What Are My Options To Avoid Foreclosure

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Foreclosure can be one of the most devastating challenges a family can face and one that may be avoided.  There are many options available to homeowners facing foreclosure not limited to short sales.  

If you have become delinquent in your mortgage(s) or your forbearance is ending you will receive information- some not so subtle suggestions, from many people who want to take advantage of your situation and temporary misfortune! The may propose you solve your problem by suggesting you sell or deed your property to them to avoid foreclosure.  

Your situation is unique.  What worked for someone else may not work for you and your situation, and you may have options other people do not have. Furthermore, each lender has its own ways of handling foreclosures and options available to those  who want to avoid it.  Instead of "grasping at straws," understand your options so that you can make a good decision.  

There are many options available to homeowners facing foreclosure not limited to short sales.  If you are facing foreclosure, here are a few available options.  Each homeowner's situation is different and unique and the outcome can differ. The following are just a few options. Give us a call us if you have any questions or would like us to review your options.   

Ideally, you could sell your home for more than what you owe on it.  Do you know home how much equity you have in your home or investment property? We can help you determine how much equity you have to avoid foreclosure.  We are a full service real estate office who can assist you with every aspect of the sale of your property and we offer short sale services, we are Certified Property Experts.  Call us to learn how we can help you sell your home.

Homeowners with sufficient equity in their property can list and sell their property.  Real estate appreciation has gone through the roof, and inventory remains low.  If you are considering selling your property, right now  may be the best time to do so.  It is highly recommended you contact an agent who is familiar with the foreclosure process. Some homeowners today are facing the fact that their homes are worth less than they owe.  RightNow Short Sales specializes in pre-foreclosure prevention and we are short sale experts.  

If you have equity in your property and have good credit, this may be a good option.  A refinance will allow you to lower your payments and stay in your home and avoid a foreclosure.  We can put you in touch with a mortgage lender who can assist you with your refinance. 

If you are experiencing a temporary financial setback, a Forbearance Agreement with your lender may be a good option.  Simply put, a mortgage forbearance agreement involves the lender delay foreclosure in exchange for some type of promise on the part of the homeowner to repay the full amount within a given period.  This is an agreement with your lender to suspend or reduce normal monthly payments for a period of time.  

Forbearance doesn’t mean your payments are forgiven. You are still obligated to repay any missed mortgage payments, which may be repaid over a period of time or when you refinance or sell your home.

If you are facing  financial hardship due to the coronavirus crisis, see COVID-19 Relief Options for more information. 

A loan modification is a written agreement between you and your lender to modify the terms of a loan.  Lenders are often willing to consider other options than foreclosure.  Modification programs often requires that a homeowner qualify for the new payment and will require full documentation.   If you need assistance, call us and we can explain the process. 

If you have missed payments on your mortgage, you may qualify for a repayment plan where you spread out your past due amount - added on to your current mortgage payments over a specified period in order to bring your account current and avoid any possible foreclosure.  

If a homeowner has a mortgage payment low enough that market rent will allow it to be paid, and is able to convert the property into a rental property and use the rental income to pay the mortgage.  This allows homeowners who are facing a temporary setback to  keep their property.  We can assist you in leasing your property for market price.  Find our more information "Lease my home." 

Many homeowners consider this option to avoid foreclosure as this may stall the foreclosure, but most likely only a temporary fix depending upon your situation.  A Bankruptcy is a legal process for an individual who cannot pay his or her bills can obtain a fresh start. This is a legal proceeding and is handled in a federal court.  

We are not attorneys or CPA's.  You must hire an attorney in order to file bankruptcy, which can be expensive. Before considering this option, a homeowner should consult a real estate attorney.  

Unfortunately, many homeowners do nothing.  This is not because they want to cheat anyone out of money but because they are simply overwhelmed and do not know how to handle the situation.  Ultimately, doing nothing may seem easier than taking action, but it can be the most stressful and possibly the worst option to take as you give the bank no alternative but to foreclose. The consequences of letting the bank foreclose can be more severe than short selling your property.  We can help you today. Call for a free private consultation.  All consultations are discreet and held in the strictest confidence.