Even at this stage in the game of foreclosure, you know, when you have missed three or more mortgage payments, or your lender has filed a Notice of Default (NOD), you are probably thinking that losing your home is inevitable. But, there are five strategies that you can use that may help stop foreclosure in Dallas, Tx. Let’s have a look and see if nay fit your needs.
Too Late To Stop Foreclosure in Dallas, Tx.?
A Foreclosure Workout: Some lenders will work with you so that you can keep your home. Remember, lenders are not property owners, they are money lenders, banks. Usually, all the up to the time your home is scheduled for auction and sold, most lenders would rather work out a deal that would benefit both you and the lender, which will allow you to get back on track with your mortgage payments, as opposed to taking your home in a foreclosure. Stop foreclosure in Dallas, Tx.
There’s the Short Sale: So, after your lender files a Notice of Default (NOD), but before they actually schedule an auction date, should you receive an offer from a buyer, your lender must consider the offer. Keep in mind that if the lender does follow through with the foreclosure, they will still need to turn around and sell the house in order to recoup they’re money lost. Now you present the lender with a reasonable purchase offer from an investor or other buyer, they may see it all as saving time, effort and trouble of finding a qualified buyer themselves.
So, if your home is on the market, continue to aggressively seek out buyers and investors, even after you lender starts the foreclosure process. Read the guide, “How to Save Your Home When Foreclosure Looms” for action steps that you can take to sell your home fast in Dallas, Tx., then make your best pitch as to why your lender should agree to a Short Sale on your property.
Bankruptcy: Yes, bankruptcy will stop foreclosure in Dallas, Tx., in it’s tracks! Federal Law does prohibit any debt collector including mortgage lenders, from contacting you while in bankruptcy. Of course after you have filed a bankruptcy petition. Foreclosure is considered a collection activity, so the day your lender is aware of your filing bankruptcy, the foreclosure process will effectively become a frozen account.
With that said, here’s the deal, once you get to court, the bankruptcy trustee’s role then is t obe the referee between you and your creditors. Bankruptcy simply buys you more time to replace your job or recover financially from a temporary set-back or disability. It does not let you off the hook from your debts. The Texas Foreclosure Law requires your mortgage company and others to work in ngood faith with you to formulate a reasonable re-payment plan so that you can get back on track. You must consult with a bankruptcy attorney regarding whether filing for bankruptcy is a good option for your situation.
Deed in Lieu: A deed in lieu of forelcosure is exactly what it sounds like. Should you be facing foreclosure, as the homeowner, you can sign the deed back over to the lender or bank voluntarily. Now, this may sound like it would be a great option, but acutally it has the same impact on the homeowner’s credit that the foreclosure would. Though it does stop foreclosure in Dalas, Tx.
Lenders today are very reluctant to agree to take back the home through a deed in lieu of foreclosure for severalreasons.Some fear the homeowner will sue later down the road alleging they didn’t understand exactly what was going on, the lender must pay any second or third mortgages or home equity lines of credit (HELOC’s) off before executinga deed ni lieu, and lenders want to be certain that the borrower’s financial distress is real. Just allowing the foreclosure to proceed is one way th elender can be sure the borrower is not faking the system.
So, a deed in lieu of foreclosure is many times not accepted by the lender unless, foreclosure is imminent, the owner has had their home on the market for several months and been unable to sell it, there are a few or some junior loans or liens on the lender will have to pay off, the seller can document their financial hardship,and the seller initiates the process and documents the voluntary nature of their request for a deed in lieu. Even when all these factors are in place, still many lenders will not agree to a deed in lieu. But you must try!
Stop Foreclosure in Dallas, Tx.
Assumption-Lease Option: Many loans today are no longer assumable. The average mortgage now contains a ‘due on sale’ clause by the lender which the borrower agrees to pay the loan off in full if and when they transfer the property to another buyer. However, if you are facing foreclosure, you may be able to persude your lender to do a modification to your loan, delete the clasue all together and allow another buyer to assume your loan. Most all lender will then want access to the new buyers qualifications, though it canbe a win-win option for involved including the lender. At that point, you may be able to negotiate a down payment from the buyer which you can use to pay off your outstanding past due mortgage balance.
In the elase option scenario: the new buyer becomes the tenant, and you will continue owning the property until the new buyer has saved enough down payment money, improved their credit sufficiently enough so as to get a loan to purchase the home, or sold their old home.
Some situations now have the buyer make a one-time, lump option payment upfront, which will pay you to obtain the option to purchase your home. You can apply the option payment to bring you rmortgage current. Then,the new buyer will make lease payments monthly which you the seller, then apply to your mortgage. To successfully use a lease option to stop the foreclosure process, you must renegotiate elase payments that cover most or all of your mortgage payment, property taxes and homeowners insurance. Or enough that you can make up the difference and still pay to live somewhere.
We hope this helps in your efforts to stop foreclosure in Dallas, Tx. For more information lease follow the links below.
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