Options for Homeowner’s in Foreclosure

Thank you for revisiting you can still subscribe to my RSS feed. As Always Thank You for visiting!

 The homeowner can call the lender’s loss and mitigation department and ask them to reinstate the loan. There are several ways the homeowner may be allowed to reinstate the loan.  The homeowner may bring the loan current by paying a lump sum or making scheduled payments to the lender over a given amount of time.  Explain to the lender about the hardship and let the lender know the hardship is over and that you are now able to make your payments.

Re-financing may be an option with the lender.   

If the homeowner has not been able to resolve his or her hardship then listing the home with a Realtor to attempt a short sale is still yet another option.  Remember, the homeowner will need a hardship package from the lender.  This package consists of the homeowner providing their financial documents, the listing agreement. Preliminary HUD-1, and a purchase agreement if there is a buyer.

The homeowner can do a deed in lieu.  A deed in lieu is walking away under friendly terms with the bank and giving up the deed to the lender.

The homeowner can file bankruptcy. Homeowners please seek the advice of an attorney. There are two type of bankruptcy.  They are Chapter 7 and Chapter 13. Chapter 7 is called the “wipe out”, and Chapter 13 is called the “work out”.  Both Chapter 7 and Chapter 13 immediately stop the foreclosure process and stop any creditors from taking further action against you.

Originally posted 2008-12-14 10:06:26. Republished by Blog Post Promoter

• The Truth About Mortgages The truth about mortgages is that it has changed, but has it changed for the better.  If the change is for the better remains to be seen, but it is important to note that change has occurred.  The changes are: Your credit score must be 620 or higher You can......
• Was the Real Estate Bubble Doom to Happen? With Enron, Tyco, and other companies involved in varies accounting scandals, you would think there would have been provisions in the law to prevent the same catastrophe from happening to other industries, like real estate and insurance. In real estate, the accounting scandals were created by providing easy credit in an......

• Should I Buy A House and Take Advantage of Low Interest Rates Every few months, someone wants to know if its a good time to buy real estate. A reader asked an...
• Stamp Collection Stamp Collection -> Worldwide -> Collections, Lots Building up a stamp collection is a hobby for thousands of people and...