Lakehome.com Foreclosure Help

Foreclosure help in Brainerd, MN

With the foreclosure rate steadily increasing across Minnesota, up 15% in April, and also rising in Crow Wing County there are more programs in place to help. We know your home is your most prized possession and if you are one of the many homeowners in Minnesota facing foreclosure you should know how the foreclosure process works and where to turn for help. Search for Minnesota Foreclosure Counselor’s by County. Counselor’s are free and confidential. It highly recommended that you use a government sanctioned agency. Talk to your foreclosure counselor and lender about your situation. The lender will want to work with you. Banks often lose money in the foreclosure process so it is often in their best interest to help you figure out a workout plan for you. In Minnesota, homeowners usually will have six months to stay in the home which is followed by a sheriffs sale.

If you are facing foreclosure here are several tips provided by the Minnesota Home Ownership Center:

  1. Write down the dates and times of all calls and what was talked about.
  2. Ask to be transferred to the Loss Mitigation extension. The Loss Mitigation department may be able help you work out of the problem. Get the phone number of this person so if you need to call again you will have their direct number.
  3. Tell the lender your situation and that you want to work with them to keep your current mortgage
  4. Be completely honest when you answer the lender’s questions and be prepared to fax or email documentation.
  5. Ask the lender if they have any plans to help homeowners facing foreclosure.
  6. Have the workout plan sent to you before you sign or formally agree to anything.
  7. Don’t enter into a plan you can not afford.

You should check with your lender and a private tax preparer, see if you are eligible for mortgage debt forgiveness. In 2007, Congress changed the mortgage debt forgiveness laws. If you owe a debt to someone else and they forgive that debt, the canceled amount may be taxable.The mortgage debt forgiveness act does not include income from the removal of debt on their principal residence. Mortgage debt forgiven in connection with a foreclosure and debt reduced through mortgage restructuring qualifies for the relief. Finally, if you have a deficiency judgment filed against you read more: Deficiency judment and multiple mortgages.

the Minnesota Home Ownership Center offers warning signs to watch out for:

  1. Calls offering you lease-to-own options or a buyback option
  2. Offers that provide you with “Walk-Away” services
  3. Any calls requesting your social security number.
  4. Fee’s for counseling services
  5. Quick and easy fixes or any offer that just sounds too good to be true
  6. Requests to sign binding contracts – Power or attorney or otherwise from any sources other than your lender or Minnesota foreclosure counselor.

What happens during the redemption period?

Tips for talking with a lender

Minnesota Foreclosure Counselor’s by County.

This is in no way meant to serve as legal advice. If you are facing foreclosure please contact a Minnesota foreclosure counselor or the Lutheran Social Services, they can help you create a budget, payment plans, and even help coordinate your tranisiton after a foreclosure. LSS have certified counselors and provide many services useful to anyone who could use help getting their finances in order.