Nine Ways to Avoid Foreclosure

Mike & Jennifer Rigley Home Selling Team

The Nine Ways to Avoid Foreclosure

Reinstatement
To Reinstate a mortgage, the homeowner has to pay all the missed payments, late fees and legal fees that are due to the date that the loan is reinstated

Forbearance or repayment plan
The lender or lien holder allows the buyer to pay the missed amount over a period of time or the lender or lien holder places the missed payments on the end of the amortization of the loan

Sell the Property
If you have equity in the property you can sell it

Refinance
If you have sufficient equity and income and your credit has not been too badly damaged, you may be able to refinance.

Loan Modification
A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower the payments.

Short Re-fi
This process involves the refinance of a home with a reduction in the principle balance and often the interest rate as well

Deed in Lieu of Foreclosure
A deed-in-lieu of foreclosure is sometimes referred to as a friendly foreclosure because the homeowner essentially gives the deed back to the bank.

Bankruptcy
A bankruptcy may stop a foreclosure and allow homeowners to reorganize their debt and keep their property

Short Sale
When homeowners owe more on a property than it is currently worth and one of the previous solutions does not apply to their situation, there is the option of pursuing a short sale.

Homeowners are “short” when they owe an amount on their property that is higher than the current market value

A short sale occurs when a negotiation is entered into with the home owners mortgage company to accept less than the full balance of the loan at closing.