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Stopping Foreclosure: Understanding Your Options
We have shown homeowners how to not only stop foreclosure… but how to save hundreds or even thousands of dollars by avoiding the mistakes that others make. Know your options so that you can make the right decisions!
Whether you have been facing financial difficulties for some time, or you are just in a recent slump because of job loss, injury or other set back, you must educate yourself. Facing foreclosure is an emotionally-charged event. Most owners in situations like yours have intense feelings of fear and anxiety.
These confusing thoughts can lead you to emotional, instead of logical, actions and decisions. Making emotional decisions is NEVER a good idea when it comes to your home and your money. Foreclosure is an emotionally charged event. And the owners who let their emotions, instead of logic, invade their thoughts and decisions make irreversible mistakes!
Homeowners who focus solely on saving their home without considering their entire financial picture often end up in even deeper trouble because they fail to look at the short and long term affects of their emotionally charged decisions.
This is likely the first time you have ever faced foreclosure. Well, it’s not our first time and if you let us help you then we can help you make logical decisions that will not only stop your current foreclosure, but will also set you up for future financial success.
“What’s important is that you understand your options so that you can make the very best, most logical decisions”
The Most Common Foreclosure Options
Following are the most common options for people facing foreclosure. Depending on your situation, all of these options may, or may not, be available to you. Everyone’s individual situation is different. Call us and we can discuss your options.
1. Reinstate The Loan
3. Loan Modification
4. Mortgage Refinancing
5. Sale of the Property
6. Deed-in-Lieu of Foreclosure
7. Bankruptcy Filing
1. REINSTATE THE LOAN
The most obvious option is to pay the loan current. If foreclosure proceedings have already been filed then the amount needed to get the loan current will not only include back payments, but also late charges and possible attorneys fees. This is the quickest and most efficient way of ending a foreclosure action.
The lender stops or postpones legal action. Usually granted when you make satisfactory arguments to bring the overdue mortgage payments current.
3. LOAN MODIFICATON
A loan modification seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. Loan modification may include adjusting the interest rate, extending the loan period or adding the delinquent portion and fees back on to the principal of the loan to be repaid over time.
4. MORTGAGE REFINANCING
In most cases, once foreclosure has started, you have been through several months of late payments or no payments which effects your credit rating. This makes getting a new loan very difficult. If you are seriously considering this option then contact one of our foreclosure loan specialists. Through our relationships, we have a variety of foreclosure loans and foreclosure bailout loan options to help stop foreclosure regardless of your situation or credit history.
6. DEED IN LIEU OF FORECLOSURE
A Deed in lieu of foreclosure is when you volutarily deed title of your property to the lender. You basically give the house back to the bank. The ordinary effect of the taking of the deed in lieu is to extinguish the lender’s deed of trust and vest the lender with title subject to all other existing liend and encumbrances. In effect, the lender becomes the new owner. The lender is not required to accept a deed in lieu and can show his/her refusal by filing a notice of nonacceptance with the county recorder.
5. SALE OF THE PROPERTY
If you have been unable to work with your current lender, or find another suitable solution in a timely manner, it is time to seriously consider selling. When time is of the essence you should consider selling your property to an investor who offers a “quick closing”. Typically, this will be less than fair market value, but can be a benefit to you because it is a quick “as is” sale with no real estate commissions. “As is” means you would not have to spend any money doing repairs or spend time putting the house in perfect condition. By selling your house “as is” to an investor, you get a quick sale-allowing you to instantly stop the foreclosure and salvage your credit.
Some homeowners act on their lawyers advice and file bankruptcy thinking that all their problems are now solved. Bankrutpcy does put a hold on the foreclosure proceedings, but all it does is buy you some time. The property usually ends up going to auction and the borrower has a bankruptcy as well as a foreclosure on their credit report.
8. DO NOTHING
You may find it odd that nothing is listed as an option. However, one of the most common options taken by homeowners is to do nothing. Don’t fall into the trap of thinking that everything will work itself out, because it will not. You are likely confused by your options and fearful of making a bad decision. But by doing nothing you are making a decision. The decision you are making by doing nothing is the decision to turn a blind eye to reality while losing your home.
We hope this overview of will help you understand what options you have when facing foreclosure. Although the most common options are covered in ths report, there may be others available to you, depending on your particular situation.
Call us now at (213) 377-5721 for a free, no obligation consultation with one of our foreclosure specialists or complete form below. Your advocate will reach out to you.
We offer a free, no obligation review of your circumstance. Call us to privately discuss your particular options and answer all of your questions.