For More Information Please Visit WWW.MyForeclosureRepair.com
Facing foreclosure is no doubt a stressfull situation. You get all kinds of advice from family, friends and so called experts in the field.I have put together a no nonsense outline that will hopefully answer many of those unanswered questions you may have. You don't have to go it alone and you don't for heaven sakes, have to foreclose on your property. So it's time to take control back, seek out answers and face the challenge head on...Like they say 'Knowledge Is Power' so take control of the situation and seek out help. Okay..so here we go....
Your First Option is to do absolutely nothing! This means you don't make your payments and ignore the many letters and phone calls from your lender. Essentially you end up turning your phone off and stop opening your mail. Your lender forecloses on your house. This process can take anywhere from 6 months and can extend out to a year. No telling....
Your Second Option may be a Deed-In-Lieu of Foreclosure. What exactly does this mean? This is where you surrender your home to the lender. This enables the lender to sell your home faster and protect their investment. There is no benefit to a borrower with this option. It still destroys your credit and will haunt you for years to come.
Your Third Option may be a Loan Modification. You contact your lender to try and reduce your payment. If you want to keep your home, then it is a good option. Many lenders will reduce your interest rate, or extend the term of the loan. So the balance is tacked on to the back end of the loan. We don't see lenders reducing principals. You must qualify for a loan mod so you will need to provide your lender all of your pay stubs, bank statements, and other financial documentation.
Your Fourth Option May be A Reinstatement. In order to reinstate your loan you will be required to come up with all back payments including any late fees or other costs. At that point you begin making your normal monthly payments and it restores your account to its former current status. After that you start making normal monthly payments.
Your Fifth Option would be to get a New Loan and pay off your old loan. If you have equity in your home, than this is a great option however, if you are upside down (you owe more than what the home is worth) then it will be hard to find a lender willing to pay everyone off. If you have been late on payments it will be very difficult to get a new loan.
Your Sixth Option is to Sell the property. Provided you do not want the home anymore this is a good option to consider. If you owe upside down on the mortgage then you will need to sell thru a short sale.
A Seventh Option Could be to Rent the property out. This is a good way to earn some extra money. However, many mortgages are written with legal clauses that force you to forward any rent proceeds to the lender. In addition, many local and state governments have recently written laws forbidding you form renting a property unless the mortgage is current.
An Eighth Option May Be Bankrupcy. If you are looking for a fresh start than you can consider this option. However, in recent years the bankruptcy laws have been tightened up considerably. The law now forces the bankruptcy judges to steer you to a Chapter 13 bankruptcy. verses a Chapter 7 bankrupcy. The difference between the two is that a Chapter 7 gets rid of all your debts. A Chapter 13 basically sets you up on a court monitored repayment plan.
Under a Chapter 13, many people find themselves stuck under the same burden of debt that caused the problem in the first place. Only this time, they have to pay all the extra costs associated with the bankruptcy. I've heard some experts say that your just better off not paying your creditors than doing a Chapter 13 bankruptcy. This costs you less money out of pocket and your credit gets cleaned up faster.
Your Ninth Option May be to sell your house as a short sale. A short sale is when you owe more than your home is worth. You sell it with the assistance of a licensed real estate agent. It costs you nothing. The agent gets paid by your lender. It is well known that a lender will net more money on a short sale than taking a home back thru foreclosure. Why? A lender saves money on interest, attorney fees, and other related foreclosure costs.
If you have read this far into my blog, than Congratulations! That means you want to understand your options and are not ignoring a problem that simply won't disapear.
I don't know about you but I am a very visual and process minded individual. So I've listed the steps for you on what takes place once you list your home as a short sale. Here is what I do when I help you with a short sale.
Step #1: Your home goes on the market and I find you a buyer.
Step #2: I provide you with a list of documents I will need in order to submit to your lender along with our offer.
Step #3: After I find a buyer who wants to purchase the property, I contact your lender’s loss mitigation department and submit the required documentation. I follow a checklist and go over the checklist with you to make certain we have all documentation.
Step #4: I follow up with your lender to negotiate the short sale. This process typically takes several months. I follow a process in contacting and constantly following up with your lender for any updates.
Step #5: Next is the lender approval. Everything is coordinated between all parties for a smooth and successful closing. I follow up with all the inspections, appraisals, surveys, and the buyer’s financing.
Step #6 is the Closing. We have closed on the property and you have closure relieving you of a large debt.
I hope you have found this blog informative, useful and gives you the knowledge to move forward. No one wants a foreclosure and all you need to do is pick up the phone and give me a call for a complimentary consultation.
I am a full-time Short Sale Specialist and have helped dozens of homeowners through a very difficult time. I cover SW Riverside County and am ready to help.
Sherry 'K' Kotvis, MS
951-315-3201
WWW.MyForeclosureRepair.com
Providing Solutions In Challenging Times
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