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The Most Common Foreclosure Choices
Following are the most common selections for people facing foreclosure. Depending on your situation, all of these options might, or may not, be available to you. Everyone's individual situation is diverse.


 * 1) Reinstate the Loan.
 * 2) Forbearance
 * 3) Mortgage refinancing
 * 4) Loan Modification
 * 5) Sale of the Property
 * 6) Bankruptcy Filing
 * 7) Deed in Lieu of Foreclosures
 * 8) Nothing

1. Reinstate the Loan. The most obvious option would be to pay the loan current. If foreclosure proceedings have been recently filed, then the amount needed to get loan current wouldn't just include back payments, but also late charges and also possible attorney fees. This is the quickest and also the most efficient way of stopping a foreclosure action. Negotiate with the lender if you're able to do this. Sometimes they will take a little smaller amount, 90%, 80%, even as low as 75%. Call them and say something such as, I've borrowed X amount of dollars from my relatives, will you take that and forgive the remainder? Don't tell them it can be your money. Make it is always someone else's money. They are going to end up being less sensitive to you if you have lots of money and have not been making payments. Get the discount in writing prior to deciding to send the money, an email or fax can work.

2. Forbearance The lender stops or postpones legal action. Usually granted when you make satisfactory arrangements to make the overdue mortgage payments existing.

3. Mortgage refinancing Mortgage refinancing seeks to avoid foreclosure by visiting a new lender and finding a new loan. But in most cases, once foreclosure has started, you have been through several months of late payments or absolutely no payments. These late payments have a devastating impact on your credit rating. In addition, the new mortgage company will easily check out the current foreclosure action. This most often leads to denial from the refinance loan application. If you are approved it is possible to bet it will be with a VERY high interest rate with greater than normal closing costs etc.

This option is normally limited to those with excellent credit histories and who've only suffered a temporary problem. Remember that time is of the essence, so don't waste a large amount of valuable time on this choice. You could lose your residence while waiting on loan authorization.

4. Loan Modification A loan modification seeks to avoid foreclosure by negotiating with the lending company to modify the terms from the loan. Loan modifications may include adjusting he interest rate, extending the loan period or perhaps adding the delinquent portion and fees back onto the principal of the loan to be repaid as time passes.

5. Sale of the Property If you have been unable to work or do business with your lender or find another suitable solution in a timely manner, it is time you should think about selling.

Selling it through the traditional method, of listing it with a real estate agent on the MLS listing is actually one solution. But this method can take from 4-6 months. Make sure you get a genuine realtor. One who will work to market the your home and list it at a price it will sell for. Some realtor's over exaggerate the actual house's value and the selling price to find the listing and then the house doesn't sell and you also are foreclosed on, losing everything. Do a short contract. One month at a time. Tell the realtor you will renew it each month if they are good and are working hard to sell your house. If they are not willing to offer you a monthly contract or a contract that allows you to cancel any time, then find another realtor. Time is of the essence and of course, if the realtor is not willing to become a help in your situation, find a realtor who actually will be.

Another avenue to consider is selling your home to an investor who presents "a quick closing". Remember time is of the essence. Typically, this will be for lower than fair market value, but can be a benefit to you because this is a quick "as is" sale without real estate commissions. "As is" means you wouldn't have to spend any funds doing repairs, or spending time putting the home in perfect condition. By selling your house "as is" for an investor, you get a quick sale, letting you instantly stop foreclosure and also salvage your credit. In the Kansas City metro area BLu Horizons Real Estate Solutions provides a quick closing, as is sale. We can close in 7 days or less, if we have to.

6. Bankruptcy Filing Some homeowners act on their own lawyer's advice and file bankruptcy hoping that all their problems are right now solved. Bankruptcy does put a hold on everything. But all it buys you is time. The end result is, almost always the property still goes to auction and you now will have a bankruptcy, in addition to the foreclosure on your own credit report.

7. Deed in Lieu of Foreclosures This is when you can voluntary deed title in your property to the lender. You are basically giving the home back to the bank. The ordinary effect of the taking of the Deed in Lieu, is to extinguish the lender's deed of trust also it vests the lender with title susceptible to all other existing liens and also encumbrances. In effect, the lender becomes the brand new owner. The lender is not necessary forced to accept the Deed in Lieu and could show their refusal by processing a Notice of Non Acceptance with the County Recorder.

8. Nothing You may find this odd that nothing is listed as an option; however one of the most typical options taken by homeowners will be Nothing. Don't fall into the trap of thinking that everything will magically work by itself out, because it will not.

We trust that the overview of foreclosure options can help you start down the path of informed decision making to guard yourself, your family, your home and your banking account.

Although the most common options are covered on this report, there may be other options open to you, depending on your particular circumstance.

This is not legal advice or guidance! The application of law varies from state to state and an individual's specific circumstances can vary. Consult a lawyer if you would like and you want professional advice.

This information was provided by BLu Horizons Real Estate Solutions at blu-res.com