What are your Options after you have been Foreclosed on by your Lender? What are the different stages of the Pre-Foreclosure Process?
The Foreclosure process can be scary and a lot to handle for any homeowner going through this event. Here in orange county and the Greater New York areas the process is long and can leave a homeowner shocked and confused. The foreclosure process can take up to 4 years in NY. A lot of people going through foreclosure bury their heads in the sand until the bank actually sells their house and are unprepared when the eviction actually happened. Here at House4Money.com we want to help by explaining the process to homeowners and by providing different resources that owners may not be aware is available to them. Such as Loan Modification,Reinstating your mortgage,Refinancing,Bankruptcy,Selling your house 4 money fast,Short sale, etc. We have a list of different options that are available to people going through the different stages of the foreclosure process.
You have a RIGHT to know ALL of your OPTIONS go to House4Money.com fill out the application and we will contact you for a free consultation.
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 $10,000 in back payments, attorneys’ fees, etc. Your mortgage company may accept $5,000 now and $800 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.
2: Reinstate Your Mortgage – You have up to and including the morning of 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. Google under “Mortgages”. There are a number of lenders listed that may be able to help in these situations
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 $400.00 to $800.00 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, a local realtor can give you a good estimate. 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!
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.
Sometimes bankruptcy does not get approve.If it doesnt get approved now you are out your 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.
5: Sell Your Home on the Open Market – This is probably the most under utilized option available to you. The fact is selling your home will give you the most money in your pocket. The market is picking up and we’ve all experienced some appreciation in the past few years. Your home may be worth a lot more than you think!
If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home which will provide you and your family the greatest amount of money to help provide a fresh start for you and your family.
Don’t procrastinate; explore all the options available to you. If saving your house seems unlikely, you should go to House4Money.com– as soon as possible! Put your information in the application and we will call you to Buy your House. Placing your home on the market a few weeks or a month from now may not give us enough time to arrange financing, and schedule the closing. Because of the time sensitive nature of your situation, this is not a time to go it alone as a “for sale by owner” or list your home with a friend or friend of a friend.
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, Go to House4Money.com and . I’ll make you a cash offer and close quickly usually in 2 weeks to a month. If you need additional time to relocate, that can easily be arranged.
The fact is you have several months sometimes years 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 myself. I can promise that I will treat you fairly, with dignity and complete honesty. When I 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! I don’t believe in last minute negotiating at the closing table.
If you are looking for a quick – no oblications solution go to House4Money.com
7: Short sale- When you can prove hardship the bank will allow you to sell the property at a price lower than what is due on the mortgage. If you have 120,000 left on your mortgage but the value of your house is 80,000 the bank can allow you to sell it below the 120,000 that you owe. That process is called a Short sale. You will be asked to prove your financial hardship through your records. Short sales are long process but it is one of the options available to you.
8: Let Your Home Be Sold On the Courthouse Steps – 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 on the courthouse steps 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 30 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.
TIME IS OF THE ESSENCE! GO TO House4Money.com
As with any serious legal situation the reader is encouraged to consult legal counsel regarding any points of law. This information should not be used as a substitute for competent legal advice.