Foreclosure options for delaying foreclosure
If you have chosen to move you have plenty of options. You may want to use a delay option along with any of the move options to facilitate a sale and to facilitate your move. A note regarding litigation which I mentioned in two of the previous strategies, if you do any kind of litigation it increases the motivation of the lender to work with you and suddenly you’re a much high priority because costs them money even if they win. Attorney time is very expensive for your lender and it just increases the loses that much more. Litigation is a good thing when you’re looking to do a short sale.
My foreclosure option #12- Sell with short sale- If if based on your current financial situation you really can’t afford the you will obviously be moving. If that is the case the short sale is your only other option than a voluntary or forced repossession. A short sale is a great option because it gives you the opportunity to negotiate your debt.
What is a short sale? A short sale is simply where your lender agrees to lower the balance so that your mortgage can be paid off and you can sell your home. This is especially necessary in areas where the market has fallen drastically. As of this writing that happens to be the case for much of the United States right now. When this happens people end up oweing much more than what their house is worth. If he or she has a financial situation then a short sale may be a sellers option.
Nearly every single lender in the U.S. can do a short sale. Most lenders have a department called the loss mitigation department that would handle all short sale requests. Sometimes short sales are handled by the collection department of your lender.
My foreclosure option #13- Sell with full pay off- Since we’re talking about all the options for moving, you could sell your house and maybe pay it off in full. If you don’t require a short sale there’s no need to do one, if the market hasn’t dropped below what you owe then you can afford to sell and pay everything off in full. Like option number one this is the obvious option and you don’t want to over look it.
My foreclosure option #14- Deed in lieu- Other moving options your lender may offer you include deed in lieu of foreclosure, the cash for keys program and/or a negotiated delayed move. A deed in lieu of foreclosure is simply when you sign the deed of your house back to your lender and move out. The main benefit for you is it shows good faith to your lender and you won’t have to be dragged through a long and drawn out foreclosure process. You can hope that your lender is more lenient if there is a deficiency after they sell the house themselves. However a deed in lieu has an identical effect on your credit as a foreclosure and you may end up being on the hook for the loss to the lender. You typically will not qualify for a deed in lieu if there are any other liens like junior mortgages or judgments attaching to the property. Doing the deed in lieu may make you eligible for the for the cash for keys program or the negotiated delayed move program.
My foreclosure option #15- Cash for keys- Cash for keys is when is you move out and you give the bank the keys to the property and they give you a small amount of cash (500 to 1500). Don’t expect cash if you have already moved out and given your lender the deed and the keys however if your lender accepts you for that program a little bit of extra cash could come in handy. A cash for keys program may be offered to you in combination with the deed in lieu of foreclosure or you may be offered a cash for keys program as an alternative to the bank having to evict you after having repossessed the house as a way to ensure that you have not damaged it.
My foreclosure option #16- Negotiated delayed move- A possible alternative to a cash for keys program is a negotiated delayed move. It may be that someone in foreclosure has special circumstances like health issues and they need an extra month to move. Or a 90 year old women needs some time to arrange her stay in a nursing home. In special situations it is not uncommon for a lender to allow a delayed move especially for public relations reasons. This may not be something you are offered but if you think a solution like this could be justified you may want to ask for it.
Foreclosure option #17- Leave, do nothing and let it foreclose- We’ve talked about a lot of options here including a few obvious ones. You can obviously make the choice to leave, do nothing and just let your home foreclose. In fact you may have already moved out and your home is headed to foreclosure. If this is the case you might as will make the extra effort to sell your house on a short sale. If you are just too busy and overwhelmed you could make this choice and it won’t kill you however you owe it to yourself and your credit to at least turn it over to a short sale professional to let them work a short sale on it if you no longer live in your house.
post continued after this ad
post continued
Foreclosure option #18- Stay, do nothing, let it foreclose and get evicted by the bank- The benefit of this is free living and that is about all you get if you choose to stay in your home, do nothing about it, let it foreclose and then get evicted by the lender. You may want to at least try and avoid a mess in your future by putting it on the market for a short sale a few months before it is to go to sale. This may even cause you to have some extra time to live in your home if your bank extends the foreclosure sale date so you can sell it. Obviously you will benefit more by doing something proactive. There are plenty of other options right here in this article that set you up for more success in life.
There you have it; I’ve talked about as many ways as I can think of to stay in your house, to sell your house and move, and strategies for delaying foreclosure on your house.
I’ve included some homework for you below so you actually get your value for this portion of this course. I want you fill out the hardship worksheet that I’ve included below in a link (note all this information is available to subscribers. Please subscribe to the free foreclosure help video course here). This work sheet is a Fannie Mae standard work sheet. Fannie Mae owns more loans than any entity in the United States so, it’s a standard work sheet, most lenders require something like it or this exact one and it will help you kind of come to a moment of truth. It’ll help you evaluate your own income. Also there’s an equity analysis here to kind of help you understand how much you owe and how much can you conservatively get out of this market. You also need to think about if your hardship long-term or short term hardship. It’s very easy to hope and believe that you can do something, but you don’t want to waste precious time, money and energy on path that is unfeasible. You simply cannot continue robbing from Peter to pay Paul if that is something you are doing.
If you’re completely done with your hardship and you just need a little help to get started making payments, then you want to pursue one of the keep your house options. One of the worst things that you can do is fight to keep a house that even when your hardship is over, there’s no way you can keep it because of the costs.
You need to understand that and just move ahead and make a proper decision based on your knowledge of what reality really is. Some questions for you are: Could you make the payment if your bank lender would just allow you to make payments with out having to catch up the arrearage? With your current income, could you immediately start making the original payment amount on your loan? Do you want to keep your home? Can you afford your home and still afford to eat? How many payments are you behind? Ask yourself these questions and write them out on paper. Do a little journaling to clear your mind so that you can make a good decision regarding all of your options. Follow up your decision with immediate action.
If you have decided a short sale may be a good option for you please consider Short Sale Your Home and Get Paid course. Even if you don’t plan on getting paid this is something that you could use to educate what ever professional you work and make sure your short sale is successful.
Please leave your questions and comments regarding this transcript and or video content below. Thanks!
Pingback: lainaa