Are you in pre-foreclosure?

Have you missed some payments on your property recently? There are a few options you have to avoid having a foreclosure on your credit history.

Contact your mortgage company and find out if you can reinstate the loan. Sometimes they will allow you to put any late payment fees and interest on the backside of your loan and bring you into compliance.

If you have had income adjustments or you will not be able to continue payments you should try to sell your home as soon as possible. Making contact with your mortgage company is important. They want to see the property being marketed. Be aware of time restrictions and market conditions. Also inquire about what you owe vs. what your property value is worth. A short sale may need to be negotiated. You should talk to the lender about the possibility of a sales price below what is owed on the mortgage and what steps will need to be taken.

If your situation has changed, refinancing through another program might be a good option. You will want to seek advice of other lenders and programs that may be available to you to lower your monthly payment.

There is a possibility of adding a 2nd mortgage and using that cash to help bring you current with your loan. This avenue should only be explored if there was a short term reason for the delinquent and missed payments.

 

Should I wait for the mortgage company to foreclose?

Whatever you do, don’t wait for the mortgage company to foreclose. Contact a specialist right away to discuss your possible options. Be aware of individuals or companies that may try to profit off of your distress. It is always best to contact an agent or someone that will represent your best interest.

 

What should I do if someone offers to buy my home?

If you have someone that wants to pay cash for your house, tell them that you will select an agent to perform a Broker’s Price Opinion (BPO) and they will need to pay $100-$150 for the report. Be aware of companies that will offer to buy your property and allow you to stay there. They usually offer to set you up on a lease to own option. Contact an expert to make sure this company is legitimate. There are many companies that will take advantage of your situation and it could create a much worse outcome.