About Us

Anyone who reads the newspaper or watches the news on TV knows that Americans are currently facing the worst foreclosure crisis since the great depression. It’s been recently reported that “The percentage of American homeowners whose home is worth less than what they still owe on it has hit the highest level in nearly three years. The latest Rasmussen Reports national telephone survey of 753 homeowners finds that 37% say their home is not worth as much as what they still owe on their mortgage.” That means that 1 in 3 homeowners could be under water concerning the value of their home.

Reaching U Network is in the business of helping people who are experiencing financial difficulties. We understand how today’s economy combined with high unemployment and a general state of social unrest can have a devastating effect on personal finances. After all; we are people too. This is why Reaching U Network has defined the mission of helping people who are facing a possible foreclosure on their most precious asset, their home. 

Reaching U Network  has researched and analyzed various assistance programs and only offers the best of the best to its clients. Take some time to go through our site, read some foreclosure related articles and watch some videos we have included for you. This site provides you with free information that you can use to make an informed choice and do all that you can to protect yourself against the greed and possible fraud that so many banks and financial institutions have been found guilty of.

Thank you for visiting. We are on your side

A 

Abstract

A succinct summary; (e.g. an abstract of judgment; an abstract of title, an abstract plant.)

Abstract of Judgment

Summary of a court judgment creating a lien against a property when filed with the county recorder.

Abstract of Title

The condensed history of a title to a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate.

Abstract Plant

A collection of information and documents relating to title of a particular property. Also known as "title plant".

Acceleration Clause

The clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the borrower defaults on an installment payment or other covenant.

Acceptance

The written approval made by the seller from a buyer's offer.

Accrued

On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.

Addendum

Any addition or change to a contract.

Adjustable Rate Mortgage (Arm)

A loan with an interest rate that fluctuates based on a specified financial index, such as Treasury securities, or the 11th District Cost of Funds, etc.

Agent

A licensed representative of the state to conduct real estate transactions.

Agreement of Sale

Also known as an agreement to convey. A signed, written contract entered into between the seller (vendor) and buyer (vendee) for sale of real property (land) under certain specific terms and conditions.

Alienation

The transfer of property from one person to another. Alienation may be voluntary, such as by gift or sale, or involuntary, as through eminent domain or adverse possession.

Alienation Clause

A term of a mortgage which requires that the borrower pay in full the principal and interest due upon the sale of the property. ( See Acceleration or Due-on-Sale Clause)

All-Inclusive Deed of Trust

A form of deed of trust that, in addition to any other amounts actually financed, includes the amounts of any prior deeds of trust. Sometimes referred to as a wrap-around or over-riding trust deed.

Amortization

The repayment of a debt in installments.

Appraisal

A valuation or an estimation of value of property by disinterested persons of suitable qualifications; the process of ascertaining a value of an asset or liability that involves expert opinion rather than explicit market transactions.

Appraise

To fix or set a price or value upon.

Appreciation

The difference between the increased value of the property and the original value.

Arrears

Generally, being overdue in an installment payment.

Assessor

A municipality employee who estimates the value of properties for the purpose of taxes.

Assignee

The person to whom a transfer of interest is made. Hence an assignee of an Agreement of Purchase and Sale may buy the property and enforce the contract in the same fashion as the original party.

Assignment

The method by which a right or contract is transferred from one person (the assignor) to another (the assignee).

Assignor

The person who makes an assignment to another person.

Assumable Mortgage

A mortgage that can be taken over ("assumed") by the buyer when a home is sold. If interest rates have risen, an assumable mortgage at a low rate may prove a selling point for the property.

B 

Balloon Payment

A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

Bankruptcy

An action filed in a federal bankruptcy court that allows a creditor to reorganize or discharge credit obligations due to insolvency. A property owner may halt foreclosure action by filing bankruptcy. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.

• Chapter 7 - "Debtor Wipeout" The court oversees the liquidation of the debtors' non-exempt assets, distributing the cash proceeds proportionally amongst their creditors.
• Chapter 11 - This is a business reorganization proceeding.
• Chapter 13 - "Debtor Workout" This is the almost-automatic choice of most trustors seeking to use a bankruptcy filing to delay the in- evitable trustee's sale as long as they can. The purpose of this proceeding is to give a "wage earner" time for rehabilitation . . . a temporary respite free from the collection efforts of creditors.

