In the video below I talk about 4 different main ways on how to stop foreclosure in Utah.
- Loan Modification
- Chapter 13 or chapter 7 bankruptcy
- Bring your mortgage current
- Sell you house
Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
Such changes usually are made because the borrower is unable to repay the original loan. Most successful loan modification processes are negotiated with the help of an attorney or a settlement company. Some borrowers are eligible for government assistance in loan modification.
CH 13 or CH 7 BANKRUPTCY
Chapter 7 bankruptcy is generally meant for people with limited incomes who do not have the ability to pay back all or some portion of their debts. Chapter 13 bankruptcy is referred to as a reorganization bankruptcy.
Chapter 13 is the best way to keep your house in our opinion if you have no intention of selling your house for the next 3 to 5 years. A ch 7 or ch 13 can affect many things about your house going forward. Please call us at 801-382-9199 or talk to an attorney.
BRING YOUR PAYMENTS CURRENT
If you can get the money together to bring your payments current, call your mortgage company or the foreclosure attorney to get the “reinstatement amount”. They will also help you get it sent to the correct place.
SELL YOUR HOUSE
There are a lot of options to consider when selling a house in foreclosure. Will a discount company have the expertise to work with the mortgage holder and foreclosure attorney? What about other house selling options?
Most of the time, you will get the most money by listing your house. However, there are many reasons you may want to consider selling to an investor such as the ability to move after you close and get your money, not having to do any home repairs, no people walking through your house, no home inspections, and a house sold in a few days.
How to Stop Foreclosure in Utah
Please watch the video for a ton of great information.
Hi, this is Gary and we’re standing inside of a house that we bought from the Clarks. The Clarks got a hold of us by a letter that we sent them in the mail. They were in foreclosure and they called us and they asked the question how to stop foreclosure, so we went over options with them. We went over bankruptcy Chapter 13 or Chapter 7, we went over loan modification, we went over them simply bringing the loan current and we went over options in selling their house. After going over all those options, they ultimately decided to sell the house. We’re standing inside of it right now. We’re inside of a laundry room and it’s about ready to get painted. It just got primed I think a couple of hours ago. So here we are doing a video in the house that we rehabbed, that we purchased from them.
So I did get a hold of them a couple of days ago, told them I was going to shoot this video and ask them if they had thought that they made the right decision to sell their house. They said yes. They were very happy that they decided to sell to us. Part of the reason they were happy with their decision was we were able to give them cash for their house & give them a month or more to move. So we closed and they got all their money and then they moved and it worked out great for them. The house needed a lot of repairs and it just wasn’t something that they wanted to deal with moving forward. Couple that with the foreclosure and a lot of repairs and they were ready to sell and we did give them a fair offer so they were really happy about that. Let’s go over some of the options that we gave them in detail.
The first one being bankruptcy, so there’s a Chapter 7 and a Chapter 13 bankruptcy. Most people that want to keep their house, will do a Chapter 13 bankruptcy. That allows you to keep your house, continue to make your mortgage payments, and what the court does is the court decides on which debts you pay, including all of the back payments, which they roll into one payment with the bankruptcy court. With the Chapter 7, when you file a Chapter 7 and it eliminates all your debt, you do have a homestead exemption, so you can keep about $40,000 from the sale of your house. After that, all the proceeds go to your creditors. So you need to keep that in mind when you’re deciding which chapter to file. For example, in a Chapter 13, they restructure your debt based on a means test and how much you can afford. Chapter 13, in our opinion, is the number best way to keep your house if you’re in a foreclosure.
As we mentioned, they restructure everything in a ch 13. You do need to be careful. Changing your mind and deciding you want to sell your house can be quite difficult if it’s in a Chapter 13. We have had houses removed from those, so it can be done. You have to get the judge and the trustee approval and then you can sell the house, but once it’s been in a 13, any debts that were written off, part of the proceeds from the sale of the house can go to that debt. So again, Chapter 13 is a great way to keep your house, however, make sure you think it through and that’s exactly what you want to do.
A loan modification is a good way to keep your house if you’ve had a hardship that is now taken care of. For example, you lost a job, now you have your job back, and you’re earning income again. The bank will often times approve a loan modification or forbearance and you basically, once they approve it, they approve a payment and you start making it. As long as you’re on time, everything’s good.
Another option is to bring your loan current. You can borrow money from friends or family or something like that. Then you just have to work with them to get the money repaid.
Another option is, of course, to sell your house. Some people are ready to sell their house once they’re in foreclosure. A lot of times a lot of repairs go along with foreclosure because people are not able to keep up their house. So we will purchase the house. We have lots of options. We can rent the house back. We even have options to where you can possibly buy the house back. You can sell the house, close, get your money, and move one, two or three months later. So a lot of flexibility in selling your house to an investor if you’re in foreclosure. And, of course, you can list your house with a real estate agent rather than sell to an investor, especially if you start early in the process. You will make a little more money that way. The drawbacks are you have to move on a certain date, you have to have the house all cleaned, everything cleared out, and then you get your money.
So there’s a lot of decisions to think about when you want to stop foreclosure in Utah or if you just have questions on how to stop foreclosure in Utah, give us a call. Contact us on our website. We’re always more than happy to help, even if we don’t end up working together. So get a hold of us today.