FACING FORECLOSURE? Here are your options...

    

 

FACING FORECLOSURE? Here are your options...

(This may be helpful to you, your family... or a friend)

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 have made.

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.

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 together 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.

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
2. Forbearance
3. Loan Modification/Renegotiation
4. Mortgage Refinancing
5. Short Sale with Lender Acceptance
6. Sale of the Property To an Investor
7. Deed-in-Lieu of Foreclosure
8. Bankruptcy Filing
9. Nothing

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 possibly attorney fees. This is the quickest and the most efficient way of ending a foreclosure action.

FORBEARANCE – The lender stops or postpones legal action. Usually granted when you make satisfactory arrangements to bring the overdue mortgage payments current.

LOAN MODIFICATION /RENEGOTIATION – A loan modification seeks to avoid foreclosure by negotiating with the lender to modify the terms of the loan. Loan modifications may include adjusting the interest rate, extending the loan period, or adding the delinquent portion and fees back onto the principal of the loan to be repaid over time.

MORTGAGE REFINANCING – In most cases, once foreclosure has started, you have been through several months of late payments or no payments. These late payments have a devastating effect on your credit rating. In addition, the new mortgage company will easily find out about the current foreclosure action. This most often leads to a denial of the refinance loan application.

* If you are approved you can bet it will be at a VERY high interest rate with higher than normal closing costs etc. This option is normally only for those with excellent credit histories and who have only suffered a temporary setback. If you are seriously considering this option then call us. We have connections with the companies that are most likely to be able to help you. Remember that time is of the essence so don’t waste a lot of valuable time on this option. You could lose your home while waiting on loan approval.

SHORT SALE WITH LENDER APPROVAL - A Short Sale is when your lender will accept a price for your home that is less than what you owe on it. Most people will qualify for a short sale if there has been some kind of financial hardship such as: Job Loss or Loss of Income, Divorce, Medical Issues, Death in the Family, or even an Adjustment in Interest Rate (known as “Payment Shock“). Short Sales have many time sensitive deadlines and you want to give yourself the utmost advantage at this stage by contacting us as soon as possible. In Most cases, the foreclosure timeline starts the day you miss your first payment, or make a partial payment. From this point you only have 90-120 days to take major action to sell your home and prove to your lender that you are suffering a hardship. I will help you prepare a financial package to submit to your lender proving your financial hardship. Once an offer has been submitted, the acceptance of it relies on the lenders discretion. In most cases if a reasonable offer has been submitted, then it is in the lenders best interest to approve the short sale.

Always contact your Lender as soon as you think there might be a problem. You will need to check with your attorney and accountant to make sure that this is the right choice for you. Your Realtor cannot decide what choice you need to make.

SALE OF THE PROPERTY TO AN INVESTOR– If you have been unable to work with your lender, or find another suitable solution in a TIMELY MANNER, it is time to seriously consider selling to an investor. When time is of the essence and you want to avoid foreclosure you should consider selling your property to an investor who offers “a quick closing.” Typically, this will be for 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. By Law, a Realtor cannot represent an investor on a short sale purchase. “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.

DEED IN LIEU OF FORECLOSURE – is when you voluntary deed title to your property to the lender. You basically give the house back to the bank. The ordinary effect of the taking of a Deed in Lieu is to extinguish the lender's deed of trust and vest the lender with title subject to all other existing liens and encumbrances. In effect, the lender becomes the new owner. The lender is not required to accept the Deed in Lieu and can show his/her refusal by filing a Notice of Non Acceptance with the County Recorder.

BANKRUPTCY – Some homeowners act on their lawyer's advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. Sometimes the end result is the property going to auction anyway, and you now have a bankruptcy in addition to the foreclosure on your credit report. Everything depends on where you are at in the foreclosure timeline, and how willing your lender is to work with you.

NOTHING – You may find it odd that Nothing is listed as an option, however one of the most common options taken by homeowners is NOTHING. Don’t fall into the trap of thinking that everything will magically 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. I would love to tell you that stopping a foreclosure is a simple process and that it requires no special skill or knowledge, but this simply is not the case.

I trust that the overview of foreclosure options will help you start down the path of informed decision making to protect yourself, your family, your home and your bank account! If you would like to discuss any of these options, call me, and I’ll gladly answer your questions.

Time Is Your Enemy!
If your house payments are more than a month or two behind, your lender has probably already started foreclosure proceedings. As time passes thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added!

 

 

''Making Real Estate Simple''

Barbara Wibe, REALTOR®
Barbarainc@gmail.com
***619-850-4174***

Coldwell Banker Nautilus
9535 Mission Gorge Rd #E
Santee, Ca 92071

 

Not intended as a solicitation if your property is already listed for sale.