A Little About What We Do

(And Some Useful Advice, Too)

Perhaps we can help; we are a serious real estate investors with experience in the foreclosure process. If we may be of service in this matter, it would be our pleasure to do so. You may contact us at (540) 743-3035. But, before you do so, please read the remainder of this page as we have outlined a number of legal options that are available to you that could save your home. These consist of steps that you can take on your own to prevent foreclosure of your property. The important thing is to not procrastinate and take action before it is too late.

As experienced professionals, we present to you the following options as we see them. In many cases, one or more of these choices that you have a legal right to, will enable you to not only save your credit, but allow you to keep your home as well. You are free to explore any of these options on your own and there is no requirement to contact us at all. We offer this information as a way of demonstrating our sincerity in being able to provide assistance, should you find that you need it. No pressure, you do what you feel is right and are comfortable with for your situation.

Option 1: Loan Forbearance or Modification - A strategy worth pursuing is called a loan forbearance. The loss mitigation department of your mortgage company may make arrangements with you to pay some of the back payments now and the balance within a certain time period. A typical example - You owe $9,000 in back payments, attorneys' fees, etc. Your mortgage company may accept $4,500 now and $750 per month for the next 6 months. Of course, you would have to resume making your normal monthly payments. A loan modification, on the other hand, is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. A loan modification or forbearance is easier to arrange prior to the Mortgage Company filing a foreclosure lawsuit. Some lenders will not consider this after filing, but it's worth trying.

Option 2: Reinstate Your Mortgage - You have up to and including the morning of the auction to catch up your payments. Perhaps you could borrow from friends or family, credit cards or even your retirement program. You may be able to arrange a second mortgage to catch up the back payments and fees. Check in the Yellow Pages under "Mortgages". There are a number of companies listed that offer help in these situations.

Option 3: Refinance - You've probably received letters from mortgage brokers and lenders saying you are already pre-approved for a new mortgage. The fact is that it is very difficult to arrange new financing when you're already in default on your existing mortgage. Be very cautious about sending advanced fees of $300.00 to $600.00 to lenders or mortgage brokers. Usually it's a ploy to take advantage of your financial situation and to simply fleece you of an upfront fee.

Arranging new financing will depend on your income, credit report, value of your home and the amount of your equity. If you're not sure of the value of your home, give us a call. Usually, we can give you a fairly accurate estimate of its current market value within a 1/2 hour.

We would be glad to help and of course, there's no obligation. If you seek to refinance, you should always have a backup plan available to you. Many times, we have had homeowners call days before the auction saying their financing did not go through, and then it's too late! Do not depend on refinancing as your only way out. You should still pursue other options such as borrowing from a family member just in case the financing fails to go through.

Option 4: Chapter 13 Bankruptcy - A viable alternative if your financial situation has improved, filing bankruptcy prior to the auction will stop the sale. Unfortunately for most people, it only postpones the sale for one or two months. Immediately after filing a Chapter 13 Bankruptcy, you will have to file a repayment plan with the courts. This plan has to show that you have sufficient monthly income to pay basic living expenses such as food and utilities and other monthly payments such as credit cards, car payments etc.

In addition, your income must be sufficient to resume making your monthly mortgage payments. All past due amounts are usually spread out between 24 and 60 months i.e. If you owe $9,000 in missed payments, attorneys fees, etc. if spread out over 48 months would be an additional $187.50 due each month to the court appointed trustee.

If you feel as though you have the income to immediately begin repayment of all your debts and the courts agree, this may be a good choice for you to save your home.

Over the years, we've spoken with many individuals who filed for bankruptcy protection only to have their cases dismissed. Not only were they out their attorney's fees (usually $1,000 - $2,000) but now had a bankruptcy and foreclosure on their credit report. Bankruptcy is considered an action of last resort.

Option 5: Sell Your Home on the Open Market - This is probably the most under utilized option available to you. The fact is selling your home will give you the most money in your pocket. Even though the market is going through some difficulties right now, there is always the possibility that someone out there is looking for exactly what you have. People haven't stopped buying homes, it's just that there are too many out there for sale all at the same time which makes for a buyer's market. Just the same, at the right price, your home can easily rise to the top of the list in terms of desirability in the eyes of potential buyers.

If you have recently been served with a foreclosure lawsuit you may still yet have enough time to sell your home. Doing so will return the greatest amount of money to provide a fresh start for you and your family.

Don't procrastinate! Explore all the options available to you. Placing you home on the market a few weeks or a month from now may not give you enough time to find the buyer, arrange financing, and schedule the closing. Because of the time sensitive nature of your situation, this is not a time to go it alone as a "for sale by owner" or list your home with a friend or friend of a friend.

Option 6: Let Your Home Be Sold On the Courthouse Steps - By far, the worst option available to you! Many people feel "I have no equity, let the bank take it", but homes that are sold on the courthouse steps typically sell for only between 50% and 70% of their fair market value. If your bank suffers a loss due to the pending foreclosure action against you, your legal debt obligation to them is still very real. They can file a deficiency judgment against you and pursue you for the amount of their loss.

Another downside is that usually within ten days after the foreclosure auction, a certificate of title will be issued by the courts to the new owner. If you have not voluntarily vacated your house at this time, you could be forced to move out within 24 hours with a Sheriff's Deputy enforcing the order.

Option 7: We Can Buy Your Home - If efforts to save your home have been unsuccessful and time doesn't permit selling your home on the open market or you just don't want to, but want a quick sale with no problems, call us. We will make you a cash offer and close quickly usually in two to five days. If you need additional time to relocate, that can easily be arranged.

You have probably been swarmed by investors calling you and knocking on your door. If not yet, you soon will be. A Word of Caution : Some investors are very aggressive and unethical. Many will tell you that "You only have one or two weeks before the auction and your furniture and possessions will be placed on the sidewalk or street." This scare tactic is usually accompanied by a ridiculously low offer.

The fact is you probably still have several months before that could happen, but this is not a time to sit back and relax but one for you to pursue all legitimate and legal options available to you that make the most sense for you and your family. Don't be rushed or scared into giving up your hard-earned equity. If a quick sale of your home is your goal, talk with several reputable investors, including us. We can promise that you will be treated fairly, with dignity and complete honesty. When we make you an offer and say you will walk out of the closing with $5,000, $10,000, or $20,000, that's what you will walk out with! We don't believe in last minute negotiating at the closing table.

As with any serious legal situation you are strongly encouraged to consult legal counsel regarding any points of law regarding your circumstances. The information that is provided here should not be used as a substitute for competent legal advice.

Real Estate Pro
Tel: (540) 743-3035
Fax: (866) 246-1476