Foreclosure Frequently Asked Questions
I am in foreclosure or Power of Sale. What are my options?
- Get your Bank to refinance your Mortgage and include any arrears in the Re-write. In today’s lending environment where lending rules are very restrictive…the chances your Bank will rewrite your mortgage are slim to none..
- Apply for a Secondary financing to get you out of the Foreclosure or Power of Sale Process. The “high’ risk associated with this type of financing is you “must” be able to pay off this secondary financing in a year. If you have Credit Challenges your Credit Score will likely prevent you from securing a New Mortgage to be able to pay off this secondary financing and you will then be in a Power of Sale or Foreclosure Position with the Secondary lender and you are now experiencing financial “déjà vu”…meaning you are in the same position now as you were before you took the secondary financing…you will be facing Power of Sale or Foreclosure again soon.
- Selling your home…NO…this is NOT your only option left.
- Use the revolutionary concept known as Refinance Buy Back…stay in your house…pay off the existing Mortgage Lender and all Personal debts…fix your Credit rating and go into a Traditional Mortgage again in 2-3 years. This process allows you to stay in your home…preserve your home equity…fix your credit issues and get a prime rate mortgage at the end of the program.
The public consensus when facing Power of Sale or Foreclosure is to sell your home before the bank takes it.
Question: Why would you sell your home? Why would you give away the equity in your home? Do you want to sell your home because history has taught us when facing Power of Sale or Foreclosure you must do so?
Answer: Selling your home is not the best option if you want to stay in your home. HOS Financial has a revolutionary system that allows homeowners who are facing Power of Sale or Foreclosure to:
- Stay in their home
- Preserve the hard earned equity in the home
- Fix any Credit Issues which may be present
- Move into a Bank Mortgage in the future
Do I lose title to my home?
Yes…when you go through our Lease Buy Back program the title stays with the Investor who funded your application.
However, you are never without legal right to the title of the property as the Purchase and Sale agreement to buy the property back is signed “before” the Lease Buy Back program is started.
What is the maximum Loan To Vaue?
As a general rule it is capped at 90% of the property value but on exceptions we can consider 95%
What is the Interest Rate?
There is no Interest rate used when calculating payments. Our Payments are based on lease factors which adjust according to down payment, location and overall risk of any application.
Our payment includes a portion for Down Payment Top Up (20% of total payment – included in payment total when quoted), Property Taxes, Home Insurance.
What are the Fees?
Be prepared for the following expenses:
· Appraisal Report
· Inspection Report
· ILA – Independent
What happens if I am not in a position to buy back the property when the lease Buy Back period ends?
If the issue is related to an unexpected life event during the lease but you have made your lease payments on time, we can extend the lease until you get by the life event and get back on track.
If you have missed payments or have failed to follow the Credit Management, you are at risk to lose your Down Payment and accumulated Option Credits.
What if I have BAD Credit…can I still qualify?
As the home will be your future home and as you are the tenant, you will be responsible for the upkeep of the property.Before any Rent to Own program is started, there is a Home Inspection completed. This Inspection is to ensure all parties to the program understand the condition of the home.
If there any repairs to be done before or after close, the repair schedule is agreed to before the program starts. This schedule will outline the repairs, estimated costs and who will be responsible for their completion.Once the program starts, the maintenance of the property will be as detailed in the Lease Agreement between the Tenant and the Investor/Funder.Again, this will be your future home so keeping it in a good state of repair will benefit you are the end!
Who is responsible for Maintenance and Utility Bills?
When you make a Rent to Own Payments to your Investor/Funder, the Investor is expected to use the funds to make sure the Property Taxes and Home Insurance are paid on the Property.
Can I buy the house back early?
You get to choose the home with your Realtor. We do not force Tenants to use our Realtors and honor the relationship you have with your Realtor.
If you do not have a Realtor, we have been working with Rent to Own trained Realtors for years and can make 3 referrals to you if needed…you pick the Realtor and the home!
How long does it take to finalize my application?
As with any Property you will own, you want to make sure the “bones” of the property are strong. Things like Roof, Doors and Windows and Mechanical Systems.
As this will be your home, you are expected to arrange and pay for a home inspection as part of the process.
If you need help selecting a Home Inspection company, we have references which can be provided.