The bank says they can work out a payment plan, is that a good choice?

It depends. I've seen some of those payment plans take a lot more time and a lot more money. Some payment plans keep the homeowner in default for over a year, with the lender still reporting late to the credit bureaus the entire time, wreaking havoc on the homeowner's credit score. They may also require payments that are 1 1/2 times the payment you were already making, so if you were already having trouble making your mortgage payment, then this doesn't bring any relief.

More About Loan Modifications

If you are considering a Loan Modification, you do not have to pay someone to do it for you. All you have to do is call your bank and ask them if you are able to qualify for a loan modification. They will send you out a packet of information to fill out. In addition, they will request bank statements, financial statement, pay stubs and a hardship letter.

Be aware that if you have missed one or two payments, the bank will proceed with foreclosure proceedings. Once a Notice of Default has been filed (usually after 3 payments have been missed), a loan modification may not be an option anymore.

Whatever you decide to do, make sure you do it in a timely manner. Time is the biggest obstacle in your way when it comes to any type of negotiations regarding your home loan. There is only a small window of opportunity before there are no options left for you.

One last thing, the loan modification process is lengthy. It could take up to three months or longer before you have confirmation that a loan modification will work and that the bank will modify.

The Truth About Land Trusts

First, What is a "land trust?" A land trust, "is simply an agreement in which property is transferred from one person (called a grantor) to a trust in care of another (the trustee) who holds it for the benefit of a person or entity (the beneficiary)" (Kohler, 2007, p 48).

Mark Kohler (2007) in his book, Lawyers Are Liars, illustrates four myths regarding land trusts. He says

land trust gurus actually spread four lies which state that a land trust:

1) Hides the true owner of a property
2) Provides "bulletproof" asset protection
3) Avoids the due-on-sale clauses in loan documents, and
4) Saves taxes (p 47).

In some circumstances, like to avoid probate, privacy of ownership and ease of transferability, land trusts make sense, but don't assume or believe that if you use a land trust that you will be creating a system for asset protection.

Some individuals have given land trusts a bad rap because they have been used improperly. I would not recommend writing your own land trust agreement. If you are considering using a land trust, it would be best to consult a real estate attorney.

"In a situation where you are not trying to get around a due-on-sale clause and need to sell a piece of property in a creative manner, a land trust could be a great fit" (Kohler, 2007, p 61). However, make sure you consult an attorney who understands land trusts before you begin using a land trust.


Reference
Kohler, M. (2007). Lawyers Are Liars: The Truth About Protecting Our Assets!. Phoenix: Life's Plan Publishing LLC.

Book Recommendation: Lawyers Are Liars

Lawyers Are Liars: The Truth About Protecting Our Assets by Mark Kohler

Written from the heart, December 27, 2007
By Sarah L. Fails "sfails" (Review on Amazon)

Mark Kohler has done a great job outlining Asset Protection strategies that are truthful in what they can achieve - and demonstrated how many deceptive strategies unscrupulous lawyers will try to sell to people. His outline starts off with the myths of asset protection
· The goals of asset protection and why it is needed
· Repeatedly backs up his statement `there is no silver-bullet' approach
· Outlines the myths surrounding Nevada Corporations
· Discusses land trusts, off-shore accounts and partnerships
He then discusses what does work for asset protection in a battlefield themed approach -
· The multiple barrier approach
· Choosing your team of advisors
· Strategies for protection
· O.J. Simpson's model of asset protection (not that he advocates the person, but his strategies to protect his assets is uncanny)
· What you must do if you own a business or rental property with regards to deciding the property structure, protecting the corporate veil, carrying insurance, etc.
· Additional strategies that put up further barricades to your fortress (battlefield theme)
· And finally how to fortify your castle with trusts, if applicable for your situation
His `true story' scenarios outlined throughout the chapters make you realize the reason why he felt compelled to write this book.

5 Keys to Success in Real Estate Investing

1) Understand risk

2) Overcome your fear of failure

3) Accept responsibility

4) Be willing to persevere

5) Define your purpose

Don't forget Education too. And, don't let anyone tell you that you can't create weath through real estate. And, finally, you must have a sense of urgency so that you will take action when opportunity knocks.

Guide to Avoiding Foreclosure

http://www.hud.gov/foreclosure/

We don't want to List your home, We Want to BUY Your Home

We don't want to List your home, We Want to BUY Your Home!

• No Equity, No Problem
• Any Condition
• CASH
• No Cost to You

If you are facing foreclosure with your house, we can help! Email us ASAP to receive FREE information about your situation. E-mail: simplehbb@gmail.com or visit our web-site at: http://www.scopepropertysolutions.com/ .

We specialize in helping individuals who are facing foreclosure. Our team will work with you to get the best possible outcome for your situation.

We work for you at no cost.