Save & Stay in Home Facing Foreclosure: Is a loan modification possible for you?

This couple wasn’t sure what to do. They bought this Whittaker built house brand new in 2000. I sent them a letter when I saw in the county records that an appointment of successor trustee (to a foreclosure attorney, South Law) was filed with the county. Luckily he called just in time, because I was able to provide free foreclosure advice to help them save their home. They contacted us through our sister company, Mortgage Relief Advocates, that specializes in providing free help for people going through the foreclosure process. Most foreclosures in Missouri are non-judicial and the banks can foreclose very quickly (as little as 21 days!) once they’ve completed certain requirements for a foreclosure.

I was in the process of packing for a quick family vacation to visit family and the Great Wolf Lodge in Kansas City, but I answered his call to see how I could help. I also made a stop halfway (a little west of Columbia) to Kansas City to have another conversation with him. It’s important to note that I’m NOT a foreclosure attorney, but I do have helpful advice from my experience in real estate. Typically I offer to jump on a conference call with the home owner and the lender or loan servicing company, but I wasn’t able to do so in this case, so I guided him on some simple questions he could ask in different ways to help the lender open up to possible options.

He told me the lender was Chase, which at the time I knew had a hard and fast rule where they wouldn’t consider foreclosure alternatives if the sale was scheduled within the next 15 days. It was the last day for any possible alternatives other than paying the loan reinstatement amount. I let him know the importance of contacting the mortgage holder immediately. He called back later in the day to thank me for the help and that they were offering him a loan modification. I was thrilled to hear the good news of the bank willing to work with him.

Note that results vary and every lender is different. While they have certain laws (federal and state) they must follow during a foreclosure, they also have their own internal rules. While I’m not an attorney and can’t guarantee any result, we have a proven record with getting banks to pause or cancel foreclosure sales and offering alternate solutions, often in the form of a loan modification, resulting in a more affordable mortgage payment. At the very least it often buys more time. Sometimes lenders will offer a deed in lieu of foreclosure. If this is the case I personally would recommend looking into other options that may work for you, such as selling subject to the underlying mortgage or doing a short sale.

Whether it’s a house that needs significant renovations or a beautiful, move-in ready home, if you’re looking to sell your house fast in it’s current condition and without any repairs, then give us a call or fill out the below form for a free home selling consultation and to receive one or more purchase offers that may be a great fit for you.