1. Make up back payments to stop home foreclosures. If you have the money, the absolute easiest solution is to write a check to the mortgage company to make up the back payments, late fees, and legal expenses.
2. Do nothing. This is the other extreme. If you don't pay the lender, they will most likely foreclose on the mortgage, force you to move out of the house, ruin your credit, and possibly even send you a bill when they sell the house. If they can't sell your home at the foreclosure sale for enough to cover the balance owed, you are almost always responsible for the balance. Not easy when you're starting over.
3. Talk to an investor because you can get fast cash for your house, stop home foreclosure, and start fresh. We may be able to buy your house in as fast as 7-14 days, and save your good name and credit report. Many of our investors are used to working with mortgage companies and can probably work out a deal where everyone wins.
4. Make payments up over a few months. Many lenders will negotiate a deal with you to take what you owe them and pay it over a few months IN ADDITION to the normal mortgage payment. Our experience has been that 84% of the time people try this option it fails, because they are not able to afford payments that are 20-30% more than the ones they originally couldn't afford in the first place.
5. Restructure the note. If you are a skilled negotiator and are able to prove to the bank that you have taken care of the problem that caused you to fall behind originally, many lenders will take what you owe and add it on to the end of the mortgage in the form of additional payments. Depending on how the note is restructured, the interest rate could go up and/or the payment could go up.
6. Refinance. Once again, speak with your lender about this option, but if you have enough equity or if you originally had a 15-year mortgage, this option could actually lower your payments and stop home foreclosure! But also keep in mind that a refinance is much harder to qualify for if you're bank sees that you've started missing payments, or if your credit score has already deteriorated.
7. Equity/line of credit loan. If you have a line of credit with your bank or if you qualify for a home equity loan, either of these options may give you the cash you need to bring the mortgage current. Once again though, be sure to evaluate whether or not you will be able to afford payments that will be higher than the ones that caused you to get behind in the first place.
8. Debt agency. You've seen them on TV; you've seen their ads in newspapers. "Bring us all your debt, and we'll negotiate with your creditors and lower your payments!" Some of these agencies are great and will help you; others will help you for a hefty fee and at the expense of your credit for the next 5-7 years. BE CAREFUL! We may be able to get you fast cash to stop home foreclosure and get your life back on track.
9. Bankruptcy. Consult an attorney. My basic "non-legal", "non-advice giving" description is that a judge will determine what you need to sell, what you can keep, how much interest your creditors get, and what your payments will be. This can be extremely helpful for some people, but it will show up poorly on your credit report for several years.
10. Relative/charity. Some charities or government organizations will give you the money to bring your mortgage current if you can prove to them that it won't happen again. If you're very lucky, some relatives will offer to do this also.
11. Deed in lieu of foreclosure. Some lenders will allow you to give the house back to them instead of going through with the foreclosure process. This will also show up poorly on your credit report for several years so it’s always best to stop home foreclosures.
12. Legal proceedings. I can't and don't want to go into detail, but your attorney may be able to stop home foreclosures for quite some time by flooding the mortgage company with legal proceedings.
13. Homes For Sale By Owner (FSBO). If you've got months to wait and your house is in perfect condition, this may be a good option for you. Normally, neither of these is the case in a foreclosure situation. With DOM(days on the market) continually going up before a house sells, can you afford to take the chance of sitting on it for 3 months or longer to get it to sell. No Way. Once a preceeding has been started against you, some lenders can set a foreclosure sale in as little as 30 days. One of our investors may be able to buy your house in as little as 7-14 days, and save your good name and credit report. Many are used to working with mortgage holders and can probably work out a deal where everyone wins.
Of course, you could just sell it yourself-without an agent. After all, who knows more about the house than you do? But how many houses have you bought and sold in your life? Two, three, maybe even four or five? You haven't had to solve even a fraction of the typical problems that always seem to pop up-right before closing. I see this GIGANTIC mistake all the time now. With the growth of the internet and availability of info online, a lot of home sellers seem to think that they know all that they need to sell their home. This is the furthest thing from the truth. Once they finally get their home under contract, and then wait 30-60 days, they usually realize that their "buyer" wasn't qualified in the first place. Or they find out 3 days before closing that the appraisal required by the lender hasn't even been ordered yet.(a 3-4 week process). There are so many pitfalls that sellers run into, by not consulting with a professional.
Do you really want to risk having a potential buyer slip through your fingers, just because you're not used to dealing with (and solving) every little detail of a real estate transaction? This is where your local investor comes in. We specialize in solving problems. Especially the kind you find when you're dealing with a complex sale (like every real estate deal!)
And what if you need to move fast? What if you’re trying to stop home foreclosure?
You could go ahead and move and leave it to the bank.
Unfortunately, that doesn't work. They'll just come after you for the balance, after the foreclosure sale, called a deficiency judgement, and ruin your credit rating.
And every month it takes them to sell it, adds to your enormous debt. But it gets worse if you leave, what's going to stop local troublemakers from climbing through the kitchen window, with their sledge hammers and spray cans? You'd still be responsible for the damage. The hole gets deeper and deeper.
Whatever you do, don't wait! Don't kid yourself into thinking that the problem will go away, or that it will take care of itself. Take Action, Turn a negative into a positive, and start to live your life again. |