Beneficiary

A person entitled to receive money or assets from a trust or an estate. A lender is a beneficiary with a deed of trust or a note as a security for a loan.

Betterment

Any improvement of real estate that results in a rise in market value of that property.

Bid

An offer by an intending purchaser to pay a designated price for property which is about to be sold at auction.

Bill of Sale

Written document by which title to personal property (goods or chattels) is transferred from one party to another.

Blanket Deed of Trust

A deed of trust secured by more than one lot or parcel of land.

Borrower

He to whom a thing or money is lent at his request.

BPO

Brokers Price Opinion.

Breach

The breaking or violating of a law, a right, obligation, engagement, or duty, either by commission or omission.

Broker

A agent authorized by the state to deal in real estate.

Brokerage

The bringing together of two or more parties interested in making a real estate transaction.

Buy-Down mortgage

A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.

Buyers Market

A market condition where there are fewer buyers than there are sellers. Usually indicated when a property is on the market for more than 90 days and interest rates are very high. (12% or higher)

C 

Capital Gain

A profit earned from the sale of an asset.

Cash Flow

The surplus left over out of the rents after paying out all operating expenses and mortgage payments.

Certificate of Sale

A certificate issued at a judicial sale that entitles the buyer to receive a deed after confirmation of court for the purchase of the property.

Chain of Title

A succession of conveyances that comprises the title record history to a specific parcel of real property.

Chattel

Personal property, such as household items.

Chattel Mortgage

A mortgage which is secured by personal property.

Closing Costs

Expenses supplementary to the sale of real estate, which includes loan, title and appraisal fees.

Closing Date

The date agreed upon which the buyer takes over the property.

Cloud on Title

Any outstanding claim that contradicts the title record, if valid, would impair the owners title.

Code

A collection of laws relating to a certain topic, such as real property, patents, etc.

Co-signer

A co-signer signs a promissory note and takes responsibility for the debt.

Collateral

Real estate or personal property which is pledged as security for a debt.

Collection

Obtain payment or liquidation of a debt or claim, either by personal solicitation or legal proceedings.

Comparables

Similar properties used as yardsticks to determine the market value of a certain property.

Complaint

The original or initial pleading by which an action is commenced; a written statement of the essential facts constituting the offense charged.

Condemnation

A judicial or administrative proceeding to exercise the power of eminent domain, through which a government agency takes private property for public use and compensates the owner.

Contingency

A specified condition that must be fulfilled before a contract becomes firm and binding.

Contract

An agreement between two or more persons that creates an obligation to do or not to do a particular thing.

Conventional Loan

A loan that requires no insurance or guarantees.

Conveyance

A written instrument that transfers title to or an interest in land from one party to another (i.e. a deed, an assignment, a bill of sale, etc.)

Counteroffer

A response given to an offer.

Credit report

A document from a credit bureau setting forth a credit rating and pertinent financial data concerning a person or a company and used by banks, merchants, suppliers and the like in evaluating a credit risk.

Creditor

One to whom money is owed.

D 

Debt

A sum of money due by a certain and express agreement; a specified sum of money owing to one person from another, including not only obligation of debtor to pay but the right of the creditor to receive and enforce payment.

Debt Ratio

To compare the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower. It evaluates the borrower's ability to pay mortgage. Also called Debt-to-Income ratio.

Debtor

An entity that owes a debt; one who owes a debt.

Decree of Foreclosure

A court order to set out the outstanding amount on a delinquent mortgage in order to sell the property to pay the mortgagee.

Deed

A written instrument that, when executed and delivered, conveys title to or an interest in real estate.

Deed in lieu of foreclosure

A process whereby the owner, with the approval of the lender, deeds the property to the lender to avoid foreclosure. Lenders are generally reluctant to accept a "deed in lieu" unless the title is free and clear of any other encumbrances junior to theirs and the owners execute an estoppel affidavit acknowledging that they are acting volitionally, with informed consent.

