Lots of folks are struggling with the threat of foreclosure right now, so I prepared a special report for you with 7 Ways to Stop Foreclosure.
I’m Annie Collyer with Sherwood Properties and we’ve been working with folks looking to stop their foreclosure for the past five years in Northeastern Massachusetts and Southeastern New Hampshire. I know the struggle folks have in this situation, the stress they feel, so I prepared this Special Report so you could know all your options to Stop a Foreclosure.
What is the simplest way to Stop Foreclosure?
The simplest is just come up with the cash – pay off the missed payments and late fees, and keep current after that. The key here is keeping current after the cash infusion, so you don’t end up wasting the money. Some folks can do that, sometimes with money from family, but most can’t so then you may want to look at some of the other options I am going to tell you about.
What about a forebearance agreement?
A Forebearance Agreement can be an effective solution, especially when there has been a temporary emergency that resulted in missed payments – like an illness, maybe. You go to the bank and tell them that the situation was temporary and now you can start paying again and get a written agreement to get back on track. Be sure the agreement is in writing before you send in any payments!
The trouble is those first 6 or 8 payments are very high to make up for the ones that were missed. Before you go down this road, make sure you will be able to afford the payments or you will end up wasting your money. If you miss one, you will be right back in foreclosure.
So then what else can we do?
Well, you can sell to a cash buyer. A cash buyer is going to pay less than market value, but they can do it quickly. You need to have equity to sell quickly to a cash buyer. Equity means that you owe less than you can sell it for. A lot of folks think they can list and sell it, but these days it takes quite a while to sell for a full retail price, there are commissions and closing costs to pay- and there is not always enough time or equity to take care of all that before the foreclosure gavel is swinging.
What if we don’t have any equity?
These days a lot of folks don’t…they are upside down on their mortgages. When you know for certain that there is no way for you to keep your house, then the best course to take in that case is to do a short sale. That is where your bank agrees to take less than is owed as a full settlement on your mortgage. It takes time and you can live there in the meantime and plan for your next move. It costs NO money out of your pocket. And it often removes a lot of the stress while your negotiator is doing the short sale for you.
What about filing Bankruptcy?
When you file for bankruptcy, that does stop foreclosure in its tracks. The thing is, it is not a permanent solution. It is a temporary halt. But it is a screeching halt, and the bank can’t do anything until they get the property released for foreclosure. To do a bankruptcy you need to consult a MA or NH bankruptcy attorney. I am not an attorney and I can’t tell you whether or how a bankruptcy could work for you. It is an option to consider, so consult a MA or NH bankruptcy attorney.
I have 2 other bonus ways to tell you about- ways to stop foreclosure.
First is the deed-in–lieu. This can take a little time. What you are doing with this is to just give the deed to the bank instead of having them foreclose. Now, you have to have only one mortgage for this to work. And – this is big- it is just like a foreclosure on your credit report. Some folks would rather do the deed-in-lieu even though it is a terrible thing on the their credit, just to get it all over with. Banks would normally rather do a short sale, since they really don’t want to end up owning your property if they can avoid it, but it is something to consider perhaps.
The 7th Option to avoid foreclosure is the big one being pushed on the banks by Obama – loan modifications. This is where you keep the house with a written new loan agreement that the bank thinks you should be able to afford. This is definitely an option to investigate fully before you give up your home. Obama is strongly encouraging the banks to get in the business of doing loan mods, and that may help you.
Feel free to contact me at www.SaveMyForeclosureHaverhillMA.com if you want specific thoughts about your situation.