Know Your Options.

After many, many years of doing this, these listed are all the “realistic” options that are available to homeowners in fear of foreclosure. Yes, Ed McMahon could come knocking on your door, or you could win the Powerball. We haven’t ran across that scenario yet. Good Luck!!!

1.) REFINANCE
The reality is that most homeowners do not enough equity in their home to put them in a position (LTV) where a new lender will want to take that risk. Furthermore, if you have reached a 60 day late status, chances are you are also late on other debt which causes a downward spiral effect on your credit score where most mortgage brokers can not get the loan bought. If your score drops close to or below 500, chances are it is not happening. Would you hop on the Titanic while its sinking? If you are still able to possibly refinance, this will also increase the amount that you owe and drive up your payment even higher since your new loan will be at a much higher interest rate. They may even finance closing costs and fees from your present lender into the new loan, but your total debts and payment will significantly increase. If you can’t make your present payment now, how will you make the new one?

2.) HIRE A REALTOR
Realtors or agents may say that they can sell your house quickly, but the average time a home sells from listing to pending to closed with money in hand is over 90 days. That is over 3 months. Depending on the time of year, weather and location, it could take longer. The closer you get to a foreclosure date, the less you will accept to the point you are desperate. You will also have to pay a 6-7% commission. What if it doesn’t sell?

3.) FILE A BANKRUPTCY
Bankruptcy may be your only option if you wait to long to stop the foreclosure, but you will still eventually lose your home if you can’t make the regular, past and future payments. The resulting credit problems will follow you for 8 to 10 years. That’s 120 months!!! By the time you finish the plan, you could owe tens of thousands on top of the original balance on your home. See “What They Don’t Tell You” section of website for ALL the information on Bankruptcy.

4.) USE A “FORECLOSURE SPECIALIST”
BEWARE!!! Beware of so called “foreclosure specialists” who offer to make the foreclosure go away for a fee. You will be told you have 20 days or so to respond to your lender’s Notice of Default and if you don’t, you will lose your home. This IS true. Then, they will offer to answer the Lis Pendens (Lawsuit Pending) for you for a fee from anywhere from several hundred to several thousands of dollars. In reality, there is only one way to stop a foreclosure and that is to PAY the bank/lender what you owe. Not rocket science here!!!

5.) DO NOTHING
Walking away or giving the home back is like walking around passing out your bank account information with your social security number. Eventually, its going to come back and haunt you. When a lender forecloses on a home, to avoid having a huge loss by someone bidding below the balance still owed, the lender usually will have the attorney at the court house doing the sale bid on the property. Their bid will equal the loan balance PLUS all outstanding payments, interest, fees, attorney fees, expenses, etc. Now you are responsible for all these costs since you defaulted on your financial obligation. Next, they will hire a REALTOR to handle the repairs and the marketing to sell the home. After all the accounting is done, the difference in what was owed and what it sold for will now be held against you by a “Deficiency Judgment.” This amount will likely be in the tens of thousands of dollars and could affect your bank account, your wages, any financial future and possibly force still force you into a Bankruptcy.

6.) CALL 615-228-1500 TODAY
We may be able to creatively structure a deal that will allow you to stay in your home. It does take time to perform a title search and process the necessary paper work, however, the quicker we get started the quicker you can have some peace of mind. Please complete the Owners’s Questionnaire and an associate will respond within 24-48 hrs. There is no obligation and you have nothing to lose and the rest of your financial life to gain!!!