If you allow your home to be foreclosure on, it is most likely that the amount received from the foreclosure sale will be much less than what is owed, which could leave you liable for the difference with your mortgage company, generally known as deficiency balance.

The answer to your question, and the best solution to your problem, depends largely on your state, as state laws on seizure and execution of deficiency balances vary widely from state to state. While some states limit the collection of deficiency balances, most states allow deficiencies to be treated like other debts. After the completion of foreclosure it is possible that the creditor can file a complaint against you to collect the debt, this is known as a deficiency judgment. If the court grants your mortgage company the lawsuit against you the creditor known as your mortgage company can garnish your wages, seize your bank accounts and / or liens on your property, including your primary residence, under the laws of their state in enforcement of judgments.

For more information about what the creditors are able to pursue action in your state, Collection resources laws. Also, if you let your home go to foreclosure with your mortgage company, you can expect to see negative credit history for seven to ten years. The public record is likely to cause significant damage to your credit rating and your ability to obtain new credit.

As I said, if the mortgage company receives a penalty against the lack of balance on your second home, it may be possible for a creditor place a lien on your primary residence. Moreover, according to the laws in your state, a creditor can force the sale of your main house to get money to pay the penalty. In general, if the unsecured creditors want to force the sale of your home, they must first pay the mortgage principle of the property when the sale is complete, or a sum of “liberation”, which varies from state government.

The more equity you have in your home the more likely that the creditor will try you to make a forced sale of your property, so if you have a lot of equity in your principle residence, you may want to think twice before letting your other house go into foreclosure. Before deciding what course of action to take, I urge you to consult an attorney in your state to discuss the laws of your state and determine the best course of action available to you in this situation.

You may be able to free yourself from the obligation to continue to pay a second home in the bankruptcy filing, or extend short selling through filing a Chapter 7 bankruptcy. The Chapter 7 bankruptcy may allow you to dispose of the property to the creditor, and release the balance deficiency as part of the Chapter 7 bankruptcy plan. If you have a significant amount of capital in primary home, you may lose the property and depending on the state property exemptions in the Chapter 7 bankruptcy. Again, I urge you to consult an attorney to determine the best course of action to resolve the outstanding debt. If you want to learn more about Chapter 7 bankruptcy, please contact a bankruptcy lawyer .

Many Americans are struggling to maintain their current mortgage, due to the slowing housing market and rising cost of gas and other commodities, so please know they are not alone in facing challenges.

Need a home affordable modification program on your existing mortgage to help with your interest rates? Are you struggling to make your mortgage payments and need help lowering your interest rates?

Home affordable modification program is a great way to lower your interest rates if you are experiencing a financial hardship. There has been a lot of buzz around about how or if current market rates a effect a loan modification out come. Are you contemplating applying for a loan modification due to a financial hardship but not sure if the current market rates are favorable? The Interest rates that you are seeing rise and fall have nothing to do with loan modification outcomes. When you do a loan modification you are modifying the terms of your current note not getting a whole new loan. Loan modifications are based off of financial hardship situations, affordability and what the lender can do to come to an equitable solution for both the investor and homeowner to save your home from foreclosure. The only way the new interest rates come into play is if you are processing a whole new loan transaction. In the case of a whole new transaction it would then become a refinance an not a loan modification.

The home affordable modification program is one of many modification programs that can help you lower your interest rates. However the home affordable modification program isn’t always the best program and in that case the ModPilot program will provide you with tips and tools to complete your modification package and give you the best opportunity for success.

ModPilot is an education company located in Carlsbad, CA . ModPilot was created so that the already distressed homeowners have complete control over the process and the submission of their workout request; this is not limited to a loan modification application. We cover any workout solution. The ModPilot program is an educational product intended to give these distressed homeowners the knowledge and tools necessary to modify their own loan and/or find the best possible workout solution for the homeowner’s situation whether that is a loan modification, short sale, short refinance or other workout solution that may be available to them. Distress homeowners are offered the comfort of a system that has proven results.

ModPilot’s specialists can offer a few different packages to assist you. All of our packages come with the ModPilot guidebook and CD-Rom. Each package is uniquely designed to assist distressed homeowners to accomplish their home loan modification request with their lender. ModPilot will also be there to assist homeowners even if there home loan modification request failed previously or if the have underwater mortgages. Underwater mortgages are common in this economy and can be dealt with through a few different options.

Our ModPilot team results speak for themselves with more than 50 years of combined experience in the real estate and financial services our customers are seeing the workout solution they need. Our company knows and operates under the knowledge that dealing with negotiations with the lenders is a learned skill when it comes to a workout solution Our support specialists are skilled in this area and provide the tips, tools and strategy homeowners need to be successful in their negotiations with their lender.

Here at ModPilot, we are committed to continuing to help homeowners achieve success by providing excellent customer service and the most current information available about programs and workout solutions that the lenders have to offer. Call ModPilot today and get on the path to success.

Most consumers make their mortgage loan payment each month without paying too much attention to the lender name on their mortgage statement. Does the name only indicate the servicer or the owner of the mortgage loan like Freddie Mac or Fannie Mae? Sometimes notices will come in the mail; notifying homeowners that their home mortgage loan has been sold to a new company, but rest assure that your mortgage loan payment amount will stays the same as well as your servicer like Freddie Mac or Fannie Mae. Most often questions is, what difference does it really matter?

The answer is: Not much beyond the simple processing of a monthly mortgage payment. However, the servicer and investor relationship becomes a little more complicated. At that point, the consumer can be exposed to the shadowy world of mortgage entities which can quickly get confusing. In reality, your home mortgage loan has probably changed hands several times since you signed your mortgage loan papers and took possession of your new home. Even though you make your payment to the bank, the reality is that the bank may not be the actual owner of your loan.

Your loan may have been funded originally by a wholesale or correspondent lender, which then sells it off to a secondary company such as one of the government sponsored entities like Freddie Mac and Fannie Mae, which together hold over half of the mortgage debt in the United States. It might have been bundled into a group of mortgage loan known as a mortgage backed securities, or collateralized debt obligation which may actually be owned by a single investor or a group of investors like Fannie Mae or Freddie Mac each of which may own a portion of the entire group of mortgage loan.

ModPilot mortgage modification experts will help homeowners understand the importance of knowing who owns your mortgage loan.

Timing is very important if your loan modification application has been denied. There is no need for homeowners to start from the beginning of the review process if they don’t have to. Before the review process and your entire application is closed, you need to resubmit your request as long as the negotiator is still assigned to your file.

Homeowners must work overtime to make adjustments to their financial situation. Homeowners need to understand that the original financial statement that was submitted could be one of the main reasons for the denial. So it makes absolute sense to modify or make any adjustments to your financials before you reapply for loan modification. In most cases, the lender will quickly point out the errors regarding the information that was provided so homeowners will have the chance to reapply for the loan modification.

If you take too much time reviewing your information that you provided to the lender or if you don’t resubmit the application in a timely manner, the review process will be closed. This might mean that you have to wait for another thirty to ninety days before your application for the loan modification can be reviewed again with your lender. With most lenders, timing is very crucial. Homeowners must also contact the lender once every week during the review process.

Homeowners should never give up hope if their loan gets denied. ModPilot will help homeowners determine the exact reason why your application was denied for loan modification and help you evaluate what’s your next step in achieving your loan modification goals.