Thinking Foreclosure is the only option you have in Minnesota? You likely have better options!

Many thousands of Americans have experienced unforeseen hardships in their lives and have had the joy of owning a home turn into their number one burden in life.  Death, divorce, change of income, job loss, unexpected medical bills, adjustable mortgage rates and others are just some of the unforseen hardships many people are experiencing.  Regardless of which hardship has occurred, acting as quickly as possible with an experienced REALTOR® who specializes in helping homeowners and investors avoid foreclosure might be your most pro-active option.  Time is of essence and contacting us to review your options regardless of which stage of hardship you may be in, is the most important call or email you can make.  It's private, confidential and hassle free.

If you or someone you know needs guidance regarding the difficult decisions to be made about the home, family and/or life decisions; please contact us at your earliest convenience.  The majority of homeowners feel they need to deal with a foreclosure by themselves for a variety of personal reasons.  However, having an experienced REALTOR® to tap into as a knowledgable resource can potentially help you avoid a complete foreclosure and we may be able to help restore credit and improve the ability to own a home again much sooner than the typical 10 years.  Simply ask us for the information necessary to show you how to avoid foreclosure, explain the impact foreclosure may have, and provide the options available beyond foreclosure.  To determine if you simply qualify for any of the above, simply click here. 

A few methods of how to stop a foreclosure on a home in Minnesota:

1. Contacting the Lender(s) - After reviewing budgets, income, expenses and assets available to pay your mortgage obligations and determine, it is impossible to continue; reaching out to the lender as soon as possible is necessary.  The goal here is to at least create a documented intent to alter your mortgage so that the foreclosure proceedings can be stopped, altered or delayed.  In the event, they have started however; you still have more options.  Contact us as soon as possible!
2. Other Available Resources - There are a variety of resources for homeowners who have or are experiencing hardship and are in need of mortgage payment assistance and/or avoiding foreclosure.  Prior to considering the income from other sources such as: unemployment or disability insurance, savings, selling amenities, retirement funds etc., homeowners should check with their tax advisor. 
3. Options Available - After exploring the above options with the lender or the servicing company who handles the loan for the investor on the loan; the options below may also be viable for the homeowner.  Typically, lenders are not required to make any adjustments to loans, however many more lenders and servicing companies are realizing the benefits of working with the borrower and an experienced REALTOR® might be their best option.  Here are some of the possible options that can be explored with the lender:

• Deed in Lieu of Foreclosure - In this case, the lender can accept the return of the title to the home.  However, a Deed in Lieu of Foreclosure without a satisfactory release of any future deficency judgements may allow the lender to sue the borrower for loss of any uncollected funds to the IRS as taxable income to the borrower.  This option may have additional negative effects on credit scores and reporting.
• Re-Amortization Option - This is a popular option for those who may be in a temporary situation and the lender adds any missed payments to the balance of the loan to make it current.  The debt will increase however and the monthly payment may increase unless the lender also agrees to extend the term of the loan.
• Claim or Cash Advance Option - Private mortgage lenders will often provide the option of interest free cash advances to bring the loan current and up to date.
• Short Sale Option - This option is considered one of the best first options available to avoid a full foreclosure.  The Short Sale is becoming the most improved and most popular foreclosure avoidance mechanism whenever a homeowner or investor who has experience hardship aligns themselves with an experienced Short Sale REALTOR®.

Warning!  SELLER BEWARE!

Often times, borrowers experiencing hardship will receive many solicitations from people making guarantees on stopping foreclosure and even promising money for utilizing their services.  Beware of any company requiring upfront pre-payment services and/or especially beware of people asking to have the property deeded over to them directly.  The Federal Trade Commission has published lists of warning signs associated with these so-called mortgage fixing solutions.

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