How To Stop Foreclosure At The Last Minute
Are you approaching foreclosure? Your mortgage lender is threatening to seize your home in a few short weeks? You’re not alone: it’s a struggle many Americans and many Texans face. There are no easy ways out, but we at Big State have stopped foreclosures for hundreds of people over the years, so we’ve learned some lessons we can pass on to you. Take a look.
There’s a lot of great advice out there about foreclosure, so we recommend you do your research carefully and consider your options. No two situations are exactly alike. For instance, a loan modification may be the perfect solution for one struggling homeowner, but for another it would mean piling on even more debt to delay the inevitable. You may also hear a lot of advice out there concerning bankruptcy or filing a lawsuit, and we just urge you to be very cautious when considering those options. Taking that into consideration, we’re going to lay out the method we provide to those who come to us. Be warned that you may not like the advice you’re about to hear, but it might be your best option. The way we prevent foreclosure at the last minute is simple: we buy your house.
Yes, this means you will still lose your house, but at least your credit won’t plummet as the result of a foreclosure or bankruptcy. This way, you won’t be underwater any longer and you’ll have cash in hand to recoup your losses and work toward buying a home that you can afford. Each situation is a little bit different, but here’s how we were able to help Kate, a homeowner who was right on the edge of foreclosure before she reached out to us.
She was behind on her payments, and her mortgage company refused to negotiate. She came to us, and when we learned the situation we got straight to work. First, we received an authorization from Kate to negotiate on her behalf. Then, our title processor Sonya started negotiating with the mortgage lender. This is what happened, as told by Sonya:
“We solved that case at the last very last minute. They were using deceptive methods to force the homeowner into a very short window to avoid foreclosure, giving us only a window from the 19th of November to the 30th. They weren’t budging.
First I sent the authorization, and I sent that separately, because I didn’t want them to think I was only asking for a pay off. Then, I resent the whole package: I sent my request letter, the authorization, the contract and my proof of funds. I make sure that whatever the amount the homeowner is short, that my letter says clearly that we have enough money to pay for the foreclosure and the bank can rest assured that they will get every dime owed to them. Big State has a line of credit that I’ll send with my request to postpone foreclosure.”
This is a key reason why working with a home investor gives you an essential edge in negotiation. With a home investor, you go from being completely at the mercy of the bank to having a great deal of leverage in the form of the investor’s capital. Working with an investor puts you in a much better position with your creditor.
Having sent her documents to the mortgage company, Sonya got them on the phone:
“I always get a name, and I notate the system, notate the file folder of who I spoke with, if there’s an agent ID I get that information, I make detailed notes every time. That is what will save you, and it saved us in this circumstance. We were in negotiations for weeks, and they repeatedly said there was no fixed foreclosure date. But then out of the blue they said that there was, and it was imminent. They did this to rob the homeowner of the opportunity to avoid foreclosure in time.
When I called, they said, ‘No, we didn’t say that we didn’t have a foreclosure date.’ And I said, ‘Actually on the 19th you said you didn’t have a foreclosure date, agent ID number 244233 said they didn’t have a foreclosure, agent 12442 said they didn’t have one, and here we are on the 21st and you’re saying it’s a foreclosure date and it’s this month.’ So I said, ‘You said our conversation is recorded right? Please pull that tape. Because you had 4 agents that told me that there was no foreclosure date, and now you’re saying it’s in 10 days. Pull that tape.’ And that stopped the foreclosure just for them to pull it. First they stalled for days just to find the tape, and that window alone gave us all the time we needed.”
Sonya went on to explain,
“The funny thing is, in the time it took for them to pull the tape, we didn’t even need the postponement, we just needed a few days to close it out. We didn’t even need for them to postpone because we found a buyer for the home in that window and it was ready for purchase.
Then they finally called back, and they said, ‘Okay, we’re going to pull the tape.’
I said, ‘Wait a minute’, and I grabbed my recorder recorded it on the phone.
I said, ‘Please repeat the agent ID, please repeat whether or not it’s a foreclosure date.’
He said ‘Nope, it’s not a foreclosure day.’
I said ‘Please repeat your agent ID again’, and he did, and I said ‘Okay. I just want you to know that you have been recorded, in stating that there is no foreclosure.’”
After that ordeal was finished, we closed on the house and Kate had all the money she needed to move to San Antonio to start a new career and a new life.
So to recap, here’s the path we recommend for halting foreclosure:
- Find a reputable home investor with experience in negotiating with lenders, and authorize them to negotiate on your behalf.
- The investor negotiates with the lender while at the same time finding a buyer for your home.
- Once a buyer is found and the lender agrees to release, you sign your house to the new buyer, get your payment and breath a sigh of relief.
You may now be wondering,
“Why can’t I just take this advice and negotiate with the lender myself?”
The reason we don’t recommend doing that is because your lender is not motivated by your story. They are motivated by money. You would need proof of funds to have leverage. Our company happens to have that proof.
Most lenders are actually ecstatic to work for us. You see, banks are not in the real estate business. For them to foreclose a property, they have to winterize the property, they have to lock it down, hire inspectors, put it back on the market, and clean it, and hire lawyers. It can take as much as $30,000 to foreclose on a property, so most banks are happy to work with us. It’s easier for them to get the money they’re due than it is to sell the property again. They’re in the business of making profit on interest through financial services, and selling houses is just a speed bump the bank would rather avoid.
We hope this advice was helpful, but keep this in mind too: not all home investing companies are going to be like Big State. We say that not to brag, it’s just that many companies in our business don’t have the tools or the resources to do what we do. They simply buy and sell houses. What we offer is, frankly, a bit out of the ordinary when compared to others. With Big State, you’re working with a company with a unique combination of available cash and negotiation experience that make us a powerful ally if you need help beating the bank.
Our final piece of advice: don’t stay in a house that’s too expensive for you. Live within your means. If you’re facing foreclosure, be wary of predatory loan modifications that sound like the perfect solution, and never take bankruptcy advice from someone who isn’t a lawyer. If you’re really underwater, take this opportunity to work with someone like us so you can downsize and bring your financial house back in order. We want to help, but we can’t do that until you call. No problem is too big, we’ve seen it all.