Alex Switalski

Avoiding Foreclosure in Queens New York?

Foreclosure begins when a Homeowner fails to make their mortgage payments at the appointed time. When a Homeowner cannot repay the debt on the property, "foreclosure" is the legal action the Lender takes to repossess (take back) the property in order to repay the loan.

If you've fallen behind on your mortgage payments and your Lender has been unsuccessful at collecting your outstanding balance, the Lender will start the foreclosure process with a formal demand for payment letter. This letter is referred to as a Notice of Default (NOD). This notice is a threat to sell your property, terminate all your rights in that property and evict you from the premises. If you allow your property to go into foreclosure, you'll be forced to move out of your house. Furthermore, If your property is worth less than the total amount you owe on your mortgage, a "deficiency judgment" could be pursued, meaning you would not only lose your home, you also would owe your Lender additional money!

Avoiding Foreclosure

There are many life-altering circumstances that cause a person to fall behind on their mortgage payments such as unemployment, divorce, medical bills, terms of the loan, loss of a loved one, etc.

There are few things more disheartening than losing a home to foreclosure. Unfortunately, right now there are millions of Homeowners all across the country just like you who are facing foreclosure. But you must understand you DO HAVE OPTIONS to avoid having a foreclosure on your credit record and losing any of that hard earned equity. You can stop your foreclosure and get on with your life. To help you avoid a foreclosure situation, we've designed this guide to arm you with the knowledge to make the best decisions possible concerning your property.

Bring Your Mortgage Current

If you are able to make up all of the back payments as well, as any fees that have been added as a result of the foreclosure filing, to bring your mortgage balance current the foreclosure proceedings will immediately be stopped! Bringing your loan current is the best way to stop the foreclosure process. From the time the Notice of Default is served, you are entitled to 90 days to fully reinstate your loan and stop the foreclosure.

Re-payment Plan

If you can't gather the entire amount due to completely pay off your outstanding mortgage balance, but you have been able to "right the ship" and are now able to make your mortgage payments in full and on time moving forward, you can negotiate a re-payment plan directly with your Lender that will allow you to bring you mortgage current by paying off your past due balance (arrearage) over time. Often you'll find that your Lender may be willing to arrange an increase in your monthly payments, so that you will pay your normal mortgage payment plus an additional set amount to be put toward your overdue balance until your outstanding balance is completely repaid.

Forbearance Plan

Re-Finance Your Loan

Sell Your House To A Cash Buyer

If you have equity available in the property (if your property is worth more than the amount owed on the mortgage), selling your home to a Cash Buyer could help you avoid losing valuable equity to a pending foreclosure.

If you aren't able to bring your mortgage current, a Cash Buyer can quickly help you stop the foreclosure and avoid all the hassles and fees that build up if you allow the foreclosure proceedings to continue.

Generally, a local Real Estate Investor is the optimal Cash Buyer because an investor will buy the property "as-is" and can also close very quickly OR on your timeline, whatever you prefer. There are no hefty Realtor fees and selling to an Investor can help you keep the stress normally associated with the selling process to a minimum.

Short Sale

In today's real estate marketing many Homeowners are overleveraged (the amount they owe on their mortgage is more then the home is worth), making it very difficult to sell the property. During a short sale, the Lender agrees to discount the balance due on the loan as a result of economic or financial hardship on the part of the borrower. In other words, you sell your property to a third party Buyer for less than what you currently owe on the loan, the proceeds are turned over to the Lender. The Lender has agreed to accept this amount from the Homeowner as payment in full and "forgive" the remainder still owed to stop the foreclosure.

Potential short sales are processed through the Lenders Loss Mitigation department. Typically, Lenders do not accept short sale offers until after a Notice of Default has been in issued on the property (the borrower must be significantly behind on their payments). The Lender has the right to accept or reject any proposed short sale. There are many circumstances that effect whether or not banks will discount a loan including the Homeowners' ability to continue their mortgage payments, the current market value of the property and the amount the Buyer is offering. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing on the property.

File Bankruptcy

Bankruptcy should be the last alternative or option and should not be used to stop foreclosure unless you have no other option or you need the protection of a bankruptcy due to other circumstances or situations you are currently up against. Financial stress can leave a Homeowner facing foreclosure feeling overwhelmed and looking for a "quick fix." But it's imperative to understand that filing Bankruptcy will merely put a Band-Aid on your problem, it will not stop the bleeding. It is a temporary solution that should be used as the last possible resort.

