1) Do Nothing

If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has EVER been foreclosed upon. Credit reports also disclose this damaging information. This is NOT one of your best options!

2) Payoff/Refinance

Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.

3) Reinstatement

Facing foreclosure, know someone who is or are looking to purchase foreclosures; we can help!

5) Forbearance

Lender may be able to arrange a repayment plan based on the homeowner's financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6) Partial Claim

A Loan from the lender for a 2nd loan to include back payments, costs and fees.

7) Deed in lieu of foreclosure

Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payments and taxes must be current. Most loan applications ask if this has ever happened.

8) Bankruptcy

◊     Chapter 7 (Liquidation) To completely settle personal debt.

◊     Chapter 13 (wage Earner Plan) payments are made toward a plan to pay off debts.

◊     Chapter 11 (Business Reorganization) A business debt solution.

9) Sell the property

If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale.

10) Our Solution

A Short Sale - Also known as a pre-foreclosure sale. A Short Sale can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property's value. We'll cover short sales in more detail at our FREE "Pre-Foreclosure" Seminar. Don't forget to call and register!