SPECIAL REPORT:
SEVEN WAYS TO AVOID FORECLOSURE
Dear Friend,
Through no fault of your own, you may be facing one of the greatest
challenges of your life—how to prevent your property from being
foreclosed upon.
Why let the bank take your most valued asset and leave you with
nothing? Fortunately, alternatives exist. In fact, there are seven ways you
can avoid foreclosure. They are:
- Refinance
- Bring your mortgage current
- Create a “Workout” with the Bank
- Declare bankruptcy
- Create “Shared Equity”
- Transfer Title
- Sell the property quickly.
Let’s discuss each option—what it is, and the pros and cons of using
each one: - REFINANCE
In today’s marketplace, there are many different types of financial
institutions that lend money. Although you may not be able to refinance
with your local bank due to your current situation, there are many
mortgage companies and lenders who specialize in creative financing
solutions. That’s how they can compete with the big banks. They are
often able to review your situation and find a solution to your needs.
It is true that the loan you get will probably have a higher interest rate
than a regular loan. But if you have a good amount of equity in your
property, the ability to refinance may be a good option that’s available to you.
We would be happy to recommend one or more quality mortgage
brokers who may be able to help you in your situation. - BRING YOUR MORTGAGE CURRENT
I know what you are thinking: “If I could bring my mortgage current,
I wouldn’t be in this situation!” That may be true, but have you
investigated every possible way that you may be able to get the funds?
Can you borrow it from a friend, family member or co-worker? Can you
sell something? Does your employer have any hardship loan programs?
Brainstorm with family members or close friends. The more you think
about it, the more likely it is that someone will come across a solution. - CREATE A WORKOUT WITH THE LENDER
The lender does not want to foreclose. That’s because lenders are in
the business of having their money at work in loans, and not sitting on
a property they have taken back through foreclosure. Not only is that a
black mark on the lending institution, but it hurts their financial picture
as well.
Therefore, in many instances lenders are willing to do “workouts”. What
this means is that they are willing to work out the back payments that
are owed, until you become current again.
A typical workout would be the lender taking the full amount of your
back payments and dividing that number by 12 or 24. They would then
add that amount to your current payments, until you are paid off.
When considering a workout, you’ve got to be able to make that extra
payment each month or you will be right back where you started—in the
foreclosure process for the second time. At that point, the bank will not
look very favorably upon your situation.
It’s best to work with a workout specialist…someone who has done
workouts before and knows the “ins and outs” of the lending business. - DECLARE BANKRUPTCY
Declaring bankruptcy is viable option to being foreclosed upon, but it
should be used only as a last resort. Also, use it only if you know that
you will be able to keep up with the future loan payments. Otherwise
you’re just postponing the inevitable, and the longer you wait, the less
money you will walk away with from your property.
A bankruptcy will be reported on your credit report for seven years.
The bankruptcy will also be reported in the financial section of the
newspaper—it’s a requirement from the bankruptcy court.
Declaring bankruptcy is also costly. When declaring bankruptcy you will
have the option to declare either Chapter 7, 11 or 13 bankruptcy. These
refer to different parts of the bankruptcy law, and relate to whether
you are somewhat in debt and need to renegotiate with lenders, or
whether you truly are going to walk away from your debts. However, be
warned that because you can only declare bankruptcy up to every eight
years, certain future debts might not be eligible for even bankruptcy
protection. The point is that bankruptcy should be your route of last resort. If you
truly have no other alternative, call us and we will give you the names of
two or three reputable bankruptcy attorneys. - CREATE SHARED EQUITY
To create shared equity, you borrow the money from an investor, in
order to make up your back payments. In return for bringing your loan
current, you give the investor a certain portion of the equity in your
property. You are giving up part ownership, in return for keeping part
ownership: That beats giving the whole thing over to your lender.
Of the seven methods to avoid foreclosure, this is the most difficult to
accomplish, because there are not many investors who are willing to risk
money (the back payments) on an individual who has a history of not
paying and becoming at risk foreclosure. - TRANSFER TITLE
This is a form of property sale. It’s called a “subject to” transaction.
An investor offers to make up your back payments and take over your
property, subject to the existing mortgage.
The title of the property goes into the buyer’s name, though the
mortgage stays in your name until the loan is paid o”. This could take as
little as thirty days, or as long as three years.
You may ask, “How do I know the investor will make the payments?” The
answer is quite simple: He has just made up all your back payments and
now has a financial stake in the property. It only makes sense that he
makes your payments to protect his investment.
This type of sale is becoming quite common. The benefits to you:
• You don’t have a foreclosure on your record.
• You may get some cash immediately to start fresh.
• You immediately solve your looming foreclosure.
• Your credit gets built back up through no effort of your own, because the investor makes up your back payments and begins making your monthly mortgage payments on time every month. Before long, your credit score is once again in good standing. You should look for an investor who’s experienced in this type of solution, and who is a member in good standing with the Better Business Bureau. We understand “Subject to” transactions. Call us to discuss the possibility of doing one with you.
- SELL YOUR PROPERTY QUICKLY
Sometimes people just want to walk away from a bad situation, and
leave everything that reminds them of that situation behind. In this case,
you sell your property outright, collect any equity that you have in the
property and start over again.
One great thing about time is its ability to heal wounds. Yes, things
may be bad now, but as Johnny Cash always said, “THIS TOO SHALL PASS”.
It may be time to face what is happening, and act in your best interest.
right now, for a better tomorrow.
You can sell your property through a real estate agent or directly to an
investor. Selling directly to an investor will save you the commission that
you would pay to a real estate agent and more importantly will save you time.
A real estate agent can sometimes take three to six months to find you
a buyer and close. If for some reason that buyer cannot get financing
or close on the property, you might be left in a real bind with a looming.
foreclosure on your hands.
The three to six months that a real estate agent may take to find a
buyer could be longer than you can afford. That’s because once your
lender has set a date for the foreclosure, it will foreclose on that date,
regardless of whether your buyer needs more time.
In many situations, investors like me can pay cash and can close within
ten(10) days. As active buyers, we have a reserve of cash ready to offer
homeowners who are looking for a solution to their foreclosure problem.
If you’d like to discuss the sale of your property, learn more about
‘Subject to’ and how it benefits you, or even the possibility of
refinancing, please feel free to contact the office at the number listed below.
Why wait? Call us now OR fill out the form on our website.
We look forward to hearing from you!
Sincerely,
\EAGLES PARK GROUP LLC
\P.S. We’ve probably dealt with situations tougher than even the one
facing you right now. Our business is Real Estate Solutions. You have
NOTHING to lose—and possibly EVERYTHING to gain–by calling us RIGHT NOW
to discuss your Options.