Stop The Foreclosure

Alternatives to Foreclosure

The Lenders Bowl Inc, 

Direct: (818) 783-8061 Fax: (818) 907-9675

So, your house is in foreclosure… now what?!? Try to look at the situation without attaching your emotions. If viewing the situation from a strictly business viewpoint, you can more successfully analyze which option might best suit your needs and desires and move you towards resolving your financial difficulty. One very important thing to remember: Time is of the essence, so sit and take serious thought of your situation and take quick action in order to allow yourself enough time to complete the chosen process.

Ten options when facing Foreclosure

1. Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.

2. Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.

3. Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5. Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened.

7. Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.

8. Short Sale - If the property has no equity, in fact, if the loan balance is higher than the properties worth, our agents can attempt a short sale. ??  our agents will negotiate a lower payoff> the benefits can be such of the following.

1. listing your property lower than the competition for a faster sale.
2. having your credit report show a "paid in full" as opposed to a foreclosure.
3. the possibility of getting back into a home without the negative impact of a credit report.
4. maybe able to stay in your home without paying anymore of the mortgage until the house sells.
5. use the saved money for a deposit on an apartment
6. set your goal of a 1 year lease in the apartment to get back into a home.
7. as the real estate market continues to decline, it may be possible to get back into a home that is more affordable.

9. Lease or rent - if you are really attached to your property and want to keep it in the family. perhaps leasing it out until you are financially stable to take it back at a future date. family members or friends could also be a last resort to maintain the property.

10. Bankruptcy – This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney.

--Chapter 7 (Liquidation) To completely settle personal debt.

--Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.

--Chapter 11 (Business Reorganization) A business debt solution.

Ok, if this sounds like you, before really considering one of these options, call us to determine if in fact, you really Fall in these options. we will try and do everything we can before moving on. our dream is to have you start a new life with a new home.