How to Beat Foreclosure: Helping People Keep Their Homes

One of the most devastating things that can happen to you is to lose your home. You do have options. If you (or someone you know) has lost their job, has less work (e.g. in construction or housing) than before, had a family or other emergency, you may not be able to make full payments, and could go into foreclosure. I'm not a lawyer, so I can't give legal advice, but I can educate on options.

Choices to help you:

Sue the Lender, with a Good Lawyer - Read ZeroOutYourMortgage.com
get a loan workout agreement, forebearance or loan modification,
do a short sale (someone offers to buy it, then negotiate with the lender),
get refinancing (perhaps ask for Short-Refinancing),
sell before it's too late,
audit the loan documents to see if the lender violated laws like TILA, HOEPA, or state laws (then sue or negotiate)
bankruptcy, if all else fails (make sure you get a certificate first)
offer a deed-in-lieu of foreclosure (give the property to the lender without foreclosure on your record).

Join a Mass Joinder Lawsuit against your Lender

2 Lawyers in California have filed suits against Countrywide/Bank of America, Wachovia/Wells Fargo, GMAC, Citi, Indymac/OneWest, WaMu/Chase, Ally Bank.
There are lots of Class Action Lawsuits out there, but they usually only win pennies for plaintiffs.
As I understand it, these dynamic Lawyers request relief of a torn up note plus $70,000 for each plaintiff that still has their home, and will try to get treble damages (3 times the Loan Amount) for homes lost in foreclosure.
These lawyers don't charge monthly fees after the retainer - they work mainly on Contigency.
They are doing Joinder instead of Class Action to get their clients more money, even though the work they do is tremendous because of it.
As I understand it,(after a Plaintiff joins the lawsuit), BofA and OneWest have agreed to stop foreclosure quickly,
and the other Lenders should stop also, (but it takes about 45-60 days) You can read more on this at www.ZeroOutYourMortgage.com Email me for the actual Complaints (public record) of the Lawyers at
at () for answers to questions or for me to refer you to their intake. You can join from anywhere in the US.

Audit Your Loan Documents for Violations

We, at www.AmericanLoanAudits.com can audit your Origination Loan Documents and Recorded Documents for Violations. Multiple Violations are Typical in the Origination Loan Documents. Often, Recorded Documents are flawed as well (wrong date order, robosigned, MERS not as Nominee, among other errors). We will do a quick check to see if we can determine which Securitization Trust your loan entered (at our normal low price, this is not a full securitization audit.) With the results of an Audit, you can hire a lawyer to sue or negotiate a Loan Modification with greater leverage.

Special Forebearance, Loan Workout or Loan Modification

Some borrowers can get a new payment structure if they can show a hardship, like lower income, loan balance greater than home value, increases in expenses (car repairs, disaster, accidents, added medical expenses, college tuition,etc) or other problems. This payment restructuring may help the homeowner repay the lender in a different time frame. The goal is to get the lender to lower the principal and interest, with lower payments. Second mortgages may be negotiated to disappear or are negotiated to 5% to 10% of their original balance, especially in cases where the loan balance is greater than the home value.
Anybody can try to negotiate a loan modification, but most can't force the lender to accept it.
American Loan Audits .com does Loan Audits to help.
(Beware, if you have already gotten a Notice of Sale, they may sell your house without further notice, even during or after the Loan Modification process.)
Because of Shared Loss Agreements with the FDIC, the Lenders don't really want to give you a fair Loan Modification, because they make more on Foreclosure.
Read more on these Shared Loss Agreements at AmericanLoanAudits.com/sharedloss/,