Deed of Reconveyance

A instrument that releases and discharges a deed of trust, when the mortgage has been paid out.

Deed of Trust (Trust Deed)

A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The owner is called the "trustor". The neutral third party to whom the bare legal title is conveyed (and who is called on to liquidate the property if need be) is the "trustee". The lender is the "beneficiary". When the loan is paid off the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which extinguishes the trust deed lien.

Default

The failure to make payments in full, on time or at all or to live up to any other obligations placed on the borrower by the loan agreement.

Defeasance Clause

A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.

Defendant

The person who defends against a claim asserted in a Court action.

Deficiency judgment

A judgment entered in a lawsuit when a property is sold for less than the amount of the loan.

Delinquency

A condition when the payment is being late but not yet in default.

Demand Letter

Also known as a Breach Letter or Notice of Intent to Foreclose. Notice to the borrower that he/she is in "breach" of the terms of the Note and advising of the right to "cure" the default.

Department of Housing and Urban Development (HUD)

A federal department that focuses on programs regarding housing and renewal of city communities.

Department of Veterans Affairs (VA)

An independent federal agency which oversees programs for military veterans, including loan and mortgage programs. This agency allows most veterans to purchase a house without a down payment.

Disclosure Statement

Document disclosing the terms of a loan.

Due-on-Sale Clause

A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the property.

Due Diligence

Such a measure of prudence, activity, or assiduity, as is properly to be expected from a reasonable and prudent man under the particular circumstance.

E 

Earnest Money Deposit

A deposit made by a purchaser of real estate used as a down payment as evidence of good faith.

Easement

A right of way allowing someone to cross over another's property for certain purposes, such as power lines or water mains.

Encroachment

A fixture that illegally intrudes into or invades the property or encloses a portion of it, diminishing its width or area.

Encumbrance

Anything, such as a mortgage, tax, or judgment lien, an easement, a restriction on the use of the land or an outstanding dower right that may diminish the value or use and enjoyment of a property.

Equity

The surplus of value which may remain after existing liens are deducted from the property.

Equity Right of Redemption

The right to avoid foreclosure action by paying off the debts, interest, and fees that have accumulated on the property.

Escrow Account

A bank account generally held in the name of the depositor and an escrow agent which is returnable to the depositor or paid to a third person on the fulfillment of a condition.

Estate

The total assets a person has when he dies, including real property.

Estoppel Certificate

A certificate in which a borrower certifies the amount owed on a mortgage loan and the rate of interest.

Eviction

The act of depriving a person of the possession of land or rental property that he has held or leased.

F 

Fair Market Value

The amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts.

Fannie Mae

Its an official name of the Federal National Mortgage Association which is one of the largest agencies that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

FHA

Stands for Federal Housing Administration. It's a branch of H.U.D. It's basic function is to direct housing in a way that Congress mandates by issuing mortgage insurance to institutional lenders on the loans they make. With such loan insurance, lenders are willing to lend with smaller down payments and at lower rates of interest.

FHA Loans

A loan program offering low-rate mortgages to buyers who are willing to make a down payment as small as 3 percent.

First Mortgage

A mortgage that is in first position and has priority as a lien over all other mortgages.

Foreclosure

A legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. The foreclosure procedure brings the rights of all parties to a conclusion and passes the title in the mortgaged property to either the holder of the mortgage or a third party who may purchase the realty at the foreclosure sale, free of all encumbrances affecting the property subsequent to the mortgage.

G 

Garnishment

A statutory proceeding whereby person's property, money, credits in possession or under the control of, or owing by, another are applied to payment of the former's debt to third person by proper statutory process against debtor and garnishee.

Good Faith Estimate

Institutional lender estimates the costs a borrower will incur, including inspection fees and loan-processing charges.

Grace Period

A period of days during which a debtor may cure a delinquency without penalty (before triggering a late charge, a foreclosure or an acceleration of the balance due).

Grantee

The person to whom the title of the property is granted.

Grantor

The person (seller) who grants title to another person (buyer).

H 

Habendum Clause

Meaning "to have and to hold" which defines the quantity of the estate that is transferred to the new owner of land.

