the Property vs Selling the Property
If your monthly
house payment (including property taxes and insurance) does not exceed
40% of your gross monthly income, it should be possible for you to
keep the property. If the payment is greater than 40% of gross monthly
income, consider selling or transferring the property to avoid
negative impacts to your credit.
NEW!!-- Our newest loan programs may work
even if your payments are substantially higher than shown above. see
The objectives in usual order of
1. Keep the property if possible. The
actions that most commonly allow you to keep your property are as
Bankruptcy -- A Chapter 13
will almost always allow you to keep your home and it does much less
damage to your credit than commonly thought see
To BK or not to BK.
Refinance-- Yes, even if behind in
payments, it can be done. see
If keeping it simply does not
seem to be realistic possibility, contact a--
Investor or examine
2. Don't give away equity if you can keep it or liquidate and put it
in your pocket.
3. If possible, minimize damage to your credit. You
might need it later on.
new options, have you tried to come to terms with your existing
lender? Lenders want the loan to be current, They do not want to have to complete a
foreclosure. Can you make up the defaulted amount over a period of
months? Can you re-write the note and include the defaulted amount?
These are questions you should ask yourself and possibly
your lender if you haven't done so already. They will want to know why
the loan is in default and why you think you will be able to make the
payments in the future. Temporary financial setbacks that have since
been cured are the best candidates for this. Your lender will probably
not be inclined to stop foreclosure proceedings if they have reason to
believe they will have to start again in 6 months.
REFINANCING AND NEW
guidelines will require all home loans will total up to less than 75%
of the current market value of the property. If you have more equity
than that, you should have no difficulty in obtaining a new refinance
or 2nd Trust Deed to bring your loan current. Expect higher interest
rates and loan fees. For a free evaluation of refinancing
possibilities consider contacting, Money Tree Group. They do business in
all states other than NY and they will give you a realistic and
honest opinion of what your options are. If they are unable to
get you the financing you need, they, at least, should be able to
point you in the right direction.
LOANS TO GET YOU
If you experienced
a temporary financial setback that has since been cured and are going
to be able to keep the property, first consider family and friends for
a loan to get current. It's much cheaper than hard money loans, but
MAKE SURE you will be able to pay them back. You do not want to put
them in the position of having to foreclose to get their money back.
Hard money loans are typically private investors who will lend money
based on equity in the property. Credit and income are not issues of
importance and loan approval is usually a matter of days with funding
following shortly. Although, a hard money loan is not the
optimal solution, it is sometimes the only solution. If it
appears that this is the most reasonable alternative based on your
circumstance, these are also available through, the above mentioned Money Tree Group.
amounts will usually be enough to bring existing loans current, pay
the financing costs and put some money in your pocket. Loans can be
amortized over 30 years to keep the payments lower and the balance
will be due in 2 to 5 years.
This is a major
step that should
be a last resort. But often it is the very
best option. See "To
BK or not to BK". If the Notice of Default has just been
recently filed on your
home, you have sufficient time to explore the options for new loans or
selling the property. If the foreclosure sale is going to be held very
shortly, bankruptcy is a very common way to delay or completely avoid
the average person, there are two types of BK which are viable
alternatives. Chapter 7 which is a total discharge of all
debts. There is also, Chapter 13 which basically allows you make
up all past payments on your house over a period of 3 to 5 years thus
allowing you to keep your home.
For an overview of Bankruptcy rules and procedures, please
a difficult house to sell??
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a question? Need advice? Write to the