Most Homeowners have the possibility of filing two different chapters (types) of Bankruptcy - a Chapter 13 or a Chapter 7. Under both Chapter 13 and Chapter 7 bankruptcy, the Homeowner is entitled to an automatic stay - or pause - in foreclosure proceedings. An automatic stay forces all of your assets and debts to "stay put" and pauses all creditor proceedings.

Chapter 7 bankruptcy provides for the total discharge and liquidation of debts. All of your assets are frozen. The debtor can't buy anything, sell anything or give anything away. Even

if the house is not included in a chapter 7 bankruptcy, the stay granted by the filing of the bankruptcy will apply to the mortgage and the foreclosure action. If the Homeowner can then bring the mortgage current, then the foreclosure action goes away. If the mortgage is not brought current, usually banks will then ask the bankruptcy court to release the property from the automatic stay so they may continue with the foreclosure process. Once the property has been released from the bankruptcy, the foreclosure process starts right where it left off. Typically you have anywhere from 3-5 weeks until the foreclosure process begins again.

Many people think that if they can discharge their other debts, then that will free up enough money to get caught up on their house payments and stay current. More often than not, they are wrong.

Chapter 13 bankruptcy is designed to reorganize debts in an effort to repay all debt. It's basically a Court-supervised and Court-monitored repayment plan where the debtor provides the Court with a listing of all of their debts and a budget for their monthly needs. The court reviews the debt, essentially consolidates it, and determines the amount that you'll have to pay to the court every month for the next 3-5 years to pay off the debts. As long as the Homeowner stays current with the mortgage payments and pays the amount agreed upon to the court, the

arrangement continues as scheduled. If at any time payments are missed, the trustee overseeing the bankruptcy will dismiss the bankruptcy and the foreclosure process will begin again. Fact is, less than 10% of all people who file a Chapter 13 Bankruptcy ever successfully make it through to the end of the Bankruptcy.

Most people who file Bankruptcy to save their home from Foreclosure wish they had not because in most cases they are in a worse position that when they started. Filing a Bankruptcy is the only adverse event that lasts longer on an individual's credit report than a foreclosure action.

Deed in Lieu of Foreclosure

A "Deed-in-Lieu" is also known as a "friendly foreclosure." It's a process by which the Homeowner, failing to make the mortgage payments, hands over their property to the Lender. By voluntarily transferring ownership to your Lender most or all of your debt or deficiency is forgiven. This will not save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although the loan default would be entered on your credit record it may not do the damage that a full foreclosure would. Foreclosures usually stay on your credit file for at least 7 years.

Alex Switalski
President, Prism Home Solutions, INC
"Give me a call"

We are the area's premier Real Estate Solutions Company. A multi-service company - we buy and sell homes all across the state. Our goal is to help people just like you out of complex situations and get you back to LIVING life and not Worrying about it. Whether you're looking to save your credit or sell your property for CASH, Give me a call and we'll discuss al the options available to you. Regardless of your situation, we can help you out of this difficult time TODAY!

We are not Realtors. Therefore we have a vested interest in our clients. You can rest assured we will go the extra mile to make certain your transition from STRIFE to LIFE goes smoothly. Our vast experience in the real estate business has established us as the foremost expert in this arena. We work with each client individually. We will arm you with the knowledge to make the best decisions and save you valuable time, money and stress. As the area's leading Real Estate Solutions Company there is no situation we can't handle and no problem we can't help solve!

If your looking to Avoid Foreclosure in Queens, or just sell your home in Queens, we can provide a solutiotion that would best fit your challange.

What I can do for YOU:

· Stop Your Foreclosure and put CASH in your pocket!

· Negotiate your Debt with your Lender through the SHORT SALE process.

· Our network of mortgage brokers, real estate agents, attorneys and many other

professionals are at your disposal.

· You get a clear-cut, honest transaction with a reputable company you can trust.

· Can help you with any moving expences. Based on the situation-

· Inform you of ALL your options and fit the right solution to your challange.

· We will make your home buying experience smooth and hassle free!

Click on the "Contact Us" tab and your information will go right to my email address. You'll get a call from me within 24 hours.