Home Equity Line of Credit

A loan that is secured by the owners property which can be repaid and borrowed again at the owners convenience.

Home Equity Loan

Owners who borrow against the equity in their homes.

HUD 1 Statement

A form, usually given by a bank, that includes the costs of purchasing a home.

Hypothecate

When you use something as security and still retain possession of it.

I 

Indemnify

Any losses and damages endured by another person that you are fully responsible for.

Instrument

A legal written document.

Involuntary lien

A lien issued against a property without the owners approval.

J 

Joint Ownership

When two or more parties own the same property.

Joint Venture

A project where two or more individuals take part in a business transaction to share the cost, risk, and reward.

Judgment

The final decision of the court resolving the dispute and determining the rights and obligations of the parties.

Judicial Foreclosure

A foreclosure process which is executed via a court action.

Junior lien

A lien that is subordinate or junior to a senior lien.

L 

Land Contract

An agreement used to sell real property that transfers ownership of the property, but the title does not transfer until most or all of the purchase price is paid.

Landlord

He who, being the owner of an estate of land, or rental property, has leased it to another person.

Lease

An agreement involving payment of rent for possession of real estate for a specific period of time.

Lease Option

A lease that contains the right to purchase a property for a specific price during a given time frame.

Lender

He from whom a thing or money is borrowed.

Lien

A claim or charge on a property for payment of some debt, obligation or duty.

Life Estate

An estate whose duration is limited to the life of the party holding it.

Lis pendens

A term meaning "legal action pending" that gives notice of an action or proceeding affecting the title of the property.

Loss Mitigation Department

A department which helps homeowners avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan

Lot Book Report

A title record report given by a title company which announces any encumbrances recorded against the property.

M 

Marketable Title

A title with no claims or defects that could otherwise hinder a property being sold.

Mechanic's lien

A claim created by state statutes for the purpose of securing priority of payment of the price or value of work performed and materials furnished in erecting or repairing a building or other structure, and as such, attaches to the land as well as buildings and improvements erected thereon.

Mortgage

An interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt.

Mortgagee

The entity, usually a bank or financial institution, who lends money to a borrower.

Mortgagor

The person who borrows the money from a lender to purchase a property.

Multiple Listings Service (MLS)

A listing of properties from local real estate agents that consist of all homes available in an area. For-Sale-by-Owner properties are not listed in this database.

N 

NARCA

National Association of Retail Collection Attorneys.

Notice of Default (NOD)

A notice that is sent out by the lender when a mortgage payment is late in an attempt to cure or make the loan current.

Notice of Rescission

A legal document used when the defaulting party has cured or corrected the default

Notice of Sale

The notice of an impending foreclosure sale required by the state. It recites the legal description of the property being foreclosed upon and gives the time, date and place of the pending sale.

O 

Offer to Purchase

A contract expressing of a person's willingness to purchase a certain property on terms expressed in the offer.

Owner Financing (Seller Financing)

A creative method in real estate where the seller of a property agrees to finance all or some of the property. In a sense, the owner acts like a bank.

P 

Power of Attorney

A written document signed by the owner which authorizes someone else to act in behalf of the owner.

Power of Sale

A clause commonly inserted in mortgages and deeds of trust that are in default, giving the mortgagee (or trustee) the right and power to advertise and sell the mortgaged property at public auction to satisfy the debt.

Pre-Foreclosure

Term used to discuss delinquent properties before they go to the foreclosure auction.

Q 

Quit Title

An action at law to remove an adverse claim or cloud from the title of property.

Quit Claim Deed

A deed of conveyance that releases any title, interest, or claim, which the grantor may have in the premises.

R 

Real Estate Owned (REO)

Property acquired back by the lender after it has gone to auction.

Recorder

A public official that is responsible for keeping all the records of real estate transactions.

Redemption Period

The time allotted to the mortgagor to reclaim his/her property after it has been sold at an auction. Not all states have a redemption period.

S 

Sales Contract

A contract to which the buyer and seller agree to terms of sale.

Second Mortgage

A second loan placed upon a property in addition to an existing first loan.

Seller Financing

A creative method in real estate where the seller of a property agrees to finance all or some of the property. In a sense, the owner acts like a bank.

