Foreclosure Options

Foreclosure Options- Loxahatchee Homeowner Options 

Are you facing foreclosure on your Loxahatchee home? Are you at a loss as to what you can do? 

Have you been turned down for a loan modification? Or maybe you were on a trial loan modification and suddenly your bank just rejected your loan modification even though you are making payments? Maybe you are one of the homeowners who also were told by their bank that since they were rejected for a loan modifcation now all the missing parts of those payments are now due. But you don’t have the money to make it all up so your bank filed a foreclosure lis pendens against you. This means that you were served with a foreclosure lawsuit. 

So now what to do? 

We are not attorneys and we are not giving you legal advice. We also will not tell you to stop making your mortgage payments. Unfortunately a lot of banks will tell you that you have to be late to get help. 

There are options to foreclosure. 

They are: 

  • Bankruptcy
  • Deed in Lieu 
  • Short Sale 

Out of these most often a short sale is the best option for most homeowners. 

Many people don’t qualify for bankruptcy. The laws have made the rules of bankruptcy much harder on average homeowners. 

Deed in Lieu is a fancy way of saying a foreclosure without going to court. There are a lot of reasons why a homeowner would not want to do a deed in lieu. Mostly it is because it shows up as a foreclosure type of reporting on your credit report. So if you are planning on rebuilding your credit and life in the next couple of years, this is usually not the best option. Also, on a DIL you have to be current on your taxes or pay them off and you have to negotiate terms with any second or third loans you may have on your property because the first lender requires you to give them clear title on a deed in lieu. 

In a deed in lieu you have to move out of your home. 

Short sale is usually the best way to go for most homeowners. Many homeowners qualify for the HAFA program. What is a Loxahatchee short sale?  You can visit this page on our website where we explain what a short sale is. 

This is usually the least damaging on your credit report. If you qualify for the HAFA program you will be forgiven for all the debt that you are short to pay your bank. They will not come after you later on  to pay what you owe them unless they prove you frauded them. You will until the end of 2012 also be forgiven by the IRS of that loss being treated as income for the primary residence. We are waiting to see if this will be extended. 

Some banks also have programs that if you qualify you may get up to $20,000 to help you move out of your home. In a short sale you move out of your house when you close on your house with a new buyer. 

Call Nestor and Katerina Gasset today to help you go over your Loxahatche foreclosure options and discuss the short sale option. This call is confidential. Our phone number is 561-753-0135.