5 Tips on How to Avoid a Foreclosure in Mission Viejo

Facing a foreclosure in Mission Viejo? Not to worry, just because things look bleak now, that doesn’t mean that you don’t have any options. In fact, there are a few important things that you can do to put an end to talks of a foreclosure for good.

1. Renegotiate with Your Lender

Here’s the low down fact that you may not have thought of, a foreclosure is a lot of work! No lender wants to go through mountains of paperwork and process after process if they can easily avoid it. So, your task is just that, avoid it.

Negotiating with your lenders saves them a great deal of time that they can be spending on something that will ultimately bring the company more revenue. They want to renegotiate with you because it means that they can refocus on the bigger fish. This is the easiest way to avoid a foreclosure because the lenders are actually hoping for the quickest way out of the situation, just like you.

2. Sell Quick

Selling your home is another way to avoid a foreclosure in Missions Viejo, and the best part is that if you find a good deal, you might just make some money too. This is another one of those situations where a considerable amount of time is saved on the lender’s side because they would be trying to find a buyer after foreclosing on you anyway.

A good point to remember after the lender files the NOD (Notice of Default), any legitimate offers you get from a potential buyer must be considered by them. This sale can potentially save you and them a lot of time and money. Be aggressive, if they are foreclosing you need to try to sell your home as if your life depends on it!

3. Deed in Lieu

This option is when you sign the house back over to the bank. Great, right?! Not exactly. It will still affect your credit just like a foreclosure would. This is assuming, of course, that you can get one.

Lenders don’t often grant a deed in lieu because many homeowners will turn around and sue stating that the terms were unclear and therefore didn’t know what they were signing. Also, the second or third mortgage you took out on your house would need to be paid by the lender.

Even if you can document your financial hardship, you’ve had your home on the market for a good stretch of time with no luck, and there are no liens on the house, it’s still fairly rare to see a deed in lieu granted.

4. Have Your Buyer Step Up

There are two other ways that you can save your home from a foreclosure in Mission Viejo that involves your buyer. The first is an assumption and the second is a lease-option. Both are good options but might be tricky to navigate.

An assumption will basically have your buyer pay off the end of your loan. To do this, you’ll need the lender to delete the portion of your loan that requires you to pay off the loan at the time of sale. It may sound complicated, but this is actually a much-preferred option for lenders, buyers, and sellers alike to avoid a foreclosure.

A lease-option is when your buyer, in a manner of speaking, becomes your “tenant” until they can pay an adequate down payment. This agreement is usually for those that don’t have the upfront money, have poor credit and are trying to raise it or are in the process of selling their old house in order to get the funds necessary to purchase your new home.

In any event, you’ll be using their money to aid in paying your mortgage until they can properly take over ownership. A word of caution, though, be sure that you have enough money coming in with total to pay your mortgage and for wherever you will be living while these proceedings are going on.

5. Bankruptcy

Your last ditch effort should always be bankruptcy, especially because all it really does in the case of a foreclosure Is to freeze it until a later date. The way that this will work for you is this gives you time to recover financially by the time the negotiations start for your debt repayment on the home. Don’t go it alone; you should get a bankruptcy lawyer to help you get the best deal possible!

Need More Help?

If you need more hands on tips on avoiding a foreclosure in Mission Viejo, call us at 949-350-0146 or email us at Debrakovacs@cox.net and we’ll help you sell your home today!