Foreclosure Options
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If the house is not yet in foreclosure, you should immediately
contact the lender and try to work something out. You should pay
as much as possible and save any money returned by the lender.
Once the house is in foreclosure, you should decide if they can
and wish to keep the house or if they wish to move. A Blue Fence
agent can help you with a realistic and careful assessment of your
income and expenses to determine if it is feasible to keep the
home. If you wish to keep the house, you must reinstate, redeem,
file a Chapter 13 bankruptcy, or attempt a work out with the
lender. If you do not want to keep the house, you can sell the
house, offer a deed-in-lieu of foreclosure, or file bankruptcy. Blue
Fence specializes in selling houses that are in foreclosure
proceedings.
Sales: The house can be sold at any point through the final
redemption date and in some cases up to the Sheriff sale.
Proceeds are used to redeem the mortgage. This is a particularly
good option for a homeowner who has substantial equity in the
home. An assumption of the mortgage by the purchaser is also
possible. The lender may also agree to a short-sale – a sale for
less than the debt – if the house has been assessed at less than
the value of the debt. A short sale has tax consequences –
forgiveness of debt is income – and buyers should be advised
accordingly. If you choose to sell your house, a Blue Fence agent
can assist you through this entire process.
Deed-in-lieu: You deed the house to the lender and move out in
exchange for a release from personal liability on the debt. There
can be no junior liens on the property for this to work. It is
recommended that you use an attorney for the preparation of
these documents.
Bankruptcy: If you have enough regular income that you can
bring the mortgage current within 36 months, you may be eligible
for a Chapter 13, which would allow you to keep the house. If not,
you can file a Chapter 7, which will allow you to escape personal
liability for the debt. A Chapter 7 will not let you keep your home.
A bankruptcy filing, either Chapter 7 or Chapter 13, will stay
foreclosure proceedings and extend the redemption deadline.
Chapter 7 bankruptcy is not an option if you have filed another
Chapter 7 petition in the last six years and if a discharge was a
granted in the prior bankruptcy. It is suggested to consult with an
attorney if you are even considering this option.
contact the lender and try to work something out. You should pay
as much as possible and save any money returned by the lender.
Once the house is in foreclosure, you should decide if they can
and wish to keep the house or if they wish to move. A Blue Fence
agent can help you with a realistic and careful assessment of your
income and expenses to determine if it is feasible to keep the
home. If you wish to keep the house, you must reinstate, redeem,
file a Chapter 13 bankruptcy, or attempt a work out with the
lender. If you do not want to keep the house, you can sell the
house, offer a deed-in-lieu of foreclosure, or file bankruptcy. Blue
Fence specializes in selling houses that are in foreclosure
proceedings.
Sales: The house can be sold at any point through the final
redemption date and in some cases up to the Sheriff sale.
Proceeds are used to redeem the mortgage. This is a particularly
good option for a homeowner who has substantial equity in the
home. An assumption of the mortgage by the purchaser is also
possible. The lender may also agree to a short-sale – a sale for
less than the debt – if the house has been assessed at less than
the value of the debt. A short sale has tax consequences –
forgiveness of debt is income – and buyers should be advised
accordingly. If you choose to sell your house, a Blue Fence agent
can assist you through this entire process.
Deed-in-lieu: You deed the house to the lender and move out in
exchange for a release from personal liability on the debt. There
can be no junior liens on the property for this to work. It is
recommended that you use an attorney for the preparation of
these documents.
Bankruptcy: If you have enough regular income that you can
bring the mortgage current within 36 months, you may be eligible
for a Chapter 13, which would allow you to keep the house. If not,
you can file a Chapter 7, which will allow you to escape personal
liability for the debt. A Chapter 7 will not let you keep your home.
A bankruptcy filing, either Chapter 7 or Chapter 13, will stay
foreclosure proceedings and extend the redemption deadline.
Chapter 7 bankruptcy is not an option if you have filed another
Chapter 7 petition in the last six years and if a discharge was a
granted in the prior bankruptcy. It is suggested to consult with an
attorney if you are even considering this option.
Doug Anderson, Real Estate Consultant
847.557.0106, ext. 110
doug.anderson@bluefence.com
847.557.0106, ext. 110
doug.anderson@bluefence.com
Reid Anderson, Real Estate Consultant
847.557.0106, ext. 134
reid.anderson@bluefence.com
847.557.0106, ext. 134
reid.anderson@bluefence.com