How to Avoid a Home Foreclosure

The Al & Dee Real Estate Team at RE/MAX by the Gulf are they experts in Foreclosure, Short Sales, and provide real estate home services in Biloxi, Ocean Springs, Gulfport, d'Iberville and Gautier.

There are different ways that unforeseen hardships can change the joy of owning a home into an incredible burden. Maybe you've lost your job, or have unexpected medical bills beginning to pill up, or your monthly mortgage payments have increased beyond your current budget. No matter what the cause of your troubles, ignoring the problem won't help, it will only make it worse. You must act quickly to resolve the issue.

We’ve created a web site that explains how to stop bank foreclosure proceedings and offers other options most homeowners are not aware exists.  Visit www.GulfCoastDistressed.com to read about available options before making your first call for help. 

When you call Al & Dee at The Al & Dee Real Estate Team at RE/MAX by the Gulf, your call will be confidential and private. We’ll discuss some of the options available and tell you whether or not a Short Sale would be available in your case. There is no cost to you. Until you are ready to call us, here are a few options you may have:

1.  Other sources of Income: Most homeowners don't realize they have a variety of resources that can aid in making mortgage payments to avoid foreclosure. Consider the income created by unemployment or disability insurance and your savings as possible cash-flow resources. Other examples include slashing the household budget by trading in expensive items like cars, boats, and motorcycles for cash. Even retirement funds can be used, but beware that many people with access to their retirement funds can be penalized for early withdraw and face increased income taxes.

2. Contact your lender right away: If you have reviewed all possibilities of creating cash-flow to pay your mortgage, then it's time to reach out to your lender. Do this as soon as possible! Your ultimate goal in contacting your lender is to create an agreement that will alter your mortgage so that foreclosure proceedings can be stopped before they are finalized.

Possible options to discuss with your lender include:

• Deed in Lieu of Foreclosure - Your lender may accept the return of the title to your home, but beware that the lender may still sue for loss and report any uncollected funds due to loss to the IRS as taxable income to you. This option may have negative effects on your credit report.
• Claim Advance - If you have a private mortgage lender, they will often provide a cash advance to bring your loan payments up to date. Sometimes this money is interest free and may not have to be repaid for years.
• Re-Amortization - In this option the payments you have missed are added to the balance of the loan, making your account current. Your debt will increase and your monthly payments will be higher unless the lender also agrees to extend the term of the loan.
• Short-Sale - Considered by many one of the best options available to avoid foreclosure, the short sale is an increasingly popular option. In this option, the lender accepts less than what you owe on the property, relieving the homeowner of debt. Lenders are often willing to accept a short sale because it greatly reduces the expense and time involved in foreclosure proceedings. In most cases, a short sale does less damage to your credit than a foreclosure. The Al & Dee Real Estate Team have team members that have received the Certified Distressed Property Expert® designation and have helped over 100 families keep their home or help stopped foreclosure action. Most important, he you do a short sale we will not charge any fees as the lender pays all the fees necessary. 

Be aware of any company that will guarantee they can stop foreclosure. The Federal Trade Commission recently compiled a list of warning signs that a "foreclosure fixer" company may be a scheme. Those warnings include any company that requires you to pay for services upfront, tells you to send mortgage payments to it directly, or asks you to turn over the property deed, or tells you to avoid contacting your lender directly. Log on to www.alndee.com for more details.

• The property involved is the current principal residence of the service member;
• That the property was purchased by the service member prior to July 1, 2006
• That the service member was “permanently reassigned” on orders “to a duty station or home port outside a 50-mile radius” of the prior base or installation; and
• The qualifying property was sold by the owner between July 1, 2006 and September 30, 2012 

Usually when clients call us regarding our services, they have missed a few payments and they are in various states of the foreclosure process. We will try to explain what can be done to avoid foreclosure. There are only a few options and here is a quick list:

REINSTATEMENT

This is where the homeowner reinstates the mortgage by paying up all missed payments and fees and becomes current with the mortgage. After all the fees have been paid up then the homeowner can continue to pay the mortgage payments as they had.

FORBEARANCE

more commonly known as a re-payment plan, allows the homeowner to negotiate a repayment of missed payments and fees to reinstate the mortgage.

SELL THE PROPERTY

If there is equity in the property then the home can be sold and the foreclosure can be “cured” thus avoiding the foreclosure. If the home is worth less than is owed plus sales expenses then a short sale must be negotiated (See the section on “Short Sale Explained”).

RENT THE PROPERTY

The property can be rented however the mortgage must be made current. A rental agreement will not stop the foreclosure process. The Al & Dee Real Estate Group preferred management company is Pinnacle Property Management. They can be reached at (228) 374-0880.

REFINANCE

If the credit rating hasn’t been too badly damaged, a refinance may help especially if the monthly payments can be reduced.

DEED-IN-LIEU OF FORECLOSURE

Commonly known as the friendly foreclosure, this involves for the bank to agree to foreclosure and take the property back without the lengthy process.  This is not recommended for properties with equity because the owner gives up the right to the property and any equity. This option is technically still a foreclosure and will show up as such on your credit report. Sometimes the bank will forgo any other recourse but that will also have to be negotiated.

BANKRUPTCY

It cannot avoid the foreclosure but may allow the owner to reorganize debt and stall the foreclosure. Another drawback is that it makes it difficult to sell the property and almost impossible to negotiate with any third parties.

SHORT SALE

Foreclosure Help in Ocean Springs, Biloxi and Gulfport

 Dee Allegue of RE/MAX by the Gulf in Biloxi, Mississippi, is one of two real estate specialists to recently receive the Certified Distressed Property Expert (CDPE) certification.  Although Dee has already helped over 10 families find alternatives to home foreclosure, her CDPE designation now authorizes her to work with lending companies should has Well Fargo Financing, CountryWide Home Mortgage, Wachovia Bank and other mortgage companies.

If you, or anyone you know, has lost their job, is behind on their mortgage payment, owes more on their home than what is worth, or perhaps is relocating with the military or corporate and is in distressed, call Dee at (228) 374-0880.

If you would like to receive Dee’s newest report titled, “Foreclosure. What is Really Means and How to Avoid It!’ it contains topics such as:

            How is Mississippi mortgage foreclosure

            Options available and how to implement effective strategies

            Revealing short sales

            Possible consequences of a short sale

We can sent this report to you FREE of charge by calling our office at (228) 374-0002 or sending Dee and e-mail at dee@ringtheteam.net

Coming soon from Al & Dee is their newest book labeled, “Insider’s Secret: Selling Your Home In Today’s Distressed Market Using Guerrilla Tactics.” Look for it in all the bookstores or reserved your autographed copy.