What Are My Options When Facing Foreclosure?????

First, lets start out with what foreclosure means.  Foreclosure is the legal process by which a bank or lender uses to take possession of real estate due to a breach in a contract most commonly for non-payment.  When you enter into a contract with a  lender and you break that contract, the lender has the legal right to take ownership of the property.  If you find yourself possibly facing foreclosure, keep reading as there are some steps you can take to help avoid foreclosure or minimize the effects!
​

Education is Power
The foreclosure process is not usually a fast one, so don't panic... you have time.  You need to take some of that time to educate yourself on what foreclosure is and how the process works. Start by reading the contract that you have with the lender.  Each lender may have a slightly different procedure and time-frames that need to be followed.  Familiarize yourself with these.  Research local and state laws that dictate the process of foreclosure in your area.  It's not a bad idea to consult with a lawyer in your area that is familiar with this process.  Call a few lawyers because most will want you to come in a speak with them for a fee, however you might find one to speak with you over the phone and answer a few questions first before you take that next step of meeting with them.

Contact the Lender
Set up an appointment or call the lender to speak with them about your situation and see if they may be able to help.  Remember, the lender stands to lose more if you default on the loan so it is in their best interest to try and find a solution that works for the both of you.  There are several options that a lender can offer:

Refinance - Take what is owed to the bank and make a new loan/contract with different terms to lower your payment to make it more affordable.

Loan Modification -  This is very similar to a refinance, however the key difference is that you make adjustments to your current loan/contract.

Payment Plane - Where you make your current mortgage payment plus a little extra each month to get caught up.

Forbearance - This is when the lender agrees to suspend payment(s) for a period of time and take them on the end of the loan.  This can give you time to get back on our feet and be able to make the payments again. 

Government Assistance
Try contacting HUD. They have counselors that can work with lenders to help find struggling homeowners an affordable solution to foreclosure.  Another program is 'Hope Now' which is a non profit alliance of counselors and mortgage lenders that work to help homeowners.

Use Your House for Extra Income
Look for ways that your property can work for you!  If you have land  you could rent to a farmer or rent the rights to hunters during hunting season.  Do you have open space?  Perfect!!!  That could be RV and boat storage in the winter months and rental of space to gardeners in the summer months.  But most of us don't have land. No problem!!  There are still plenty of opportunities such as renting your garage or shed space, renting a room and staying with a friend or relative while renting it out through an online marketplace and hospitality service which are accessible via websites and mobile apps (for example: on Airbnb or HomeAway).  Look around your home and see what opportunities you may have!

Short Sale
This is when lender agrees to the sale of your house for less than is owed.  The bank has to agree to the purchase price before is goes through but can be beneficial to all parties involved.  You would be free of the mortgage and would not have to go through the foreclosure process and all the negative affects.  The bank gets some if not most of their investment back in minimizing the loss for them and the purchaser usually gets a good deal on the home.  We bought a raised ranch in Ballston Spa, NY through a short sale.  It is a long process and the bank needs to approve everything, however in the end everyone walked away satisfied with the results!

Sell Your House/Property
If the other options don't work for you there is always the option to sell your house, payoff your mortgage and keep the remainder as profit.  It is better to start over then to face your credit being ruined, your savings being wiped out, and all the other negative affects of foreclosure.  My wife and I have purchased homes in foreclosure before and could possibly help you as well.  We are local to the Saratoga Springs, NY area and buy houses all over the Capital Region.  We can pay CASH and we can save you money on real estate fees. We purchase the house "As Is" so you don't have to make any repairs or upgrades and  you can close on your timeline.  For more information about us and see how we can help you or to contact us, visit our home page at www.chrisandginabuyhouse.com .