There are many different ways to avoid foreclosure of your home but certainly working with an experienced and CDPE certified Santa Barbara real estate agent increases your chances dramatically. From federal government programs and negotiations with a lender there are plenty of options for homeowners facing foreclosure to explore. This page is designed specifically for those homeowners who fear that foreclosure is on the horizon and/or is unavoidable. It is also designed to help homeowners avoid one of the most devastating processes that they might face in their lifetime.
Reinstatement
In a reinstatement the homeowner simply requests that the total amount owed to the mortgage company and then proceeds to pay it. While reinstatement might work for some homeowners facing a Santa Barbara foreclosure, the solution does require the lenders approval and will reinstate a mortgage up to the day before the final foreclosure sale. If you’re wondering whether or not reinstatement will be right for you be sure to speak with your Santa Barbara real estate agent. He/she will be able to provide you the information you need.
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Forbearance or Repayment Plan
Negotiating with a lender to allow a homeowner to repay back payments over a period of time is known as a forbearance or repayment plan. Though this option doesn’t work for everybody it is a very good option and one that every homeowner facing a Santa Barbara foreclosure should consider. If a forbearance or repayment plan is approved by the lender the homeowner is usually required to make their current mortgage payment in addition to a portion of the back payments they owe.
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Mortgage Modification
A mortgage modification is definitely something every homeowner should speak about with their Santa Barbara real estate agent. This is one of the more common options for avoiding foreclosure in these difficult times as banks have become much more lenient and are willing to work with homeowners in danger of a Santa Barbara foreclosure. Typically a mortgage modification involves the reduction of the interest rate on the loan or the principal of the loan, and in some cases, even a combination of the two. Be sure to speak with your Santa Barbara real estate agent about this option to find out what your lender might offer you.
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Property Rental
In some scenarios a lender will allow homeowner who has low mortgage payments to rent the property out and use the rental income to pay the mortgage. Not every lender will agree to property rental nor will every homeowner have a mortgage loan that will allow them to qualify for this scenario. Regardless this is an option that should be considered and discussed with your Santa Barbara real estate agent.
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Friendly Foreclosure
Friendly foreclosures or more formally known as deeds in lieu of foreclosure. What a friendly foreclosure essentially does is allow a homeowner to return the property to the lender rather than go through the entire foreclosure process. Many lenders are open to this option because it’s far less complicated and time-consuming than a foreclosure. In this scenario the property must be vacated by the homeowner and the process must be approved by the lender. A Santa Barbara real estate agent who deals with foreclosures on a regular basis will provide you with more information about this process.
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Bankruptcy
When faced with a Santa Barbara foreclosure many homeowners will immediately begin to contemplate bankruptcy. The truth is however that bankruptcy laws and foreclosure laws vary from state to state and some individuals may not be able to use bankruptcy as an option or an escape. While bankruptcy may indeed be a option for you be sure to consult with a Santa Barbara real estate agent before you make any decisions in so that you can make an informed one as well.
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Refinancing A Home
If a lender deems that a homeowner has sufficient equity in their property they may allow a homeowner simply refinance their home. This process can be much more complicated than it appears to be and should only be approached and executed after speaking with and working with a qualified Santa Barbara real estate agent.
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Military Options
When a member of the United States military is dealing with financial distress as a result of a deployment and can prove that their debt was entered into prior to deployment they might just qualify for relief under the Servicemembers Civil Relief Act. There are a network of attorneys that will work with service personnel in relation to qualifying for this relief. A qualified Santa Barbara real estate agent can also help a homeowner facing foreclosure with this process so don’t hesitate to contact one.
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Sell The Home
If the homeowner has enough equity in their home a lender may allow them to list their property with a qualified Santa Barbara real estate agent that understands foreclosure laws and regulations. This is a wonderful option but should first be discussed with a real estate agent before any final decision is made.
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Short Sale
When homeowners owe more than their property is currently worth the lender may qualify them for short sale though any homeowner who qualifies for this process should definitely work with a Santa Barbara real estate agent to ensure that the processes run both fairly and smoothly. Additionally a Santa Barbara real estate agent will do his/her best to ensure that a homeowner walks away with as little damage to a their financial status as possible. Your real estate agent will be able to tell you whether or not you might qualify for short sale and can assist in negotiations with your lender.
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