Special Report – Secrets of How to Avoid Foreclosure
There are too many foreclosures that happen in Nebraska every month. Many home owners lose their home needlessly – it does NOT have to happen to you! You CAN Avoid or Stop Foreclosure! There are alternatives that can quickly eliminate your stress and frustration. You can save your home and the equity you have spent so many years accumulating or you can sell your home quickly, at a very fair price.
The purpose of this Special Report is to provide answers to the most frequently asked questions about refinancing, explain why bankruptcy is NOT the best solution, and give insights into the foreclosure rules and present other solutions.
The Sierra Group, LLC realizes that bad things can sometimes happen to good people. Oftentimes it’s just a temporary setback and all you need is a second chance. Your current mortgage company doesn’t give “second chances” but WE CAN!
There are SIX ways you can start over again and avoid foreclosure. Four of these would allow you to stay in your house and two involve selling your house to avoid or stop foreclosure.
- Refinance with a new loan if you have enough equity and a good job.
- Modify the current loan or work out a forbearance agreement, if you are willing to make higher monthly payments.
- File bankruptcy.
- Borrow the money to catch up the back payments – we can help you get the money. Be sure to ask about our “Amazing No Interest, No Payments, No Payback Loan”.
- Negotiate with your mortgage company to accept a discounted pay off, or “short sale,” so the house can be sold
- Sell your house in 7 days or less, with no realtor commission or closing costs. Our “Mortgage Relief Assistance Program” may be the perfect solution for your situation.
First, we’ll tell you what your options are for refinancing
Q: What is refinancing?
A: Refinancing simply means that your current loan will be paid off by a new loan. The goal here is to make your monthly payment more manageable by extending the term of your loan and/or reduce the interest rate of your loan
Q: I am currently in foreclosure! Can I refinance?
A: Maybe, if you act quickly! You must have adequate equity in your home to refinance. Your loan officer can quickly determine if your property qualifies.
Q: I have BAD credit – Can I refinance?
A: We realize that bad things sometimes happen to good people. Often this is just a temporary set back. The Sierra Group, LLC and its lenders are committed to helping you start over again and helping you save your home if you have equity – even if you have bad credit.
Q: I have no money for closing costs. Can I still refinance
A: Maybe, you can still refinance. You will most likely be required to pay for an appraisal to determine the current value of your home. These fees will vary depending on your type of dwelling.
Remember when you first bought your home; there were a variety of costs involved that you had to pay at closing. When you refinance, these costs can be “rolled” in or added to your new loan. It will make your balance a little larger but may allow you to save your home without any out of pocket expense.
Q: Can I refinance even though my house needs repairs?
A: After your documentation and application to refinance have been received, your loan officer will make an appointment for an appraiser to come to your home and evaluate its value and condition. The appraiser may make a recommendation to the new mortgage company that certain repairs are necessary to ensure the value of the property. Normally the work will need to be completed prior to closing, however, the cost of the repairs can be included in your new loan.
Q: What if I have liens against the property?
(IRS, tax, 2nd mortgage, vendors, etc)
A: The liens typically must be paid off. However, they will normally be included in new loan providing the value of the property will support it.
Q: What will my new interest rate and payment amount to?
A: There are many factors that determine interest rates and payments. The size of your loan will have a lot to do with the size of your payment. Your interest rate will be determined by the lender based on your credit history and the current interest rate. It may even be possible to reduce your monthly payment by extending the term (or length) of your new loan or utilizing an adjustable rate mortgage.
Q: I cannot afford higher payments. How can you help?
A: You may be able to restructure your payments to reduce your payment with a longer term which gives you more time to payoff your mortgage. This may actually reduce your monthly payment and reduce the stress you experienced with your previous mortgage. It is important to be honest and let your loan officer know what your payment limits are so they can adjust your new mortgage to suit your needs.
Q: How long does it take to refinance?
A: Once you have provided all the documents requested by your loan officer in a timely manner, it will typically take about two to three weeks.
Q: The foreclosure sale is next week! How can that help me?
A: Once your loan application is completed and the supporting documents have been received, your loan officer will usually be able to make a commitment to refinance within 24 – 48 hours. Your current mortgage company and/or the trustee attorney in charge of the foreclosure will be notified and a postponement of your foreclosure will be requested. Depending on the mortgage company, they may stop the foreclosure sale for 30 days to allow time to complete the refinance.
Q: Could the mortgage company NOT stop the foreclosure?
A: Yes, unfortunately this can happen. The best way to avoid this is to communicate in writing with your mortgage company and the trustee attorney. Let them know you plan to refinance and request their acknowledgement in writing. Give them your loan officer’s name and phone number in case they have any questions. When they don’t hear from you, they automatically assume you are not planning to do anything to save your home. The longer you wait the harder it will be to stop the foreclosure.
Q: What are my other options? Or, what if I owe more than my house is worth?
A: Depending on the reasons why you fell behind in your payments and the final ”Lender” on your mortgage, there are some other options that may be available to you. Wherever it may be appropriate, we are ready to work with you.