Sellers Market

When the market conditions are such that the sellers have the advantage and multiple offers are made.

Sheriff's Sale

The sale of a property to satisfy a debt or judgment.

Short Sale

The sale of a property under or at market value that's lower than the loan balance.

Simultaneous Closing

The term "simultaneous closing" refers to two closings occurring simultaneously, or at the same time. This is a creative technique used when traditional financing will not work.

Subject To

The transfer of rights to pay a debt from one party to another, with the original party remaining liable for the debt if the second party defaults.

Survey

The process by which a parcel of land is measured and its boundaries and contents set forth.

T 

Tax Deed

A type of deed used to convey title after real property is sold at auction by public authority for non-payment of taxes.

Tax Lien

A lien on real estate in favor of a state or local government that may be foreclosed on for the non-payment of taxes.

Tenant

A person in possession of real property with the owner's permission.

Tenant at sufferance

A person who after rightfully being in possession of a rented premises continues to live in that premises after his right has terminated.

Tenant at will

One who holds possession of premises with the owners permission.

Title

Evidence of ownership of land.

Title Company

Firms that examine properties to ensure that the title to a piece of property is clear and free of any encumbrances. They also issue title insurance.

Title Insurance

An insurance policy that provides protection for lenders and buyers against any losses caused by defects in the title.

Title Report

A report which sets out the current state of title to a property.

Title Search

A search within the public records to determine ownership and that there are no claims or liens against the property.

Torrens Title

A torrens title contains a listing of all legal instruments (mortgages, judgments, liens) that have been recorded on the property from its origin.

Trust Account

A special account used by a broker or escrow agent to safeguard funds for a buyer or seller.

Trust Deed

A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The owner is called the "trustor". The neutral third party to whom the bare legal title is conveyed (and who is called on to liquidate the property if need be) is the "trustee". The lender is the "beneficiary". When the loan is paid off the trustee is directed by the beneficiary to issue a deed of reconveyance to the trustor, which extinguishes the trust deed lien.

Trustee

A legally empowered person who holds or controls a piece of property for another person.

Trustee's Deed

A deed given to the successful high bidder after a foreclosure auction.

Trustee's Sale

An auction where a trustee may sell a property that has defaulted in effort to pay the outstanding debt that is owed.

U 

UCC

Uniform Commercial Code; uniform laws drafted by the National Conference of Commissioners on Uniform State Laws governing commercial transactions.

Undivided Interest

Ownership of real estate by joint tenants under the same title.

Unsecured debt

Debt not secured by collateral.

Upset price

The opening bid amount that begins the auction bidding during a foreclosure sale.

V 

VA Loans

A program that allows the purchase of a house without a down payment to most veterans.

Vacate

To make vacant or empty.

W 

Warranty Deed

Deed in which the grantor warrants good clear title.

Without Recourse

Giving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract.

Wraparound Mortgage

The financing technique in which the payment of the existing mortgage is continued by the seller and a new, higher interest loan, which is larger than the existing mortgage, is paid by the borrower.

X 

Y 

Yield The return on investment or the amount of profit stated as a percentage of the amount invested.

Z 

Zoning

Regulations that control the use of land within a jurisdiction.

Q: What does it mean to be in Foreclosure?

A: According to dictionary.com, to Foreclose is to deprive (you) the mortgagor of the right to redeem mortgaged property, when payments have not been made. When you have missed 2 months worth of payments you have defaulted on your loan, and are in danger of being foreclosed on by your bank. Only a qualified licensed attorney like those in the

Q: What does it mean to be in Foreclosure?

A: According to dictionary.com, to Foreclose is to deprive (you) the mortgagor of the right to redeem mortgaged property, when payments have not been made. When you have missed 2 months worth of payments you have defaulted on your loan, and are in danger of being foreclosed on by your bank. Only a qualified licensed attorney like those in the Reaching U Network can provide you with the legal advice that you need.

Q: What are my options?

