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How do I avoid foreclosure…

A reader asks how to avoid a foreclosure assuming of course he can’t make the payments.

 Disclosure: I am not advising doing this, I am just observing and reporting of how I have seen the game played to the Homeowners advantage during-after a Reno Foreclosure.

OK, the classic stall besides the costly and in most cases not needed bankruptcy  providing you can’t make the payments is:

A, Apply for a loan modification, this will usually buy you anywhere from one month to a year or more.  You have a chance at getting your payments, interest etc. lowered but generally not the principal unless lender fraud was involved etc.  Some people do this as a stall with no intention to pay (reminder; not advising doing this, just examples).

B, If  the loan modification comes down, regardless if you make payments or not, list at a short sale, that will get you another month to year of foreclosure delay.  In all cases, communication with the lender is key (above and beyond the collection dept).  Remember; sometimes you can’t apply for a loan mod. while it is listed but every bank is different and rules change daily.

C, If you can’t get it sold, don’t leave your house; it is a bad financial move to leave a perfectly livable home and pay rent somewhere else.  Many people stay long after 1; notice of default, 2; notice of trustees sale, 3; the actual foreclosure date.

D, After the home is no longer yours, anywhere from one day to a year or more you will get a knock on your door or a posting, at that point tell them you want a cash for keys offer.  Make sure you have your stuff packed after the sale date ready for a quick move.  You will get anywhere from nothing and a short eviction notice to a large cash for keys settlement as long as you leave it broom swept and not trashed.  They may let you stay for an extended time either free or a fraction of fair market rent if you get lucky.

These banks are overwhelmed and it appears the last thing they want is another vacant home.  Citibank in fact just stopped all foreclosures for the time being and I bet others follow.  They (banks) just can’t continue to be major holders of real estate as the bank owned homes have compounded themselves.

That my friend is how some have avoided foreclosure for up to three years or more.

P.S., If you are in trouble with any of your real estate, I would be happy to assist you in whatever way I can for of course pro bono regardless if it leads to a listing etc.
This can be one of the most stressful things to go through, feel free to chat or e mail me anytime, I can relate to a lot of this myself as well.

Merry Christmas

Ron

2 Responses to “How do I avoid foreclosure…”

  1. […] Here is a blog I did on my Reno homes blog regarding what to do if you are facing Reno foreclosure:  http://renohomevoices.com/2009/12/20/how-do-i-avoid-foreclosure/ […]

  2. Thank you Ron. Concise, to the point, informative and useful.

    Happy holidays.

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