Hello-it's me Bob coming to you from rainy and windy Seattle. Thanks for stopping by. If you've read any of my previous blog posts you know that as I provide you with information and resources, I also like to have some fun with my writing!
Not with this blog-sorry.
Anybody who would stop to read a blog post titled "The 7 Ways To Stop A Foreclosure" is probably behind on their mortgage payments and has either received a NOD (Notice of Default), A Notice of Trustee's Sale, or, is about to.
What does all that mean? Here's the tuff luv-you're likely 90-120 days away from losing your home and being out on the street. And even if I tell you that you are not alone-in fact, there are millions of homes being foreclosed upon, it still sucks.
So-what do you do?
As the title says, you have various options, each based on your current situation, and some are better than others.
What you DON'T have is a lot of time-when your lender starts the clock ticking, they are serious and will play hardball with you. So, I will briefly outline your options so that you'll at least have an idea of might come about. You may always contact me if you would like a personal consultation-my services cost you nothing, and I'm an experienced and licensed professional with one goal in mind-to see you and your family address your situation and move forward with your lives.
Here we go-7 Ways To Stop Foreclosure.
1. Forebearance Or Workout Plan With Your Lender
2. Loan Modification
4. Deed In Lieu Of Foreclosure
7. Short Sale
Hmmm . . .truth be told, most agents don't fully understand all of this-so don't feel bad! I'll briefly explain each one.
1. Forebearance. Basically, a "plan" to catch up on missing payments. Be careful-NEVER send up front payments to a bank without a written offer. This can be difficult because it requires extra money you might not have and is a temporary fix at best.
2. Loan Modification. Your lender will change aspects of your loan-making it easier for you to keep your home. You'll typically pay upfront fees, will need to qualify (only 16% do) and you'll need to be cautious with who you're dealing with. Recent studies show that almost 60% of all pople obtaining loan mods default again within 6 months.
3. Bankruptcy. The big BK-and I'm not talkin' Burger King. Sorry. In essence, there are two main types-Chapter 7, where you liquidate assets, and Chapter 13, where you arrange for a repayment plan. You would in all likelihood choose Chapter 13-just make sure you don't get behind again, or the lender can foreclose on you and then you'll have a Bankruptcy AND a Foreclosure on your credit. Ouch!
4. Deed In Lieu Of Foreclosure. You simply give the bank your deed and walk. Good deal for the bank, it saves them time and money. Bad deal for you because it shows as a voluntary foreclosure (you gave up) on your credit. This also only works if you have just one loan.
5. Refinance. This is a great solution-but you'd better have 30% or so equity in your house. Besides, what lender in their right mind (wait a minute-what lender has ever BEEN in their right mind-ie; sub-prime crisis of 2007?) would refi and lend someone who is behind on their CURRENT payments? . . . .(Whimpy) " I will kindly pay you back on Tuesday for a hamburger today, Popeye . . "
6. Foreclosure. If you do nothing, this will be the final result. If you have more than one loan on the property, it can be even more complicated. Avoid foreclosures at all cost! Oh-and don't plan on buying a house anytime soon-at least not with a bank loan.
7. Short Sale. I've saved the best of the bad for last. In essence, you'll work with me as my associates and I negotiate with the bank to discount what you owe them. If you have junior loans, we'll negotiate for them to accept pennies on the dollar or go away completely. The bank prefers it-not that we care that much about what the bank prefers . . but we'll play nice-unless they get cranky, cuz my team and I can get REALLY cranky! Bottom line is that the bank does NOT want to foreclose. Some GOOD news for you is that your credit won't be affected nearly as bad as a foreclosure (you'll typically be credit-worthy in just a couple of years), and even more importantly, you get to MOVE ON WITH YOUR LIFE and eliminate this giant headache.
There you have it-hopefully this info was useful to you. Before I invite you to contact me to work on the best solution for your situation, I want to acknowledge my associate Ross Kilburn for his concise and valuable insights. I work closely with his company Washington Foreclosure Assistance to help people all over the greater Seattle and Puget Sound regions who are facing foreclosure. We can help you, too.
Best wishes to you-call or email me today! My services cost you nothing and there is never an obligation.
Bob Sluys 425-446-1878 firstname.lastname@example.org