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Queens suffers biggest foreclosure hit with 69% increase

Queens suffers biggest foreclosure hit with 69% increase

BY LORE CROGHAN
DAILY NEWS BUSINESS WRITER

Friday, November 2nd 2007, 4:00 AM

Foreclosure filings jumped 37% throughout the city in the third quarter, totaling more than 7,300.

The threat of foreclosure is worsening in the city - especially in Queens.

In fact, in all the boroughs except Staten Island, more homeowners are struggling.

There were 2,790 foreclosure filings against homeowners in Queens in the third quarter - up 69% from summer 2006, according to RealtyTrac, a real estate Web site.

Across the city, which has 3.2 million households, there were 7,314 foreclosure filings during the third quarter, up 37%.

The filings don't necessarily mean a homeowner's been put out on the street.

A majority of the filings were default notices, issued after homeowners missed two or three mortgage payments in a row. But some filings were auction notices, and others were the deeds banks got after repossessing the homes.

"The high default rate of subprime loans is what's driving foreclosures," said Rick Sharga, RealtyTrac's vice president of marketing.

The number of third-quarter foreclosure filings in the Bronx, 1,011, was 43% higher than a year earlier. Foreclosure filings in Brooklyn totaled 2,498, up 31%.

Manhattan cases rose by 14% to 402, although that's just one filing for every 2,039 households. Citywide, there was one filing for every 448 households.

On Staten Island, there were 613 filings, a drop of 12%.

Nationwide, the situation was far more dire, especially in states where development - and real estate speculation - was rampant a few years ago.

Nevada - which logged one foreclosure filing for every 61 households - was in the worst shape. Also faring very poorly were California, which had one filing for every 88 households, and Florida, which had one for every 95 households.

Nationwide, $600 billion of the worst performing subprime loans are going to re-set to higher interest rates from now through next June, Sharga warned. "Foreclosure activity is going to get worse before it gets better - and New York City will not be exempt," he said.

"New York City won't be the worst affected, but that's no consolation for people who are going to lose their homes."

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Happy Investing!

Alex Switalski

Prism Home Solutions

www.PrismHomeSolutions.com

Hey,

"SECRETS TO EARNING SAFE 12% RETURNS

ON YOUR HARD EARNED MONEY"

Please take time to read through this entire packet since the following information could increase your investment yields by thousands of dollars in the coming years.

We are a group of professional real estate investors and we would like to introduce you to methods that give you greater control over your investments and safely make them grow at two to five times your current rate. Does this sound too good to be true? Well, the truth is, it is not. Many private investors just like you are currently enjoying these rates of return with minimum or no risk.

Smart investors have been utilizing this investment opportunity for years. In fact, there have been entire companies built around this strategy.

This is a very safe investment that produces a high rates of return while at the same time provides higher level of security and liquidity.

You've seen how unsure and volatile the stock market can be. Do you want your future to be controlled by the events that take place on the other side of the globe? Well, maybe it's time to consider alternatives...

Private Loans Secured by a Mortgage

So, what is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. We offer very low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment.

For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That's a 75% loan-to-value ratio. This is obvious a much safer approach from that taken by conventional lenders. These banks get into trouble because they make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.

You, as a lender, will never lend more than 75% LTV. As a lender, it is in your best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. We don't violate this rule, because your security is at stake.

FREQUENTLY ASKED QUESTIONS

Who Borrows at High Rates and Why?

Investors like us do, because we have learned in our business that it's not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities.

Our company can acquire good deals in properties because we can act with lightning speed and can close with cash. Private loans give us this competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties.

Additionally, if a real estate investor locates a good deal on a property, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate, so paying a higher interest rate is irrelevant when compared with the risk of losing the deal.

What's the minimum investment?

The minimum investment is $100,000.

Who handles all of the details?

We will. It's our job to get you proper documentation and protect your interest. All of this costs you nothing. The borrower pays all costs. If you make a $100,000 loan, you send a check for $100,000 to the closing attorney and you get a mortgage for $100,000.

How do I get paid?

We will set up your account. Just sit back and we will send you a quarterly interest only check for the duration of your investment. If you would like a monthly check, we can do that too! However, majority of our investors prefer to receive a one time, principle plus interest payment after the completion of a project. For accounting reasons, this is a preferred way for our company, as well.

Is this a long-term investment?

Generally, your investment is tied to a specific project with a timeline ranging from 3 to 12 months. We have lending programs for short term holds of three to six months. We also have longer term holds of one year and longer. You can pick a term that suits your strategy. It's your money and it's your choice.