A: If you are unable to make your monthly mortgage payments, or your mortgage lender has sent you a letter informing you of a default, it is critical that you speak with an attorney as soon as possible. The Plan makes it easy and affordable to obtain legal representation. The Plan will provide you with access to a network attorney, and provide you with the complete management services (usually reserved only for wealthy clients) for a low monthly fee.

Q: If I am in Foreclosure, how much time do I have until I have to leave the house?

A: Laws vary from state to state and the quicker you talk to an attorney the quicker you will have answers… and we can have you speaking with an attorney almost immediately without paying any retainer fee.

Q: Does the lender have the right to repossess my house, even though I have been paying for it all this time?

A: Unfortunately, yes. Even though you only missed those few payments and had paid so many others, the mortgage documents or deed of trust (depending if you live in a judicial or non-judicial state) gives the lender the right to Foreclose and repossess the property after you have defaulted on just a few payments. This is why it is imperative that you do not delay and speak to your Reaching U Network representative right away.

Q: If I lose my house in Foreclosure are my chances of buying again lessened?

A: A foreclosure will remain on your credit report for up to seven years, and it can dramatically lower your credit score. That can make it extremely difficult to obtain another mortgage. The plan will keep you informed and knowledgeable in your case and assist you every step of the way in defending a foreclosure action.

Q: Can I walk away from my mortgage?

A: Many homeowners feel trapped in their home because they now owe more on their mortgage than the house is worth. Some families have resorted to spending their life savings or exhausting their retirement accounts in order to keep up with their mortgage payments. For most homeowners who are underwater on their home loans, it is no longer in their best interest to continue paying on the mortgage. Walking away from a mortgage is called a "Strategic Default," and the best thing to do is to discuss every option with a qualified network attorney in your state.

Q: Can hiring an attorney give me a better chance of avoiding foreclosure?

A: Yes. An experienced foreclosure defense lawyer like those in the network will be able to provide you with skilled legal representation that can increase your chances of avoiding foreclosure. A lawyer will also be able to provide you with proactive foreclosure alternatives that may save their home.

Q: What is a "deed in lieu of foreclosure"?

A: A deed in lieu of foreclosure is an agreement that a borrower makes with their lender that involves the borrower turning over the title of their property to the lender. The lender effectively owns the property at that point, and the borrower can avoid foreclosure proceedings as a result.

Q: What is a deficiency judgment?

A: A lender can pursue a deficiency judgment against a borrower when the proceeds of a foreclosure sale are not enough to satisfy the amount left over on the borrower's mortgage. The lender usually has up to five years after the foreclosure to seek a deficiency judgment.

Q: What is a strategic default?

A: When a homeowner decides to stop making their mortgage payments, they are effectively "walking away" from their mortgage: this is called a strategic default. Strategic defaults are usually employed when the person's home is worth less than the balance of their mortgage, or when the person is no longer able to afford their monthly mortgage payments.

Q: What is a demand or acceleration letter?

A: A demand or acceleration letter is sent by a lender to a homeowner when that homeowner goes into default on their mortgage. The lender must send this letter before they are able to proceed with a foreclosure lawsuit for the entire amount of the loan.

Q: Are there alternatives to foreclosure available?

A: There are a number of foreclosure alternatives available to homeowners, including short sales, deed in lieu of foreclosure, and mortgage/loan modifications. An experienced attorney can assist you in pursuing these options and maximize your chances of a successful outcome.

Q: What are some of the Ramifications of Foreclosure?

A: While the foreclosure process itself may be quite difficult and painful, there are more long-term consequences that are important to consider. The most immediate problem is one associated with the actual value of the repossessed home. If after a foreclosure, the court approved sale of the property is not sufficient to pay the debt, then there is a deficiency. For example, if a homeowner owes $100,000 on a mortgage loan, but the foreclosure sale only brings in $60,000, there is a deficiency of $40,000. This amount is technically still owed on the debt. Some states have laws prohibiting a lender from recovering this deficiency from the borrower, but other states do not. Some states permit a lender to legally pursue the amount of the deficiency from the borrower. If they obtain a deficiency judgment, then they can seize bank accounts, garnish wages, place liens on other property and pursue other collection remedies. They can do this until the deficiency is satisfied. Lenders can also sell the deficiency judgment to a third-party debt collector.

