Foreclosure Options

Preforeclosure is what happens before a mortgage company forecloses on a home.  It is the factor that leads a mortgage company to call the note on a loan that they are holding.  The homeowner becomes late with his mortgage payments, and the mortgage company sends out a Notice Of Default.   Even before this event it is time to act.

In today's economy, there are many reasons a homeowner defaults on his mortgage.  Loss of employment, unforeseen events, an adjustable rate mortgage that readjusts, falling home values are just a few.  When a homeowner falls behind on their payments, pride sets in and they won't ask for help.  The important thing to remember is don't panic.   Many times the disaster of foreclosure could have been prevented with a simple phone call to the mortgage company, but if the lien holder doesn't know the situation, they can't help.

The last thing a mortgage company wants is another home in default on their books.  They can offer such things as longer payment plans, skipping a payment and adding it to the back end of the loan, refinancing, modifying the loan, and  short sale, short pay and refinance, and many other options.  Let's discuss what options are available to you.  If you feel you need help in carrying out these plans, that's what I am here for.

1.  If you are a couple payments behind, the bank may offer to deferr the delinquent amount to the back end of the loan.  This will allow you to become current on your loan payments and pay the back amount , either as a small additional amount or an added payment at the end.  This will only work if you can afford to move forward with your current payment amounts and not fall into default again.

2.  If your home has equity in it, you may want to refinance.  Having equity in your home means owing less than what it is worth.  If you are not sure what your home is worth, please contact me for a free evaluation of your home.  Interest rates are at an all time low, and a lower rate maybe what you need to make your payments go down.  If you are credit challenged because of late payments, please consider the FHA Streamline Loan that accepts less than perfect credit.  If you can't refinance, don't despair, there are other options.  Investors have programs that involve buying your mortgage from the bank at pennies on the dollar and selling it back to you for pennies on the dollar, thus reducing both your principle and your payment.

3.  If your rate has adjusted and you can no longer afford the payments, try to workout a loan modification with your bank.  Before doing this you should have all your financial information together and ready to submit to the bank.  If you could afford to make your payments to the bank if they were lowered a bit or brought back to the initial rate you had at the beginning of the mortgage, then a modification is for you.  If you feel you can negotiate with the bank to come up with a suitable plan to save your home, you may want to explore the pages of my website in detail.  If you feel you need help, please allow me to introduce you to someone who can do it for you at a reasonable cost.  The Nevada Assembly has come up with a foreclosure mediation plan for owner occupied residences in the state of Nevada.This mediation allows homeowners to sit down with mortgage lenders and  trained mediators to discuss and negotiate in good faith.
A form to obtain a Request For Mediation can be obtained by calling the Foreclosure Mediation Hotline at 775-687-9816

4. If all the bills are too much and you would like to keep your home, bankruptcy is an option.  It means a fresh start.  I cannot advise you on bankruptcy except to say it stops creditors dead in their tracks.  Please consult a bankruptcy attorney for details.  If you don't know a Bankruptcy attorney in Nevada, please contact me, I know some good ones.  Make sure you can afford your home mortgage payments with the trustee payment each month before such a drastic measure as bankruptcy.  You may want to modify the mortgage first.

5. If you have exhausted everything above and nothing has worked, our last ditch effort will be a short sale.  There no longer is astigmatism attached to losing your home.  This is a fact of life for some people.  If you can no longer afford the home you are living in, it is time to move on.  Are you asking "How could you be so cold?".  I am not being cold, my heart goes out to you , for the grace of God there goes I.  Sometimes when things are at their  lowest , change is good and necessary to bring a new light to your life.  I want to stop right here and give you my unconditional devotion.    I am on your side.  I have devoted myself to help foreclosure victims, and I promise to try to help you.  If your home has lost value, and you are upside down in your home, you can do a short sale with the bank's permission.  The home will be put on the market and sold to the buyer at the current market value which is always less than what it takes to pay it off.  The bank does not stop the foreclosure process until you submit a sales contract to them.  Short sales are often a long drawn out process.  A short sale remains on your credit for seven years as an account unpaid.  A bankruptcy or foreclosure remains for 10 years.  Either way your credit becomes challenged, although they say it improves with bankruptcy.  There is what is called the FHA shortpay loan.  Under this program, the FHA agrees to finance 90% of the value of the house if the lender agrees to the shortpay.  As a Realtor I have many investors who buy short sales homes  for investment.  II could possibly have your have your home under contract within hours.  A short sale can be done up until 2 days before a trustee sale and it immediately stops the foreclosure process.  Nevada passed a bill stating that after Oct 1, 2009 a court can no longer enter a deficiency judgement for any obligations secured by a mortgage, deed of trust, or other emcumbrances secured by real estate, unless it is sold by a trustee sale  for less than what is owed.   Call an attorney to discuss this. 

As new information comes into play, I will of course inform you.  You have choices as a homeowner living in the United States, and you owe it to yourself to discover them.  Don't walk away in defeat like a whipped pup, stand up and fight to save your home.  If it can't be done, then and only then can you say "It's time for a change."  If you need more information that I haven't given you please contact us  at foreclosureinfo4free@gmail.com , or call our foreclosure information hotline.  702-521-1442


Wishing you the best and offering a solution..