If you are headed towards foreclosure, or are already in foreclosure, you need to know the rights and options available to you now. Only then can you take action to save your house, save your credit or save your equity before it’s gone forever.  

Once you get behind on your mortgage the clock is ticking. The sooner you decide on the best course of action, the sooner you can put this horrible experience behind you and move on with a fresh start. 

First and foremost, if you can keep your mortgage current, do so. But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which options may be available. Some options may not apply to your loan if it is not insured by FHA. Work-out programs with your lender are best utilized if your financial set-back was only temporary and you are once again able to afford all of your bills, including your mortgage.  

As you look for a solution, there are several mistakes that you will especially want to avoid: 

Don’t spend thousands of dollars to have an attorney file Bankruptcy based on the assumption that it will make the foreclosure disappear. Many homeowners will spend a lot of money for an attorney to file a Chapter 13 bankruptcy - which is really a payment plan - only to end up loosing their house. In essence you are paying the attorney, instead of the lender. Before taking action know how much the process will cost and what your new increased monthly payment will be after you file. Also know that if you miss one payment, your Chapter 13 will be dismissed and you will need to attempt to file Chapter 7 - and pay more fees to an attorney. If you don’t qualify for Chapter 7, the foreclosure you thought you could avoid through bankruptcy is right back knocking on your front door. If you are eligible for Chapter 7 and when that bankruptcy has finally been discharged, you won’t owe a cent, but the bank will still want you to sell the house. If you don’t your credit report will still show a foreclosure and will be ruined for years. 

Don’t spend every last penny by agreeing to a forbearance plan (payment-plan) that the lender told you to do. Increasing your monthly payments isn’t going to solve your problem. A lender will increase your monthly payment and call it a forbearance plan, all the while they know that more than 85% of borrower’s will not make the second payment. The lender just wants every last penny before they begin foreclosure proceedings. Make sure you know what your budget is and whether you can afford higher payments before agreeing to a forbearance plan. Also, make sure to have the lender fax you in writing what your payments will be. 

Don’t sign a Deed in Lieu of Foreclosure with your lender. The lender will ask you to do this and lead you to believe it’s in your best interests. It’s not. Your public record will clearly read DEED IN LIEU, which translates to a voluntary foreclosure. Banks promote this method because it saves them money, but it does nothing to preserve your credit for the future. 

These are just a few of the possible mistakes to avoid when dealing with the threat of loosing your home to foreclosure. The best way to avoid foreclosure, is to simply SELL the problem property, move on and start fresh somewhere else. 

If you have a considerable amount of equity and have been unable to refinance and are considering selling. You need to do so as quickly as possible; the foreclosure clock is ticking and won’t stop. Let us help you sell your problem property by pricing it for a quick sale. Unfortunately with the current market and the time-crunch you’re under, we can’t afford to wait for the highest and best offer; we need to aggressively market and price your house so it can sell and sell quickly. Equity takes years to build, but can be wiped out in an instant if your house is sold at the Sheriff’s Sale. You’re better off “taking what you can get” as the expression goes, rather than ending up with nothing. 

If you don’t have any equity, what do you do? You attempt what’s called a Short Sale. The lenders have departments called Loss Mitigation; these departments are responsible for minimizing the lenders losses that result from defaulted loans (this is the same department that can help you do a work-out to keep your home). A Short Sale is getting the Lender to voluntarily accept less than what is owed so you can sell your house and avoid foreclosure.  

The Kite Team works with a company called Property Mitigation Services, LLC which specializes in Short Sale Negotiation. They have a Multiple Approach System that is revolutionary when it comes to helping people avoid foreclosure by selling their problem property utilizing a Short Sale.  

By teaming up with The Kite Team and Property Mitigation Services, we are able to truly offer the kinds of services that homeowner’s facing foreclosure are in desperate need of. PMS can explain the entire process to you and let you decide if a Short Sale is truly right for you. If you decide that, YES a Short Sale is the best option to help you avoid foreclosure; you can rest assured that by utilizing our services as professional Realtors and PMS as a professional debt negotiation service, your chances of avoiding a foreclosure on your credit report are extremely high. But I have to stress again that there are no guarantees that a successful resolution can be reached with your lender, but at least you attempted to resolve your situation by taking action.  

It’s not uncommon for people who know very little about real estate to be skeptical that a short sale will actually work. Perhaps you’re one of these people, and that’s okay. If you’re serious about getting out from your problem property, and tired of being bombarded by postcards, mailers, phone calls…then you’re ready for an effective, common sense, step-by-step plan for moving on to a better future.  

Working with The Kite Team and the experts we’ve surrounded ourselves with, will give you the best chance for that better future. 

Most people don’t realize that a foreclosure on one’s credit report does much more damage than a bankruptcy. In fact, a foreclosure means that you will have to pay two to three times the average rate of interest on any loan for up to ten years! And the bank can still come after you for the difference between what was owed and what the property was sold for at the Sheriff’s Sale. 

Don’t be frozen by fear and uncertainty - feelings all too common by those faced with a problem property. If you want to find a solution, you need to make a commitment to do something - face the issue - and begin moving forward. Analyze your financial situation when you’re done reading this report and decide “should I attempt to stay or should I sell”. Whatever you decide you have to do it quickly, because all of the options available to you, take time.  

If you decide to SELL the best commitment you can make for yourself and family is to work with the best. If you want to learn more about the services we provide call our office right away. We’ll gather a few facts, do a little research and discuss the best possible way to help you sell your problem property and move on with your life.