Your 6 Options to Foreclosure

Avoiding foreclosure is critical. While a short sale or even bankruptcy can have a lasting affect on your credit for years, a foreclosure, like a diamond, is forever. You won’t be asked “Have you had a foreclosure in the past 4 years?” The question is “Have you ever been foreclosed on?”

The good news is that the investors at Toucan Homes can help. Investors can move faster than traditional buyers and lenders, closing deals in days, not months.

1. Reinstate Loan – This requires the homeowner to pay all of the missed payments (at least 3 months of mortgage payments) and fees to the lender.

2. Forbearance Agreement – The homeowner can work out a payment plan with the lender if the original monthly payment is too high.

3. Loan Modification – The homeowner can apply to be approved for a Loan Modification. This typically works if the homeowner is still capable of being approved for a loan. If they get approved, the total loan may be reduced which will decrease the monthly payments.

4. Deed in Lieu of Foreclosure – The homeowner can turn the deed to the house over to the bank before the auction date is set to avoid having a foreclosure on their record.

5. Cash for Keys Foreclosure – The lender or bank will pay the homeowner or tenant for vacating the house earlier than necessary. However, the homeowner will be unable to purchase a new house for at least 5-7 years.

6. Sell the home/Short Sale – If the homeowner decides to try and sell their property before the house will be foreclosed, on they can either list their house with a Real Estate agent who will show it to prospective buyers, or they can contact a private investor to buy the house directly from the bank. This allows the homeowner to be able to purchase another house within 1-2 years.

 

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