“The pressure is overwhelming.” “I felt hopeless.” “I can’t believe this was happening to me.” Many, many good people have found themselves facing the unbearable pressure of looming foreclosure. Hopelessness, exhaustion and sleepless nights are common.
In my business, I get the privilege of working with all sorts of different people in every imaginable situation. Unfortunately, many of these poor folks have been doing right for years but have found themselves with the house grim reaper of foreclosure knocking at the door. Often, this is no real fault of the homeowner. Sometimes there is tragic sickness, catastrophic job loss or familial upheaval that has led to this dire place… but don’t stop here; there is HOPE.
The heart’s desire for our business is to be a blessing. Sometimes we are that blessing by providing a fair and fast purchase for their home. Many other times, we are able to bless by just pointing the people we work within the right direction. This article is intended to do just that… point you in the right direction if you or someone you love is facing the real estate “F” word.
Here are 4 proven methods to stop foreclosure in its tracks:
1. Renegotiate: If you were faced with one of the situations listed above (job loss, sickness, etc.) you may be able to renegotiate your mortgage for a lengthier term and maybe even lower interest rates. We worked with one client who had 23 years left on her mortgage. Her monthly payment was just under $800, which was just too much for her with her recent job loss and marital issues. This lender worked with her to reissue her loan, extending the remaining 23 years to 40 years. By doing this, her payment went down to about $475 a month, a much more affordable monthly payment. She was able to stay!
2. Reverse Mortgage: If you have a fair amount of equity in your home, you might be able to qualify for a “reverse mortgage“. While I’m not a huge fan of these, if you are older and have lots of equity but just can’t keep up with your payments, a reverse mortgage will actually pay you. They can pay off your existing mortgage and allow you to access some of the equity in your home. Again, not a solution for all, but can be a great solution for some.
3. Sell / Short Sale: If you are willing to move on but don’t want that big “F” on your credit report, you can outright sell your home or do a short-sale on your property. Selling is best and works when you have some equity beyond what is owed. A short sale is when the lender agrees to take less than the amount currently owed. Some lenders will even allow you to keep a couple of thousand dollars to help with moving costs. If you do a short-sale, make sure that part of the agreement is that the lender will not issue a deficiency judgment against you (a deficiency judgment is where a lender attaches their loss to your credit. If you sell anything else they can collect a portion of proceeds).
4. Work with us: Yes, this is a “plug” for our services, but we really, truly help people who are facing foreclosure. We have more creative and comprehensive solutions than anyone else. Here are a few examples of what we’ve done with others who have run up against the foreclosure wall: One seller was many months behind on her mortgage. She had little equity and her house was frankly a mess. By the time she paid real estate agents, she would get nothing for selling… but she had an exceptional fixed-rate loan on her home. We were able to give her $10,000 cash, catch up her payments and then take over her loan, rebuilding her credit. In another instance, a couple was multiple months behind and they had no money to move. We gave them cash within five days of contacting us and then allowed them another six weeks to move while we made the mortgage payment for them. There are many other stories just like this.
If you are facing foreclosure, your best option is often #1 above, but if that’s not an option, definitely reach out and we will treat you with respect and see if we can find a wonderful solution for you. Contact us at (833) 814-7355 to stop foreclosure in its tracks!