At Fennec Advocates we regularly work with homeowners to prevent foreclosure on their homes. We are frequently asked, often at that last minute, 'what are my options?'.
Every situation is unique, and we always seek to schedule a one-on-one consultation to determine the best path available. However, solutions generally fall into one of 5 or 6 categories:
- Reinstate: Paying the amount in arrears to the lender. In most situations, if this was an option things would not have progressed to the point of a pending foreclosure.
- Deed in Lieu: Your lender may agree to allow you to voluntarily sign the deed of your home over to them to avoid the foreclosure process.
- Bankruptcy: Filing for bankruptcy immediately stops the foreclosure process. Legally your lender, like any other creditor, is prevented from pursuing any collection action including foreclosure. Many misconceptions generally exist surrounding bankruptcy, however. Bankruptcy can buy time to work out a repayment plan if you have faced a temporary hardship.
- Modification: Your lender may approve a repayment plan to catch up on the arrears and eventually pay off the loan in full. This can be another good option if you have faced a temporary setback, and are now able to afford what will most likely be your regular monthly payment plus an additional amount to cover the arrears.
- Short Sale: If the value of your home is less than the total amount owed, your lender may agree to a sale for less than the total amount owed. This allows the seller to have more control over the process and potentially get extra time to relocate, there may be additonal funds approved by the lender to help relocate, and you can be relieved of a deficiency judgment and further collection measures.
- Traditional sale: If the home has equity (the value of the property minus the cost of needed repairs/maintenance is greater than the amount owed), and there is enough time available (generally at least 45-60 days), listing your property with a licensed Realtor will often net the highest sale price and control over the relocation process.
Whether you are in the Southern California region or elsewhere, Fennec Advocates is happy to speak to anyone about their options to stop foreclosure at no cost or obligation. Please reach out to us or a licensed professional in your area to work out the best possible long-term solution before its too late.