Stop Foreclosure – Are You Behind On Your House Payments?
Have you fallen behind on your house payments? Have you been served a notice of a foreclosure lawsuit? Do you want to stop a foreclosure in the Tulsa area?
The clock is ticking and when it goes off, you will lose your house. There is a limited amount of time for you to take action. Here are your choices:
Cure The Note(s)
To cure the note, you will need to pay the lenders the total of all the back payments and the legal fees that have accumulated. This will stop the foreclosure and let you keep your house. However, most folks don’t have the money to do this.
Negotiate a Loan Modification
There are several versions of loan modification:
- Forbearance: This adds your delinquent payments to the balance of the loan and recalculates the payments. This is the equivalent of moving the back payments and legal fees to the end of the loan.
- Principle Reduction: This changes the balance of the note. Basically, the lender and you agree that the balance is too high and should be reduced. This will lower the payments – hopefully to a level that is affordable to you.
- Interest Rate Reduction: This changes the interest rate on the note. Again, the lender and you agree that the interest rate is too high and should be reduced. The resulting payments will, hopefully, be affordable to you.
- Combination: This loan modification is a combination of the above mentioned types. This can have the greatest impact on the payments that you are required to make.
The unfortunate reality is that loan modifications are not working as a way to stop foreclosure. Well over 80% of the folks that have gotten a loan modification are again behind on payments within 1 year.
Sell your house
Not surprisingly, there are different ways to sell your house when you are behind on payments:
- Cover the Note: With this type of sale, you sell the house for an amount that pays off the lender (and perhaps leaves you with some money). This kind of sale is not very common these days since the market has pulled back quite a bit.
- Bring Money To The Table: With this type of sale, you accept an offer that is less than what you owe. In order to satisfy the lender, you bring the extra money to closing so that the lender is paid in full.
- Short Sale: With this type of sale, a buyer offers you less than what you owe. You accept the offer, subject to approval from your lender. The lender has to agree to take the offered amount as the full payoff on the note.
- Sell For Payments: This kind of sale is also referred to as ‘subject-to’ because the buyer agrees to take title to the property subject to the existing mortgage. Basically, the buyer and you agree how the delinquent payments will be paid to the lender and then the buyer takes title to the house and makes the rest of your payments on time. One of the advantages you get from this version is that your credit is repaired by the buyer’s payments on your note.
How We Can Help
We have helped stop the foreclosure for a lot of people who are behind on their payments. With some of them, we have helped them get loan modifications. In the majority of cases, however, we have bought the house with one of the methods described above.
Please fill out the form on the right to let us know about your property. We will give you a call shortly and we can solve your house problem.