Homeowners and real estate owners who are in foreclosure, or who have received a letter from their mortgage lender's attorney stating that the foreclosure process will begin, or have received a notice of default frequently ask me how they can stop the foreclosure. Therefore, I listed the best ways to stop a foreclosure action below depending on whether you want to keep your home or investment property.
Options if you want to keep your home or investment property:
- Mortgage Refinance - If you have not missed a payment yet you still may be able to refinance into a more affordable loan. You should investigate this option as soon as you know that there may be financial trouble as this option will only remain viable for a short period of time. If your home is worth substantially less than the mortgage(s) you need to refinance this option will not work.
- Loan Modification - Contact your mortgage lender as soon as you miss a mortgage payment and ask about their loan modification options. Don't expect much help, though, as most loan modification requests are not approved.
- Loan Forbearance - If you are denied for a loan modification due to your financial issue being temporary you may be able to get a loan forbearance agreement with your lender. Basically, forbearance is a temporary reduction in your mortgage payment (usually 3-6 months) where the part of the payments that you did not make (i.e. the difference between the normal payments and the reduced payments) is added to the final forbearance payment. Due to the large final payment, this option most likely only a temporary way to stop foreclosure. However, getting the foreclosure stopped is absolutely necessary so that you can review other options (see below).
- Short Sale - A short sale is a sale of real estate where the sale proceeds are not sufficient to pay off the liens on the real estate (usually the mortgage(s), tax liens and unpaid HOA and condo fees). This is the best way to proceed in that you can frequently, but not always, get the mortgage debt(s) fully satisfied and get released from any future obligations. A short sale is also less damaging to your credit than the other options. If you decide that a short sale is your best option I highly recommend that you chose a REALTOR who specializes in short sales (i.e. not a traditional REALTOR, or neighborhood expert), or a short sale investor. In either case, you need someone who knows how to close short sales since they are very different than regular real estate sales.
- Bankruptcy - If you have a lot of unsecured debt (i.e. personal loans, credit cards, unpaid bills, collection accounts, etc.) and just need to buy time to evaluate other options a bankruptcy could work for you. Please know that bankruptcy will not save your home. It will only delay the foreclosure unless the lender wants to work with you. Due to the complex laws which regulate personal bankruptcy, you will need to contact a bankruptcy attorney.
- Deed in Lieu of Foreclosure - Basically, a Deed in Lieu of Foreclosure is where you deed your home directly to your mortgage lender in exchange for them stopping the foreclosure. While this option is better than foreclosure, at least from a credit score standpoint, it will usually not get you released from the debt and probably will not work if you have other mortgages on the property.
Short Sale and Foreclosure Help and Assistance for Homeowners and Property Owners in Nashville TN and Middle TN. If you are a Nashville Tennessee, Franklin Tennessee, Brentwood Tennessee, Nolensville Tennessee, Spring Hill Tennessee, Murfreesboro Tennessee, Smyrna Tennessee, La Vergne Tennessee, or Middle Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact me to discuss your options including a loan modification and a short sale (a real estate short sale occurs when the sale proceeds are not sufficient to pay off all the mortgages and liens on the property/home). I am a Middle Tennessee distressed real estate, short sale, pre-foreclosure (preforeclosure) and foreclosure REALTOR and Expert. I primarily help sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in Middle Tennessee (Rutherford County TN, Williamson County TN, Davidson County TN, Robertson County TN, Maury County TN, Murfreesboro TN, Smyrna TN, La Vergne TN, Eagleville TN, Lascassas TN, Rockvale TN, Christiana TN, Brentwood TN, Franklin TN, Nashville TN, Belle Meade TN, Nolensville TN, Spring Hill TN, Gallatin TN, Springfield TN and Mt. Juliet TN). If you do need to short sell your home or property, or you need a quick sale due to being in foreclosure, you can request short sale and foreclosure help and assistance on my website at Get Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR and Real Estate Expert.