FORECLOSURE OPTIONS
There are several different Foreclosure Options available for homeowners facing Foreclosure Lawsuits that can stop foreclosures or avoid the Foreclosure Process entirely. Depending on which foreclosure phase you’re in and what you’re hoping to accomplish, there may be as many as ten different foreclosure options to consider. Your foreclosure alternatives include:
Defending Foreclosure Lawsuits
Which option or options are best for you depends on your specific foreclosure goals so use SaveTheCave.comto learn about the Foreclosure Process and then use our Sample Documents to help implement your foreclosure plans.
One of the most important steps in deciding which foreclosure plan is best for you is determining if you have an underwater mortgage and by how much. Once you have the supporting information you’ll be much more likely to convince the bank to support your foreclosure plan.
Is Your Mortgage Underwater?
An underwater mortgage is one in which the amount of your mortgage is more than what you can sell your home for and the bigger the difference the more likely that your home is neither a good short term nor long term investment. Given that home prices in many areas have fallen between thirty and fifty percent, you’re probably one of the many homeowners with an underwater mortgage. Read about the recent Nationwide Foreclosure Settlement and how it may help homeowners with underwater mortgages.
There are several ways to find out what your home is worth including contacting a local realtor to discuss comparable sales in the area or using online sites like Zillow.Com which provides home “Zestimates”and others that can help you determine the value of your home including Trulia, Realtor.com, Redfin and HomesDatabase.com.
Which Foreclosure Option is Right For You?
Once you know if your mortgage is underwater and by how much, the next step is assessing your personal circumstances to see what impact it may have. Issues to consider include whether your income is likely to go up or down in the near future, if you have any major expenses upcoming like college tuition or new braces for your kids, if there any health issues of concern and do you have realistic options for a new place to live if you decide to give up your home or lose it in foreclosure?
Sample Deed in Lieu of Foreclosure Hardship Letter
Sample Short Sale Hardship Letter
Sample Loan Modification Hardship Letter
Based on your answers to these questions and similar lifestyle considerations, you’re almost ready to decide what’s best for you. For example, if you feel that you were misled or taken advantage of by the lender, or if the wrong party is suing you, there may be no option but to defend the lawsuit by either hiring an attorney or defending the foreclosure lawsuit yourself by using the Sample Documents and detailed instructions we provide to help you. Read more about Defending Foreclosure Lawsuits and Legal Foreclosure Defenses.
Likewise, if you don’t have the financial resources to move to a new home, you may want to delay the mortgage Foreclosure Process for as long as possible in the hope that your income will improve once the economy improves and you’ll be in a better position to resume payments or qualify for a loan modification. Delaying the process may also help provide additional time to find a new place to live or support your decision to declare Bankruptcy at a later date if other options fail.
Another successful option used by many homeowners is referred to as Strategic Default which is the decision to stop making mortgage payments you could otherwise afford to support a Short Sale request or Loan Modification to more accurately reflect your home’s current value. Read more about How Strategic Default Works and Tips to Get Your Short Sale Approved.
The last and final step in deciding on your foreclosure plan is to read all of the information we provide on possible ways to stop foreclosure and important tips to help along the way. Once you’ve decided and ready to roll, use or Sample Foreclosure Documents to help you get started to implement your plan to stop foreclosure.
Related Content:
Mortgage Insurance to Stop Foreclosure