Fight for Your Foreclosed Home!
If the foreclosure process has started, or will soon, on your home you will want to find ways to refinance while the house is still in foreclosure, or find another way to get your house back.
Foreclosure beginning does not mean the end has come! You can keep fighting to keep your home and there are many creative ways to go about it. This article will help you think of the right option for you and find avenues to buy back your home during foreclosure.
Instructions
1. GET THE FORECLOSURE REVERSED WITH A GOOD LAWYER.
You will need a lawyer for this process, and if successful, you will save much more than the lawyer will cost you in better credit, and a retained home. Pull out your yellow pages or google a foreclosure lawyer in your area. Most of the time your lender will have missed an i that needed dotted or a t that needed crossed. The bank will fix their mistakes quickly, but this will buy you some time.
2. SELL ALL OF YOUR ASSETS TO RAISE CASH TO PREVENT FORECLOSURE.
This means cars, jewelry, electronics, furniture, stocks, retirement accounts, or anything else you can think of to liquidate to raise cash. This probably won't get you fully to where you need to be to make a foreclosure stop. However, it will show all of your foreclosure help that you are serious about saving your home and aren't just looking for handouts.
3. ASK INVESTING FRIENDS, FAMILY MEMBERS, OR OTHER ACQUAINTANCES FOR HELP.
If you want to prevent foreclosure on your home you obviously need more money than you have now. Otherwise you wouldn't be in foreclosure. You are going to have to suck up any pride, shove down any shame, and start asking. You may need to bring cash from multiple sources. Many people will feel better about lending money if you sign a legal promissory note. You can get a free form off line or have your lawyer draw them up to raise more cash.
4. PURSUE A REFINANCE WHILE THE HOUSE IS STILL IN FORECLOSURE.
If you are still in the redemption period (research the rules for your state) then you can buy back the home while it is still in foreclosure. You can do this through your own bank by paying up to date including all fees many times. They may even reinstate your old loan. Call and ask! Always in this process make yourself ask and ask more than once.
If the bank will not reinstate the old loan you will need to refinance and pay off the mortgage. You will likely need 30-35% of the loan you require as a down payment because of your situation. Talk with a mortgage broker and find out. This is why you have to raise cash from every possible source. But the equity in your home (if you have any) will count toward this amount so don't lose hope!
5. .CHECK INTO GOVERNMENT SPONSORED FORECLOSURE BAILOUTS
You may qualify for Obama's new economic stimulus relief for home owners facing foreclosure. Talk with your bank, your lawyer, and research this grant on the internet. If you owe as much or nearly as much on the loan as the home is worth, you are likely to qualify.
6. CONSIDER A SHORT SALE, RE-BUY OPPORTUNITY TO STOP FORECLOSURE.
Again you have to call your lender and ask. Check with your mortgage lender to see if they will consider a short sale, which means they allow you to sell your home for less than it is worth. There are instances where they will get more money from a short sale than they would for a foreclosure since foreclosures sell at a high discount. Talk to the manager of the short sale department and make your situation sound sad. You will probably need to:
- Give permission to release loan information to a real estate agent or buyer
- Write a hardship account to send to the bank (make them weep)
- Give written and honest proof about all of your assets.
If you are able to find refinancing you can then buy back your home from the short sale buyer creating your own 'mortgage downsize' plan. Again, you will need to consult a lawyer and CPA for their time and fees are well worth it in the end. You no longer have room for error if you want to prevent foreclosure. This is a tricky move and needs to fit every single law and regulation to a 't.'
7. YOUR LAST DITCH STAND: BUY THE HOME AT OR AFTER THE SHERIFF'S SALE
You need to have a family member or investor purchase the home for you. They can then sell the home back to you, lease it back to you with an option to purchase when your credit recovers, or some other creative option the investor imagines. Somebody is going to buy your home at the sheriff's sale or afterward. It might as well be someone you know who can help you stay in your home, even if they make money off of it.
If you can't purchase the home during the sale, approach the buyer afterward. They are trying to fix and flip the home most likely. They may be very happy to quickly turn it around to you and get the home off of their foreclosure books, and onto their profit sheet. They may even be able to help with financing. Some foreclosure investors are savvy enough to know about land contracts and playing bank for you. You might be able to talk them into playing bank, you pay them every month on a legally valid loan, and they pocket the interest until you can raise the capital and credit to pay it off in a balloon payment.
ALWAYS ASK!
* Get more detailed guidance from the resource link below.
Tags: your home, short sale, will need, back your home, bank will
