FORECLOSURE ALTERNATIVES AND OPTIONSThere are several different foreclosure alternatives and options available for homeowners and investors facing foreclosure lawsuits. Depending on what stage of the mortgage foreclosure process you're in and and what your overall objectives are, there may be as many as eight foreclosure options to consider. The realistic foreclosure alternatives are short sales, loan modifications, deeds in lieu of foreclosure, property rentals, bankruptcy, strategic default, defending the lawsuit and doing nothing/walk away. Which option or options are best for you depends on what you're hoping to accomplish in the end making it essential to identify your specific goal.For more information on any of the 8 different foreclosure alternatives and foreclosure options we cover, visit our site pages containing a thorough discussion of each individual option.
Is Your Mortgage Underwater?Before deciding which foreclosure alternative is right for you, the first step is determining if your mortgage is underwater. An underwater mortgage is one in which the value of your loan is more than the amount you can sell your home for and the larger the difference the more likely that your home is neither a good short term nor long term investment.There are several ways to find out what your home is worth including contact with a local realtor to discuss comparable sales in the area, use of online sites like Zillow.Com and others that provide estimated home values based on similar sales and you can always obtain a formal appraisal if nothing else works. Which Foreclosure Option is Right For You?Once you know if your mortgage is underwater and by how much, the next step is assessing your personal circumstances to see if you're prevented from using any one of the eight foreclosure options. Issues to consider include whether your income is likely to go up or down in the near future, do you have any major expenses upcoming like college tuition or new braces for your kids, are there any health issues of concern and do you have realistic options for a new place to live if you decide to give up your home or lose it in foreclosure?Based on your answers to these questions and similar lifestyle considerations, you're ready to decide what's best for you. For example, if you feel that you were misled or taken advantage of by the lender, or if the wrong party is suing you, there may be no option but to defend the lawsuit by either hiring an attorney or defending the foreclosure lawsuit yourself by using the sample documents and detailed instructions we provide to help you. Likewise, if you don't have the financial resources to move to a new home, you may want to delay the mortgage foreclosure process for as long as possible in the hope that your income will improve once the economy improves and you'll be in a better position to resume payments or qualify for a loan modification. Delaying the process may also help provide additional time to find a new place to live or support your decision to declare bankruptcy at a later date if other options fail. Another successful option used by many homeowners is referred to as strategic default which is the decision to stop making mortgage payments-usually for mortgages significantly underwater-as a method to support a short sale request or loan modification to more accurately reflect your home's current value. Regardless of which option you select, we'll provide the information you need to make the right decision and sample documents to help you implement your stop foreclosure plan. Return From Foreclosure Alternatives and Options to Home Page |
