Nine Ways to Stop Foreclosure
I just received a notice of foreclosure from my lender. What should I do? First, they send a notice stating that you were late with your payment; you are in default. Then they call warning of foreclosure if you don’t bring things current. No need to lose sleep worrying about the sheriff taking up a notice to vacate. While you are in trouble financially, there are many things to do to stop foreclosure. Here are nine ways to stop foreclosure.
Nine Ways to Stop Foreclosure
- Bring the Loan Current aka Reinstatement – Believe it or not, your lender wants to work with you to help you get back on track and make your payments. Foreclosure is no picnic for either party involved. And, frankly, both you and your lender lose in the end
- Try to Work Out a “Forbearance Plan” – a forbearance agreement provides short-term relief for borrowers. With a forbearance agreement, the lender agrees to reduce or suspend mortgage payments for a certain period and not to initiate a foreclosure during the forbearance period.
- Ask for a Loan Modification – Loan modification could include a reduction of the interest rate, convert from a variable interest rate to a fixed interest rate, or extend the length of the term of the loan. A loan modification agreement is a permanent solution to unaffordable monthly payments.
- Ask for a Repayment Plan – Repayment options could include a plan to repay missed payments in addition to making monthly payments, especially if there is a temporary hardship
- Sell as a Short Sale – you may be able to sell your home with the bank’s permission before the foreclosure process begins. A pre-foreclosure sale, also known as a short sale, allows homeowners to sell their home at current market value and use that money to satisfy their mortgage [source: Chicago Tribune].
- File for Bankruptcy – Contact a bankruptcy attorney. You need to know your options so you can make informed decisions. Filing for bankruptcy stops a foreclosure proceeding.
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- FHA Programs for Homeowners – Home & Garden writes about the partial claim, a loan modification offered by the U.S. Department of Housing and Urban Development (HUD) for FHA-approved loans [source: HUD]. The FHA provides an interest-free loan to pay off your missed mortgage payments, and it doesn’t need paying off until you sell your home or make your last mortgage payment [source: HUD]. There are many programs for those with floundering financials.
- A Deed-in-Lieu of Foreclosure – a deed instrument in which the borrower conveys all interest in real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure. At the height of the housing crisis in 2007-2008, it was called “jingle mail.” Homeowners simply put the house keys in an envelope and mailed them to the bank and then drove away. A deed-in-lieu is a more formal process for jingle mail.
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- Sell the Home to Harmony Property Solutions, LLC
- How to stop a Cedar Rapids foreclosure? Try calling us. It is quick! You can sell your house fast normally in 30 days or less. That is much quicker than a traditional sale of two to three months. You may not have several months. In most cases when an investor and a seller can agree on a price immediately, they can close as fast as one to two weeks.
- Harmony Property Solutions, LLC, a real estate investor will buy as-is. Don’t worry about some repairs that you’ll need to fix based on an appraisal. A real estate investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property in whatever condition.
- No Fees! Harmony Property Solutions, LLC doesn’t charge you a real estate commission and may take care of any other nagging financial problems such as back taxes, code violations, the risk of foreclosure, or past due water and sewer bills.
Bottom Line – there are at least nine ways to stop foreclosure. Seek answers from your bank, a bankruptcy attorney, and a real estate investor.
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Harmony Property Solutions, LLC is here to help homeowners out of any distressed situation.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. Just the simple truth about your home and how we can help you sell it fast to resolve any situation.
Harmony Property Solutions, LLC is part of a nationwide group of thousands of investors who are helping tens of thousands of homeowners every year. We may not be the “traditional” route, but we CAN help, and we can do it quickly!
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