Best Options - Options used to deal with foreclosure.

These options are listed in order with our opinion of the best choices at the top and the worst choices at the bottom. Consider which options would work for you. After reviewing these possibilities, we suggest you contact us for helpful advice on your particular situation.

IMPORTANT TIPS:
1. If your payments are behind, keep in contact with your mortgage lender. Yes, it’s a hassle when they call, but you need to reassure them that you’re working on the problems. They are sometimes willing to delay the start of foreclosure or delay the foreclosure sale, IF they think you will be paying them soon. That doesn’t mean you should lie, just tell them what you’re doing to fix the problem.
2. Don’t move out of the house. This indicates to the mortgage lender that you have abandoned the house and that they won’t get paid. It also cuts you out of any refinancing or loan modification programs they may have.
Bring the Mortgage Current. If you can find the money, most mortgage lenders will accept a certified payment of all back-payments and fees up until the day prior to the foreclosure sale. They will only accept the full amount, no partial payments. Can you get money from a relative, get an advance from your boss, get an equity loan or a personal loan, sell something of value, etc.? Any ideas? CAUTION: If you borrow money, you’ll have to pay it back someday. Consider whether you will be able to pay the money back or are just digging a deeper hole that you won’t be able to get out of.
Get on a Payment Plan. Ask your mortgage lender to set up a payment plan for you. Maybe the lender will let you pay something extra each month until you’re caught up.
Modify Your Mortgage. Your mortgage lender will sometimes change your mortgage to help you out of foreclosure. This might be by taking the amounts you are behind and adding it to the back of the loan, or letting you pay a portion of your back payments on a monthly basis, or even lowering your interest rate and payment. Give it a try.
Partial Claim. Your mortgage lender may be able to request a small loan from HUD to bring your mortgage current. You may qualify if you are not yet in foreclosure, your loan is 4-12 months behind, and you can begin making your regular mortgage payments. This loan is interest-free and must be paid back when you sell your house, or move-out, or when your loan matures.
Refinance the Mortgage. If you think you may have enough equity to refinance, you can contact a mortgage lender to see what they can do for you. CAUTION: If you refinance, your payment will probably increase. Do you realistically expect to be able to make the payments you’re agreeing to make? If you decide to refinance, consider paying several months’ payments in advance with the proceeds of your new loan, to give yourself time to deal with your current financial situation.
Sell Your Property but Continue to Live There. If you have sufficient equity, you may be able to sell your house but continue to live in it for a number of months or even years. To do this, you will have to make an agreement with the person who wants to buy your house. You may also be able to retain an option to buy back the property.
Sell Your Property and Move out. Selling is an option whether you have equity or not, and even if the house is over-financed.
1. If you have a significant amount of equity, you may be able to sell your property and pay off all mortgages and liens. We have a network of Buyers and Realtors who can assist you. Typically, Buyers in our network are able to close a sale quickly. These Buyers may allow you to remain in the house and possibly to repurchase the house in the future. Alternatively, you can sometimes receive more money when using a Realtor to sell your property. Feel free to contact us to discuss your best alternatives.
2. If you have little or no equity, we recommend contacting us so we can have one of the Buyers in our network call you, to see what they may offer you. They may be able to purchase your property outright or work on a Short Sale (see below). We can also have one of the Realtors in our network call you.
3. Over-Financed Property (Short Sale). In the event that you owe more than the property is worth or have very little equity, you can request a Short Sale from your mortgage lender. In a Short Sale, the lender agrees to accept less than what he is entitled to. Therefore, the lender will insist that you receive no money from the sale.
  - To do a Short Sale, you must request a Short Sale Package from your mortgage lender, then find a buyer, then complete the Short Sale Package and submit it to your mortgage lender. Your mortgage lender will then decide whether to accept the offer or not.
  - If you have more than one mortgage, each lender must agree if they will be receiving less money than they’re entitled to. In some cases, the lender may also ask you to agree to pay them back later for any money you owe which they don’t get from the Short Sale.
  - If there are liens on the property, the lenders may not agree to do a Short Sale.
  - A Short Sale is better than a foreclosure.
Deed-in-Lieu-of-Foreclosure. You may be able to give your property to the mortgage lender. The lender has a choice of whether to accept the property from you or not. For example, if there is a second mortgage or lien on the property, the lender may refuse to take the property because they would then have to pay off those other liens. A ”Deed-in-Lieu” is better than a foreclosure.
Bankruptcy. Filing Bankruptcy will delay a foreclosure, not prevent it. All liens and mortgages against the property will remain and continue to earn interest and penalties, unless they’re paid. If your purpose is to delay the foreclosure, perhaps because you have a large sum of money coming in soon, a bankruptcy may be a valid choice. Keep in mind that a Bankruptcy stays on your credit for 10 years, and you will have trouble getting credit and be charged high interest rates, high insurance rates, and may have trouble getting a job after a Bankruptcy. If foreclosure is the main issue, avoid a Bankruptcy. Bankruptcy will hurt you badly for a long time.

Bankruptcy is your last choice.

After reviewing these possibilities, we suggest you contact us for helpful advice on your particular situation.

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