NO  Foreclosures . info

This sight is getting to be far too familiar right? You may even be worried that you may end up in a similar situation. I sincerely hope this is not in your future, and if I can help you it won't be.

You see I created this site to share with homeowners some industry inside information on how you may be able to prevent a foreclosure before it's too late.

I am going to share with you 7 possible ways you may be able to avoid a foreclosure. Depending on your circumstances one or more of these methods may be possible and appropriate. This list will walk you through what actions you can take from the first thing you should do to the more serious measures that may be necessary. Now these measures are not necessarily the only steps you can take in your specific situation and, of course, my advice should NEVER serve as a substitute for legal counsel. It is ALWAYS advisable to seek the advice of a competent real estate attorney when faced with such serious circumstances. Also time is of the essence. You need to take action as time is not on your side in these matters. Being proactive and maintaining as positive an attitude as you can is vital in getting through these times.

Another suitable title for this section would be 7 things you should know but the banks not telling you. In fact nobody's telling you. That's why I created this site for you.

1. If you have NOT missed a payment yet, but you know you are going to, the first step you must take is to contact your lender and let them know your situation. If you've lost your job or have some other type of hardship going on let them know. They may give you time to help get your life back together, but you must call them as soon as you know you're going to miss a payment. The longer you wait, or if you wait until you actually miss your payment makes it more difficult to ultimately get the problem solved.

2. Next thing you can do is ask for a forbearance. This allows you to delay payments for a short period of time, with the understanding that another option will be used afterward to bring the account current.... for example if you know you will have the funds to bring the account current by a specific date because of a guaranteed sum of money you're receiving.

3. Ask for a repayment plan. This is where the lender agrees to add a certain amount of the first missed payment onto each of the next subsequent two payments. These plans provide you with some breathing room if you only have short term financial problems, such as a sudden expensive repair or a medical expense that makes it too difficult to pay your mortgage for one month.

NOTE: If you have already missed 2 or 3 payments and owe a couple thousand dollars in lender legal fees, the lender of your mortgage may still try to arrange a repayment schedule but you will likely have to pay a third to a half of the delinquent amount up front then pay off a portion of the remaining balance each month for a year or more.

Also, NEVER ignore the lender's letters or phone calls. Ignoring the problem won't make it go away, and if you're getting into a foreclosure process, there are other fees and costs involved and ignoring them only makes these worse.

4. You may also be eligible for a loan modification plan, designed for people who can't afford repayment plans. In a modification the lender actually adjusts the terms of the loan to make it affordable. This may lengthen your amortization schedule or lower the interest rate to cut the monthly payments, or roll the past due amount into the loan and re-amortize the new balance so you can pay the additional debt back over time.
NOTE: Some companies may be willing to offer you a "short refinance" too. With this the lender agrees to forgive some of your debt and refinance the rest into a new loan. This way the lender still gets more money than they would by foreclosing on you.

5. We are now getting to the more harsh resolutions. If you can afford your normal monthly mortgage payment, but can't afford to make up the delinquent amount and legal fees because your lender offered a really tough repayment plan, you could consider filing Chapter 13 bankruptcy. Doing so temporarily halts the foreclosure process and can force the mortgage lender to accept a more friendly repayment plan. This will negatively affect your credit, but not nearly as badly as a foreclosure.

6. I consider this next step the last resort, however some would sooner do this than file bankruptcy. Again I recommend you consult an attorney before doing either. This process is called a Deed In Lieu of foreclosure (D.I.L.). This is where you voluntarily deed your property back to the lender in exchange for a release from all obligations under the mortgage. Unfortunately, there is no way to do this without hurting your credit, unless you get the mortgage company to report your mortgage account as paid in full. The lender would prefer this over foreclosing as it is less costly. The benefit to you is that it is less damaging to your credit. I am still a little undecided which is the 'last resort' option for most, this or the chapter 13. Definitely speak to an attorney specializing in these about your specific situation beforehand.
NOTE: You may face income tax issues resulting from the lender forgiving part of the debt (which the IRS will likely treat as income to you, even though you don't receive any cash in the transaction).

7. Lastly, if none of the above steps 1 through 4 will work for you and you don't want to resort to 5 or 6 there is one other option that may be possible. If you can not afford to keep your home but do have equity in it selling it would protect your credit 100% and free you of the financial burden.

I may be able to help you with this one. Prior to the day of the trustee sale auction you can sell the property. As I have stated elsewhere on this site, I am a real estate investor and I network with other real estate investors. We buy houses in most areas and in various stages of condition. What types of property and what neighborhoods we buy in varies a little from time to time. We may be interested in making you an offer on your home. We would have to get some information from you first about it. The bottom line is, if your situation allows it, we may be able to get you out of a very bad situation and help you to move forward in a new, more affordable home.

Please consider what I'm about to say carefully. If you know you don't have the means to pay your lender off and you see no real chance of making up the payments and costs and you would be open to discussing opportunities that can relieve you of this burden, please click on the tab above that says 'Need To Sell?'. On this page you will find a form to fill out with information about the property and mortgage/s as well as your contact information. That's about it. With that information and perhaps a few minutes talking about it further we can determine if we can help you- and your worries could be over.

I just want to add:

I understand that this is not a pleasant thing to go through, and I truly hope that I have provided you with information that can help you improve your situation. Please know that your situation is NOT hopeless. Your attitude and ability to keep your head together during this time is crucial to getting through it with the best possible results.

Just remember that it's important to act fast. Time is of the essence in these situations.

If you resolve the problem and save your home from the information I shared with you, please let me know. I love hearing those stories. I will be elated and we can part as friends. If you can't resolve the situation then I could possibly be your safety net, because the last thing you want is to have a foreclosure happen.

Wishing you and your family the very best.

Sincerely,
Steve Webster