In Foreclosure? What Are Your Options?

You have found this blog because you are in foreclosure or you have received a notice of default from your lender. You are worried that you will lose your home. You have a heavy weight on your chest feeling you have failed financially to support your family. You feel terrible with the uncertainty of NOT knowing what will happen to you and your family when they foreclose on your home. You cannot even sleep because of the anxiety. You are losing not just your home but your physical health and even your emotional health too.

When you search online, the options sound confusing, overwhelming and you are not sure if they will help you at all. These are:




Number 1: Refinance
That is, you get a new loan to pay off your old lender who is foreclosing on you. This will NOT work specially in today's market because chances are good your home's value has fallen. SO your home probably does not have any equity. And even if it has some equity, with you falling behind on your mortgage your credit is already DESTROYED and you will NOT be approved for a refinance anyway.

Number 2: Loan Modification
In this option, you can talk to your bank so they can modify your loan. President Obama released BILLIONS of dollars to incentivize and compensate the banks to lower your monthly payment. But does this really work? According to the latest statistics, loan modification basically does NOT work. Majority of the time, your monthly house payments do NOT go down or it's still NOT affordable to you.

Number 3: Shortsale or Deed in Lieu of Foreclosure
In this option, you lose your home because you have to either sell it (for below the loan balance) or just give the key to the bank. In a shortsale your lender can file a deficiency judgement against you when your home is sold for below what you owe. For example, if you owe the bank $200,000 and your lender was able to sell your house for only $150,000...you owe the bank the difference which is $50,000!

Number 4: Bankruptcy
This option is a terrible option as well. Why? A bankruptcy just delays a foreclosure. It does not stop it. Six months later, you will be back at it again. And the worst part? On your credit not only will you have a foreclosure...you will also have a bankruptcy and these stains on your credit will remain there for the next 10 years!

These solutions frankly are terrible solutions. But there is another way. Click here to watch the video about it.