Root Property Group

What to do when going through a foreclosure process?

This is for information purposes only and not intended and should not be construed as legal advice. All borrowers should seek the advice of professional counsel in making decisions concerning their mortgage loans.

The first piece of advice is NOT to avoid the situation any longer. The quicker you can start making decisions, the better. Before you know it, you will get a notice with a time and date on when your house will be auctioned at the commissioner’s sale. Deciding on an option will depend on whether you truly want to keep the house OR do you want to let it go and also avoid the auction and the credit implications that could interfere with you getting approved for renting or getting finance approval to buy another house in the next few years.

If you decide that you want to keep the house, here are some options.

First and foremost, contact your lender/mortgage company and ask them about programs that are available to assist you in keeping the house. There could be options such as:

Reinstatement
A "reinstatement" occurs when the borrower brings the delinquent loan current in one lump sum. Reinstating a loan stops a foreclosure because the borrower catches up on the defaulted payments. The borrower also has to pay any overdue fees and expenses incurred because of the default.
Loan Modification
This is an agreed upon change to the loan documents by the borrower and lender to resolve a default. Lenders may agree to add back payments to the balance of the loan, change payment options or modify the length of the loan, among other changes, to resolve the default.
Forbearance
This is an agreement where the lender agrees to stop the foreclosure and allow the borrower to catch up payments by making the regular monthly mortgage payment plus and additional amount each month to bring the loan current.

If your lender doesn’t offer these types of programs OR you don’t qualify and still want to keep the house, can you borrow enough money from family or friends to catch up your payments?

If none of the above are options, then you may be faced with the reality that you’ll need to let your house go. Depending on timeline, you can list the house with a realtor and hope to get top dollar on the open market.

If selling your house with a realtor isn’t an option, we can present you with an all cash offer and close quickly. We would pay all closing costs and buy the property as-is. There would be no costs or fees out of your pocket. Call or text us at 502-709-9473 or you can click on the “Home” tab and submit your information for a quick offer also.

If for some reason, selling your house isn’t an option, you can check with your lender to see if they offer the following options:

Deed in Lieu of foreclosure

The lender may accept a deed from the borrower giving the property back to the lender.

Short Sale

If you have a buyer for the property, but the purchase price does not fully pay off the loan, the lender may accept less than the full amount of the loan balance.

As a last resort, Bankruptcy could be an option, however consult with an attorney for the best course of action.

What to do when going through a foreclosure process?

Contact Us