KC HOME SAVERS - "Your Local Foreclosure Experts"
Get Educated - Know Your Options
You need to know your options when it comes to your home. KC Home Savers can not only educate you on what options are available to you but will also work on your behalf to help make the best of your current situation with your home. If you want to keep your house, but can’t make the payments or you owe more than your home is worth, you may look into one of the many options below. Below are your options to consider, before choosing one be sure to contact you KC Home Savers advisor to make sure it is the best option for you:  
1.  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. Both loan modifications and special forbearance agreements are legal contracts so be sure you can meet the revised obligation or you can put yourself in jeopardy of renewed mortgage default proceedings. 
2.  Refinance- Regardless of your credit and loan to value ratios on your property you might qualify to refinance your current mortgage loans. Recent government loan programs have become available that may benefit you. 
3.  Reinstatement- A lump sum payment by remitting the entire default amount plus interest, attorney fees, late fees and taxes. We can request an updated statement of total amount due to bring the loan current by contacting your lender.
4.  Loan Modification- There are many forms of loan modification. We will utilize the existing mortgage company to change the interest rate, reduce the amount you owe, add missed payments to the balance or extend the terms of the loan. This option can be successful for homeowners who are just recently back on financial track due to say, re-employment, or other circumstances.
5. Partial Claim- If you have a FHA loan, you may be able to qualify for a partial claim. A partial claim is an interest-free second mortgage that is used to help pay for the first mortgage.
6.  Sell your home-Homeowner may sell the home without lender approval for a conventional home sale. If the property has equity (money) left over after all loans and monetary encumbrances are paid), the homeowner will get cash from the sale. At the other end of the spectrum, 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 on your home is more than the property’s value.
7.  Deed in Lieu of Foreclosure-If you owe more than the home is worth, this may not be the option for you. Deed in Lieu is when you give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payments and taxes must be current. Your lender will fully analyze whether your current title is burdened by subsequent interests…I.E. Is the title clean? If not, a formal foreclosure will extinguish those other encumbrances and the lender may see this as their best option.
8.  Short Sale-Short selling your home may be the best option. It can be a long process depending on your lender. If you are successful, the difference between what you sell the house for and what you owe on the house is forgiven. This option is known to do much less damage to your credit than a foreclosure. If you owe more than your home is worth, and don’t want to declare bankruptcy or face foreclosure, then a short sale of your home is the best option. A short sale may have potential tax implications.
9.  Bankruptcy-This option can liquidate debt and/or allow more time. Bankruptcy law changes of 2005 now require more stringent filing rules. Debtors must qualify by meeting an “income means test” and complete pre and post petition trustee approved credit and financial counseling courses. Certain debts such as student loans and some taxes cannot be liquidated. Chapter 7 (Liquidation) Complete settlement of personal debt Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3 – 5 years.
10.  Redemption-If a homeowner does nothing, their home will be put for sale at foreclosure auction. This is not the end of the road for some homeowners. Kansas residents have a time period assigned by the judge (typically 3 months) in which they can redeem their property. In many cases homeowners have been able to keep their home owing far less than they originally owed or sell their home making a substantial profit.
Get Some Help  
Because there is often so many different entities involved in a mortgage (1st mortgage, 2nd mortgage, the investor on the loan, etc) you really don’t want to do this on your own, with no experience. Yes, in some cases you may have to pay a consulting fee, but you’ll have a much better chance at getting the results your looking for with a team of professionals on your side.
Get Started Now
The longer you wait to get started the less chance you have of success. Every state is different with their foreclosure process. You need to decide quickly to start the process if you’re getting behind on your payments and especially if have already received a notice of default. Your KC Home Savers advisor will know the foreclosure process in your state to better serve you.
Prepare yourself emotionally
If you are already in default, or have a foreclosure pending, this whole scenario and process of trying to keep or sell your home can be very emotionally draining.You will receive many solicitations from Investors. You may even have people stop by your home while you are still there. It can be a very difficult process.Make sure you have people in your life to talk to about your situation. You will need a support network to help through this time in your life. It will pass. And you are being proactive in seeking help. You are taking the right steps, and in time, everything will work out. I can’t promise it will be easy, but you will make it!
   Call us today, 913-706-3971 for a FREE initial consultation!
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