Sit Down With Your Client And Discuss Their Other Assets

Category: Finance, Real Estate.

As an individual, with a bit of education and know how, anyone can assist those caught in pre- foreclosure or foreclosure to keep their homes.

They can try to refinance through a private lender. There are opportunities for forbearance, repayment plans and, reinstatements loan modifications. There are many ways to exhaust keeping a home prior to having to sell. You can advise the family in many different ways. No matter what, there is no reason that a home should actually be foreclosed. First explain to your client that they should not avoid the problem.

Express to your client that the lender does not really want to foreclose. The more time they wait, the harder the situation will become and the more likely it is that they will lose their home. Lenders are in the business of lending money and not in the business of owning homes. Be sure to contact your State Government Housing Office and ask as many questions as possible to become as educated as possible in your particular states laws. As a person helping those in foreclosure, you want to ensure that you know and understand the rights of your client. Sit down with your client and discuss their other assets. Research all options that will help you in keeping your home.

Can they use other properties, jewelry or other, cars assets to help pay for their home? Let s discuss some options that may be available to you. This is usually when the loan is 16- 30 days late. Some possible ways you can assist are: Repayment Plan: Your client repays what is behind and promises to stay caught up. Forbearance: A forbearance isn t for an indefinite period. In most cases, they will be expected to catch up within a year or 18 months.

It might be for one or three or six months, your client will, and after that be expected to make full payments on time. Loan Modification: A loan modification is similar to a refinance: The lender agrees to alter the loan, but with few or no fees. Deed In Lieu Of Foreclosure: This option often is referred to as a" deed in lieu. " The borrower offers to hand over the deed to the property so the lender can take possession of the house and sell it. The lender might reduce the interest rate, change the loan from an ARM to a fixed- rate mortgage, or raise the monthly payment by a few dollars so your client can pay off the entire loan, including the past- due amount, by the loan s original end date. Shore Sale: In a short sale, your client sells the house for less than what is owed. Pays the real estate commission, taxes and government fees. With a short sale, your client makes necessary repairs to the house.

And give the lender whatever money is left over- - a partial payment. Purchasing the home from the buyer and not allowing the home to be foreclosed will help your client. If after you have tried every way to help a family stay in their home and it is just not feasible then YOU can assist them in selling their home and get paid through short sales, private lending, subject to, quit claim deeds, and many other, rent back ways. First, your client will not have a foreclosure on their credit. Thirdly, it is a win win situation. Secondly, you assist them by providing a final alternative and still be able to keep their dignity.

You get a great deal and they get a financial burden off of their back. Good luck in your ventures and remember that the ethical investor is always the best investor! Some exit strategies might be: o Flip the property, either wholesale or retail, to a quick buyer or another investor. o Reinstate the foreclosure( that is, pay off all the back payments, and penalties, interest, and resume the original terms of the loan) and sell the property at retail to a buyer who gets a bank loan. o Reinstate and sell the property by acting as your own" bank, " using owner financing to cover expenses. o Reinstate and keep the property, then rent it out.

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