Options to Avoid Foreclosure

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You have a variety of options to avoid foreclosure by either bringing your loan current or paying it off.

1. Reinstatement (bringing your loan current):  Reinstatement occurs when the loan is brought current by paying the total amount past due.  You have an absolute right to fully reinstate your loan within 90 days of being served with a Notice of Default.
   
   
2. Repayment plan:  A repayment plan is an agreement to bring the mortgage current over time.  The terms are generally a payment of ½ of the arrears as a down payment and 1 ½ payments a month until the loan is current.
   
   
3. Redemption:  Redemption is the act of paying off your loan in full.  You have the right to pay off the loan anytime during the redemption period and the redemption expires 10 days prior to a foreclosure sale.  Redemption usually occurs either through a sale or refinance of the property.
   
   
4. Refinance:  It may be possible for you to avoid foreclosure by refinancing your mortgage, but be realistic about your chances for a refinance and your ability to pay on the new loan, before you pay money to apply for one.  Remember these points about refinances before you pay any money to a mortgage broker.  Contact one of our lenders to see if they will be able to help you.
   
   
5. Loan Modification:  A loan modification refers to changing the terms of your loan.  These changes may include extending the terms of the mortgage, adding delinquency to the mortgage amount or reducing or fixing your interest rate.  Loan modifications are very common.
   
   
6. Bankruptcy:  Filing bankruptcy will stop the foreclosure case.  A Chapter 7 bankruptcy will eliminate your personal liability on your debts including the Note; however, your lender can still foreclose the mortgage.  A Chapter 13 bankruptcy is a type of forced payment plan.  A bankruptcy can be filed anytime before a foreclosure sale.  For most people this should be used as a LAST option, not the first.
   
   
7. Deed-in-Lieu of Foreclosure:  A deed in lieu of foreclosure is a surrendering of the property to your lender in full satisfaction of the amount owed.  By accepting the deed, the lender releases you from personal liability on the loan.  A deed-in-lieu can only be done when you have one mortgage on the property.  If you have a first and second, you CANNOT do a deed-in-lieu.
   

Last but definitely not least, SHORT SALE.  If your home’s market value is substantially less than the total amount due to the lender (including late fees and interest), your property may qualify for a short sale.  You may be able to walk away from the property without owing the bank anything, and you can save your credit history from being drastically tarnished.

Call us now: 866-599-4HELP or complete our online contact form and a representative will respond shortly.