5 Options You Have as a Homeowner to Stop Foreclosure Immediately!

With the economic shifts and an unforeseen pandemic, the American people faced a bulk of hardships within a very short amount of time. This has led to a large amount of job loss, career shifts and relocation around the country. Not to mention all of the people that have dealt with health related setbacks over the past couple of years.

Currently 6% of American borrowers are currently underwater on their loans. This means that they are either late on their house payments to the bank, or they have already been served a Notice of Default from their lender.

What does this mean?

The short answer is that people are looking at creative finance opportunities to stop the foreclosure before it’s too late, but we will get into that more later.

Let’s first walk through the steps of what takes place to lead to a foreclosure and how you can stop it.

The Foreclosure Process Step-by-Step...

Default on Payment

Hard times, economy, job loss, family tragedy and many other circumstances are typically the cause of missed mortgage payments. Once you have missed one payment on your mortgage you can be considered into payment default. Each lender varies in terms of their definition of default, and usually if you only missed one payment they 

Public Notice is Served (NOD)

A public notice is usually issued after 3-6 months of missed payments. The lender will record a public notice to the county recorder's office indicating that the borrower has defaulted on their mortgage. This is also referred to as a NOD or Notice of Default.

Pre-Foreclosure

After receiving a NOD (Notice of Default) from the lender, the homeowner enters a grace period known as pre-foreclosure. During this time, the homeowner has the opportunity to catch up on payments or make another arrangement. In the states of Ohio and Kentucky, this grace period lasts 120 days. In other states, this timeline can be anywhere from 30-120 days. Again, this process will vary from lender to lender in terms of how it’s handled. 

Notice of Sale

The process for initiating foreclosure varies state to state. In the state of Ohio and Kentucky, it follows the Judicial Foreclosure procedure. 

Here are the two kinds of foreclosures…

Non-Judicial Foreclosures can be done and they only require filing paperwork with the necessary court to start the process. This method can allow the foreclosure to take place fairly quickly. 

Judicial Foreclosures, which require court approval for each step—meaning the process takes a bit longer. This foreclosure process is handled completely  through the local court system. The court appoints a referee to conduct the foreclosure auction on the courthouse steps.

Property Goes to Auction

Once you have been notified and your grace period has ended, your property is now placed up for public auction. The property will be sold to the highest bidder who meets all of the requirements. The lender the home is under (or firm representing the lender) will calculate an opening bid based on the value of the outstanding loan, any liens, unpaid taxes, and costs associated with the sale. Once the bidding is over, the sales process will begin for the new purchaser through the bank/lender.

Eviction

Once the auction is complete. The new owner will be named. If the property did not sell, then the property will default to the lender. The homeowner will be issued an order to evacuate if they are still living in the property. This eviction notice demands that any persons living in the house vacate the premises immediately.

Now let's discuss the 5 Options you have to 🛑STOP your foreclosure...

#1 Contact Your Lender ASAP

Discuss with them about what’s owed and how you can get caught up on payments. If you are struggling to get caught up on payments, then keep reading.

#2 Review Your Options

Consider a loan modification, a repayment plan, a reinstatement, forbearance and any other options available to you. It’s time to put your thinking cap on. You only have so long before you receive a NOD and go into the “pre-foreclosure” period. If you truly want to rectify these payments, then you need to act quickly.

#3 Refinance Your Home

If you are struggling to find options, please contact us immediately in order to start the discussion on what options we can help you find. This option isn't for everyone but is something you want to consider before it's too late.

#4 Sell Your Home Fast

Getting your house listed on the market is not an option, especially if you have already received your Notice of Default. You need to either seek out a Private Cash Investor, or talk to us at 513 and we can give you a fair market offer for your home. If you are located outside of the areas we serve, then we will put you in contact with a local Private Investor in your area that will not give you a low-ball offer.

#5 Find a Creative Financial Arrangement

Talk to a Private Home Investor about a creative arrangement with you. There are many people who want to stay in their home, but need help catching up on their back payments. A creative financial arrangement still gives you the control to live in your home without the fear of losing it.

Talk With Our Team at 513 Home Investments

We understand that this is not an easy situation and we want to help in the way that serves you the best. If you have already been served a notice of default we urge you to contact us immediately. The faster we can start a conversation, the higher chances we can help advise you on your next steps. We understand this is a sensitive topic, and we want the best for the residents in our local community!