Have you received a foreclosure notice of default in Utah? There are 4 main ways to stop foreclosure and keep your home. Let’s take a look at each one of them or check out the video below for a quick explanation.
- Loan Modification is the option that a lot of people try and do with their mortgage company. This can be a successful way to go especially if you had a hardship that is no longer affecting your income like you were sick and couldn’t work but now can work. Often times your mortgage company will put all of your back payments at the end of your loan and let you resume your regular payment. This option can take some time to get through, so start the process early. Call your mortgage company to see if a loan modification is right for you.
- Bankruptcy is a very good way to stop foreclosure and keep your home in Utah. You can file for bankruptcy using an attorney or file bankruptcy without an attorney in Utah. If your equity amount is at or below the homestead exemption, a Chapter 7 bankruptcy might be what is best for you especially if you have a lot of unsecured debt. A Chapter 13 bankruptcy is good to use to keep your home if you are in foreclosure. In a Ch 13 bankruptcy, the court will look at your income, your secured debt (house & car), your unsecured debt (credit cards, etc.), the amount you need to catch up your house payments and determine if you can make the minimal payments. The court may dismiss some or all of your unsecured debt so you can afford the minimum payments. Again, we think bankruptcy is the best option to stop foreclosure and keep your house. Always consult an attorney for legal advice.
- Borrowing the Money may work for you. You can approach family or friends for the necessary funds to bring your mortgage current. The people that lend you the money can easily secure their loan against your house with a note and trust deed. Any title company should be able to help you. You can also borrow from yourself if you have retirement plan at work.
- Creative Financing with an Investor can be a way to keep your house while in default of your mortgage. This is the most risky option for people. The best thing you can do is make sure you understand the contracts. Ask a lot of questions. One thing to make sure you understand is what happens if you stop making your payment to the investor and or the mortgage company. Do you lose all of your equity or just a portion of it of you default?
See the video below on How to
Stop Foreclosure and Keep Your House.
Hi, this is Gary with Gary Buys Houses in Salt Lake City, and today we’re going to talk about how to stop foreclosure and keep your home. There are really four main ways to do this, so let’s talk about those four ways.
The first one is loan modification. A loan modification is when you change the terms of your loan with the bank. So, they agree to reduce your payment or reduce your interest rate or something like that. They can also move all the back payments to the end of your mortgage.
Number two is bankruptcy. There’s chapter 7, there’s chapter 13, and bankruptcy is absolutely the best way to stop foreclosure and keep your home. It’s great long term because you get about three to five years to pay back the payments that are behind and you still make your payment to your mortgage company, so it’s pretty straight forward. The only negative thing about bankruptcy is if you do decide you want to sell your house, it can be very difficult to get it out of the bankruptcy even if it gets dismissed for nonpayment and things like that. Here is more information about filing bankruptcy and how bankruptcy affects your house.
Another way to stop the foreclosure on your house is to borrow money from friends, family or yourself and bring it current. That’s really tough for a lot of people to do. It can be hard asking friends and family to borrow money. Sometimes you can get money out of your retirement accounts like your 401k. You can even borrow the money from yourself from a 401k if you have the money. So, that could be an option for you.
The fourth option is creative financing or a creative foreclosure solution through a real estate investor. At Gary Buys Houses, we do structure deals like that. In most cases, it’s a last-ditch effort or there has to be a really good reason why somebody would want to use a creative financing deal to keep their house versus bankruptcy or loan modification. We can talk about all those options and you can fully understand what you’re getting into.
Hey, thanks for watching. I look forward to talking to you soon.
We are always here to answer your questions even if you are leaning to
an option that does not include working with us.
Maybe you are thinking, I just want to sell my house that is in foreclosure”.
We can buy your house and even allow you to stay for weeks or months.
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