In Foreclosure?? 5 ideas to use to get out.
Your house is the last thing that you want to loose. However sometimes home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 3 or 4) the lender will issue a foreclosure by selling the house or repossessing it.
More often than not lenders often lead their borrowers to believe that they don't have other options available. There are other alternatives that homeowners can use to keep their house off the auction block. The following is a list of ideas to consider if your in the foreclosure process.
1)Short stop
This is a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
2)Negotiate a payment scheme
In this case the homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan. Keep in mind this is not a long term fix...it is normally only a short terms(3-5 month) agreement.
3) Change of plans
Sometimes a temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved. This is a total process for another short term fix.
4) Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt. This is the most common conclusion to a foreclosure.
5) Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders/liens. Then the property is sold back to the original owners/borrower.
These are just some of the options that borrowers can utilize in attempting to retain their properties. Remember these alternatives are outside the original terms of the agreement. Homeowners may have to negotiate their way with lenders and banks. Preventing home foreclosure is still better than looking for a cure. - 23212
More often than not lenders often lead their borrowers to believe that they don't have other options available. There are other alternatives that homeowners can use to keep their house off the auction block. The following is a list of ideas to consider if your in the foreclosure process.
1)Short stop
This is a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
2)Negotiate a payment scheme
In this case the homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan. Keep in mind this is not a long term fix...it is normally only a short terms(3-5 month) agreement.
3) Change of plans
Sometimes a temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved. This is a total process for another short term fix.
4) Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt. This is the most common conclusion to a foreclosure.
5) Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders/liens. Then the property is sold back to the original owners/borrower.
These are just some of the options that borrowers can utilize in attempting to retain their properties. Remember these alternatives are outside the original terms of the agreement. Homeowners may have to negotiate their way with lenders and banks. Preventing home foreclosure is still better than looking for a cure. - 23212
About the Author:
Doc Schmyz has invested all over the US and Mexico. He built a free website shares Real estate investing information for all over the US. Find Real estate investing information by state
posted by X - Men @ 1:53 AM
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