Home Foreclosure Questions | Common Answers To Foreclosure Questions
What should I do when I get behind on my mortgage?
1. Don't ignore the phone calls and letters from your lender. This is the best way to wake up to a knock from the Sheriff telling you to vacate the home. Take this matter very seriously and work to resolve the problem as quickly as possible. Keep track of all correspondence you receive for later reference.
2. Stay in your home. You may not qualify for foreclosure help if the house is vacant. Your home, if proved vacant, can be seized. Stay in your home!
3. Contact AFS to discuss what the best foreclosure solutions are for you. We will negotiate on your behalf with the mortgage company to get your loan back in good standing. We understand the system, the foreclosure laws and the chain of events necessary to work toward helping you keep your home out of foreclosure. We will gladly walk you through them in a non-threatening way.
Foreclosure Timeline – Once you become 90 days past due the mortgage company will typically issue a NOD (notice of Default). After you receive this notice they will hire an attorney and begin the foreclosure with the court system. The foreclosure must follow a strict procedure laid out by your state laws. Eventually the house will be sold at auction if nothing is done to stop the foreclosure. The timeline will show the time frames between the NOD and the actual sale date for the property. These time frames are typical and may vary depending on your actual situation.
What are my options?
1. Reinstatement - Pay the mortgage company all of the back payments to bring your mortgage current. This option is rarely attainable. The mortgage company will add late fees and attorney fees on top of your back payments making this amount much more than people are able to come up with.
2. Workout - We can negotiate with your mortgage company to bring your loan back in good standing. There are many options available to us to get a work out approved. Some examples are as follows:
a. Forbearance - We will try to arrange a payment plan based on your financial situation. This is mostly used in the instance of a tragedy or temporary loss of employment.
b. Loan Modification - We may be able to adjust the terms of the loan to meet your financial situation.
c. Partial Claim - You may qualify to have the repayment amount applied to the end of the current loan and resume normal payments.
3. Refinance - We have worked with very reputable lenders who can give loans on mortgages that are in foreclosure if there is enough equity available.
4. Sell Your Home - You may simply sell your home before the Foreclosure Sale Date. Sometimes the homeowner is unable to sell the home outright at the desired sale price and this is not an option. We may be able to negotiate a Short Sale on your behalf with your mortgage company. In this instance the mortgage company may take less than what you owe on the loan to avoid a lengthy and costly foreclosure process.
5. Deed-in-lieu of Foreclosure - We can arrange for you to simply give the home back to the mortgage company and walk away with a clean slate.
6. Bankruptcy - This is a last resort. This will only save your home temporarily. If you miss one payment during this process the lender will put you right back into foreclosure. This is like putting a band-aid on a bullet wound... we will still need to come up with a permanent repayment solution to get your house payments back on track. We can put you in touch with an attorney to file the necessary paperwork.
7. Foreclosure - You may elect to allow the home to be entered into mortgage foreclosure. This is the most damaging to you. The mortgage company will take your home and all of your equity. If there is no equity, they may come after you to pay the shortage or “deficiency”. This is also the most damaging to your credit and your ability to acquire another home loan.
It is important to note that the Workout Options available to you may be limited dependent on the following factors:
1. The type of loan that you have
2. Which investor holds your note, and
3. Which mortgage insurance company insures your loan (if you carry mortgage insurance on your loan)
Why use us?
Unlike other foreclosure solution firms, we are not trying to buy your home when you are vulnerable and in need of help. We will analyze your situation and offer proven foreclosure help to potentially save your home. We will negotiate with your mortgage company to work toward stopping foreclosure, saving your home and resolving your case. We call ourselves “Specialists” because we SPECIALIZE in helping people get out of foreclosure.
Our name, American Foreclosure Specialists, is the name that you can trust.
Visit our testimonials page to see what our past clients have to say about us.
What is the charge for your firm’s services?
A consultation with one of our professional foreclosure advisers is always free. We will evaluate your foreclosure situation and be able to inform you of the costs for any additional services your particular situation requires. Often, our consultants will put you in a direction that will be totally free to you. However, if you require our full services, our fees begin at $295.00 and can go up from there depending on your situation and your needs. Our services are very inexpensive in relation to the value of your home. The one thing you need to decide is how much is your home worth to you? What price would you pay to save your home?
