Know your options
Lawyers Realty Group levels the playing field between struggling homeowners and aggressive banks. No one should suffer foreclosure, deficiency judgments or collection actions. With our comprehensive knowledge of the tax, legal and title issues that homeowners are facing, we supply the needed leverage against hostile lenders and are able to negotiate the best possible outcome for our clients.
Whether you are trying to remain in your home long term or you are simply looking to walk away without liability, there are a number of options available to you. Many of the options below can greatly minimize the negative impact to your finances and reduce or eliminate your exposure to taxation and deficiency liability. However, each of them carries significant financial, legal and tax implications that you must understand in order to protect yourself from further harm.*
One option that we don’t advise: Doing Nothing. If you stop paying your mortgage and take no action, the lender will commence or continue the foreclosure process and then evict you from your home. Doing nothing is almost always a very bad idea.
If you want to stay in the home
CURE DEFAULT (“REINSTATEMENT”): You have a legal right under California law to cure the default during the “reinstatement period.” Timing is critical.
REFINANCE: If you have substantial equity in your home and good credit, you might be able to get a new loan to pay off the current loan that is giving you trouble.
If you have substantial equity in your home and good credit, you might be able to get a new loan to pay off the current loan that is giving you trouble.
REPAYMENT PLAN OR LOAN FORBEARANCE:
If you are experiencing a temporary hardship and expect to recover quickly, you can negotiate a short repayment plan to catch up on the past due amounts or have the lender defer some penalties and fees to help you recover and get current.
MODIFICATION: If you fit within certain guidelines, you might qualify for a loan modification. This works by applying one or more of the following:
Reduction in the interest rate
Extending the term of the loan
Putting default amounts on the ‘back of the loan’
CHAPTER 13 BANKRUPTCY: If you can afford your regular mortgage payments but have a large past due amount you can’t pay, a Chapter 13 bankruptcy will stop the foreclosure and may allow you pay past due amounts over time.
If you need to go (with no liability)
SELL THE HOME: If you have equity in your home, you can sell it to pay off all the loans and receive the cash from your remaining equity. If you are currently in foreclosure, you need an Attorney/Realtor® to protect your equity.
DEED-IN-LIEU: A deed-in-lieu of foreclosure allows you to transfer title to the lender and turn over the property (a “walk away”) instead of facing foreclosure and eviction.
SHORT SALE: Short Sales have become the most popular and most successful alternative to foreclosure. Your lender agrees to let you sell your home for an amount less than the outstanding mortgage balance without future liability. You stay in your home during the short sale process and you may be entitled to a cash incentive once the home is sold. Only an Attorney/Realtor® can fully and completely represent you during this process.*
FREE BANKRUPTCY/SHORT SALE COMBO:
A Chapter 7 bankruptcy completely wipes out almost all debt along with deficiency liability and taxation on your mortgages. However, the mortgage remains a lien on your home and the bank can still foreclose. With Lawyers Realty Group, you can combine the time and protection afforded by a Chapter 7 bankruptcy (for free – no legal fees) with the additional time and cash incentives of a short sale. This is by far the most protective exit if you need to leave the home. You must be represented by an Attorney/Realtor® at Lawyers Realty Group to take advantage of this powerful BK/Short Sale option at no cost to you.
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