There are several options available to the borrower only if he/she takes the necessary action.

There are several options available to the borrower only if he/she takes
the necessary action.

1. Forbearance or Workout Agreement
   A forbearance allows
   you to temporarily reduce, postpone, or suspend making payments on
   your loan. Interest continues to accrue, and when the forbearance
   expires the unpaid interest is added (capitalized) to the principal
   balance of your loan. A forbearance request must be approved by your
   lender.
   Since one has fallen behind in the mortgage payments there can be
   legal fees, late charges interest accrued and other charges that are
   delinquent.  This is called “Workout Agreement or “Forbearance
   Agreement”.  The loss mitigation department of your mortgage
   company may make arrangements with you to pay some of the back
   payments now and the balance within a certain time period.
   It all depends on the circumstances and the bank’s attitude towards
   the arrangement.
   

2. Reinstate Your Mortgage
   If you call the law
   firm handling your case, they will give you the exact amount to
   bring the loan current. To reinstate the mortgage back, all
   outstanding amounts has to be paid back.  It would include
   interest, legal fees, etc.  You may borrow from your friends
   and family to come up with this arrangement.  Or you may be
   able to arrange a second mortgage to catch up the back payments and
   other costs.  We have contacts that can see if this is a
   possibility for you.
   

3. Get a Brand New Loan
   Generally speaking if
   you have fallen behind on your mortgage payment your credit score
   will be affected and it will be difficult arrange a new financing.
   Be very cautious about sending advance fees of $300-$600 to lenders
   or mortgage brokers.  Usually it is a ploy to take advantage of
   your financial situation.

   Arranging a new loan will depend on your income, credit report,
   value of your home and the amount of the equity in your house.
   Keep in mind that all is that possible if you can do all that in the
   time limit you have up to the auction (foreclosure) date.
   

4. Chapter 13 Bankruptcy
   This is one process
   that can stop the foreclosure process but get some legal advice
   before you do that.  Note that bankruptcy and foreclosure stays
   on your credit report for about 7 years and has to be disclosed on
   every loan application you do in the future.  The choice is
   yours.
   

5. Sell your Home in the Open Market
   Most people try to sell
   the house in open market as FSBO” For Sale by Owner.  That is
   to save the commission and get the most money out of the sale and
   pay off the outstanding loan.

   
   
   You may not have enough time to trying to sell as FSBO or through a
   realtor. 
   
   And this is the time we can step in, buy your house and take care of
   the foreclosure.

   Remember that the when the Lis Pendens notice is issued, this
   process start the clock starts ticking and it may not stop until the
   auction takes place or something is done to make up the outstanding
   balance due etc.
   

6. I Could Buy your House
   Recently, we had a
   young couple who were losing their home in Florida.  After
   meeting with them it was determined that the best option would be to
   list the house with the realtor.  The house was listed with the
   realtor with one exception that if the house did not sell but was
   purchased by us then there would be no commission deduction.
   

7. Let your House be Sold on the
   Courthouse Steps
   The absolute worst
   option is doing nothing and letting the house go to the auction and
   letting the bank take the home back.  If the house is sold
   under market price (typically 30-50%) and the bank suffers loss they
   can file a “Deficiency Judgment” and pursue you
   for the amount of their loss.  We always negotiated for your
   best interest and attempt to have the bank agree to not filing the
   judgment against you.

   Typically ten days after the
   foreclosure auction, a certificate of the title will be issued by
   the courts to the new owner.

   If you have not voluntarily
   vacated your house at this time you could be forced to move out
   within 24 hours.