Uh oh! It looks like the bank is foreclosing on my home! What are my options?

If it looks as though your home is facing foreclosure, there are some options to this situation.  Try to look at the situation from a financial situation rather than an emotional one.  Also, act quickly as time is of the essence! 
                                                Nine options when facing Foreclosure

1.  Do Nothing-If you do nothing, you will likely lose your home at the foreclosure auction.  This will affect your credit and loan applications generally ask if you have ever been foreclosed upon.  There are other damaging effects for foreclosure.
2.  Pay off/ Refinanace-Completely paying off the entire loan plus any default and fees.  This is usually accomplished by refinancing.  With this option, you need to have equity in the home.
3.  Reinstatement- Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4.  Loan Modification-Contact the existing mortgage company and see if you qualify for the modification.  This can include refinancing or extending the length of the loan.
5.  Forbearance-Lender may be able to arrange a repayment plan based upon your financial situation.  Contact the existing lender to see if you qualify.
6.  Partial Claim-  This would require that you take out a 2nd loan for the back payments, costs, and fees.
7.  Deed in Lieu of Foreclosure-  Give the property back to the bank instead of the bank going through the process of foreclosure.  Banks require that the loan payments be current, home in good condition, taxes be current.  Most people ask me if this has ever happened???
8.  Bankruptcy- This option can liquidate debt and/or allow more time.  I can refer you to a qualified bankruptcy attorney.
9.  Sale- If you have equity in the home, this would be a conventional sale which would allow you to walk with profits from the sale.  If you owe more than your home is worth, you have 2 choices.  The first is a short sale where I work with your lender to accept less than what is owed.  The lender pays realtor fees and other fees that go along with the sale.  The other choice, is to do a conventional sale and bring in the extra amount that is needed to pay your loan in full.  This is usually not an option with most people especially if you are not able to make your house payments.

Let me know if you have any questions on any of these!
Brandi