We are in tough times and here are some steps to stop foreclosure.
Keep in mind that banks don’t always play fair. If you have received a notice of sale from your lender and you need some options, here are some suggestions that may work for you.
You basically have 2 options with a foreclosure. You can either pay off the loan in full or you can make the loan current.
Here are some options:
Get a payoff quote or reinstatement quote. This quote will include any principal and interest that is past due plus any taxes that were paid on your behalf. The quote will also include lawyer’s fees. The bank will hire a lawyer to handle the process and you will be responsible for their fees.
Once you request a quote, lenders will take 7-10 days to process the request.
Other options to avoid Foreclosure
Request a Postponement. If this is just the first notice, requesting a postponement may work.
Deferment is another option. With Deferment, you are asking the lender to make arrangements for you to pay at a later date.
Forbearance is when your lender allows you to suspend or reduce your mortgage payments for a limited time period while you are trying to get your payments caught up.
Loan Modification is when a lender agrees to adjust the terms of your loan. An example might be to adjust or decrease your monthly payment. Generally, this will increase the number of payments that you will need to make or it may be using a lower interest rate. Typically, loan modifications fail, so most lenders are hesitant to modify a loan.
Deed in lieu of foreclosure, this is where you sign over the deed to the house to the lender. If you are close to your auction date, most lenders will not do this.
Short Sales occur when you sell your house for less that is owed to the lender. This is a long process and the house must appraise for the sale price. This is a good option opposed to foreclosure as it doesn’t have the long lasting impact on your credit history.
Sell your house. Putting a contract on your house to sell it will postpone the auction to allow time for the sale to occur. But they won’t postpone it beyond the next auction date. Selling your house fast is a great option.
Foreclosures can have an adverse effect on your record. Once you file for foreclosure and lose your home, you are ineligible for a Fannie-Mae-backed mortgage for 5 years.
On future loan applications, you will need to indicate that you have had a property foreclosed upon. This will affect your interest rate.
Your credit score will drop from anywhere between 250-300 points. This will last for 3 years or more.
It will remain on your credit history for 10 years and permanently on your public record.
If your occupation requires you to have a security clearance, in almost all cases your clearance will be revoked, and your position will terminate.
Your employer has the right to check the credit of all employees in sensitive positions. Oftentimes foreclosure is a reason for immediate reassignment or termination.
Call us now for a free consultation to review your options so that you can make the best decision for you and your family.
Time is of the essence when dealing with a foreclosure. Each step takes time and the clock is ticking. The more time you have, the more options you have.
Time is critical. Call us at Stained Glass Homes at 520-200-3334 today or click on the button below and send us your contact information. We will be i touch with you.
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