Tuesday, March 28, 2017

Foreclosure: Option Two




Foreclosure: Option Two, Pay It Off

Some of these options are more drastic than others, and they all come with unique advantages and disadvantages. We buy houses to help people out of foreclosure, so you know where we stand. But honestly, if you are facing a foreclosure situation, we believe you should be as informed as possible on the alternatives available.


It may not seem the best time to continue our discussion about avoiding foreclosure, but let’s face it, more of us than ever before are reaching what seems to be the point of no return. However, as we mentioned last time, you can take very positive steps to avoid foreclosure without sacrificing your credit or, finally, your ability to buy a home.
We discussed bankruptcy as your first option in our last blog. Now let’s look at another option that just might work for you as well.

Option 2: Make Up Your Payments in a Lump Sum or Installments.

You might be surprised at how much your lender wants to work with you to avoid foreclosure. You see, they stand to lose as much, if not more than you if they have to sell your property at auction. For them, it’s not a very good roll of the dice.
The truth is, they are very willing to work with you. The most common reason lenders don’t work with homeowners facing foreclosure is that the homeowner never asks before it’s too late.
Let’s look at some options.
If you are able to prove to the lender that you can make the payments you have missed plus make your current payments over a period of time (up to 24 months), it may be possible to keep your home. This option requires significant negotiation and discussions with your lender, but look on the up side. You get to keep your home. It’s worth it, don’t you think?
Keep in mind that you will be charged late fees, modification fees and other fees once an agreement is reached. Also, you may be subject to new, higher payments once you’ve renegotiated the terms of your loan. But if you are in the middle of a short-term cash crunch – layoff, hospital bills, emergency – this might be your best option.
If the cash crunch you are in is long term, this option simply may not be possible. the only way you can find out is by contacting your lender. Before you seek this option, be sure you have the cash on hand to pay the up-front fees as well as the patience and persistence to work with the lender.
The upside, you may be able to keep your house. The downside is that this option can be expensive, not to mention time consuming.
Obviously, we’re in the home buying business where we buy houses, fast. We’ll discuss that option in a later post. What is important today is to understand that you can work with your lender to avoid foreclosure. A counter-intuitive statistic is that most financially-pressed families pay off their credit card payments and let their mortgage payments lapse. Yet, when you think about it, what’s more important, your home or your credit rating?
Talk to your lender, today. See if this option works for you. If not, stay tuned.

Thursday, March 23, 2017

Foreclosure: Option One

Foreclosure: What Can We Do?

This is the first SMK Realty Solutions Blog in a series on how you can avoid foreclosure. Some of these options are more drastic than others, and they all come with unique advantages and disadvantages. We buy houses to help people out of foreclosure, so you know where we stand. But honestly, if you are facing a foreclosure situation, we believe you should be as informed as possible on the alternatives available.
It is a tough time. More people today are facing financial decisions they never thought they’d face. An unfortunate, real situation for many of us can be summed up in a single devastating word: Foreclosure. Figuring out how to pay your mortgage much less the rest of your bills can be overwhelming. Whatever the reason, whether you are one or five mortgage payments behind, foreclosure is looming, and you may feel there is no way out.
Don’t underestimate the seriousness of your situation: foreclosure can permanently damage your credit and prevent you from ever being able to buy a home again. You need to exercise one of your options before the bank forecloses on your home and jeopardizes your chances of owning another home in the future!

Option One: Declare Bankruptcy


Declaring bankruptcy is viable option for avoiding foreclosure. But use it only as a last resort. Although you can exclude your home from a bankruptcy filing, you should only pursue it if you know that you will be able to keep up with your future mortgage payments. Otherwise you’re just postponing the inevitable, and the longer you wait, the less money you will walk away with from your property.
Declaring bankruptcy can be costly—legal fees and negotiated settlements can strip you of much needed cash during the process of filing. When declaring bankruptcy you will have the option to declare either Chapter 7, 11 or 13 bankruptcy. These refer to different parts of the bankruptcy law which relate to your degree of debt and your need to renegotiate with lenders. Your bankruptcy attorney will help you determine whether you can truly walk away from all your debts, or only some of them. However, be warned that because you can only declare bankruptcy every so many years, certain future debts might not be eligible even for bankruptcy protection.
So, is it for you? Many homeowners find that declaring bankruptcy is not an “easy way out” and does not eventually save them from foreclosure. A bankruptcy will be reported on your credit report for up to 10 years, depending on how you file.  By declaring bankruptcy, it will be very difficult to get a loan in the future for a car, home or education, or even getting a credit card.
Before you exercise the bankruptcy option, you might ask, “How can I sell my home fast?” or “How can I sell my house for cash?” Consider selling to one of the many companies that buy houses like us, SMK Realty Solutions. It’s a viable alternative that can prevent bankruptcy, salvage your credit, and prevent foreclosure.






Foreclosure: Option Two

Foreclosure: Option Two, Pay It Off Some of these options are more drastic than others, and they all come with unique advantages and...