What if I need to liquidate?

If you want out, a 45 day written notice is required, because we will need to replace your funds with another investor's money. You really shouldn't make mortgage loans if you feel you will liquidate this shortly, but the option is always available and we have been able to liquidate in as little as two weeks in some scenarios. Also, unlike with a bank CD, there is no penalty for early withdrawal. Just call us, and we will handle all of the details.

Is my investment really as safe as it sounds?

Yes! We always follow these common sense guidelines that we've talked about. Your money will grow two, three, or even four times faster than your current investments and you maintain control.

Each one of our properties that we acquire is put through a rigorous financial evaluation in order to evaluate the profitability before the property is ever purchased.

Remember that making loans is a business and should be treated like a business. If you set up a simple system and let the professionals implement the system, your loan portfolio can be hassle free and produce staggering yields.

How do I use my IRA's or pension plan?

Making real estate loans is a widely accepted use for IRA's and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds which are already in your IRA's and other retirement plans . Think of the power of loaning out funds at high interest rates that are Tax free or Tax Deferred!

In order for you to use retirement accounts for loans they must first be administered by a third party custodian. One custodian we commonly work with is Equity Trust Company. You can visit them on the web at www.trustetc.com or simply talk to us and we'll help you with the set up of your account.

After selecting your custodian, you simply send a transfer form to them and they'll do all of the work for you. Once you've done that you are ready to make private mortgage loans.

From there, you simply notify your custodian about the investment you are looking to make and send the check for the gross amount of the loan. Even better, we can do all the work for you and you just sign few documents, sit back, relax and wait for your money to grow tax free or deferred like grass on a spring morning.

What are my options if Prism Home Solutions,LLC doesn't pay?

Actually, there are several options but first and foremost, please be aware that "Integrity" is an essential part of our business and we only make sound investment decisions. One of Prism Home Solutions, LLC's distinguishing features is that we have never been late on a payment to a private lender.

Additionally, our company's policy is to invest our own funds into every one of our projects because if we aren't confident in our investment decisions why should you be? Likewise, if we ever lose the support of investors, we can no longer operate our business and our own investments would be at stake.

However, to answer the question:

•1) We could restructure the payment schedule on the note. For example, let's say we are behind on payments to you. Now Prism Home Solutions, LLC can and would like to keep the house, but they can't come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and make an extra payment on our arrearage in addition, or you could simply add the arrearage to the principal balance and extend the term of the loan. This means you would be collecting interest on interest for the entire remainder of the loan. There are always ways to work it out if both sides are willing.

2) Have Prism Home Solutions, LLC deed you the house. This is an opportunity for you to get a house at a greatly discounted price. When this happens, you can create tremendous profit by reselling the house.

3) If left with no other choice, you can simply foreclose. Foreclosure isn't as time consuming and costly of a process as most people think.

It's as simple as sending your note and mortgage to an attorney and saying ‘foreclose'. All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney's office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys' fees, court costs, and all other expenses you have incurred in connection with your loan.

If you wind up with the house that doesn't mean you have to keep it. It can be sold immediately at a fair sale price and still produce a profit over and above the already high yield on your loan.

Now, we've talked extensively about default and maybe we've provided more information than is necessary, but we wanted to make sure you have all the facts and we've answered any potential questions.

What kind of documents should I as the lender receive?

Your closing package should contain the following:

•1) A copy of the mortgage. The original will be recorded.

•2) An original Promissory Note.

•3) A hazard insurance endorsement naming you as mortgagee.

These documents provide you with the security you need and the return which you desire.

Summary

I hope we've enlightened you on the incredible power of making private mortgage loans. If it appeals to you, you can get started right now. While most people are complaining about the low rates they are getting on their CD's and other low paying investments, you could be receiving a return of 12%.

"Are you ready to take action?"

So what's it going to be? Are you going to continue to let other people control your money so you only get a return that barely keeps up with inflation?

Or are you going to take control and make sure that when you get ready to retire, you can do what you want without worry about money.

If you are retired, here is a great opportunity to squeeze every interest dollar out of your savings that you can. Private lending is an incredible way to build wealth in a way that most people aren't aware exists.

You're not one of those people who are uninformed anymore. If you have any more questions, please do not hesitate to call us at 718-848-0119 or contact us via email at Alex@PrismHomeSolutions.com .