9 Ways To Avoid Foreclosure
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If you or anyone you know are in a situation where they are behind on their mortgage payments this presentation can help you. This short presentation will show you 9 options available for you to consider if you are facing a possible foreclosure situation.
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9 Ways To Avoid Foreclosure
- 1. 9 WAYS TO AVOID FORECLOSURE By: rkiproperties.com
- 2. Do Nothing Do Nothing If you do nothing, you will most likely lose your home in a foreclosure auction and still owe your lender. Loan applications generally ask if you have been foreclosed upon. Credit reports also disclose this information. It is usually not the best option.
- 3. Payoff / Refinance Completely paying off your loan amount, plus any default loan amount and fees. Usually this is accomplished through a refinance of the debt.
- 4. Reinstatement Paying the entire default amount, plus interest, attorney fees, late fees, taxes and missed payment fees.
- 5. Loan Modification Using the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow you to catch up at a more affordable level. To qualify, you usually have to prove to your lender that you have fixed the problem that caused the late payments.
- 6. Forbearance The lender may be able to arrange a plan based on your financial situation. The lender may even be able to provide a temporary payment reduction, or suspension of late payment fees.
- 7. Partial Claim A second loan from the lender to include back payment costs and fees.
- 8. Deed-In-Lieu Give the property back to the bank instead of the bank foreclosing. Banks generally require that the home be well maintained. Most loan applications will ask you if you ever had a deed-in-lieu of foreclosure.
- 9. Bankruptcy This option can liquidate debt and/or allow more time. It does not get get rid of the foreclosure. Chapter 7 - Liquidation Chapter 13 - Payments are made over 3 to 5 years. Chapter 11 - Business reorganization
- 10. Sale If the property has equity, you may sell the home without lender approval through conventional home sale. In this case, you would receive cash from the sale. On the other hand, a short sale may be negotiated with your lender if you owe more than the property is worth. You can have the debt waived and possibly get money for relocation.