A Foreclosure Prevention
Service has numerous ways it can help you deal with the foreclosure
process. Under the law, you have a right to remain in the property for
a certain
period of time. If you can’t pay the full amount owed without
creating a hardship for your family you need a legal review of your
situation,
your rights, and your choices before you agree to anything. Protect
yourself and your family.
Forebearance:
The lender stops or postpones legal action. Usually granted
when homeowner makes satisfactory arrangements to bring the overdue
mortgage payments
current.
Loan Modification:
A loan modification seeks to avoid foreclosure by
negotiating with the lender to modify the terms of the loan. Loan
modifications may
include adjusting the interest rate, extending the loan period or
adding the delinquent portion and fees back onto the principal of
the loan
to be repaid over time.
Mortgage Refinancing:
In most cases, once foreclosure has started,
homeowner has been through several months of late payments or no
payments. These late payments
have a devastating effect on homeowners credit rating. In addition,
the new mortgage company will easily find out about the current foreclosure
action. This most often leads to a denial of the refinance loan application.
If homeowner is approved homeowner can bet it will be at a very high
interest rate with higher than normal closing costs.
Sale Of The Property:
If a homeowner has been unable to work with a
lender, or find another suitable solution in a timely manner, it is
time to seriously consider
selling. When time is of the essence homeowner should consider selling
your property to an investor who offers "a quick closing".
Typically, this will be for less than fair market value, but can be
a benefit to homeowner because it is a quick "as is" sale
with no real estate commissions. "As is" means homeowner
would not have to spend any money doing repairs, or spend time putting
the house in perfect shape. By selling the house "As is" to
an investor, homeowner gets a quick sale - allowing homeowner to instantly
stop the foreclosure and salvage your credit.
Deed In Lieu Of Foreclosure:
This service is when homeowner voluntary
deed title to homeowner property to the lender. A homeowner basically
gives the house back to the bank.
The ordinary effect of the taking of a Deed in Lieu is to extinguish
the lenders deed of trust and vest the lender with the title subject
to all other existing liens and encumbrances. In effect, the lender
becomes the new owner. The lender is not required to accept the Deed
in Lieu and can show his/her refusal by filing a Notice of Non Acceptance
with the County Recorder.
Bankruptcy:
Bankruptcy is not the best option but does delay the process
and place everything on hold for a while. Bankruptcy should only be
an option
if homeowner needs to buy time so homeowner can raise the cash to payoff
the entire debt.
Have your rights been violated in this foreclosure? Keep your home
and defend your rights.
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