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How to Avoid Foreclosure

Time is of the Essence - Don't let a foreclosure ruin your credit history

If you are facing the unfortunate window of foreclosure and can no longer afford to make payments on your home, or investment property, you are not alone and may have options. 

Immediately contact your loan servicer or bank in which you are making your mortgage payments to. Briefly explain your situation and ask about your available options.

Here are some options that may be presented to you:
Repayment Plan,  COVID 19 Relief,  Loan Modification, Refinance, Short Sale, Standard Sale.
Call Today! +1-310-684-3811

REPAYMENT PLAN

A repayment plan lets you spread out your past due amount over several months being added to your current mortgage to bring it current.


COVID19- MORTGAGE RELIEF 

The Covid-19 pandemic has left millions of homeowners wondering how they will make their payments.  The Biden-Harris Administration has made provisions to help millions of Americans with the American Rescue Plan Act 2021.  You are encouraged to research and seek out assistance through COVID-19 Relief programs made available throughout the state. 


LOAN MODIFICATION

A loan modification is a change to the original terms of your mortgage loan and does not pay off your current mortgage. For example, the modification may include extending your loan term, modifying your interest rate, or changing your loan from adjustable to a fixed rate term.  


REFINANCE

Refinancing is when a property owner gets a new mortgage loan to replace the current loan. Most people refinance in order to get a lower interest rate and lower mortgage payments.

Short Sales and Foreclosures
Know the Difference


DISTRESSED PROPERTY

Short sales and foreclosures are the result of homeowners in distress. A "short sale" simply means the homeowner's lender has given permission to the homeowner to sell the home for less than the remaining balance of the loan. To accomplish this, the seller must show the lender why they are in distress, such as job loss or illness, or that home values have fallen to the point that the seller doesn't have enough equity in the home to break even or sell at a profit. If the seller can show means to continue paying the note, it's unlikely the bank will grant a short sale, but if it appears the seller is about to default, the bank may agree to a short sale in order to minimize its losses. The terms of the short sale allow the seller to walk away from the mortgage while avoiding foreclosure, but the loss to the lender will be reflected in the seller's credit report, possibly delaying their ability to repurchase a home in the near future. At the least, the next lender will require more down or demand a higher interest rate.


FORECLOSURE PROCEEDINGS 

Once a homeowner defaults on mortgage payments, the bank begins foreclosure proceedings. The homeowner has many chances to stop the sale by paying the amount owed until the home is put into a public auction. At that point, the homeowners loses all ability to retrieve the home. If the home does not sell at auction, it's taken back by the bank as an "REO" which stands for real estate owned. The home then becomes an asset holding of the bank. REOs are managed by asset managers who are employed or contracted by the bank. REOs are put on the open market, often with a real estate professional who specializes in distressed sales. Foreclosures that are purchased this way typically are sold "as-is", which means the bank has no intention to make environmental or structural repairs. So, buyer beware. When a buyer makes an offer on an REO, the asset manager decides whether or not to counter or accept, and strives to get as close to or above the original loan amount as possible.


WHAT HAPPENS TO YOUR CREDIT AFTER FORECLOSURE

A foreclosure will appear on your credit report within 30 to 90 days after foreclosure proceedings.  The foreclosure will remain on your credit for a minimum of seven (7) years and may affect the likelihood to obtain other loans and lines of credit and the ability to qualify for a home rental.  


When it comes to foreclosures, TIME IS OF THE ESSENCE and you need to act immediately.  If you have received a notice of default, pre-foreclosure information or notification regarding dates of auction, you need to act immediately.  Call us today or book an appointment so we can access your sitatuion.  Call Today! +1-310-684-3811

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