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The Most Common Foreclosure Choices
Following are the most common choices for people facing foreclosure. Depending on your situation, all of these options might, or may not, be available to you. Everyone's individual situation is different.


 * 1) Reinstate the Loan.
 * 2) Forbearance
 * 3) Mortgage refinancing
 * 4) Loan Modification
 * 5) Sale of the Property
 * 6) Bankruptcy Filing
 * 7) Deed in Lieu of Foreclosures
 * 8) Nothing

1. Reinstate the Loan. The most obvious option would be to pay the loan current. If foreclosure proceedings have recently been filed, then the amount needed to get loan current will not just include back payments, but also late charges and also possible attorney fees. This is the quickest and also the most efficient way of stopping a foreclosure action. Negotiate with the lender when you can do this. Sometimes they will take a smaller amount, 90%, 80%, even as low as 75%. Call them and say something similar to, I've borrowed X amount of dollars from my relatives, will you take that and forgive the rest? Don't tell them it can be your money. Make it is always someone else's money. They are going to be less sensitive to you when you have lots of money and have not been making payments. Get the discount in writing before you decide to send the money, an email or fax will do.

2. Forbearance The lender stops or postpones lawful action. Usually granted when you make satisfactory arrangements to bring the overdue mortgage payments existing.

3. Mortgage refinancing Mortgage refinancing seeks to avoid foreclosure when you go to a new lender and finding a new loan. But in most cases, once foreclosure has started, you have been through a few months of late payments or absolutely no payments. These late payments have a devastating influence on your credit rating. In addition, the new mortgage company will easily check out the current foreclosure action. This most often leads to denial with the refinance loan application. If you are approved it is possible to bet it will have a VERY high interest rate with greater than normal closing costs etc.

This option is normally limited to those with excellent credit histories and who've only suffered a temporary drawback. Remember that time is of the essence, so don't waste a lots of valuable time on this choice. You could lose your house while waiting on loan acceptance.

4. Loan Modification A loan modification seeks to avoid foreclosure by negotiating with the lending company to modify the terms from the loan. Loan modifications may include adjusting he interest rate, extending the loan period or perhaps adding the delinquent portion and fees back onto the main principal of the loan to be repaid with time.

5. Sale of the Property If you have been unable to work your lender or find another suitable solution in a timely manner, it is time you should consider selling.

Selling it through the traditional method, of listing it with a real estate agent on the MLS listing is actually one solution. But this method can take from four to six months. Make sure you get a genuine realtor. One who will work to offer the house and list it with a price it will sell for. Some realtor's over exaggerate the actual house's value and the selling price to find the listing and then the house doesn't sell and you are foreclosed on, losing everything. Do a short contract. One month at a time. Tell the realtor you will renew it on a monthly basis if they are good and are working hard to sell your house. If they are not willing to provide you with a monthly contract or a contract that allows you to cancel any time, then find another realtor. Time is of the essence and if the realtor is not willing to be a help in your situation, find a realtor who will be.

Another avenue to consider is selling your house to an investor who presents "a quick closing". Remember time is of the essence. Typically, this will be for lower than fair market value, but can be a benefit to you because it's a quick "as is" sale without real estate commissions. "As is" means you wouldn't normally have to spend any cash doing repairs, or spending time putting your house in perfect condition. By selling your house "as is" for an investor, you get a quick sale, letting you instantly stop foreclosure as well as salvage your credit. In the Kansas City metro area BLu Horizons Real Estate Solutions provides a quick closing, as is sale. We can close in seven days or less, if we have to.

6. Bankruptcy Filing Some homeowners act on their particular lawyer's advice and file bankruptcy hoping that all their problems are right now solved. Bankruptcy does put a stop on everything. But all it buys you is time. The end result is, almost always the property still goes to auction and you now will have a bankruptcy, in addition to the foreclosure in your credit report.

7. Deed in Lieu of Foreclosures This is when you can voluntary deed title in your property to the lender. You are basically giving your house back to the bank. The ordinary effect of the taking of a Deed in Lieu, is to extinguish the lender's deed of trust also it vests the lender with title susceptible to all other existing liens as well as encumbrances. In effect, the lender becomes the fresh owner. The lender is not needed to accept the Deed in Lieu and could show their refusal by processing a Notice of Non Acceptance using the County Recorder.

8. Nothing You may find this odd that nothing is listed as an option; however one of the most typical options taken by homeowners is actually Nothing. Don't fall into the trap of thinking that everything will magically work itself out, because it will not.

We trust that the overview of foreclosure options will allow you to start down the path of informed decision making to guard yourself, your family, your home and your bank-account.

Although the most common options are covered with this report, there may be other options open to you, depending on your particular circumstance.

This is not legal advice or assistance! The application of law varies from state to state and an individual's specific circumstances can vary greatly. Consult a lawyer if you need and you want professional advice.

This information was provided by BLu Horizons Real Estate Solutions at blu-res.com