Homeowners concerned with the ramifications of foreclosure should consult with an experienced foreclosure defense attorney like those in the Reaching U Network legal access network. Scheduling this consultation can go a long way toward providing relief and peace of mind. Even in imperfect circumstances, it is better to be informed and make decisions based upon solid information.

Q: What is the Judicial Foreclosure Process?

A: A foreclosure occurs when a borrower is behind on their mortgage payments and the lender takes legal action in order to take back the property. In a Judicial state foreclosures must go through the court system. When a skilled attorney is involved to help the homeowner stay in the home and fight the foreclosure, foreclosures can take up to eighteen months or longer.

Q: What are the steps in the Foreclosure Process?


1. The borrower defaults on their mortgage.
2. A Lis Pendens is filed on behalf of the lender. This is a notice of pending litigation.
3. The homeowner is served with a Complaint and the Lis Pendens.
4. The homeowner has 20 days to respond to the Complaint.
5. If no response is filed by the homeowner within the required time, the lender may move for a default.
6. A hearing is held on the lender's motion for summary final judgment. If granted, the judgment is entered and a sale date for the home is set.
7. The property is sold at auction.

A note about foreclosure

Often after homeowners have learned that they are facing foreclosure, they immediately jump to the conclusion that they will lose their homes or face financial ruin. Being served with a foreclosure lawsuit or notice of foreclosure is never easy and can evoke a vast array of complicated feelings, especially if they are unaware of their rights or uninformed when it comes to their legal options. Even after homeowners are served with a foreclosure lawsuit, they have several options at their disposal. There are many alternatives to foreclosure. Your Reaching U Network attorney is a foreclosure specialist and will advise you based upon your specific circumstances.

can provide you with the legal advice that you need.

Q: What are my options?

A: If you are unable to make your monthly mortgage payments, or your mortgage lender has sent you a letter informing you of a default, it is critical that you speak with an attorney as soon as possible. The Plan makes it easy and affordable to obtain legal representation. The Plan will provide you with access to a network attorney, and provide you with the complete management services (usually reserved only for wealthy clients) for a low monthly fee.

Q: If I am in Foreclosure, how much time do I have until I have to leave the house?

A: Laws vary from state to state and the quicker you talk to an attorney the quicker you will have answers… and we can have you speaking with an attorney almost immediately without paying any retainer fee.

Q: Does the lender have the right to repossess my house, even though I have been paying for it all this time?

A: Unfortunately, yes. Even though you only missed those few payments and had paid so many others, the mortgage documents or deed of trust (depending if you live in a judicial or non-judicial state) gives the lender the right to Foreclose and repossess the property after you have defaulted on just a few payments. This is why it is imperative that you do not delay and speak to your Reaching U Network representative right away.

Q: If I lose my house in Foreclosure are my chances of buying again lessened?

A: A foreclosure will remain on your credit report for up to seven years, and it can dramatically lower your credit score. That can make it extremely difficult to obtain another mortgage. The plan will keep you informed and knowledgeable in your case and assist you every step of the way in defending a foreclosure action.

Q: Can I walk away from my mortgage?

A: Many homeowners feel trapped in their home because they now owe more on their mortgage than the house is worth. Some families have resorted to spending their life savings or exhausting their retirement accounts in order to keep up with their mortgage payments. For most homeowners who are underwater on their home loans, it is no longer in their best interest to continue paying on the mortgage. Walking away from a mortgage is called a "Strategic Default," and the best thing to do is to discuss every option with a qualified network attorney in your state.

Q: Can hiring an attorney give me a better chance of avoiding foreclosure?

A: Yes. An experienced foreclosure defense lawyer like those in the network will be able to provide you with skilled legal representation that can increase your chances of avoiding foreclosure. A lawyer will also be able to provide you with proactive foreclosure alternatives that may save their home.

Q: What is a "deed in lieu of foreclosure"?

A: A deed in lieu of foreclosure is an agreement that a borrower makes with their lender that involves the borrower turning over the title of their property to the lender. The lender effectively owns the property at that point, and the borrower can avoid foreclosure proceedings as a result.

Q: What is a deficiency judgment?

