Real Estate Investments and Foreclosure Rescue

You may have the option to adjust the terms of your mortgage through a process called Loan Modification. This could make your monthly payments more manageable by potentially reducing the interest rate, extending the loan term, or lowering the principal balance. It is a proactive step to prevent foreclosure during financial hardship. This will require you to negotiate with your lender and provide requested financial documentation.

A Forbearance Agreement is when you and your lender agree to temporarily pause or reduce mortgage payments during a financial hardship such as a job loss or illness. You may make reduced payments or none at all for a set period of time but missed payments are deferred, not forgiven. Repayment is required later, either as a lump sum or through a negotiated plan. Forbearance offers temporary relief from foreclosure threats, arranged directly with your lender and often requiring proof of your financial hardship.

 If your credit score has not already been too damaged, it may be possible to refinance your mortgage and improve your financial situation. This is especially true if interest rates are currently low or if you have made payments for many years and have a healthy amount of equity in your home. This may allow you to lower your monthly payments or extend the loan term. Consider the costs and benefits carefully. You will need to apply for a new mortgage and provide documentation and income verification to prove you are distressed. So, you will need to consider your current and future financial health carefully when considering this option.

Another option for struggling homeowners who cannot make their mortgage payments and might be looking to avoid the lengthy and stressful foreclosure process might be a Deed in Lieu of Foreclosure. This might be particularly helpful if a spouse is facing a long-term illness and their partner needs to focus on providing support versus struggling each month with a high mortgage payment. With a Deed in Lieu of Foreclosure, a home-owner voluntarily transfers ownership of their home back to the lender in exchange for being released from their mortgage obligations. This can help protect your credit from the severe damage of a foreclosure and may allow you to walk away without any additional debt, depending on your agreement with the lender. In some cases, relocation assistance might also be available. While this can be a beneficial solution, it is important that the homeowner understands all of the pros and cons.

 There are 2 different situations in which you may want to file bankruptcy if you are facing a foreclosure. The first is if you are facing an approaching auction date and you are trying to get a sale of your home completed before that happens. Filing the Bankruptcy paperwork triggers an “automatic stay” that halts collection efforts including the foreclosure and gives you needed time to explore other options such as a cash sale or loan modification. When you are ready, you can withdraw the Bankruptcy paperwork and close your home sale. 

The 2nd situation that might cause you to consider a Bankruptcy is if you are struggling to pay more than just your mortgage payment. If there was an extended unemployment or illness which caused the home-owner to take on additional credit card and other personal or medical debt which they are now struggling to repay, it may be time to decide if filing Bankruptcy is the best solution. If without the additional debt, you could easily pay the home payment and also manage to pay for related utility and maintenance of the home, it might be an option. As with other options, it is important for distressed homeowners to consider the long-term impact to their credit. But it could allow them to keep their home and start fresh if whatever caused the financial stress has been overcome. Homeowners should always speak with a bankruptcy lawyer if you are considering bankruptcy. 

  Depending on the housing market in your location, it may be a good idea to try to sell your home through a realtor. This assumes you have not received an auction notice and you can manage to keep up with payments until the home sells. Remember that although you should be able to get market value for your home if it is in good repair, you may have to do some repairs to get it MLS ready for the highest possible offer.   In addition, the typical commission for Realtors is 6% in Florida and half of that will come off of the sale price of the home to pay the sellers agent. The key is to make sure you have the time to wait on a traditional home sale through a realtor before signing a contract with one.  Many distressed homeowners will not have the luxury of this much time.

 Selling your home to a cash buyer can be a fast and easy solution when facing foreclosure. It will allow you to avoid the stress of a foreclosure as well as the hit to your credit that foreclosure will inevitably bring. Signing a Cash Purchase agreement through Nature Coast Estates provides many benefits to our home sellers as compared to a sale with a realtor. First, we are not Real Estate Agents and we do not charge a commission on the sale of your home. Second, you do not have to pay for any repairs to your home for us to buy it. We purchase your home “As is”. No repairs necessary. Let us look at your mortgage situation to determine if you are a candidate for a Cash Offer. 

Selling your home “subject to” means transferring ownership to a buyer while keeping the existing mortgage in place. This option allows you to sell your home without requiring the buyer to secure new financing making it a faster and more flexible solution if you are facing foreclosure or other financial hardship. There are certain specific instances when this might be a better solution than a cash sale. Let Nature Coast review your specific situation to help you determine the best course of action in your situation.

Government Assistance may be available. Call: 888-995-HOPE, the Homeowners Hope Hotline, to reach a non-profit, HUD-Approved counselor through Hope Now, a cooperative effort of mortgage counselors and lenders to assist homeowners. They may be able to assist with resources to assist troubled homeowners with refinancing or loan modifications.

The threat of foreclosure can be an overwhelming experience. Taking action now could save your home and/or your financial future. If you wait too long, your home could be foreclosed on leaving you with nothing and years of damaged credit. Nature Coast Estates is here to help you explore all your options. We can guide you through the process of taking back control of your future. Let us help you make the best decision for you. Call us Today at 352-496-1992 to discuss your options.