FORECLOSURE IS NOT
THE ANSWER!

While it may not seem like it now, there will come a time when you look back on this situation and know that you did everything you could.  These are tough and frustrating times with nearly 1 out of every 6 homeowners in America are behind on mortgage payments.  Chances are, you or someone you know in SW Riverside County is facing the possibility of foreclosure.

Now more than ever it's important to identify what options will minimize your financial loss and help your credit history recover quicker. Whats important to know is, Foreclosure can be avoided. There are options that will have less of an impact on your credit history, however your involvement is necessary, together we will manage your road to recovery.

From the clients we've helped avoid foreclosure, we have found that homeowners today have more questions than answers about their circumstances. This site was created to help you understand the solutions to utilize when facing foreclosure, whether you have experienced a pay cut, loss of job, mounting credit card debt or unmanagable medical bills. As CDPE Short Sale Consultants, Bibi and I can navigate you throught these financially challanging times 

Nine options when facing Foreclosure

1. Do Nothing - If a homeowner does nothing, they will lose their home at foreclosure auction.  Loan applications generally ask if the applicant has ever been foreclosed upon.  Credit reports also disclose this damaging information. Not the best option. "Did you know that 80% of homeowners that foreclosed never spoke with a real estate professional to know their options???"

2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees.  Usually this is accomplished through a refinance of the debt.  New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default.  With this option, there should be equity in the home. This option may change your non-recourse loan to a recourse loan, enabling the lender to pursue a deficiency judgment. http://banking.about.com/od/loans/a/recourseloan.htm

3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4. Loan Modification - Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan.  This may allow the homeowner to catch up at a more affordable level.  To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5. Forbearance - Lender may be able to arrange a repayment plan based on the homeowner's financial situation.  The lender may even be able to provide a temporary payment reduction or suspension of payments.  Information will be required from the lender to show that you are able to meet the new payment plan requirements.

6. Rent the Property- A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.

• Benefit: Allows homeowner to keep property indefinitely.
• Drawback: The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenanc

7. Deed in Lieu of Foreclosure - Give the property back to the bank instead of the bank foreclosing.  Banks generally require the home be well maintained, all mortgage payment and taxes must be current.  Most loan applications ask if this has ever happened.

8. Bankruptcy - This option can liquidate debt and/or allow more time.  We can refer you to a qualified bankruptcy attorney.

• Chapter 7 (Liquidation) To completely settle personal debt.
• Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
• Chapter 11 (Business Reorganization) A business debt solution.

9. Sale - If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale.  In this case, the homeowner will get cash from the sale.  On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property's value.

Bibi and I are now offering you FREE Reports in an effort to explain your options and help you decide on the course of action that is best for your family. The idea of losing a home can be emotionally overwhelming, and we feel it is vital for you to have all the facts necessary to make an informed decision. Simply click the Resources tab and choose from our many informational reports.

Here's what one of our clients recently said about our services

As SW Riverside County's Advanced CDPE® Agents we stay current with the changes to the pre foreclosure process through advanced training from the CDPE institute. Our CDPE designation provides us with a unique appreciation of the factors affecting the market.  Please take the time to fact check what pre foreclosure avoidance options are available to you. You can also learn more about the Distressed Properties Institute at www.cdpe.com  

If you would like to know more about your options, please call us for a no obligation short sale consultation 951-587-2042. You will receive our courtesy honesty and integrity and your information is kept confidential.

Ruben & Bibi Gonzales

951-587-2042
www.RubenAndBibi.com

SW Riverside County Pre-Foreclosure Specialists
CA Real Estate Lic #'s 01251707/01377310