Many good hard working decent people are behind in payments or in foreclosure?
Whether it is due to a job loss, medical condition, loss of a loved one, divorce, disability or just plain bad luck, you just need honest answers and a little bit of help. We hope this article provides some of that.
Below is a brief summary of how you may be able to overcome the foreclosure and get the help that you need.
How to Overcome Foreclosure
Paying The Mortgage Company
1. The first one is the most obvious, paying the mortgage company the outstanding payments. What may not be obvious are the different places you can possibly obtain the money.
This includes family, friends, IRA’s, 401K, second mortgage, credit card cash advance and employer pay advance. You can also get some help from the Salvation Army, Catholic Charities and other nonprofits.
These nonprofits cannot give you everything you need but if you are short $500 they usually can make it happen. Most people are giving and willing to help, so just ask and you will be amazed at the response.
2. A loan modification from the mortgage lender. This will usually lower your payments, allow you to pay off the delinquent balance at the end of the loan term and you keep the house.
Fill out the loan modification request and by federal and state law the mortgage lender is required to accept, process and provide loan modifications to borrowers in need.
Unfortunately, this is a frustrating and cumbersome process. You will need to send the mortgage company the same document 10 times – because they claim they never received it the previous 9 times (seriously, this happens all the time). Just keep sending the documents, documenting everything you have done, and you will have a very good chance of receiving a loan modification.
The good part, they are usually required to stop the foreclosure process once they have received a loan modification request.
3. File for bankruptcy. This usually stops the foreclosure and gives you the opportunity to restructure your debt and keep your home. This is almost always handled by an experienced bankruptcy attorney.
4. Work with the lender to do a short sale. Banks understand that the foreclosure process and maintaining a vacant home is very expensive and when foreclosed the value of the property is now substantially lower than a typical home.
For the lender, and perhaps yourself, you can avoid the foreclosure altogether by agreeing to do a short sale. Under the terms of a short sale, you agree to live in, maintain, market and sell the home for the highest possible price.
In return, generally the lender agrees to accept the sales price as full satisfaction of the loan. There are many nuances to a short sale but this can be a win-win for both parties.
5. Do a deed in lieu of foreclosure. This is the legal process of giving the home back to the lender. The can be attractive to the lender as they avoid the cost and time necessary to foreclose and you get to move on without any liability for the outstanding debt. This process also has numerous nuances and is usually handled by an experienced real estate attorney.
Sell Your Home To OutFactors
6. The final solution is to simply sell the home and use the funds received to pay off the loan. This is a pretty straight forward process but the sooner you get it done, the less damage there will be to your credit and the more money that will go into your pocket versus paying the lenders ridiculously high legal fees and other expenses.
To get started, just answer 4 simple questions and you will get an offer from your OutFactors in minutes. And when you sell to OutFactors, you can even continue to live in the home with our lease back program.
We hope the above helps, but please understand that this is not legal advice (we are not attorneys) and every situation is different. Please use the above information as potential topics to discuss your financial advisor or attorney.
We will always treat you with dignity and respect – so call us at anytime with questions or if you would like an all cash offer to buy your home as-is. We are here to help!