Facing Foreclosure? You Have Options.
Real estate foreclosures are somewhat like divorce - no one wants to think it could happen to them, but unfortunately, it is a fact of life for many people. Foreclosures can be daunting and a little scary, but it's important to realize that you do have some options.
A Notice of Election and Demand for Sale signifies the start of the foreclosure process. Before taking any action, you should always consult with a local real estate expert to discuss your specific situation. The team at Arrowhead Title, Inc. is here to help by providing you with a starting point for continued discussion.
Step 1: Identifying Your Financial Situation
Before you can identify which alternative to foreclosure will work best for you, you have to evaluate your current financial situation. Which one of these situations apply to you?
Solvent: Your monthly income exceeds your monthly expenses, and you have some savings or assets.
Income = Expenses: Your monthly income equals your monthly expenses, and you have little or no savings or assets.
Insolvent: Your monthly expenses exceed your monthly income, with no savings or assets.
Step 2: Identifying Your Property's Equity
The next step of the process is to identify how much equity you have built up in your home. Here are the different ways equity is measured.
Positive: Your home is worth more than what you would owe on your loan.
Value = Loans: Your home value is equivalent to the amount that you still owe on your mortgage loan.
Negative: Your home is worth less than what you currently owe.
Step 3: Reviewing Your Options
Now that you have identified your financial and equity situations, you can use this chart to determine which alternative to foreclosure may be best for you.
Definition of Terms
Sale: Sell property, pay lender(s), may require cash to close
Refinance: Replace loan in foreclosure with new financing, may require cash to close
Loan Modification: A voluntary adjustment of the terms of a loan by the lender to enable the homeowner to continue making payments, may include repayment plan for missed payments
Short Sale: Sale transaction in which lienholders agree to accept less than the full amount owed to release their liens against the property
Deed-In-Lieu: Process whereby lender agrees to take back title to property by way of voluntary transfer of title/deed to avoid the foreclosure process
Bankruptcy: Seek discharge of potential deficiency and other unsecured debts through Chapter 7 or Chapter 13, depending on qualification
If you are facing foreclosure or concerned that you might be in the future, please contact your lender, attorney, financial adviser, accountant, or other real estate expert to discuss your specific situation.
Contact Arrowhead Title, Inc. for information about title insurance at the Lake of the Ozarks or to learn more about our trusted Lake of the Ozarks title company.
Contact Arrowhead Title, Inc. to begin your title insurance process today!
The Lake of the Ozarks' Most Trusted Title Company
A Notice of Election and Demand for Sale signifies the start of the foreclosure process. Before taking any action, you should always consult with a local real estate expert to discuss your specific situation. The team at Arrowhead Title, Inc. is here to help by providing you with a starting point for continued discussion.
Step 1: Identifying Your Financial Situation
Before you can identify which alternative to foreclosure will work best for you, you have to evaluate your current financial situation. Which one of these situations apply to you?
Solvent: Your monthly income exceeds your monthly expenses, and you have some savings or assets.
Income = Expenses: Your monthly income equals your monthly expenses, and you have little or no savings or assets.
Insolvent: Your monthly expenses exceed your monthly income, with no savings or assets.
Step 2: Identifying Your Property's Equity
The next step of the process is to identify how much equity you have built up in your home. Here are the different ways equity is measured.
Positive: Your home is worth more than what you would owe on your loan.
Value = Loans: Your home value is equivalent to the amount that you still owe on your mortgage loan.
Negative: Your home is worth less than what you currently owe.
Step 3: Reviewing Your Options
Now that you have identified your financial and equity situations, you can use this chart to determine which alternative to foreclosure may be best for you.
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| Source: Stewart Title |
Sale: Sell property, pay lender(s), may require cash to close
Refinance: Replace loan in foreclosure with new financing, may require cash to close
Loan Modification: A voluntary adjustment of the terms of a loan by the lender to enable the homeowner to continue making payments, may include repayment plan for missed payments
Short Sale: Sale transaction in which lienholders agree to accept less than the full amount owed to release their liens against the property
Deed-In-Lieu: Process whereby lender agrees to take back title to property by way of voluntary transfer of title/deed to avoid the foreclosure process
Bankruptcy: Seek discharge of potential deficiency and other unsecured debts through Chapter 7 or Chapter 13, depending on qualification
If you are facing foreclosure or concerned that you might be in the future, please contact your lender, attorney, financial adviser, accountant, or other real estate expert to discuss your specific situation.
Contact Arrowhead Title, Inc. for information about title insurance at the Lake of the Ozarks or to learn more about our trusted Lake of the Ozarks title company.
Contact Arrowhead Title, Inc. to begin your title insurance process today!
The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!
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