Try to Lower the Amount of the Loan and/or Lower the Interest

Under the new HAMP federal regul;stions, Banks and Mortgage Companies ahould lower the interest rate with a Loan Modification Proposal. They usually will not lower the principal amount owed, and often add legal fees they didn't incur to the principal. Often the only way to force them to lower the principal balance is to sue them after a Forensic Loan Audit. In a Forensic Loan Audit, like AmericanLoanAudits.com does,, they document laws broken in the documents provided by the lender. Then, you show that bank that you have a temporary hardship, that the value of your property has gone down in the current market, and that you want to save your house. With the results of the audit, the legal department for the lender shouild be eager to accept the loan modification, instead of going to court. AmericanLoanAudits.com has some of the best resources to do Forensic Loan Audits.
The lenders usually won't budge if you call them, but AmericanLoanAudits.com can prepare a Forensic Loan Audit, that a Loan Modifier can use to negotiate with a proposal that they shouldn't refuse.
If the audit finds laws violated, they talk directly to the lender's Legal Department to get faster results.
most current loans are found to have violated laws.
A good Loan Modification company will usually talk directly to the Loss Mitigation Department, whereas most other companies try to deal with a more obstinant Loan Modification department. Loss Mitigation has a greater desire not to acquire another property.

Short Sale

Often, someone can contract to buy it from you and negotiate with the bank, so the foreclosure auction doesn't ruin your credit further, and the bank can't do anything more to you. This is a called a negotiated Short Sale.

Refinancing - Short Refinance

Sometimes, you can get another loan before it's too late. If your credit isn't ruined and you're not underwater, you can try for a conventional loan. If you qualify for a loan that will be less than what you owe, you can try to get your Lender to "Short-Refinance" for less than what is owed. FHA is currently giving the best loan rates. Otherwise, even a hard-money loan may save your house. Check TheWizardHomeLoans.com"

Draw up a Rental Agreement with a 15 year Term

Before the Foreclosure Sale, before the Notice of Sale if possible, draw up a rental agreement with a 15 year term.
This is a Five Year Lease with 2 Renewable 5 year terms from www.forceyourlendertomodify.com.
You can have a friend or (some) relatives sign the lease before foreclosure (perhaps rent them a room, or the whole house) [Parents and Children do not qualify to sign the lease and get results in foreclosure], but it's better to have www.forceyourlendertomodify.com can act as intermediary, for those who sign a lease early, well before foreclosure.
They may be able to lease it back to the owner as well.
Banks hate a 15 year lease, because they can't acquire possession to the property for 15 years, so the Bank will usually bend over backwards to cooperate if you have one.

Notice of Rescission of Contract

Consult with a lawyer to decide if filng a Notice of Rescission of Contract is for you.
The Note you signed was a contract, and you can rescind it for several reasons, including Fraud.
Because there was Fraudulent Misrepresentation in the Securitization Trust process, [an Audit of your Origination Loan Docs may find other Grounds, as well - AmericanLoanAudits.com] almost everyone has the right, (but I can't legally advise you to do it.)
The Recorder's Office in LA and Orange Counties are refusing them from In Pro Pers lately.
Lawyers, Title Companies, and organizations can still file.
Research is being done to gather the laws to create a letter that should help In Pro Pers file, too.

Bankruptcy

(Consult with a Lawyer before choosing)

Bankruptcy - Chapter 13:

If you've never filed a BK before, you get a stay (to stop Foreclosure, or sometimes even Sheriff Eviction).
The Stay is unlimited, but the Lender will usually file to lift the Stay, and usually get it within a month.
The key to a BK is:
a) file all the documents required,
b) show up at all meetings,
c) make plan payments timely, and
d) Oppose the Motion to Relieve Stay effectively
(this is the hardest part - most In Pro Pers fail)
e) File an Adversary Proceeding (Complaint in BK)
(this may stop the Motion for Relief From Stay)
If you file a 2nd BK within a year, you will only get a Stay for 30 days, and you have to immediately ask to Extend it.

