Facing foreclosure what to do
If a bank or lender threatens you with foreclosure, what are your options? Are there foreclosure alternatives available? In general, the answer is yes — it may even be possible to stay in your home. Foreclosure options are available that can prevent the black mark on your credit record that often results from a court-ordered sale, and if you choose your path right you may even come out of the process with a better credit score than when you started. How is this possible? Before we go into details, first, it’s important understand a few things about how foreclosures work.
Options instead of Foreclosure – Lenders like Foreclosures even less than Homeowners do
It may sounds surprising, but lenders actually like foreclosures less than homeowners do. The reason for this is that foreclosing is generally a lose-lose proposition. You lose your home, and the lender loses a significant amount of time and money going to the courts to force you out of it.
As a result, while lenders could foreclose after you miss a single payment on your mortgage, they rarely act that quickly. Because of the time-consuming nature of the foreclosure process, lenders would much rather reach a compromise with the homeowner. It is well worth contacting the lender to try and work out an alternate payment schedule that will bring your mortgage current without them needing to resort to foreclosure.
As a rule, lenders only resort to foreclosure as a way to stop themselves from losing even more money — if they believe they will not be able to recoup the mortgage. If the situation does go to the courts, you can expect at least three to twelve months before you must leave your home.
(The exception to this rule is with a Power of Sale, an alternative process that may be available to the lender in certain provinces and in certain types of mortgages. If your lender is threatening Power of Sale rather than a foreclosure, you must act very quickly. A Power of Sale may be finished within a few weeks.)
How To Stop Foreclosure
The HOS Financial Buy-Back program means that homeowners can continue living in their homes. They will not have to sell!
And, that’s not all. The HOS Buy-Back program allows homeowners to rebuild their credit in the process of avoiding foreclosure. This ensures they’re better positioned to access traditional lenders in the future. Homeowners can even access as much as 90% of their home equity during the Buy-Back program.
As a result, HOS Financial clients can use as much as 90% of their home equity to pay back taxes, take care of bills, consolidate debt, and pay tax arrears.
Qualifying for the HOS Financial Buy-Back program is fairly straightforward. Overall, clients must have a steady source of income and a minimum 10% of equity in the home. Credit rating does not matter — after all, HOS Financial specializes in helping people bring themselves back to good credit health.
How the HOS Buy-Back Program Works
Real estate investors are constantly searching for places to invest their money and help out those who need it. An excellent such opportunity lies with families who face a foreclosure but who do not want to lose their home. An investor, rather than buying an abandoned home with serious problems, can buy a home from someone who is facing foreclosure and then allow them to keep living there as a tenant.
Once the lender has been satisfied and the home is safe, HOS Financial then works with the homeowner to fix the problems which created the financial trouble in the first place. Once the process of credit repair is complete, the homeowner buys the home back from the investor using traditional financing and the process is complete.
As a result of this process, the family doesn’t have to move and they can retain equity in their home. It’s a “win-win” situation — the family can stay in their home and fix their credit, while the investor has a reliable place to invest their money.
What to do when facing foreclosure
If your lender has threatened to foreclose on your home, contact them immediately to see if it is possible to work out an alternative payment plan. Especially if you have missed payments due to emergency circumstances such as losing your job, they may be willing to work out a plan that fits everyone’s needs.
In some situations, unfortunately, the lender might simply ask for their money back. If this is the case, HOS Financial can help you fix the situation — finding you an investor to finance your home, repairing your credit, helping you settle your debts, and positioning you for future success. If this sounds like what you need, contact HOS Financial today.