Your Options For Beating Foreclosure

There are two obvious things you can do when faced with foreclosure. You can either put all your energy into saving your home or sell it. Let's look at the options that are available to you.

1. Work with the Lender

One of the first ways to avoid the foreclosure is to work with the lender. Depending on the mortgage company, the loss mitigator may be willing to work with you or not. If they say they can't or won't help, at least you know you can start looking for other options. If they are willing to work with you, then they'll most likely send you a "workout packet". This package includes several financial worksheets that they use to evaluate your situation. Depending on the criteria, you may be offered a deferment or a forbearance.

KC Home Solutions Is On Your Side
You probably don't want to call the lender any more than you have to, concerned that the lender will attempt to collect back payments. It may be that you need to just talk to someone who understands the process and can act as a third party. We understand this, and can work with your lender on your behalf. If saving your home is the path you'd like to consider, then we can help. We're experienced in negotiating with lenders, and can work with them to create a solution that works for you.

Forbearance
With the forbearance agreement the total you owe in back payments, penalties and legal fees is typically spread out over 6 to 12 months. This means that for that period of time, you would be required to pay an amount over your regular mortgage payment to satisfy the back payments and bring the loan current.

Deferment
The deferment is where the total amount you owe is rolled to the back of the loan, giving you a fresh start. While not unheard of, deferments are rarely offered.

Other Programs
Based on your particular hardship and financial situation, your lender may have programs that forgive debt, restructure the loan, or any number of beneficial programs to get you out of foreclosure. The problem is that they won't volunteer that information because they'd rather get as much cash from you in shortest amount of time. KC Home Solutions is aware of these programs and will work with you and lender to find the program that best fits your needs.

2. Deed In Lieu

In some situations, you may qualify for a program known as a Deed in Lieu of Foreclosure (DIL). Simply put, this means that you voluntarily give the house to the lender in exchange for releasing you from the foreclosure and the financial responsibility of the loan. With a DIL, you would be required to vacate the property when the lender accepts the Deed in Lieu.

A Deed in Lieu is extremely rare. In order for a lender to consider DIL, you must meet all of these conditions:

• The fair market value of the house is equal to or less then the debt
• The homeowner can't be financially able to make the morgage payments
• There can be no other junior liens or judgements on the property (2nd mortgages, tax liens, etc)

If all these conditions are met, then the lender may accept a DIL. If they do, then the homeowner will give up all rights and claim to the property and is required to vacate the property immediately.

3. Bankruptcy

Like some homeowners, you may consider filing Chapter 13 Bankruptcy. However, this is not a fail safe method for saving your home or stopping the foreclosure process. While it may stop the process, it still does not protect the home, and it can be repossessed. If for some reason the property is released from the bankruptcy protection, the foreclosure process can begin again and you will still lose the property and suffer severe damage to your credit for years to come.

4. Refinance

Some people try to save their home by refinancing. This not only rarely works, but the process also wastes valuable time for you. Once a mortgage slips into pre-foreclosure the lending parameters become very strict, making it near impossible to refinance the property.

The only way to refinance a property in pre-foreclosure is if it has considerable equity. Usually the equity amount needed is 35% or more. So if a property was worth $100,000 you could only owe a maximum of $65,000. This is the only way another mortgage company would refinance, because they consider a defaulted loan to be high risk.

5. Sell The House

If you can't work things out with the lender, then this is the best option that you have. You can avoid the black mark on your credit, get equity from the house, and make a fresh start.

Selling with a Realtor
If the house has little equity, then it isn't likely that you'll get a realtor too excited about listing your house. Realtors work on commission, and if there's no money in the house, then a real estate agent will not want to spend their time marketing the house. Since foreclosures are very time sensitive, it's very unlikely that the house could get sold in time through a realtor. Even if the house were to sell, you'd be looking at having to pay the realtor's commission of 7% - you'd have to pay to sell your house!

Think 7% is a lot? Consider the other costs: Property taxes, closing costs, holding and maintenance costs... When all is said and done, it can easily cost you a whopping 14% of the purchase price to sell your home. If you had that kind of money available, you most likely wouldn't be worried about foreclosure in the first place!

For Sale By Owner
What about the For Sale By Owner route? It's possible, but it can also cost you money and valuable time while you market the house, and you're not sure if it will sell before the public auction. Right now, the National Association of Realtors^TM has reported that there is a 7 month surplus of housing on the market!

KC Home Solutions
As investors, KC Home Solutions can bring the loans current, work with your lenders, and buy your house. In some cases, we're able to create equity for you so you can get a clean start and focus on the future. We understand that bad things happen to good people, and foreclosure is something that can be stopped. Together we can find a solution.

If you aren't getting anywhere with your mortgage company, would rather avoid bankruptcy or feel it would be best to sell your property, call us today. You can save your credit, pull your property out of pre-foreclosure and get additional cash regardless of your equity position. This money can be used as a down payment on another home. You'll get a clean start while not paying any realtor commissions. You can turn a stressful negative situation into a positive one at no cost.

Call or visit us online and let us show you how we can buy your home quickly and with no hassles! There is no obligation and all correspondence is kept confidential. If you submit your information, we'll contact you immediately to see how we can help.

Remember, you won't get some kind of sales pitch and your information is strictly confidential. We realize that your time is valuable and will present you with multiple ways that we can help you beat foreclosure. Remember, foreclosure is a time sensitive matter, Don't delay!

What is Foreclosure? Your options Get help NOW