Core Mission:
to empower homeowners to make informed decisions ta yield the most favorable outcome in the uneasy foreclosure process.
Your Next Steps Matters
NO ACTION
This is the WORST possible path you can take, because it leads to:
- Foreclosure of your home
- Your credit score plummets
- Someone else purchases your home at auction
- You are ultimately evicted
Take Action
You have OPTIONS, depending on your unique situation.
- Personal Loan
- Agent Listing
- Loan Modification
- Rental
- Cash Offer
- Sub 2 / Creative Financing
- Renovate and List
- Bankruptcy
FORECLOSURE OPTIONS EXPLAINED
Personal Loan
You can get a personal loan from a friend, family member, coworker, etc. You pay off your arrears and get out of foreclosure. You will need to develop a plan to then pay off your current loan and your new personal loan as well. If you have access to this, it is a viable option to avoid foreclosure.
Agent Listing
You may have a realtor list your home on the open market to try to sell it. This option could achieve a higher profit but may take several months to accomplish. In the meantime, your home will likely go into foreclosure and be sold at auction. You will be required to pay back the auction buyer from the proceeds of your sale. You may keep any overage. If you'd like to investigate an agent listing, | can refer you to some quality agents in the area.
Loan Modification
A loan modification is a change to your existing mortgage to make it more affordable. It usually changes your interest rate and loan term. It usually does not reduce your principal. You will need to consult your lender and be qualified to do this. Usually, a sudden and significant financial hardship (ex. disability, death of an income provider, divorce, natural disaster) is required to be approved for a loan modification.
Rental
You have the option to move out of your house and turn it into a rental unit. This means having a tenant move into your home and pay you a monthly rent to cover your mortgage. You would need to find a way to catch up your arrears and get out of foreclosure first.
Cash Offer
If you have lots of equity in your home, a cash offer can be made to buy your home so you can be done with the property and move onto the next chapter of life. This avoids foreclosure and you will have to find somewhere new to live.
Sub 2 / Creative Financing
Sub 2 agreements and alternative creative financing methods are most often used to avoid foreclosure. You can get a higher price than cash offer buyers and yet still avoid foreclosure. Some options may even allow you to stay in your home.
Renovate and List
Another option similar to agent listing is the ability to renovate and list. If you want to sell your home at top dollar, you can undergo renovation and then list on the open market through an agent. This, again, would take several months to accomplish and the home would be foreclosed on, requiring you to reimburse the auction buyer before pocketing your profit.
Bankruptcy
Although it carries long-term consequences, filing for bankruptcy is another choice you have. Consult a bankruptcy lawyer if you believe this is your best route.
Give Us A Call Today
Call 262-445-5009
