Stop Foreclosure and Avoid Foreclosure.

Here we will discuss a number of reasons why you should certainly avoid a foreclosure. If you have had a foreclosure, you may have a problem getting loans far into the future, even once you do get your finances back under control. A foreclosure will stay on your credit report for years to come. It doesn't stop there, every time you go to apply for a real estate loan, you will be requested to disclose that you have previously had a foreclosure. So even when your credit is restored, the bad news will still follow you around.

Is it possible to stop foreclosure?

While it is not possible to stop every foreclosure, in some cases the foreclosure can be stopped, or stalled to allow time for the sale of the home. Banks may consider delaying the foreclosure date if you have a signed contract from a buyer to purchase the home. We have investors who will buy pre-foreclosure homes, but the details of each transaction are different and the terms / timing, are always negotiable.

Sometimes a house going into foreclosure has to much debt owed against the mortgage, late payments and maybe taxes, so that investors will not be able to profit and therefore purchase the house. In this case short sale investors can sometimes succeed where others may not. It is a time consuming process so many investors do not have the patience for it.

A short sale is when an investor negotiates with the bank holding the note to purchase the property at a discount of the debt owed on the property. The bank has a department that handles this and who will analyze the debt and decide what is the current value of the property. While this option does not save your credit, it may allow the foreclosure process to be cancelled in favor of this reduced purchase.

How long can foreclosure be stopped for?

Foreclosure processes vary from state to state and most states have foreclosures on a set day of the month. If a foreclosure is delayed, it is usually until the following months regular foreclosure day.

Every bank handles the timing of their foreclosures differently, while some may move as soon as possible to foreclose quickly, others may be reluctant to get the house back that quickly.

Types of foreclosure in common law states.

A "deed in lieu of foreclosure", or "strict foreclosure", where the bank claims title and possession of the specific property in satisfaction of a debt. "Strict foreclosure", more simply known as foreclosure and "judicial foreclosure", involves the property being put up for auction by the county sheriff, or officer of the court. Many states require this type of procedure in all cases of foreclosure. The sheriff issues a deed to the winner of the auction. Banks usually bid the amount of owed debt and if another buyer does not come and continue the bidding, the lender then receives title to the property in return for the debt owed.

"statutory" or "non-judicial" foreclosure

HUD information on avoiding foreclosure: http://www.hud.gov/foreclosure/

Do I have to sell to stop foreclosure?

You may, or may not have to actually sell to stop the foreclosure, each case is different and the investors who make offers on your house will have different alternatives for you. An important factor possibly limiting your options is how much equity you have in the house. If you purchased the house in the last 1-3 years, it is possible that there is not enough equity for an investor to consider buying it outright and or, leasing the house back to you. This would also be a limiting factor in getting a refinance from a new lender. Whether there is enough equity depends on the appreciation of the home since you've been there and whether you paid a considerable down payment, or put money into the principal since then. On an average though, little principal has been paid back within the first few years of owning the home.

Will investors let me stay in the home?

While there are some cases that a house seller may be able to stay in their house after they sell their home to an investor this is usually not the case. It really depends on the house and the individual situation, in some cases the house may need a lot of serious repair an investor may be planning to rehab and remodel the house for resale. It also depends on the laws of the particular state in which the house is to be sold.

Avoid foreclosure without a sale:

Foreclosure scams and empty promises?

There are foreclosure scams out there and you need to be aware of this and be careful of the people you deal with. Just because you met an investor from this website or any other web site on the Internet does not mean that they are trustworthy and reputable to work with. you must interview and verify information from any investor who makes you an offer and be sure you understand what it is you're dealing with. So you do not become the desperate seller who fell for a scam because you were in a tight situation.

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