5 Ways To Stop Foreclosure

First of all, I want to congratulate you for taking the first step to resolving a tough situation. I know you did not intend to be in this position. Sometimes the unforeseen just catches us. If you are ready to make the best of this problem then please read on.

Things may not be as bad as they initially appear. Taking swift, decisive action can leave you with the best possible outcome. First you need to evaluate your current situation. If you are like the vast majority of people you really want to stay in your home if at all possible. Let's pursue the options you may have that will keep you in your house.

Ways to Keep your House
 

1. Loan Modification - A Plan to Get you Back on Track
 

Before you consider anything else you should try to work out a solution with your lender. If you can negotiate a loan modification or a forbearance plan you will be on the way to eliminating the foreclosure problem. This solution will work for you if you got behind because of a temporary situation such as an illness or injury but you are able to make your mortgage payments now.

You can handle this yourself if you have the time and are comfortable negotiating with a lender representative. They will have someone who does this. Just remember that they ultimately have their own interest in mind.

Like many other folks, you may prefer to have a professional, independent loan modification advisor deal with the lender on your behalf. They have the time and resources to get you the best solution to your foreclosure situation. They know what government programs may help you and exactly how to negotiate a new plan with your lender. They do charge a fee for this service but you should only have to pay if they produce results.

Click here to learn more about my recommended loan modification service.

2. Equity Loans and Forbearance Plans

If you have built up some equity in your house it may be possible to get a loan to make up the back payments and fees that you owe. To do this you will need to be able to pay the mortgage from here out and also make a payment on the new loan.
You could work out a similar payment plan with your lender. This is called a forbearance plan.

3. Bankruptcy can stop a foreclosure

Although I can't give you specific legal advice, you''ll need to talk to a bankruptcy attorney for that, I can give you some general statements about how bankruptcy affects a foreclosure. Bankruptcy will stop all collection activities including foreclosure. It will keep you in your house longer but it is often not a good option. Many people are not able to follow the financial terms of their bankruptcy judgment. When this happens they lose their legal protection and the foreclosure picks up where it left off. The other major consequence is that the bankruptcy severely impacts your credit rating and can take many years to restore. Consult a bankruptcy attorney to discuss your unique situation before committing to this option.

When keeping your house isn't possible
 

Unfortunately, it may not be possible to keep your house. This may be the case if your income no longer supports the mortgage payments and this is going to be a long-term situation. These options get you out with the minimum damage to your credit rating and can be less stressful since you are more in control of the process. You will be able to plan your transition and may be able to get monetary assistance outside of the real estate transaction.

4. Deed in lieu of Foreclosure

You may come to an agreement with the lender the simply give the house to the bank willingly. This will save the bank money so they accept this readily. You will save your reputation and most of your credit rating and may get the bank to not hold you accountable for the difference between the houses value and what you owe. A loan modification specialist can help you with the paperwork and deal with the lender if you find this too challenging. They can collect a fee from the bank to do this so it won't cost you anything extra.

5. Selling before foreclosure

Conventional Sale

If you have built up a lot of equity in your house you may be able to sell it in time to beat the foreclosure sale deadline. Learn the typical time a house is on the market in your neighborhood. You can ask a local Realtor to help you with this and they will also be able to help you determine the fair market value of your property. If the average on-market time longer than the time you have before foreclosure it is risky to just sit waiting for someone to hopefully buy. If you only have a few weeks before foreclosure you'll need to price it far below market value or sell it to an investor who can close the deal quickly.

Working with an investor gives you the advantage of speed and if you have not listed it with a real estate agent you won't be paying any commission. This is also a good idea if your house needs substantial repairs. A house in poor condition will not be attractive to people buying to live in it.

Short Sale

When you owe more than the house is currently worth your options are limited but you do have the ability to work a "short sale" deal with the lender. This is where the lender accepts less then what is owed to release to mortgage. Some lenders may still hold you responsible for the balance but this can be removed by negotiation in many cases.

You will not get any money from this kind of sale but you will be out from under the problem. Your credit will not have a foreclosure on it and you'll be on your way to a fresh start.

Selling to an investor that specializes in these kinds of sales will make things go better because they will have the negotiating skills and the knowledge of how to get the deals done. Occupant buyers are often unwilling to wait for the deal to close since this can take a lot longer than a regular real estate transaction.

What to do now

The worst thing you can do is to give up and do nothing. If you let others dictate their terms to you you will not like the result. Use whatever drive you have to get the best outcome you can.

Filling out the Seller request form is a no-risk way to find out what we can do for you. We will only buy if it is truly in your interest and ours. Go ahead and do it right now.

Seller request form

Focusing on the south Indy area including Indianapolis south of I70, Beech Grove, Southport, Homecroft, Greenwood, Wanamaker and Acton. 

We buy houses in the following Indiana ZIp codes: 46201,46203,46227,46237,46217,46205,46107,46218, 46142,46143.