A: A lender can pursue a deficiency judgment against a borrower when the proceeds of a foreclosure sale are not enough to satisfy the amount left over on the borrower's mortgage. The lender usually has up to five years after the foreclosure to seek a deficiency judgment.

Q: What is a strategic default?

A: When a homeowner decides to stop making their mortgage payments, they are effectively "walking away" from their mortgage: this is called a strategic default. Strategic defaults are usually employed when the person's home is worth less than the balance of their mortgage, or when the person is no longer able to afford their monthly mortgage payments.

Q: What is a demand or acceleration letter?

A: A demand or acceleration letter is sent by a lender to a homeowner when that homeowner goes into default on their mortgage. The lender must send this letter before they are able to proceed with a foreclosure lawsuit for the entire amount of the loan.

Q: Are there alternatives to foreclosure available?

A: There are a number of foreclosure alternatives available to homeowners, including short sales, deed in lieu of foreclosure, and mortgage/loan modifications. An experienced attorney can assist you in pursuing these options and maximize your chances of a successful outcome.

Q: What are some of the Ramifications of Foreclosure?

A: While the foreclosure process itself may be quite difficult and painful, there are more long-term consequences that are important to consider. The most immediate problem is one associated with the actual value of the repossessed home. If after a foreclosure, the court approved sale of the property is not sufficient to pay the debt, then there is a deficiency. For example, if a homeowner owes $100,000 on a mortgage loan, but the foreclosure sale only brings in $60,000, there is a deficiency of $40,000. This amount is technically still owed on the debt. Some states have laws prohibiting a lender from recovering this deficiency from the borrower, but other states do not. Some states permit a lender to legally pursue the amount of the deficiency from the borrower. If they obtain a deficiency judgment, then they can seize bank accounts, garnish wages, place liens on other property and pursue other collection remedies. They can do this until the deficiency is satisfied. Lenders can also sell the deficiency judgment to a third-party debt collector.

Homeowners concerned with the ramifications of foreclosure should consult with an experienced foreclosure defense attorney like those in the Reaching U Network legal access network. Scheduling this consultation can go a long way toward providing relief and peace of mind. Even in imperfect circumstances, it is better to be informed and make decisions based upon solid information.

Q: What is the Judicial Foreclosure Process?

A: A foreclosure occurs when a borrower is behind on their mortgage payments and the lender takes legal action in order to take back the property. In a Judicial state foreclosures must go through the court system. When a skilled attorney is involved to help the homeowner stay in the home and fight the foreclosure, foreclosures can take up to eighteen months or longer.

Q: What are the steps in the Foreclosure Process?


1. The borrower defaults on their mortgage.
2. A Lis Pendens is filed on behalf of the lender. This is a notice of pending litigation.
3. The homeowner is served with a Complaint and the Lis Pendens.
4. The homeowner has 20 days to respond to the Complaint.
5. If no response is filed by the homeowner within the required time, the lender may move for a default.
6. A hearing is held on the lender's motion for summary final judgment. If granted, the judgment is entered and a sale date for the home is set.
7. The property is sold at auction.

A note about foreclosure

Often after homeowners have learned that they are facing foreclosure, they immediately jump to the conclusion that they will lose their homes or face financial ruin. Being served with a foreclosure lawsuit or notice of foreclosure is never easy and can evoke a vast array of complicated feelings, especially if they are unaware of their rights or uninformed when it comes to their legal options. Even after homeowners are served with a foreclosure lawsuit, they have several options at their disposal. There are many alternatives to foreclosure. Your Reaching U Network attorney is a foreclosure specialist and will advise you based upon your specific circumstances.

Federal Trade Commission - "Looking for the Best Mortgage"

Fair Housing Center

Federal Housing Administration - US Department of Housing
and Urban Development

U.S. Financial Literacy and Education Commission - My Money Website

HUD's How to Avoid Foreclosure

IRS Questions on Home Foreclosure and Debt Cancellation

Federal Citizen Information Center

Americans for Fairness in Lending - "File a Complaint"

Federal Citizen Information Center - Consumer Action Website

HUD's Predatory Lending

Home Lending and Foreclosure Rescue Scams