What is Foreclosure?
In most states, when you buy a home there are actually two parties on the buying side: you (the mortgagor) and the lender (the mortgagee). You own the home, but the mortgagee holds a lien on the property for as long as the mortgage has an outstanding balance. The lien gives the lender the right to assume ownership of the property should you fall behind on payments. That process by which the lender assumes ownership is called foreclosure.
How to Stop Foreclosure
Contact your Lender
The first step to avoid foreclosure is to contact the lender and let them know your situation. In many cases, they can work with you to temporarily modify payment terms until your situation is resolved. Some will even offer to reduce your payments on the spot.
Don't ever ignore late notices, letters or calls from your lender. They would much prefer to work together with you to resolve the situation, but will not hesitate to begin foreclosure proceedings if it appears that you are unwilling to work with them to avoid foreclosure. In some cases, the bank will delay foreclosure just by you calling them. It may sound odd, but they don't want foreclosures on their books, as these "non-performing assets" make them look weaker to investors and auditors.
Redo Your Mortgage
If you're still current on your payments, or not too far behind, refinancing may be a viable option for you. Refinancing will pay off your current mortgage and in many cases lower your monthly payment at the same time. It can be the most straightforward method to avoid foreclosure. If you've missed several payments and have other unpaid bills, your credit may not be good enough to qualify, but it's worth asking at least.
Sell Your House
This may be the toughest route to stopping foreclosure, particularly if you still need somewhere to live, but it may be the only way to stay out of trouble and prevent a black mark from appearing on your credit record. If you need to sell fast, we might be able to buy it, and get you the cash you need now. We can close in 10 days or less, or on whatever timetable fits your schedule, and allow you to walk away with cash at closing.
Be very, very careful, though. There is no shortage of people who will use this opportunity to make a profit for themselves at your expense. Beware of anyone who wants to "buy" your house and "rent" it back to you.
Ultimately, protecting your credit must be a key goal. Your credit report will be with you for the rest of your life, and having a foreclosure noted on it will cause problems for many, many years down the road — problems that only time will erase. Take steps now to keep that from happening. It may be difficult in the short-term, but the long-term results far outweigh the alternative. If you have any questions, please email or call. We'd love to buy your house, but it has to be a "win-win" solution to your situation. We believe the stability of home ownership is the bedrock on which safe and solid communities are established. If you want to stay in your house and believe you could manage it once you get caught up in payments, email us at Help@RevNorth.com and we'll reply with the most current list of resources and links that we've compiled. It's unlikely anyone is going to pay your mortgage and let you stay in your house, but there are resources available to help people prevent and/or recover from setbacks like foreclosure.