Foreclosure Options

Foreclosure Options

Once a mortgage is in default, you still do have some options before foreclosure. Educating yourself about the Utah foreclosures process may help you have a better understanding of the most common foreclosure prevention options. Every situation is different, and some of these options may or may not be available to you.

In the cases where the property owner desires to retain the property, they must be able to prove to the lender that they have overcome the hardship that caused them to go into default, and they now are financially able to make the mortgage payment. All lenders are different, but here are the most common options offered by lenders to avoid foreclosure expressly in the current Real Estate market.

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Reinstatement

This will require money to bring the loan current by paying all past due installments, current installments, interest, rate fees, attorney fees, etc. Usually a family member may wish to help prevent a foreclosure if they know your predicament and consequences. Being honest and open with family may open up some options you hadn’t thought of.

Re-finance

This option is usually only possible if the mortgage default problems are caught early and there is enough equity in the home to pay off the current loan and processing fees; and your credit has not been already damaged, while still keeping the new lender in a good equity position. If you have equity in your home, there are lenders out there that will look past credit damage (but you can expect to pay a high interest rate) your payments will most likely increase rather that decrease with a refinance.

A Repayment Plan

Understand that your lender does not want foreclosure. If you now have the ability to make the scheduled monthly payment on your home, but you cannot catch up the back payments, lenders will sometimes negotiate a repayment plan that would allow you to pay the back payments in smaller increments. We can help you with this negotiation process.

A Forbearance Plan

This is a formal and informal repayment plan to reinstate a loan that has been delinquent. This could include suspension or reduction of payments for one or more months to allow you to recover from the cause of default; and/or an agreement to allow you to resume making full monthly payments while delaying repayment of the arrear-age.

A Loan Modification Proposal

This is a permanent change in one or more terms of your current loan agreement. This could include a change in the interest rate, extension of the time available to repay or re-amortization of the balance due. However this is only possible if your lender can be provided evidence of your ability to repay the loan.

Sale / Lease back

This option utilizes a buyer who is willing to lease the property back to you for certain length of time with a reasonable return, giving you the option to repurchase the home after you have rebuilt your credit. This foreclosure prevention option is also enticing to some homeowners because they avoid having to relocate.

Pre-Foreclosure Auction Sale

If you qualify for one of the retention options offered or do not want to keep the home, your lender may allow you time to market your property and sell even if the market value is less than the amount owed on the mortgage. In most cases the lender will require the property to be marketed for a limited time. Only a pre-foreclosure Auction will give you one last change to sale any equity you may have and prevent any further credit problems caused by a foreclosure. These can generally be done in as little as 30 days and we are happy to do the negotiations with your lender.

Short Sale

Short sales are the result of homes or property values falling below the actual amount owing on the property to the bank/lender. In these cases many banks/lenders may accept a “short sale”. This means that your bank/lender will accept less than the amount owed on your mortgage to release their lien against the home or property this would include any costs associated with the sale of the property (agents commissions, closing costs, advertising, etc.) Each lender will treat short sales a bit differently. We can help try to negotiate a “short sale” with your lender for you, contact us.

Deed-in-lieu of foreclosure

If you can not or do not want to keep the home and are unable to sell the property through a pre-foreclosure sale your lender may allow you to deed the property to them in exchange for a release from all obligations under the mortgage.

Bankruptcy

If all other options fail, bankruptcy may be used as a last resort. Be aware that brankruptcy does not stop foreclosure. It only stalls foreclosure. Even if you file bankruptcy and include your home, your lender will eventually foreclosure and you will end up with a foreclosure and bankruptcy on your credit.

Every situation is different, and the quicker you can take action with any one of these options the better off you will be. Communication with your lender is key. We are happy to help you with any of these options. Call or schedule an appointment today.

Utah Foreclosure Laws

Here are some additional links to learn more about real estate auctions:

Open Houses

All auction properties are open to walk through from 12pm-3pm for the two Saturdays right before the auction date.

Call 801.362.7700 to make an appointment outside of these two Open House days and times.

About Us

United Country is the largest integrated real estate & auction company in the U.S. with over 700 offices and 4,000 associates. We generated over $3 billion in annual sales in 2008, and are recognized as the auction “Industry Leader” (NAA: Auctioneer Magazine, January 2008). Our company was ranked the “Top Real Estate Franchise” by Dun & Bradstreet in July, 2009, and we are in the “Top 1%” of all franchises nationwide according to the Wall Street Journal. We currently have over $1 billion of controlled listings, and reach over 90 million homes each week through our nine owned, exclusive publications, third party trade publications magazines and catalogs.

US Auctions and Realty is an affiliate of United Country, providing property sellers, buyers, and agents an enhanced marketing solution. Our online system exposes property to a local and national network of over 300,000 buyers through publications, affiliate brokers and over 1,100 websites. Because of our technology, expertise and marketing strategies, we have over 1 million visitors on our websites each month, who spend an average of 24 minutes per visit.

Our local office beginning was in 1991, when we conducted a multiple-property auction for a large lender and successfully sold 133 properties in 3 months. We then went on to work with other lenders, developers, motivated sellers, and brokerages struggling to find an enhanced marketing solution for effectively selling real estate. Prior to joining the national network of United Country, we were known as “Utah Real Estate Auctions”, and “America Real Estate Auctions”. Since 1991 we have sold almost every type of property in almost every type of market condition: homes, raw land, condos, commercial and entire subdivisions.

Our recent history shows that nearly all of the property we have sold through our online/onsite auction has exceeded the expectations of both buyers and sellers.

The very nature of the auction process makes transactions smoother, with faster closings. Many buyers believe that all real estate auctions involve only distressed or foreclosed properties. This is not the case. Historically auctions have been utilized primarily by banks and other institutions, however, now we this tool is available to all homeowners as the wave of the future for selling homes.

Depending on the type of auction, whether a property is distressed or not, buyers can get a bargain. It's all about diligent investigation and planning. While sellers can retain some control over the final selling price, buyers can find a great deal in a win-win scenario. It's more about informed sellers and buyers being much more in control of the process than in the normal public listing and sale process.

Increasing Buyer Confidence
We have created a “Buyer Confidence Package” that includes four items done immediately after receiving an auction listing. These are made available to potential buyers on the web at the click of a button, enabling them to make an intelligent buying decision, with minimal risk:

  • Current Appraisal
  • Full Property Inspection
  • Preliminary Title Report
  • Home Warranty included with every home sold in the auction

Nobody but United Country - US Auctions & Realty is offering this type of information and coverage for buyers to help them feel confident about the property on which they are bidding.

The auction is the truest form of obtaining market price, as it exposes the property to a wide range of buyers who have an equal chance to bid with equal terms and conditions. With current market conditions and the challenges of selling real estate, property owners and lenders are being forced into short sales and foreclosures, sustaining large losses in capital and equity. United Country U.S. Auctions has brought an enhanced marketing solution to help both buyers and sellers achieve their objectives. To better understand real estate auctions, we provide free educational seminars and conduct daily conference call discussions with buyers, sellers, and realtors. Call in to our daily conference call at 12:00 noon Mountain time at: 712-432-0080, code: 317557#