The possibility of losing your home through foreclosure can be quite stressful and can lead to bad decisions that make the situation worse. The first thing you need to understand is that time is your enemy. The sooner you take action the more options you will have to avoid foreclosure or to minimize the impact.
Here are some common options when you are behind on your mortgage payments and are facing foreclosure.
|1. Reinstate the loan||This is essentially making the loan current by making all back payments, paying late charges and fees. This is the quickest way to stop foreclosure but it requires you to have the money to make up all of the back payments and penalties.|
|2. Forbearance||Forbearance is the term used to describe a payment plan that will make the missed payments current over a period of time (e.g. 6-18 months). Banks often require you to make up some of the missed payments immediately as part of the forbearance agreement. We can assist you for FREE to arrange a forbearance agreement.|
|3. Loan modification||The lender may agree to alter the terms of your loan to make the payments more affordable. Modifications may include changing the interest rate, extending the loan period, or adding the back payments and fees to the principal to be repaid over time. Banks often require you to make up some of the missed payments immediately as part of the loan modification. We can assist you for FREE to arrange a loan modification.|
|4. Mortgage refinancing||If you have missed payments for several months this is generally not an option unless you have significant equity in the property or an excellent credit history. If you can’t make the current payments, it only makes sense that other banks will be reluctant to lend you money. If they do agree to lend you money, be prepared for a higher interest rate or fees.|
|5. Sell the property||If you can’t afford the payments, can’t work out a payment plan, and can’t get refinanced, then the sale of your home may be the best option. If you take no action your home will surely be sold at auction by the Sheriff. Selling a home through a Realtor can take months. Depending on the situation we can buy your home quickly or may need to work out an arrangement with the bank if you owe more than the home is worth.|
|6. Deed back to bank||Sometimes the bank will let you deed the house to them, sometimes called “deed in lieu of foreclosure”. Banks are not in the business of owning homes and would prefer not to own yours. Giving your house back to the bank voluntarily does not automatically mean that the bank will not seek a judgment against you for the amount still owed.|
|7. Bankruptcy||Filing bankruptcy can stop your home from being sold almost right up to the time of auction. It buys you some time. You need to evaluate the expense, stress, and long-term impact of bankruptcy, and seek legal counsel.|
Again, the important thing is that you must take action as soon as possible. Doing nothing will not help your situation, reduces your choices, and lets someone else (the bank and the legal system) be in control.
You need to protect yourself and the best way to do that is to get informed and take action. Once the foreclosure process has started, it will not magically work itself out in your favor. Beware of the attorney that sees bankruptcy as the solution to every problem. Bankruptcy generates fees for the attorney but can ruin your credit for up to 10 years. Some employers are even screening job applicants for bankruptcy.
If you DO
have the income
to continue making payments….
Don’t pay lots of money to attorney’s or “foreclosure specialists”. If you currently have the income to continue making payments on your home, we can assist you for FREE to structure a repayment plan with the bank or to modify your existing loan.
Contact us today by calling toll-free 1-888-266-2236