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Nov13
Understanding Homeowner’s Options When Facing Foreclosure
Filed under: FSBO, Forebearance, Foreclosure, Investing, Listing Property, Loan Modification, NOD, Negotiating With Bank, Partnering, Real Estate, Short Sale, Trustee Sale;3 CommentsWhen an owner is facing foreclosure they often times don’t know that they have options available to them. Usually their list of options is to a) sell the house, b) refinance the house, c) wait for the inevitable foreclosure, or d) hope that nothing will happen, that it’s a bad dream that will go away if it’s ignored. I’d like to share a short list of options that a homeowner has available to them…
Reinstate the Loan:- Borrow money from family and friends
- Borrow money from (or close) a retirement account (401K, IRA, Keogh)
- Sell other assets: 2nd car, boat, stocks, timeshare, rental or 2nd home
- Get a new 1st mortgage through a mortgage broker
- Get a new 2nd mortgage through a mortgage broker
- Get a new 2nd mortgage through local secondary markets
- Get a 3rd mortgage (in a highly appreciating market)
- Get a loan from a hard money lender
- Get a loan from a private real estate investor
Sell the Property before the Sale:- FSBO (For Sale By Owner)
- Listing/Selling with a Realtor
- Selling directly to a private investor
Negotiate with Bank:- Partial reinstatement
- Forebearance agreement
- Loan modification agreement
- Direct refinance with the same lender
- Short refinance
- Short sale
- Deed in Lieu of Foreclosure
File Bankruptcy:- Chapter 13 – with an Attorney
- Chapter 13 – without an Attorney (pro-se)
- Chapter 7 – with an Attorney
- Chapter 7 – without an Attorney (pro-se)
Work with me or my Competitors:- Sale and lease back
- Sale and rent back
- Sale of partial equity in exchange for deed and agreement to relocate
- Partner on selling home with me
- Partner on short-sale and deeding home over to investor
- Lease with option to repurchase (illegal – aka “equity stripping”)
It is important to understand that there are a variety of options (and combination of options) available to the homeowner. Make sure that before you make a decision regarding a foreclosure decision that you consider all of the options available to you so that you can make the best and most educated decision possible.I specialize is short-sales and pre-foreclosure sales and would be happy to discuss your options with you and answer any questions you may have. You may contact me for a free, no obligation appointment at (801) 787-7797 or simply send me an email at Khayyam@KhayyamJones.com. You may also download a copy of my free consumer report.
3 Responses to “Understanding Homeowner’s Options When Facing Foreclosure”
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Shel, the Real Estate Investor November 13th, 2008 at 4:42 pm
You just watch how many loan modification companies come about in the next 3-6 months. Riding it up, and now we’re going to ride it down. Real estate investing at it’s finest.
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Rent Back Schemes December 27th, 2008 at 7:13 am
The BBC reports that some credit companies are going out of their way to help borrowers with their debt problems. This has almost been unheard of until now. The credit crunch has forced lenders of all types to work alongside their borrowers to maximize the amount of repayments achieved.
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growprovo.com April 24th, 2009 at 8:49 am
Great information. If you’re trying to sell your real estate “by owner,” you can list it for free on SoldItSolo.com
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