by bagging lunches instead of eating out, cut back on dry cleaning, have reduced utility expenses, no more pay-per-view cable TV, movies or any thing else that you can think of that will save money to help you get back on your feet.

Please explain that these actions have allowed you to create a budget, which allows for all bills to be paid in a timely manner and still allow for savings (in your own words, please). (REMEMBER – LENDERS LIKE TO SEE “SACRIFICE”)

If you have gone or are scheduled to go to a budgeting class to help with budgeting or have gone or are scheduled to go to a credit counseling company that specializes in helping reduce credit card debt and/or unsecured debt, please be sure to mention that in the Hardship Explanation Letter as well.

If you have owned your home for some time, you may want to mention how long you have owned it.

Explain how important your home is to you and your family and mention your concern for your children’s welfare and safety (if you have children).

Explain how hard you worked to buy your home and how hard you are willing to work to keep your home.

Explain how confident you are in your ability to now maintain your mortgage payments, if they just work it out with you.

Thank them for their consideration and be sure to SIGN AND DATE the Hardship Explanation Letter.

DO NOT MISREPRESENT.
DO NOT OVER EXAGGERATE.
TELL IT HOW IT IS.

IF YOU HAVE ELIMINATED OR CUT BACK AN EXPENSE
SAY SO – IF NOT – DON’T.

Good luck.

A Deed in Lieu of Foreclosure is exactly as it sounds, the homeowner signs over the deed of the property to the lender in lieu of (instead of) the lender foreclosing, the lender takes title to the property, the homeowner is relieved from the mortgage obligation and the homeowner vacates the property in good repair.

There are benefits to the homeowner and to the lender. If the homeowner is unable to maintain mortgage payments and it appears that the homeowner’s financial situation is not going to change in the near future, the lender may entertain accepting a Deed in Lieu of Foreclosure.  However, the lender may ask the homeowner to place that property on the open market with a Realtor, or attempt a Short Selling the property prior to accepting a Deed in Lieu.

As well, if there are any junior liens encumbering the property (2nd or 3rd mortgages, etc.), the mortgage lender may not want to accept a Deed in Lieu of Foreclosure.  The basic reason is that a foreclosure sale will eliminate payments to any junior lien holders and if the 1st mortgage lender (the senior lien holder) accepts a Deed in Lieu when there are junior liens on the property, the senior lien holder would be responsible for payments of or responsible for pay-off of the junior lien(s).

The main benefit to the lender is that the lender can take title to the property right away instead of having to wait out the full foreclosure process, which can become very expensive.  In states which utilize the judicial foreclosure process, the lender may have to wait greater than twelve (12) months before the judicial foreclosure process takes its course, which makes it that much more expensive the for lender to foreclosure and the chances of recouping their losses lessens greatly.

The homeowner does benefit as well, by transferring title to the lender the homeowner is not only relinquished from any further financial obligation that was on that property but the lender also agrees not to sue the homeowner for a Deficiency Judgment.

Quick Facts

- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 60 days
- Right of Redemption: No
- Deficiency Judgments Allowed: Yes

In Texas, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

1. Prior to proceeding with a foreclosure, Texas laws state that the lender must mail the borrower a letter of demand, informing the buyer he has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin.
2. At some point after the borrowers twenty (20) days have expired, but at least twenty one (21) days before the foreclosure sale, a foreclosure notice must be: 1) filed with the county clerk; 2) mailed to the borrower at their last known address; and 3) posted on the county courthouse door.
3. The foreclosure sale must take place on the first Tuesday of any month, even if said Tuesday falls on a legal holiday, but only after the proper preliminary notices have been given. The sale is on the courthouse steps by auction to the highest bidder for cash. Anyone may bid, including the lender, who bids by canceling out the balance due on the note, or some part of it.

Lenders may obtain deficiency judgments, but they are limited to the difference between the fair market value of the property at the time of sale and the balance of the loan in default.

More information on Texas foreclosure laws.

Quick Facts

- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Varies by Process; Typically 30 – 60 days
- Right of Redemption: 12 months
- Deficiency Judgments Allowed: Yes

In Alabama, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. However, when no power of sale is present, lenders may, at their option, choose to forego a lawsuit and foreclose by selling the property, as outlined below in the “No Power of Sale Foreclosure Guidelines”.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. However, if the deed of trust or mortgage contains a power of sale clause, but does not specify the time, place and terms of sale, then a foreclosure sale may take place at the front or main door of the courthouse of the county where the property located, after default of the deed of trust or mortgage, for cash to the highest bidder. The sale may not take place until thirty (30) days after the last notice of sale is published.

Said notice of sale must be given by publication once a week for four (4) successive weeks in a newspaper published in the county or counties in which the property is located. If the property is under mortgage in more than one county, the publication is to be made in all counties where it is located. The notice of sale must give the time, place and terms of said sale, together with a description of the property. If no newspaper is published in the county where the lands are located, the notice shall be placed in a newspaper published in an adjoining county for four (4) successive weeks.

No Power of Sale Foreclosure Guidelines

If no power of sale is contained in a mortgage or deed of trust, the lender, or any assignee thereof, may, after default of the mortgage or deed of trust, either file a lawsuit to foreclose or foreclose by selling the property to the highest bidder for cash at the courthouse door of the county where the property is situated. Said sale may not take place until after notice of the time, place, terms and purpose of the sale has been published for four (4) consecutive weeks in a newspaper published in the county wherein said lands, or a portion thereof are situated.

More information on Alabama foreclosure laws.