If you’ve been struggling with trying to keep up the payments on your mortgage you need to take a thorough breathe and take a step back to see what options are obtainable to you.
There are a number of ways you can avoid the foreclosure and here are the top 5:
1. Reinstate your past due payments – Now if you can do this you probably wouldn’t be in the trouble you are now but let’s say you were out of work and got a new job or were able to borrow money from family, then you can work out a plan with your lender to get caught back up. When you call your lender make sure you find someone who can reinstate your loan at the terms that work for you. Don’t take no for an answer and work your way up the ladder until you reach a manager or supervisor that can help you. If you need to find someone higher up at the company use resources.
2. If you know it’s time to leave the character but you need more time to get things in place or to save up for a place, etc, then get that character listed and get an offer on the character. One of the best and fastest ways to get this done is to clearly get a Realtor to list your character. Now this is the caveat; be careful who you use because it takes a smart, crafty and experienced short sale Realtor to get the job done. Make sure your Realtor has successfully settled more than 10-15 short sales. No less. Unless you want to be a Guinea Pig.
3. Get an offer on your short sale. The fastest way is to have your Realtor contact a local real estate investor to put an offer on your character. Yes the investor will make a low offer but it doesn’t matter because if you’re the dominant owner the IRS forgives up to $2 million dollars in mortgage debt erased with a short sale. Have the Realtor pull comps and the investor should make an offer on the lower end of the comparables minus any repairs. Usually this offer will be around 60-65% of the home’s fair market value. Getting an offer on the character, any offer, will usually delay your pending foreclosure by another 3-12 months giving you the opportunity to nevertheless live in the character while you start to save money to help with your fresh start once the home sells.
4. Get your lender to show you the observe. Yes you can ask the lender to show you the observe and see who the actual owner is (the backing investor usually). What’s a mortgage observe? Great question. A mortgage observe is the document you signed when you purchased your home. Mortgages contain lots of paperwork – but only the original mortgage observe with your identifying characteristics is proof that you owe the debt. That’s why edges need the observe to prove that they own the loan and can collect payments from you. The problem is, edges now buy and sell mortgages up and down Wall Street – slicing them up and repackaging them to sell to other edges. The bank you bought your mortgage from two years ago may not be the bank that owns it today. But, in all the shuffle, the mortgage notes often don’t get transferred along with your debt. You have a right to see your observe and this action can in most times postpone any pending foreclosure actions. There are many web sites with “show me the notes” tips and tricks to push your lender to produce the observe. If you feel this is too complicated there are experienced real estate attorneys ready to help you.
5. File bankruptcy. Now this will definitely get the foreclosure stopped in its tracks. Most times you can at the minimum file Chapter 13 bankruptcy. Consult with a bankruptcy attorney to see what options are obtainable to you and the costs involved. This is definitely something you want to with an attorney and if you want to see if you can SAVE the home from foreclosure.