The contents of this web page are NOT legal advice or a substitute for legal advice.  This is information offered for informational purposes only.
  
Be wary of so-called experts out in the market place looking to turn your "American Dream" into some quick cash. The following are some foreclosure options that you may be presented with and that you will want to carefully consider before pursuing:
Pre-foreclosure Homeowner Options
Below are the most common solutions for Homeowners who are facing foreclosure. Each Homeowner has a unique situation with various circumstances. This section provides you with a definition of the most common solutions. For links to other websites that may be helpful check out our Research Page.
1. Forebearance or Workout Plan with the Lender
Lenders will sometimes give homeowners the option of catching up on missed payments by adding the amount owed to their original monthly morgage bill. The Homeowner must qualify for this and deliver all necessary paperwork o the bank in order for them to approve a forebearance plan. So, as an example, a homeowner owing $6,000 in missed payments and late charges would have to pay that amount back in addition to their normal mortgage amount. Typically, Lenders will allow up to a maximum of 18 months for the money to be paid back to them. This always significantly increases their monthly outlay. Statistics from the mortgage banking association show that 85% of homeowners entering a forbearance plan do not make their second payment.
2. Loan Modification
Another option for the homeowner to retain their home is loan modification. Loan Modification is a permanent change in one or more of the terms of a mortgagor can afford. Homeowners must qualify for modifications as they would qualify for a new loan. Lenders do have HUD guidelines on how they handle the modifications.
3. Bankruptcy
Generally, there are two types of personal bankruptcy: Chapter 7 (liquidation of assets) or Chapter 13 (repayment plan). In either type of bankruptcy, the court appointed trustee will not have very much interest in a property that has no equity. The bank will reaffirm its rights and continue on with the foreclosure process in the case of a chapter 7. In the case of a chapter 13, the homeowner cannot miss one payment of their repayment plan or the Lender can continue to pursue the foreclosure process. The vast majority of Chapter 13's do not make their scheduled payments, thus frequently resulting in a double whammy on the homeowners' credit, Bankruptcy and a Foreclosure.
4. Deed in Lieu of Foreclosure
In the case when there is only one loan encumbering a property, Lender(s) may contact the homeowner to have them deed the property back to them. Some Lenders will sometimes even offer a little financial incentive to do so. A deed in lieu can be a great deal for the Lender as they save time and money, but for the credit conscious homeowner it will show up as a "voluntary" foreclosure on their credit report, e.g. they gave up.
5. Refinance
This is typically the first thing that homeowners who are behind in payments do. The reality is that unless there is a lot of equity (30%+) in the property, the chances of a homeowner getting refinanced while currently behind in their payments are very slim.
6. Foreclosure
When other options are not pursued or a short sale is not accomplished, the property will end up in a foreclosure. The foreclosing Lender takes possession of the property and the original mortgagor has no further rights to the property. The mortgagor could, however, still have financial oblications to subordinate lien holders after the foreclosure.
7. Short Sale
The seller can work with specialized short sale groups such as Short Sale Assistance Group who will negotiate with Lender(s) for a discount on the existing morgage loan amount owed against the property. A Short Sale can help the seller avoid the damage a foreclosure can inflict and jump starts their credit recovery. In some circumstances, the seller could still have financial obligations to subordinate lien holders after a short sale, but is generally significantly less than it would be after a foreclosure if negotiated successfully. Other alternatives are expensive and time-consuming: the short sale process can turn a near foreclosure into a win-win experience for all parties and provide an avenue for the homeowner to start fresh and potentially be able to obtain another mortgage in as little as 2 years.

When you decide to take control of the situation and work with us, we will never charge you any fees.
I know this sounds too good to be true, but we will not charge you any money out of pocket: ever. We will take the financial risk to cover all up-front expenses in dealing with the lender, and lien holders (including the IRS), attorneys, real estate agents and any possible marketing costs.
We will put our money where our mouth is to make the deal work. We profit when we sell the house in the end. If we lose any money we invest in helping you that will be OUR problem: you will be able to get a fresh start.
But in order to begin, you need to make a commitment to yourself to be proactive, take control and confront your problem property. The longer you wait, the more difficult it will be to resolve.
We would love to earn your business with our service and you won't have to pay us anything up front, or along the way. We all win together.