Bankruptcy - Chapter 7:

Chapter 7 is to LIQUIDATE YOUR ASSETS.
That means it is designed to sell off your house.
If you are underwater - no equity - they may not sell
But check with a BK expert before entering 7.
You don't have to make Plan Payments under 7.
Also Chapter 13 may be better to fight Taxes.
On a first-time filing, the Stay is unlimited, but the Lender will usually file to lift the Stay, and usually get it within a month.
d) Oppose the Motion to Relieve Stay effectively (this is the hardest part - most In Pro Pers fail)
e) File an Adversary Proceeding (Complaint in BK) - this will often stop the Morion for Relief From Stay
If you file 2nd BK within a year, you will only get a Stay for 30 days, and you have to immediately ask to Extend it.

Chapter 11 (Your Own):

If you have multiple properties, you probably can't file Chaptier 13, but must choose between 11 & 7
The Stay is unlimited, but the Lender will usually file to lift the Stay, and usually get it within a month.
d) Oppose the Motion to Relieve Stay effectively (this is the hardest part - most In Pro Pers fail)
e) File an Adversary Proceeding (Complaint in BK) - this may stop the Morion for Relief From Stay

Chapter 11 (with a Corporation)

I understand some Lawyers let you Grant Deed part of the property to a Corporation in Chapter 11 Bankruptcy.
I understand from some sources that the lawyers for the Corporation can extend the reorganization for years, and stop Foreclosure during all that time.

Most Lenders Don't Want To Give You a Modification

According to Research reviewed at AmericanLoanAudits.com/sharedloss/, many Banks failed and went to the FDIC, which sold them with agreements that will pay the Purchasing Bank more to foreclose than to modify the loan.

Demand to see the Original of Your Note

If you do it yourself, you will be ignored, but if you use WheresTheNote.com they will send the email for you, and people are getting responses.
(Sometimes the responses are partial, but there are usally responses)
Be sure to add in wording near the beginning of the email like "There appear to have been multiple errors in the handling and servicing of the above loan." to make it qualify as a Qualified Written Request under RESPA.

After Foreclosure, You May Still Owe

If your home is sold in foreclosure, some states allow a deficiency judgment: you still owe the bank money after foreclosure, if the sale price is less than the mortgage amount. In those states, if market values have dropped, the owner may have to pay thousands of dollars after foreclosure. (Not so in California and other States with Anti-Deficiency Legislation)

Most Mortgages since about 2004 were bought by a Securitization Trust

Research at AmericanLoanAudits.com/pool/ shows how the "Pretender Lender" was paid to lie and say it was the Lender, when the Securitization Trust actually bought the Mortgage as a Security. Lack of Disclosure, Fraud, and other issues can be alleged in court.

Housing Counseling Agencies: HUD, The US Department of Housing and Urban Development has a list of HUD-approved counseling agencies. Call (800) 569-4287 to get an agency that's close.
FHA-Insurance fund. FHA borrowers might qualify for HUD to make a one-time payment on their mortgage. Visit www.hud.gov/foreclosure for the requirements.

Our 2 Top Recommendations

1) Join a Mass Joinder Lawsuit against your Lender

2 Lawyers in California have filed suits against Countrywide/Bank of America, Wachovia/Wells Fargo, GMAC, Citi, Indymac/OneWest, WaMu/Chase, Ally Bank.
There are lots of Class Action Lawsuits out there, but they usually only win pennies for plaintiffs.
As I understand it, these dynamic Lawyers request relief of a torn up note plus $70,000 for each plaintiff that still has their home, and will try to get treble damages (3 times the Loan Amount) for homes lost in foreclosure.
These lawyers don't charge monthly fees after the retainer - they work mainly on Contigency.
They are doing Joinder instead of Class Action to make their clients more money, even though the work they do is tremendous because of it.
As I understand it, after joining the lawsuit, BofA and OneWest have agreed to stop foreclosure quickly,
and other Lenders should stop also, (but it takes about 45-60 days) You can read more on this at www.ZeroOutYourMortgage.com Email me for the actual Complaints and Biographies of the Lawyers at
at () for answers to questions or for me to refer you to their intake. You can join from anywhere in the US.

2) Audit Your Loan Documents for Violations

This article was written by Jim Krage of WaMu Fraud .com, AmericanLoanAudits.com, ZeroOutYourMortgage.com