DAN WALTERS
Portland Metro Real Estate
503-381-5161
DAN WALTERS
Portland Metro Real Estate
DAN WALTERS
Portland Metro Real Estate

Foreclosure Prevention

You've earned your equity.  Don't lose it to the bank!

 

Too many homeowners believe they will receive a check for at least some of their equity if they are foreclosed on.

This is not the case.

Your equity basically goes to the bank and they keep it when they sell your home.

What can you do?

Prevent foreclosure!

In some cases, you can keep the house and work things out with the bank. In others, you might have to sell your home.

In most cases, though, you're best off not letting the bank foreclose on you, taking you equity and damaging your credit for years to come.

Here are a few options:

 

1. Reinstatement

If it’s possible to find the funds, you can pay back what you owe and resume your payment schedule. You may be able to negotiate a reduction in penalties.


2. Repayment Plan

If you’re able to make the monthly payment now, but not the back-owed, you may be able to negotiate a plan to pay back pieces of the missed amount over time or add the missed payment amounts at the end of your payment period.


3. Forbearance

If your circumstances are temporary - such as the loss of a job or missed work due to injury or illness - your lender might allow a break from payments until you’re income in back to normal. Just be sure you’re clear how re-payment will be handled.


4. Loan Modification

If a forbearance is not available or perhaps not worthwhile to you, your lender might rewrite some terms of your loan, such as the term (longevity), which could get your payment down and give the chance to get back on track.


5. Market Sale

If time allows, we can market your home very aggressively, working to get you a solid offer before the bank finishes the foreclosure and/or sells your home at auction. This ensures YOU keep YOUR equity, rather than letting it go to the bank.


6. Off-Market Sale
If timelines are especially short, an off-market sale might be the lifeline you need. We can help you secure a cash offer with a short closing period, getting the bank off your back. This may not be your most profitable option, but the timing might be worth it.


7. Get Help

FHA, VA and Conventional loan programs have assistance available for your specific loan type. Reaching out to an advisor or counselor could unlock new options for you.
See danwaltersonline.com/foreclosureprevention for some options. 


8. Deed in Lieu of Foreclosure

In this option, you exchange ownership of your home to the bank in exchange for a release of responsibilities. That is, they get the home and you can walk away (conditions apply, of course).


9. Bankruptcy

This is not an attractive option in many ways, but might still be an option. Bankruptcies allow restructuring of debts and might even protect your home, though not your credit.

 

Whatever path you choose, remember that there are timelines set by the State of Oregon. Meeting those timelines is critical to avoiding foreclosure.

Reach out lender assistance contacts - your loan type likely has a group who can help you advocate .

As difficult as this time is, it’s important to know your options. We’re happy to assist you in finding an option that works for you. Note that most of the above options will not involve hiring us or using our real estate services...and that’s just fine with us.

Our primary goal is to assist you in avoiding foreclosure, whether you need to sell your home or not. If selling is right for you, we can connect you to off-market buyers or aggressively market your home to the masses and help you keep your equity!