Ready to Stop your Foreclosure? Give Us A Call (346)-472-3757
16 Ways to Stop Mortgage Foreclosure
1. Pay off Loan Balance
-Only works if the owner has funds available to pay off.
2. Reinstate the Loan
-Only works if the owner has funds available
3. Personal Loan
-Homeowner in good standing
-Has a good credit score
-Has Steady Income
4. Refinance
-The homeowner has to be in good standing with good credit to be approved.
-Have equity of 75% or 80% of LTV
-Debt to Income can’t be too high
-Steady Income
-home has to be in financeable condition
5. Repayment Plan with Lender
-A repayment plan is a temporary arrangement between a lender and a homeowner that can help prevent foreclosure. The lender temporarily increases your monthly payments by adding part of the overdue amount to your current payments so that you can get caught up on the loan.
6. Loan Modification
-A loan modification is a change of terms to an existing loan by the lender. It usually involves one of the three things.
Payment Reduction
-In a payment reduction you get a reduction in interest rate. Anything above 3 to 4 percent is good so it can be reduced.
Principle Curtailment
-Which is the reduction of your original balance, the bank does this when your property’s value is worth less than what your balance is.
Extension of Loan Term
-This is when the lender gets the arrears and puts it at the end of the loan so it will be extending the term of the loan. Or they can do a Partial Claim with loan modification.
-Only government-sponsored or secured loans are good candidates which are FHA, VA, USDA, Conventional, Fannie Mae, and Freddie Mac. FHA and VA Loans mainly.
-What would kill a loan modification?
A vacant property with no utilities.Your income is not enough and House to Income ratio is too tight
-A loan modification could take 14 to 60 days on average. Sometimes you could see someone take 120 days, or 180 days depending on the bank itself and the situation with the homeowner.-Must apply 37 days before the auction.
-Write a letter of hardship to the lender describing why they got behind on payments.-80-90% of homeowners do this paperwork wrong.
7. Partial Claim
-A partial claim is they get whatever your current arrears are, pull it out of your whole balance, and put it on the back end of your mortgage. This makes their mortgage current and avoids foreclosure.
-Usually completed along with a loan modification or forbearance.-Doesn’t need to be paid off until you sell your property, the first mortgage is paid off, or when it's refinanced.
8. Forbearance Agreement
-A temporary arrangement between a borrower and their lender to pause or lower mortgage payments for 30 to 120 days. Forbearance can help borrowers avoid late penalties, default, and foreclosure. The borrower still owes the full amount and pays back the difference after 30-120 days.
-The borrower must demonstrate the need for postponing payments-A forbearance agreement will allow you to give more time to work on your loan modification.
9. Temporary Restraining Order(TRO)
-Can temporarily stop a home foreclosure in Texas for 30, 60, or 90 days, depending on the situation. A judge will only issue a TRO in an emergency, and a TRO can include orders to protect property, safety, or the safety of children.
-Are used in Family law cases such as divorce or custody cases. Hard to approve foreclosures. -Is available when the person seeking it would suffer irreparable harm if the judge does not issue it.
10. Deed in Lieu
-Is a legal document that allows a homeowner to voluntarily give ownership of their property to their lender in exchange for a release from their mortgage.
Drawbacks: -It can damage homeowner's credit, which may lead to higher borrowing costs and more difficulty getting another mortgage in the future. The impact is less severe than foreclosure. -The biggest con is the loss of property and any income or investments associated with it.
11. Short Refinance(Upside Down)
-this happens when the value of the house is less than what you owe on the mortgage.
-Is when a mortgage lender replaces a borrower’s current loan with a new one for less than the amount the borrower still owes. The lender pays off the difference and the new loan typically has a lower balance and interest rate.
Drawbacks: -Are not widely available, are rare. And can hurt borrower’s credit score.-Larger monthly payments, may not be able to afford it-May not be able to deduct much interest.
12. Short Sale(Upside Down)
-A short sale is when a homeowner sells their home for less than what they owe on their mortgage, usually because they are in financial distress. The lender agrees to accept a payoff that is less than the outstanding balance, and in some cases forgives the difference.
-Short sales happen when a home's value has declined and the homeowner owes more than the home is worth. Drawbacks: -The lender gets all the proceeds of the sale.
13. Bankruptcy
-Can file a minute before the auction to stop the auction.
Chapter 7 Bankruptcy: Temporarily delays foreclosure for 3 to 4 months. The chapter 7 wouldn’t help you keep your house because it lacks a way to make up missed payments.
Chapter 13 Bankruptcy: Can save your home from foreclosure. It lets you pay off the arrears and reorganize it into a 3 to 5-year repayment plan. But, you’ll need enough income to meet your current mortgage payment, monthly living expenses, and other required Chapter 13 payments in addition to paying off the arrears.
14. List with Agent
-Lengthy process
-Home needs to be in good financeable condition
-Could fall through weeks after an accepted contract leaving the owner with little time.
15. Affiliated company can Buy your House in Cash
-We pay moving expenses
-Buy as-is, no closing cost, no commissions, or fees
-We can help the seller find their next home(Plug them with a realtor)
16. Affiliated company can do Creative Financing
-This is an option for people with very little or no equity who think their home will have to be a short sale or just lose it completely. In some situations, we can save their home, reinstate their mortgage that is in foreclosure, and give the homeowner some cash to walk away and start the next chapter of their life.
6 Ways to Stop Tax Foreclosure
1. Paying off the Tax debt
Only works if the owner has funds available to pay off.
2. Repayment Plan
Many taxing authorities in Texas offer payment plans or installment agreements to homeowners who cannot pay their property taxes in full. These arrangements allow you to spread the tax debt over time, making it more manageable.
3. Deferral Program
Allow eligible homeowners, often seniors or people with disabilities, to postpone property tax payments until the property is sold or transferred. While this can provide temporary relief.
Requirements:
-age 65 or older
-disabled as defined by law
-qualified disabled veterans, their unmarried surviving spouses, or their unmarried children under age 18, if no surviving spouse; or
-unmarried surviving spouses of U.S. armed service members killed on active duty and their unmarried children under age 18.
4. File for Bankruptcy
With this option, you’re only giving yourself more time to get payments in order. You will still have to pay off your property taxes, bankruptcy will only assist with your time for paying what you owe.
Chapter 7 Bankruptcy: Temporarily delays foreclosure for 3 to 4 months. The chapter 7 wouldn’t help you keep your house because it lacks a way to make up missed payments.
Chapter 13 Bankruptcy: Can save your home from foreclosure. It lets you pay off the arrears and reorganize it into a 3 to 5-year repayment plan. But, you’ll need enough income to meet your current mortgage payment, monthly living expenses, and other required Chapter 13 payments in addition to paying off the arrears.
5. Sell your house for Cash
-We pay moving expenses-We buy as-is, no closing cost, no commissions, or fees-We can help the seller find their next home(Plug them with a realtor)
6. Sell your house using Creative Financing
-This is an option for people with very little equity who think their home will have to be a short sale or just lose it completely. In some situations, we can save their home, reinstate their mortgage that is in foreclosure, and give the homeowner some cash to walk away and start the next chapter of their life.