Here are 4 steps you can take right now to escape foreclosure:
1. Talk to your bank when you first get behind. You want o put
this behind you and not let this get out of hand. You want all
of the stresses to go away, however, if you do not talk to the
bank and be open to different options, the matter will only
continue to get worse. I have seen people avoid the bank at all
costs at first believing there will be this miracle to happen,
only in the end to find out it is too late for them to do
anything. I do believe in miracles. I do believe that you have
to be proactive and looking for that miracle before it will be
given to you. The longer you wait, the more the fees that you
will incur. Attorney fees run around $1600 for the bank to
conduct a foreclosure. If you wait to reinstate at the last
minute, you are the one that has to pay for these fees.
2. Ask the bank for a forbearance agreement. This is an
agreement to help you get caught up on the monthly payment. For
example, if you were 4 months behind on your house payment, the
bank may be willing to stop the process if you were to bring 2
months worth of payments in. Usually, the bank will require you
to get your tax returns and fill out some paperwork to do this.
If so, fill out the paperwork completely and get it back to them
as soon as possible. If you are not sure about a question, call
the representative that you are working with. Be responsible and
take action. Bank representatives are only human, they are given
200 foreclosure files every month to try to resolve. So be
patient with the person you are dealing. Do not scream or yell
your frustrations, as this will only cause more problems for
yourself. So be understanding, explain to them that you
understand how hard their job is and this will create a bond
with the person you are dealing with which is important because
this will be the person that is going to bat for you when they
talk about getting approvals with their boss. There are
companies out there charging fees up front for doing this. Do
not pay anyone up front to negotiate with the bank a forbearance
agreement. The people that want the money up front will not make
any guarantee while you are out $300-$400, this puts you taking
all the risk for someone else to get the situation resolved. If
you want to go this route, then hire someone that gets paid on
performance after they have worked out a possible solution.
Usually these consultants will work harder to get your situation
resolved because their pay will depend on it.
3. Refinance you current loan or getting a 2nd mortgage. This is
a very unlikely scenario, but I have seen it happen. Usually, if
you are in foreclosure, there is only a slim chance to getting a
refinance or another loan. You really have to look within to see
if this is a real solution or if it just going to overload you
even more. Imagine having another payment that you have to worry
about plus all of your existing payments, how does it make you
feel? Be sure to be real with yourself. Do not overestimate and
say “well I am going to work more hours to pay for this” or “I
am going to go get another job so that I can pay for it”. You
have more to worry about than just your pride and your home. You
may have a wife or a family that solely depends on you. If so,
be real with yourself, ask for help and move on to get a fresh
start. In addition, your health is also more important than any
house or financial obligation could ever be. Do you have any
idea what kind of impact these types of stresses have on your
health? I can assure you it is not favorable. So, be real and be
committed to getting the problem resolved for good. Look at the
big picture instead of the short-term view.
4. Sell your home. I know sometimes this can be a tough
decision, because you may have raised your family in the home or
you may have inherited it. However, do not let the emotional
attachment limit your options. For example, many people are so
emotional about their home, they don’t even consider selling
until it is to late. I do not want you to have to sell or to
find another place, however if you are running out of options,
then consider this one. If you are not selling because you feel
that you have a lot of equity, the amount of equity that you
truly have is getting lesser by the day. Why? Because, it takes
an average home buyer a minimum of 30 days to close their loan.
The average home in the United States will sit on the market for
an average of 120 days. Which means, on average, it will take
you nearly 6 months to sell a home and then when you sell you
will not get the full amount. Then you have to pay attorney
fees, realtor fees, title fees, taxes, and deed preparation
fees, not to mention your regular monthly obligations that you
have by having the house such as insurance, taxes, and your
regular payments. Finally, if you are trying to sell your
property, let the bank know that you have the property on the
market to sell. If they know you are making an honest attempt to
sell and get out from under the debt, while paying them off,
they will be more willing to work with you. Even if you are not
able to receive enough funds to pay the lien off, let the bank
know, occasionally they will work around it. If you need help
with this, then feel free to vist my website www.48hourclose.com
and receive our Free Report on "How To Win The War Against your
Lender & Stop Foreclosure!"
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