Foreclosure Solutions

Reinstate

To reinstate a loan means to bring the loan current by paying all past-due amounts so it returns to good standing.

• Using a form of credit (lines, card, loan)

• Retirement accounts (401k, Roth IRA, etc) advise employer

• Even, family and friends pooling money together

Mediation

Mediation in a foreclosure is a guided negotiation between the homeowner and the lender to try to reach an agreement that avoids foreclosure.

• Applying for a "loan Modification" Mortgage cases only

• Mediation packet "from court"

Borrow Equity

Borrowing against equity means taking a loan using the value you’ve built up in your property as collateral.

NOTE: varies upon case and lender

• Reverse Mortgage (62 year age minimum/sufficient equity) federally insured

• "Heloc": Home Equity Line of Credit, various factors include (ex; sufficient equity, good credit, stable income....)

Bankruptcy

Filing for bankruptcy can temporarily stop a foreclosure through an automatic stay, giving the homeowner time to reorganize debts or negotiate a workable repayment plan. Consult BK attorney

• Commonly used (Chapter 7, 13) against home foreclosure's

• Can restructure debt

• On credit file up to 7 years

• Cost associated

Sell

Selling the property in foreclosure means the homeowner sells the home—often before the auction—to pay off the mortgage and avoid a completed foreclosure.

• Protect your credit from the severe damage caused by a foreclosure sale.

• May allow you to walk away with equity, if the home is worth more than what you owe

• Reduces stress and legal consequences, since the process ends on your terms rather than through court or lender action.