have a RIGHT to know ALL of your OPTIONS.
Option 1: Loan
Forbearance or Modification - A strategy worth pursuing is called a
loan forbearance. The loss mitigation department of your mortgage company
may make arrangements with you to pay some of the back payments now and
the balance within a certain time period. A typical example – You owe $9,000
in back payments, attorneys’ fees, etc. Your mortgage company may accept
$4,500 now and $750 per month for the next 6 months. Of course, you would
have to resume making your normal monthly payments. A loan modification
is a permanent change to your mortgage that may lower your payments and
the delinquent payments may be added to the mortgage balance. A loan modification
or forbearance is easier to arrange prior to the Mortgage Company filing
a foreclosure lawsuit. Some lenders will not consider this after filing,
but it’s worth trying.
Option 2: Reinstate
Your Mortgage - You have up to and including the last business day before the auction
to catch up your payments. Perhaps you could borrow from friends or family,
credit cards or retirement program. You may be able to arrange a second
mortgage to catch up the back payments and fees. Check in the Yellow Pages
under "Mortgages". There are a number of companies listed that claim they
can help in these situations. Watch out for scams, however.
Option 3: Refinance -
You’ve probably received letters from mortgage brokers and lenders saying
you are already pre-approved for a new mortgage. The fact is that is very
difficult to arrange new financing when you’re already in default on your
existing mortgage. Be very cautious about sending advanced fees of $300.00
to $600.00 to lenders or mortgage brokers. Usually it’s a ploy to take
advantage of your financial situation.
Arranging new financing will
depend on your income, credit report, value of your home and the amount
of your equity. If you’re not sure of the value of your home, give me a
call. Usually I can give you a fairly accurate estimate of value. I would be glad to help and of course, there’s no obligation.
If you attempt to refinance, you should always have a backup plan available
to you. Many times, I have had homeowners call days before the auction
saying their financing did not go through, and then it’s too late!
Option 4: Chapter 13 Bankruptcy
- A viable alternative if your financial situation has improved, filing
bankruptcy prior to the auction will stop the sale. Unfortunately for most
people, it only postpones the sale for one or 2 months. Immediately after
filing a Chapter 13 Bankruptcy, you will have to file a repayment plan
with the courts. This plan has to show that you have sufficient monthly
income to pay basic living expenses such as food and utilities and other
monthly payments such as credit cards, car payments etc. In addition, your
income must be sufficient to resume making your monthly mortgage payments.
All past due amounts are usually spread out between 24 and 60 months i.e.
If you owe $9,000 in missed payments, attorneys fees, etc. if spread out
over 48 months would be an additional $187.50 due each month to the court
appointed trustee. If you feel as though you have the income to immediately
begin repayment of all your debts and the courts agree, this may be a good
choice for you to save your home.
You should know, however,
that with the tougher bankruptcy laws, many individuals who have filed
for bankruptcy protection have had their cases dismissed. Not only were
they out their attorney’s fees (usually $1,000 - $2,000) but now had a
bankruptcy and foreclosure on their credit report. Bankruptcy is considered
an action of last resort.
Option 5: Sell Your Home
on the Open Market - Selling your home on the open market will give
you the most money in your pocket. Unfortunately, with the current real
estate market slump it may take you 6-9 months or longer to find a buyer
- even longer if you don't have the money to fix up your home before offering
it for sale. When you are facing foreclosure, this is time that you
do not have. It may be worth a chance, however, to put a For Sale
By Owner sign in your yard.
Option 6: We Can Buy Your
Home - If efforts to save your home have been unsuccessful and time
doesn’t permit selling your home on the open market or you just don’t want
to, but want a quick sale with no problems, call us. We’ll make every effort
to make you an offer that will allow you to keep a foreclosure off your
credit history, as well as a few dollars extra in your pocket.
You have probably been swarmed
by investors calling you and knocking on your door. If not yet, you soon
will be. A Word of Caution, some investors are very aggressive and unethical.
Some investors will tell you that "You only have one or two weeks before
the auction and your furniture and possessions will be placed on the sidewalk
or street." This scare tactic is usually accompanied by a ridiculously
The fact is you have several
months before that could happen, but this is not a time to sit back and
relax but for you to pursue one of the options available to you that makes
the most sense for you and your family. Don’t be rushed or scared into
giving up your hard-earned equity. If a quick sale of your home is your
goal, talk with several reputable investors, including us. We can promise
that we will treat you fairly, with dignity and complete honesty. When
we make you an offer and say you will walk out of the closing with $1,000,
$5,000, or $20,000, that’s what you will walk out with! We
don’t believe in last minute negotiating at the closing table.
If you are looking for a
quick – no problem solution, contact us at 803-361-2739.
If you do not take advantage
of one of the previous options before the foreclosure on your house takes
place, you will be forced to accept...
Option 7: Let Your Home
Be Sold by the Court -
By far, the worst option available to you! Many people feel "I have no
equity, let the bank take it", but homes that are sold by the court typically
sell between 50% and 70% of their fair market value. Moreover, if a bank
suffers a loss due to the pending foreclosure action against you, they
also have an option. They can file a deficiency judgment against you and
pursue you for the amount of their loss.
Typically ten days after
the foreclosure auction, a certificate of title will be issued by the courts
to the new owner. If you have not voluntarily vacated your house at this
time, you could be forced to move out within 24 hours.
If we can help you, please
call us today at 803-361-2739.
As with any serious legal
situation, you are encouraged to consult legal counsel regarding any points
of law. This information should not be used as a substitute for competent
Call Right Now!
CALL NOW: 803-361-2739
or email Info@TheHomeFlippers.com
For a No Obligation Analysis of your Property