10 Ways to Avoid a Real Estate Foreclosure - Complete Road Map to Preventing a Real Estate Foreclosure

10 Ways to Avoid a Real Estate Foreclosure

Once a homeowner has encountered an event or series of events that may make it difficult to pay the mortgage payment, contact a loss mitigation consultant ASAP. If a homeowner can't find a local loss mitigation consultant, ask for a referral from a national consultant or contact the mortgage lender. A homeowner will have more options prior to the bank as filed a Notice of Default.

The reason why I suggest a mortgage loss mitigation consultant or a 3^rd party is this will cut down on the untimely threatening and embarrassing phone calls.

Once a mortgage lender has filed a Notice of Default, a homeowner has few favorable options that will let them keep their home. Depending on a homeowners hardship circumstances, here are options to prevent a foreclosure:

1. Forbearance – The mortgage lender agrees to a repayment plan. The mortgage lender will be more agreeable to a forbearance early on in the process.
2. Debt Forgiveness - If you can prove to the bank that you hit a road of really bad luck but will be on your feet very soon, the mortgage lender may just forgive your missed payments.
3. Repayment Plan – The mortgage lender may agree to spread out the payments over a period of time. Maybe by adding a small amount to the rest of the payments or a larger amount for a short period. The repayment plan works for homeowners who hit a short period of bad luck.
4. Loan Modification – The mortgage lender may agree to change the terms of the mortgage loan.
5. Refinance – If the homeowner has sufficient equity, the mortgage lender may agree to increase the loan amount or a refinance.
6. 2^nd Loan – The mortgage lender may agree to a 2^nd mortgage that is equal to the amount of the missed mortgage payments.
7. Government Assistance – The government is always creating plans for homeowners who are behind on their mortgage. A loan modification specialist or your mortgage lender may know of options that will fit a struggling homeowner.
8. Sell the Home – After determining that there is sufficient equity to sell and pay expenses, a homeowner may decide to outright sell their home.
9. Deed-in-Lieu – Considered by many creditors as a foreclosure, some homeowners may choose this option if the mortgage lender is offering something in exchange like relocation expenses or time to find another place to live.
10. Short Sale – If a homeowner owes more money than what their home can sell for in the current real estate environment, a homeowner may request a short sale from the lender. If a homeowner chooses this option, the will need a short sale negotiator. Short sales have received a bad wrap. If a homeowner chooses this option, be sure to read why short sales get denied.

Checkout our Free Report: “ Road Map to Prevent a Real Estate Foreclosure.” Go to: http://StopForeclosure.DowellTaggart.com

Need help preventing a real estate foreclosure, contact the Dowell Taggart Team at (913) 712-9313.

We have helped homeowners in many of the cities in the Kansas City Metropolitan area including: Gardner, Olathe, Edgerton, Spring Hill, Overland Park, Leawood, Lenexa, Prairie Village, Shawnee, Mission, Basehor, Lansing, Leavenworth, Platte City, Gladstone, Liberty, Lee's Summit, Pleasant Hill, Raymore, Gardnview, Belton, Raytown and Kansas city.

RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?

Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

Comments are appreciated! Go ahead and add your 2 cents . . .
We have 3 easy steps to find you the perfect home . Click here to get started, today!

Short sales, foreclosures, luxury homes, investor homes, first time home buyer homes, land, investment properties and move up buyers.