In a market where a great number of borrowers hold a rate and terms more favorable than that of the current market, banks and lenders are MORE than happy to relieve you of this benefit and get you into a more profitable agreement!

Forebearance

Forbearance is when the bank agrees to add up your arrears, divide them by 12 months, and add that additional amount to TO YOUR CURRENT PAYMENTS. If a homeowner had trouble paying their regular mortgage imagine how it would be to add a few hundred more to your monthly payment for 12 months. If the homeowner cannot handle this they will be back into foreclosure.

Loan Modification

To be able to take advantage of this solution you have to:

• Be more than 37 days from an auction date
• Prove to your bank that you earn 2X your mortgage payment in income per month (They’ll need to show proof of that income, proof of employment)
• Be current on all taxes
• Not have filed for a loan modification more than 2 times this year
• Have a "letter of hardship" describing why you got behind, why it is no longer an issue, and why it won't be an issue again, and that you are able to afford the new arrangement.

BUT WHY EVEN BOTHER when absurdly enough the banks actually modify your loan to TODAY'S RATES, WHICH ARE HIGHER AND RESULT IN EVEN HIGHER PAYMENTS.

This decision almost always eliminates the future option of using an investor because the rate, terms, conditions, and financial obligations are less attractive and more risky than before you modified. It makes absolutely no sense whatsoever.

Lastly, WATCH OUT IN THE AGREEMENT for any clause that states that if you get behind they will not accept payment in arrears to stop a foreclosure.

It's always a good idea to inform yourself of what allegedly can and cannot happen, and foreclosure and bankruptcy attorneys should be great sources of that information. Just make CERTAIN that you are getting the FULL story and the COMPLETE perspective. Yes, of course they can probably delay a foreclosure or help you file for bankruptcy, BUT WHAT ARE THE CONSEQUENCES TO THAT DECISION, AND HOW MIGHT THAT AFFECT YOU LATER

If you are going to be diverting money that you need over to an attorney instead, make certain you:

• Are able to describe what a successful engagement consists of
• Know EXACTLY what they will be doing
• Know what the work they will do for you entails
• Are clear on how much time they will be putting into it and how frequent that will be
• Know when you will next evaluate the results to determine if you will continue.

Remember, an attorney is going to do what you ask, even if what you want is not possible to achieve. So be sure to take the time to ask enough questions to understand what would need to happen for your desire to be achieved

This delays, but does not stop or solve the foreclosure. It only extends it, then ADDS any remaining debt to what you owe. It is important to realize that there is a significant impact on credit, similar to foreclosure, so you would have to ask yourself why you would want to pay an attorney to avoid one difficult circumstance just to leave you with another that has the same effect, AND then lose your house anyway because payments will be EVEN HIGHER and EVEN MORE unsustainable?

To add insult to injury, completing the bankruptcy will require a substantial amount of paperwork, attorneys fees and court costs, all while continuing to accrue fines, fees and interest from lenders and associations. Only the court can even approve of your filing.

When it's over you will end up responsible for the same monthly mortgage payments PLUS the additional prorated amount of the fines, fees, penalties and arrears, leaving you with EVEN HIGHER monthly payments to satisfy. This is where people lose their house AND their credit for 7-12 years.

Refinance: Bridge, Personal or Hard Money Loan

This is not a likely alternative for the majority of those in foreclosure because there is typically an extended period of non-payment that has already impacted credit.

Refinancing may be a solution for Seniors with no mortgage facing a tax or HOA lien. If the homeowner is in good standing, with good credit, and has some cash reserves, they can be approved so long as the property is in good enough condition to be financeable.

Applicants will have to demonstrate the ability to pay back the loan.

This is an option when the balance of the fines, fees, arrears, and mortgage, all together, total more than can be covered by the sale of the house in the current market, and you have experienced a demonstratable "hardship". With those 2 requirements, you will petition the bank to consider your request to be allowed to sell your house for less than you owe them, to a specifically identified buyer, paying a specific price that the bank agrees to. ANY MONEY YOU RECEIVE IS WHAT THE BANK GIVES PERMISSION TO OFFER, OTHERWISE, YOU MAY BE CONSIDERED TO HAVE COMITTED FRAUD. All "walk away money", (if any), must be disclosed and approved by the forgiving lender, and there is no guarantee that they will agree to any. The average amount the homeowner is given at closing is $2,500. To get this done you will have to regularly fill out your entire updated financial profile every 45 days for the bank while the process goes on. If you are under contract and have submitted an offer from a buyer but the bank feels that they need updated financials the process will delay until you do, drawing costing you time and drawing you closer to an auction date. Your bank may actually sell your debt to a collector or another lender at a discount to get back SOME money, and every time this happens the whole process will have to start over, which will cost you time and draw you closer to an auction. A shortsale typically is required to be advertised as such on the market so that the bank has the best chance of the highest amount. A consequence to advertising that the property is a shortsale is that buyers know the seller and bank are in trouble and low offers will come in which the bank will counter, which will in turn cause most buyers to back out, which will cost you valuable time and draw you closer to an auction. When the bank approval takes too long many buyers back out anyway cusing you to lose more time and draw closer to an auction.

A TRO is an emergency motion filed with the court to delay the lender from proceeding with the auction.

Ultimately, the emergency judge on duty will hear the arguments of both attorneys to determine if there is “Cause”, or grounds to delay the sale.

Simultaneously the homeowner’s attorney ALSO notifies the Court-appointed referee to prevent HIM from conducting the sale. It can all fall apart if you don’t file an answer or you miss a court date. In Florida it delays the auction around 22 days.

HAMP, HAFA, and HARP are government sponsored assistance programs. They are complex to understand, and if you are already in foreclosure it is probably too late to get anything resolved with a government agency.for the details you can read about them here

If you have enough equity in your home, at least for the moment, even with any fines, fees and arrears that have accrued, you may still be successful selling the house yourself or with an agent.

However, if the property condition does not meet the condition standards required of the majority of lenders, borrowers won't be approved for the loan required to buy.

If the house cannot be insured lenders won't approve the buyer's purchase. Some sellers are not careful and hastily accepting an offer from a wholesaler apparently promising quick cash and a quick close.

Many hopeful sellers in this situation are crushed a week before closing when either:

• the end buyers back out because their bank would not lend them the money
• the intermediary wholesaler whose offer you accepted was unable to find a capable buyer who could ALSO deliver a sufficient profit

. . . all while the seller has been turning away other legitimate buyer offers

Investors have the most options and flexibility in resolving real estate problems because

• There are no fees or commissions
• they rarely rely on (or even use) banks that are restricted by comparably rigid rules, conditions, and requirements set by their charter, board, investors, and government oversight
• They are almost always the highest priced offers by far, simply because they are able to customize each solution with terms specifically designed for the specific needs of the seller

For some that can mean solving the foreclosure and remaining in the house as an owner or tenant. For others it could mean safely moving on and improving their financial status through accelerated restoration of credit and more money than can be provided in shortsale.

The activity around skilled investors is not readily noticable, it makes up a small fraction of transactions (though it's now poised to grow significantly), it doesnt stand out or call attention, which is why you won't notice their activity in and around you.

Working with an investor is usually the most lucrative, reliable, and rapid solution to restoring financial and personal normalcy and stability. It's a much simpler process that requires significantly less time, bureaucracy and paperwork.