Forclosure Alternatives

Bring your loan payments up-to-date and maintain regular payments in a timely manner.

This is the best option and can be achieved by:
- Working out a repayment plan with your lender.
- Refinancing your home with better rates and terms.
- Modifying your current loan with your lender.
- Borrowing money from a relative or friend to bring your payments current.
- Other options

Deed in Lieu of Foreclosure

This is when a homeowner gives the property to the lender because the owner can no longer make the mortgage payments. The lender then sells off the property to retrieve part or all of the loan balance.

Redemption

This refers to the borrower’s right to buy back the property or, to bring the mortgage up-to-date while the property is being foreclosed on or, after it has already been foreclosed on by the creditors. The borrower is required to pay all charges or collection costs and to make up all payments that are due. The length of time that a borrower has to redeem the property varies from state to state and can be for a period of years or months.

Short Sale

A Short Sale is when a property is sold for less than the amount owed on the mortgage and the lender agrees to accept that amount as satisfaction of the total amount owed to pay off the home loan (including other transaction-related expenses such as closing costs, property taxes, transfer tax, and/or commission fees).  This is one of our personal specialties and is often one of the only options available to someone in financial hardship. 

Rent The Home

Rent your home and make the mortgage payments to your lender.  We work with many clients who have done this and would love to help if you consider this option.

Rent a Room

Rent a room of your home to bring in extra income from the property.  Sometimes the problem a homeowner is facing is short term.  Even a few months of extra income during a time where an owner is between jobs can save a home from foreclosure.

Sell Your Home

Sell your home and pay off the loan amount due.  There is a difference in what buyers will pay for a short sale versus a regular sale.  I have sold homes for people who thought they were upside down in their homes value, but we were able to sell the home for enough to pay off the mortgage in full even with the home in foreclosure.

Special Programs

Get protection under the Servicemembers Civil Relief Act (SMCRA).

Bankruptcy

File for Bankruptcy protection to stall the foreclosure process.  Sometimes the second can be stripped off the property to reduce the monthly payment an owner must come up with and can save a house from foreclosure.  We have connections with great Bankruptcy Attorneys if you would like a referral. 

Government Sponsored Option

HAMP

HAFA - HAFA PARTICIPATING LENDERS

HAP

Contact a HUD Approved Housing Counselor

Federal Tax Relief Initiative

Things to Avoid

- Making a quick or uneducated decisions
- Hiring someone not experienced
- Giving Up
- Fighting with those you love

Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help--use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.

Don't lose your house to foreclosure recovery scams!

If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor.

The Department of Housing and Urban Development (HUD)  website which offers information and help.

The Arizona Government has put together a Task Force and website to help prevent Foreclosures. They have also produced a helpful Brochure.

The Internet is filled with good and bad information on this subject.  It is hard to know which is which.  Please do not rely on the information contained on any website, this one included.  Laws differ state, by state.  Rules differ, Person by Person, because of individual situations.  There is really no way for you to know if the information contained on a website pertains to you in the spirit of how the person was sharing their opinion, knowledge or expertise.  Please seek professional and personal assistance.