FORECLOSURE INFORMATION

Deed in Lieu of Foreclosure:

sometimes this is also referred to as a “cash for keys” program, because it may be possible to get your lender to give you money to help you move on with your life. If you have incurred a financial hardship and your house has been on the market for 90-120 days, you could ask your lender to consider a deed in lieu of foreclosure. As with most foreclosure avoidance options; your lender will most probably want a complete financial package. Remember, there cannot be any additional liens (other than the mortgage) against the property. If you give your property back to the bank with a deed in lieu of foreclosure, you will give up all rights to the property. In return for the deed in lieu, your lender may waive all deficiency judgment rights.

Short pay-off:

This could be an option if you have suffered a financial hardship and are unable to make your loan payments. Short sale allows you to sell the property to avoid a default loss on the property. Many lenders would rather take a small loss on the property now rather than go through the timely, costly process of foreclosure. Many lenders require a qualified buyer prior to negotiating a short sale. If this is an option you wish to pursue, you must inform the lender immediately and get their list of requirements. There could be tax consequences associated with any short payoff or foreclosure. You may consult your tax advisor for more details. Your lender may want to seek a deficiency judgment for the amount of money left over after the sale. Recently some states have passed laws preventing this. If you are considering a short sale, you should seek the advice of an attorney.

Special forbearance:

If you have incurred a financial hardship and your loan is three months to one year past due, you might be eligible for special forbearance. A special forbearance is designed to provide you with deeper relief than a regular FHA repayment plan provides. If you are approved for this type of relief your repayment would be spread over 12 to 18 months. Type II forbearance is usually reserved for a temporary unemployment situation when the prospect of future employment is guaranteed.

Partial claim:

Eligibility is available to those whose loans are 4 months to 1 year past due. A partial claim enables you to convert your arrears into a subordinate 2nd mortgage between you and the Secretary of HUD. This type of note usually defers payment on the second mortgage until after the first mortgage is paid off. These second mortgages are gives as no interest loans. The partial claim can be for no more than 1 year of past due payments.

Commercial Loss Mitigation Services:

If you have a business or commercial property that is heading towards foreclosure, you can still take advantage of loss mitigation services as a way to stop foreclosure. You should not feel that the only foreclosure help that is available is for homeowners. Commercial loss mitigation firms work pretty much the same way as they do to stop residential foreclosure. In some states, the foreclosure process is different for commercial property than it is for residential property. When you are choosing loss mitigation companies to stop foreclosure of your commercial property, make sure that the foreclosure help specialists understand the law regarding commercial real estate foreclosures.

Just as it is important for individuals do everything they can to stop foreclosure, it is also important for a commercial property owner to do whatever needs to be done to prevent foreclosure from happening. This means seeking foreclosure help through loss mitigation. The first thing that you want to do is to get a free foreclosure evaluation from loss mitigation specialists who are well versed when it comes to commercial foreclosure laws. In most cases, you have pretty much the same choices when it comes to stopping foreclosure, with the exception of government foreclosure help that is geared towards homeowners. But you may be able to get a loan consolidation as well as even qualify for a short sale as a form of foreclosure help to stop foreclosure of your commercial real estate property.

You can get foreclosure help even if your property is already in the foreclosure process, although the sooner that you seek a free foreclosure consultation, the more choices you will have to help you stop foreclosure. The longer you wait, the fewer options will be available to stop the process. This is why you should seek commercial loss mitigation to stop foreclosure from happening to your property at the earliest opportunity.

The worst thing that you can do when you are faced with the foreclosure process is to ignore the problem, although many people surprisingly do just that and end up losing their property to foreclosure as well as seeing their credit go down the drain. In many states, the foreclosure actually leads to bankruptcy, both commercial and personal. Because some people have a personal guarantee to secure their mortgage on their commercial property, they may end up being forced into personal bankruptcy if a deficiency judgment is levied against them. A commercial foreclosure can be devastating to you personally as well as professionally, yet many people do not take the right steps, such as contacting loss mitigation specialists, to prevent the commercial foreclosure.

There is foreclosure help for commercial property owners just as there is for those who own residential property, but timing is everything when it comes to preventing foreclosure. If you want to stop foreclosure from happening, you need to get foreclosure help at the first sign of trouble. Do not hide your head in the sand and watch your commercial property get foreclosed upon - you can regain control of the situation. Get a free foreclosure evaluation for commercial property and stop the foreclosure process in its tracks.