- Temporary Indulgence. You may be granted a grace period of 30-60 days to bring the mortgage current, once you have demonstrated that you will be able to do so.
- Liquidity Plan. This option provides for an additional amount to the normal monthly payment, once the hardship has passed and you can resume normal scheduled payments. The added-on amount is calculated to remove the arrears in the shortest time feasible.
- Repayment Plan. This is an arrangement where the you are able to make payments to bring the loan amount current over time. Variations of the plan include:
- Forbearance Agreement. Under very special circumstances, such as the death of a contributor to the family income, severe disability, or natural disaster, the lender may accept an agreed lump sum payment and then suspend all or part of the regular payments for a specified period of time up to 18 months. Under the most exceptional circumstances, forbearance may be extended to 24 months.
- Loan Modification. One or more of the features of the mortgage are changed, such as the interest rate or the term, to allow you to bring the loan current.
- Assumption of the Mortgage. The “due-on-sale” clause, present in most mortgages, is waived to allow a qualified buyer, like The Sierra Group, LLC to take over your delinquent mortgage.
- Pre-Foreclosure Sale. You are allowed to sell the property and pay off the mortgage. One version of the pre-foreclosure sale is the “short-sale” where under terms approved by the lender, you are allowed to sell the property, and the lender accepts the proceeds for full satisfaction of the mortgage obligation even though it is less than the balance of the mortgage debt.
We can help you to determine if you owe more than your house is worth, and to complete the necessary paperwork for the lender. If the lender then approves the short-sale, the foreclosure will then be stopped and we may be able to buy your house or find another buyer.
Q: Can’t I just file bankruptcy to stop the foreclosure?
A: Yes, filing bankruptcy will stop the foreclosure process – but only temporarily. Bankruptcy is NOT a cure to your problems – it may only add to them. Once you file bankruptcy, you may be required to immediately begin making your regular payments, PLUS the judge may require you to start paying back all your arrears in monthly payment to the bankruptcy court. So, you may be right back to making much larger payment than you did before you got behind on your payments. If you’re late or miss just one payment to the lender or the court, you’ll still be right back to a foreclosure date.
As you can see, it’s really not a solution, it may just compound the problem by causing you to pay more each month than you are now. A bankruptcy, like a foreclosure, will be a blemish on your credit report for a long, long time. In fact, a bankruptcy can prevent you from getting certain jobs or cause you to lose the job you have.
Q: What about getting a loan for the back payments?
A: Most traditional lenders will not lend to someone who is behind on their payments already. You would be a credit risk. You can sometimes find lenders who will lend you money at high interest rates with high loan costs but this would only be a “temporary fix” because you would have another payment to make in addition to your current mortgage payment.
We have access to private lenders who will consider lending money for the back payments at a much lower interest rate and with no monthly payments. In exchange for no payments, a low interest rate and no loan costs, the lenders obtain the right to buy your property at a future date when you might want to sell. In many cases this has made the difference in a homeowner saving their home or losing it.
Another program we have available is the “Amazing No Interest, No Payments, No Pay Back Loan”. With this program, the homeowner gets the money to cure the delinquent payments and never needs to pay back the money. In exchange for providing this money, the lender is given the right to buy your property at a future date. This program gives the homeowner relief by making the loan current without needing to make payments and never needing to pay back the money. Certain conditions apply, but it’s worth a call to see if your property qualifies.
Q. What if I just want out…can you help me?
A: YES, with our BRAND NEW MORTGAGE RELIEF ASSITANCE PROGRAM. There are certain situations when homeowners just want out of their mortgage obligation and would like to save their credit. Job loss, divorce, illness, and salary reduction are common situations where homeowners might be better off must moving out of their home and letting a highly qualified company continue making the mortgage payments. This keeps the homeowner in good standing with the mortgage lender, allowing you to purchase another home in the future. Just ask us for more details about this great program that quickly allows you to get out from under your house payments and move on with your life.
Consider Your Alternatives
You could do nothing and lose your home, AND all the equity you have in your home. After the foreclosure sale you may be forced to vacate the property in as little as three (3) days. Where would you go? What would you do?
If you have decided you don’t want to (or can’t) refinance and are ready to move but just need more time. Please call me. Please know that I can’t help everybody. We will make a fair offer to buy your home and allow you time to find a new home without the pressure to move quickly. This could allow you freedom to make choices and put YOU in control of your future!
The Bottom Line
The longer you wait to make a decision, the harder it will be to stop the foreclosure. Everyone at The Sierra Group, LLC is dedicated to helping you save your home or find an easy way to sell quickly. Hopefully the information in this report will help you evaluate your alternatives; but only you can make the decision to call for an appointment. You must act quickly! If you do nothing you will lose your home! Please call us at (855)-291-5005 today to make an appointment to discuss your options.
Note: The Sierra Group, LLC and its members are NOT a foreclosure consultant or attorney. No legal advice will be given.
The Sierra Group, LLC is a professional home buying company who has been providing solutions for home sellers for over 20 years. We are Veteran owned and operated and have an A+ rating with the Better Business Bureau.