Avoiding Foreclosure

“Critical thinkers find problems; creative thinkers find solutions.”  -    John McClung

·         Forebearance or Re-payment Plan: A payment ‘work-out’ billed over time.

·         Decrease your monthly payment through balance or interest rate modification: Through your lender’s sponsored programs, or via programs such as HAMP and HAFA.*

·     Rent: You may choose to rent your home to someone else. This can be a viable solution when the monthly costs (including maintenance, property management, property taxes, insurance and vacancy set aside), does not exceed the rent payment you receive.

·         Deed-in-Lieu of Foreclosure: Homeowner gives deed to lender in an attempt to forego a deficiency judgment. (Rarely available if there are any additional liens attached to title.)

·         Bankruptcy:   Stalls but does not stop foreclosure. In most cases removes the possibility of a ‘short sale’. There are times this option should be considered along side of the 'short sale' option. (Seek expert advice.) 

·         Service Members Civil Relief Act (SCRA): Available only to active military service members and is intended to be only a temporary solution.

·      Do nothing (as this is always a choice): As the beginning of the foreclosure process your lender will send you a Notice of Default (NOD).

·         Sell your home: ‘Traditional sells’ are those where the homeowner has enough equity, or financial means to make up a small gap in funds, to sell their home with the closing costs and Realtor commissions being covered.