How do you get a Deed-in-Lieu of Foreclosure?
In Deed-in-Lieu of Foreclosure, we can negotiate with your lender to voluntarily give your property back to your mortgage company and your debt or deficiency is often forgiven. This won’t save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure.
What does Foreclosure Forbearance mean?
In Forbearance, we are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions. Lenders may agree to combine your Forbearance with Reinstatement or a Repayment Plan if you know you can provide the needed funds to bring your account current by a specific date. This plan works for people who have just experienced a sudden living expense increase or income loss. We will negotiate with your lender to explain this hardship and hopefully get you the time you need to readjust your spending and recover financially.
What are the right foreclosure solutions for me?
Our consultants look at every case individually based on your financial situation, past and present. Do you need help to stop your foreclosure, keep your family in your home and establish a financial plan that will keep your credit in best standing and also at a level that is comfortable for you? We don’t want to give you a band-aid but a permanent foreclosure solution. Although many options exist, the only one that is right for you is the one that best fits your financial situation.
What is a Foreclosure Loan Modification plan?
The term “loan modification” refers to a readjusting of your current mortgage. If you can currently make your regular payment, but you can’t catch up with the past-due amount, we will negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time. Or, if you are unable to make payments at this rate, we will negotiate with your lender to extend your loan for a longer period of time, modifying the loan amount to a more affordable level. A loan modification or loan restructuring will change your existing mortgage note and give you a fresh new start in managing your home. Your account will be brought up to date immediately.
What is a Refinance Mortgage Foreclosure?
Depending on your income, credit report, value of your home and the amount of your equity, we can put you in contact with a new lender to refinance your existing mortgage. Although this might be difficult to secure new financing with a default on your existing mortgage, if you have enough equity in your home, this option might be attractive to a new lender. There are lenders that are willing to give people a second chance.
Although this option may likely create a loan with higher interest rates, a sizable upfront fee and a longer time for pay-off, it may be the best option for you. With your home refinanced, you will become immediately current, the foreclosure will cease and you will be able to enjoy your home.
How much does your service cost?
Here at AFS, we provide free information on our website. Also, we would love to give you a free consultation to answer your questions and discuss what might be possible to help you avoid foreclosure, depending on your situation. If you want AFS to work towards helping to stop foreclosure, we need to have a conversation to understand your situation. We do this so we can make a determination if your foreclosure condition is something we can assist with or not. In reality, we don't let just anybody hire us. Many homeowners are in a situation that isn't realistic for us to help avoid foreclosure. This is why we only take cases that we fully expect to be able to successfully complete. However, no case is a sure thing. If we decide we can help, the fee is determined based upon the many factors at hand. Therefore, we don't have a menu of options with prices you can select. It just doesn't work that way, but we are very successful with our efforts (as you can see by our results listed on our Mortgage Workouts Page) and very cost effective. To comply with the foreclosure laws, there is never an up front fee for our service.
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IMPORANT NOTICE – PLEASE READ There is no guarantee you will receive a loan modification. Even if you accept this offer and use our service, your lender may not agree to change your loan. Loan Modification approval is dependent on criteria including but not limited to hardship, income, debt ratios. American Foreclosure Specialists is not a Bank, nor a government agency or government affiliate. Our services are not approved by the government or your lender. American Foreclosure Specialists assists in the document preparation, working with and communication with your Mortgage Bank in the attempt to acquire an approved Loan Modification. If you stop paying your mortgage, you could lose your home and damage your credit rating. Loan Modification Plans are dependent upon mortgage company criteria and financial information gathered as part of the efforts of AFS. The information and notices contained on this website are intended as informational and should not be regarded, as financial or legal advice. AFS attempts to ensure that the material contained on the website is accurate and complete at the date first published, however you should recognize that information contained on this website may become out of date over time. Readers who have particular questions regarding real estate law, finance, or who believe they require legal counsel, should seek the advice of a financial advisor or an attorney. Submitting a contact request, gives AFS consent to contact you by telephone and/or email, even if you have previously listed yourself on any state or federal Do-Not-Call List.