Options for a homeowner in default

No one is prepared to loose his or her home.  That is why I made this article so you as a homeowner know what you can do to bring your house current or provide a way out so you don’t have a foreclosure on your credit.  

1.     Offer to Sell- You could try to sell the property yourself or list it with a realtor.  Have you tried that yet?  The only problem at this point is that the lender could have the trustee sale and foreclosure you out in a short amount of time.  That doesn’t give you or a realtor much time to find a buyer.  And if a buyer does come around it takes at least 30 days to close after they decide they want the property.  Not a real safe option.

 

2.     Refinance- You may have already tried to refinance.  Since you are behind now this option probably won’t work any longer.  Let me tell you why.  When you get nor than three payments or 90 days behind on your mortgage payments, my experience has been that almost no lender will want to finance you.  The only exception is if you have at least thirty-five per cent equity or a 65% loan to value (LTV).  In that case, they will talk to you. 

 

3.     Special Payment Arrangements- You could ask for Special Payment Arrangements.  That works something like this:  You would need to bring in, two payments now.  The other payments they will allow you to catch up over a short time.

 

4.     Forbearance Plan- A forbearance plan is always an option.  It works like this.  Your lender may reduce your monthly payment for a short period of time, perhaps six months and put the shortage amount on the back end of the loan.  This can be used in the case of death, terminal illness, serious health problems or disability, natural disasters not covered by insurance, or a substantial reduction in income that could not be prevented.  The only catch is that your loan has to be current in order for the forbearance plan to be allowed. 

 

5.     Deed in Lieu- You could always give the lender a ‘Deed in Lieu of Foreclosure.’  This is where you just deed the property back to the lender and then they don’t have to spend as much on attorney’s fees to finish the foreclosure and get you out.  That may sound good, but a “Deed in Lieu of Foreclosure” is just as bad on your credit report as a regular foreclosure.  All you do is save the lender time.  It doesn’t help you at all.

 

6.     Sell Now- Lastly, you could sell your house to an investor who can close you out quickly and get it off your back.  That way the foreclosure can be avoided and your credit while damaged will not be destroyed.  From the lenders point of view a foreclosure is the worst thing on your credit. 

 

We can show you how to sell your home fast and for more money than you thought possible.  You can turn your bad situation into a great solution that will put you on your way to getting back on your feet.

 

If you would like to know more information about what we can help you do give us a call.  We never charge you anything to outline a plan that will get you on the right track.

 

Contact The Bronson Barber TEAM

 

For all your Utah real estate needs

 

801-712-1607

bronsonbarber@gmail.com