What are my alternatives when I’m facing a foreclosure?

22 Apr


Have you ever thought about what it would be like to come home one day and not be able to get into your OWN home? Have you worried about how much longer you have before you come home and see the FORECLOSED sign on your door?  According to property tracking service RealtyTrac, 1 in every 150 homes in Las Vegas, NV is facing foreclosure as of March 2013. That ranks 29th in the Nations Metro Areas. Do you know your rights as a homeowner and the process that foreclosures go through? Wouldn’t you rather walk out on your own terms and not be forced out?

What are my alternatives when I’m facing foreclosure?

1.     Do nothing- You can completely ignore all of the notices the bank has sent to you and wait for your property to foreclose.

2.     Payoff/Refinance-To qualify, you would need to not be upside down on your property and need to have NEVER been late on your payments.

3.     Reinstatement- Get caught up on all of your mortgage payments and bring it to current status

4.     Loan modification – Nationally, we have a 62% fail rate on all loan modifications

5.     Forbearance agreement – When the bank makes an agreement with you on all of your back payments to make your loan current. The negative to doing this is they will add late fees and interest to the end of your loan, increasing the principle balance or they will break them up over a long period of time and can report you late during that period of time.

6.     Partial claim – When you take out another loan to catch up on your back payments.

7.     Deed in Lieu – Bank will consider this option but they want to see that you have tried a loan modification and short sale, and failed at both, before doing a deed in lieu.

8.     Bankruptcy- There are two types, one is a chapter 7, the other is chapter 13.  With a chapter 7, you are getting rid of all of your debt, including the house. In chapter 7, the bank will still have to foreclose or do a short sale.  With a chapter 13, you are setting up a payment plan and catching up on your back payments and keeping the house.

9.     Sale or short sale- You can make an agreement with the bank to settle your debt for less than what is owed. You can sell it at market value and not spend a penny from your pocket! You will need a real estate professional to assist you with a short sale as there is A LOT of paperwork that needs to be filed in detail with the banks.

Now you know the nine alternatives you have in order to keep your house. Whether you chose to make payments, short sale or simply just walk away, you are the one who has the decision to make. I just hope you consider all of your options when making this decision. It really is up to you, as the homeowner, on what you do next.


 high res logo

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: