Foreclosure Solutions and Options
MANDATORY FTC DISCLOSURE
We are a for-profit company. C. J. West LLC and Foreclosure Brokers LLC are not associated with the government and our services are not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage you could lose your home and damage your credit rating.
IMPORTANT!
We
DO NOT provide the services of nor do
we act as bankruptcy counselors, attorneys, lenders, accountants,
financial planners, financial counselors, nor are we a debt relief
agency.
The content of our website is
not legal advice and represents our opinions only.
**New** - Due to a position statement issued by the Colorado Department of Real Estate, we are not able to provide loan modification services as we are not licensed mortgage brokers. Read it here. We still encourage you to contact us as we always have recommendations, suggestions and are always happy to point you in the right direction.
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We recommend the Colorado Foreclosure Hotline to all homeowners looking for loan modification assistance. They are non-profit and are very helpful. |
In all case, we can much more easily assess your situation if you fill out our:
or give us a call at 303-399-7484
Options
The following are the most common options to explore when a foreclosure is coming. Your best solution depends upon your individual circumstances. Short Sales, Loan Modifications and Deeds-in-Lieu should be a last resort.
- Doing nothing and allowing the foreclosure to occur
- Deeding the property back to the bank (Deed-in-Lieu) in exchange for release of liability
- Agreeing to a forbearance plan (Repayment Plan)
- Taking in roomers
- Moving out and renting your home
- Listing with a traditional real estate agent
- Selling the property yourself
- Filing bankruptcy for relief from liability
- Borrowing more money to catch up
Should I Keep My Loan or Just Sell My Home?
Did you know? Very few loan modifications include principal balance reductions.
We see many homeowners wrestle with the decision of whether to somehow cure or reinstate their current loan, even though the loan balance may be far higher than what their home is currently worth, or to simply sell their home.
A key issue we always discuss is sustainability. Even if you can renegotiate your loan with your lenders and obtain some immediate relief or for a period of time, how realistic is it that you will be able to sustain making the payments and eventually return to a stable financial footing? Are you accounting for interest rate and property tax increases that will come in the future? Will you be able to make your mortgage payments and all of your other payments consistently and still save for a rainy day and your children's college education? What will your life be like when making all those payments?
When you can obtain a fair loan modification from your lender you can obtain the much needed breathing room to get back on track and finally make those payments affordable again. However, most loan modifications provide for a reduced interest rate for a few years or a re-amortization into a longer term but do not reduce for the total amount owed. The reality is that your lender almost always will eventually want to collect all the money they were originally owed. And that stance is often not to your advantage as a homeowner, depending upon your situation.
Keep in mind that even if you can work out a reasonable loan forbearance or modification with your lender, if your loan amount and back payments exceed the current value of your home, then you are, in essence, buying back your home at an inflated value - for more than what it is worth. In addition, because you are borrowing that money to buy it back, you will additionally pay extra tens or even hundreds of thousands of dollars of interest over the life of that loan. Moreover, it may take years before the market value of your home recovers to make that decision worthwhile to you and you gain an equity position in your home. Many homeowners on grasping these issues realize that such forbearances and loan modifications may not be a financially prudent choice.
As part of this decision to keep your loan or sell, if you anticipate you will need to move in the near future and you are "upside down" - owing more than its worth - you will either need to bring money to the closing to pay off your lenders in full or do a short sale.
We are always happy to point you in the right direction, even if we cannot help you directly!
Our Solutions
Sell Your House Traditionally
Not all foreclosures require short sales. If you have enough equity in your property to pay off your lenders in full, pay commissions and closing costs, and still sell at a price that is competitive in the housing market, things may turn out alright. Yet if you are looking for a quick sale before the foreclosure auction, the market will know and likely will not pay a retail price for a distressed property. Time is your enemy in that situation. In any case, make certain your broker is skilled in lender negotiations should it be necessary to drop your price further. Otherwise you may be just wasting precious time. Our skilled brokers can market and sell your property fast so you can avoid foreclosure. Call us to assess your situation for free.
Short Sale
Now if you owe more than your house is worth and
cannot bring money to closing to prevent the foreclosure, a short sale is likely your best option. A short sale is simply
when a lender accepts less than what they are owed when the house is
sold. In these
situations, commissions, taxes, HOA fees and closing costs are
paid from the sale proceeds and your lender(s) get what is
left over. Lenders do this because they know they will recover
more money this way than if they take the property back through
foreclosure and sell it as a bank owned property.
With your help, we negotiate with the lender to allow you, the
owner, to accept a purchase price that is less than your total
amount owed. We help most homeowners in
foreclosure with short sales because we are highly successful in
completing them and the many benefits to you:
-No upfront, closing fees or out-of-pocket costs to you
-No repairs
-No foreclosure against your credit
-Additional Liens, IRS Liens, Judgments can be paid
-Less of a 'shortfall' or deficiency than a foreclosure
-You can start fresh
Short Sales are truly a Win-Win-Win scenario. The lender wins
because they receive more money than taking back the property through
foreclosure. You win because you can move on and avoid a foreclosure on
your credit report. And the buyer
wins because they typically buy the house at a discount.
Take Over Payments
Depending on the terms of your loan and situation, a good solution may be to allow someone or allow one of our investors to take over your payments. As investor continues to make your regular payments this helps restore your credit and you can move on and avoid foreclosure. Many factors must be considered and we will work with you to see if this is an appropriate option..
Individual Lien Release
In some instances, the removal of a single lien or mortgage can prevent a foreclosure or greatly improve a homeowners equity position. We will, on a case-by-case basis, review and assist with offering a settlement and obtaining lien releases from the property for mortgages, liens and judgments that are attached to property.
Just Want Out?
We may be able to quickly sell the property or pair you up with an investor who can offer to purchase your property for cash outright. This depends greatly on the amount of the various liens on your property and your individual situation.
Negotiation Services Only
If your home is already listed with a real estate broker but feel that you can benefit from our negotiations, we can become involved. However, your broker must be wiling to fully embrace the way we coordinate the entire process. If your home is not currently listed with a broker we strongly advise you to not list it until you speak with us first. As always, begin early. The more time we have to work on your case, the more options are available to you.
Visit our Negotiations Page to learn more.
Looking for Guidance?
We are always happy to answer a quick question, point someone in the right direction and use our expertise to help people. If you have a foreclosure related question, we have an answer.
The Property Solutions People TM
Additional Solutions We Cannot Offer
Loan Modification
Although we know how to deal with banks, the new state laws and rules
do not allow us to negotiate a loan modification for you. 1. The hardship
that has caused you to fall behind must be
completely over.
If you meet all of these general requirements, there is a good
chance the lender will present some sort of forbearance or loan
modification. We encourage you to talk to
your lender and/or call the Colorado Foreclosure Hotline as soon
as possible.
Through our experience, the general requirements to stay in your home
are the following:
2. You must have sufficient income to make your regular payments
each month, along with all of your other bills, and still have at
least a little left over each month (about 10%).
3. Your income and situation are verifiable and sustainable.
Deed-In-Lieu
A Deed-In-Lieu is when a homeowner voluntarily deeds their property back to their lender. This is very advantages for the lender, but only makes sense for the homeowner in certain situations. Often the lender will not release the borrower from the indebtedness and they require you to vacate the property quickly. This often does not benefit the borrower and this choice precludes other, and perhaps better, options to remedy the situation. Deed-in-lieu agreements are written heavily in favor of the lender and thus we recommend seeking legal advise and document review to all homeowners considering a Deed-In-Lieu.
Refinance
Refinancing a home to pay off the foreclosing bank is good thinking in theory. Providing that you are still current on your payments and have no financial hardship going on, this is a viable option. Although we are not mortgage brokers or lenders, if this is a realistic option for you, then we can refer you to qualified lenders who can help. The challenge in refinancing is that, once a homeowner falls behind on their payments, their credit score and mortgage payment history prevent them from qualifying for a refinance. Further, many lenders require that you have at least a little equity in your home. Contact us so we can assess your best options and send you to the right people.
Legal Services
Although we have a licensed attorney "in house", we do not generally represent property owners or debtors in a legal capacity. We do not provide formal closing services or bankruptcy services of any kind. If you are considering legal representation or filing bankruptcy, contact our office and we can refer you to our list of recommended attorneys.
Get Help Now
Time is crucial. The longer you wait, the more difficult it is for us to help you. When you are in or heading towards foreclosure our available options diminish or even disappear with each passing day. Because each situation is so unique, we cannot predict what your best solution will be. Know that we are very creative, persistent and our recommendation to you will be designed to solve YOUR problem.
Educate yourself! Education is the best way to
ensure that you are making an informed and prudent decision.
Call Us - 303-399-7484