Foreclosure

General Definitions

• A Foreclosure is a legal process where the ownership of a property can be changed after the borrower (the person who borrowed money to purchase the property) fails to make the required mortgage payments.

• The Pre-Foreclosure process begins when the borrower defaults on the mortgage loan (the borrower has not made the agreed-upon mortgage payments.  This process begins at day 31 of a missed payment.

• Foreclosure laws and procedures can vary significantly from one jurisdiction to another.

• Some jurisdictions require lenders to go through a lengthy judicial foreclosure process involving the court, while others allow for non-judicial foreclosures, which are typically faster and involve less court oversight.

• A Foreclosure can have serious financial and legal consequences for borrowers in default

• A Foreclosure default creates damage to their credit scores

• A Foreclosure default can result in the loss of their home(s)

• Borrowers facing financial difficulties should contact and consult with me me to explore options for avoiding Foreclosure

• Our Consulting Services are FREE

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Our Process

• Provide you with a general education of the foreclosure process in your area

• Help you develop a plan on how to approach your lender

• Help you decide who is best suited to talk to your lender

• Help you create a custom plan based based on your borrower options

• Help you begin the Option / Negotiation Process with your lender

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Lender Prep

• We help you create a factual and detailed written description of your household finances

• An example of this is on our Save or Sell page at: https://rrepros.com/save-or-sell/

• We want you to understand your options BEFORE speaking to your lender

• Questions for your plan to offer before talking with your lender:

  • Should you plan to sell to a cash investor? (less money for you)

  • Should you plan to sell with a Realtor? (typically more money for you)

  • Is Forbearance in consideration? (lender takes all or part of  default and adds it to the end of the loan)

  • Deed in Lieu (surrender of the property prior to the Sheriff’s Sale)

  • Loan Modification (new negotiated loan terms)

  • Short term payment arrangement (often combined with forbearance)

  • Sell via Assumption (someone takes over the loan)

  • Other

• Should you develop an exit plan?

  • YES! (See options above)

  • Option: Walk away (NEVER recommended)

  • Option: Cash for keys

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Financials

• Your personal and financial information must be complete BEFORE you speak to your lender

• Your financials plan needs to be done BEFORE speaking to your lender

• All calls are likely recorded

• Your plan and timing may determines whether your lender can help you save your home

• For our FREE worksheet:

Budget Worksheet

Contact Information

Email(Required)

Best Phone Number(s)(Required)

First Name(s)(Required)

INCOME (These must be POSITIVE Numbers)

Alimony

Child Support

Regular Income

SS / Disability

Other Income

AUTO EXPENSES (These Must Be NEGATIVE Numbers)

Fuel

Insurance

Loans/Leases

Maintenance

Plates / 12

Repairs

Quantity

HOME Expenses (These Must Be NEGATIVE Numbers)

Cable / Internet / Streaming

Heat / Electric

Security

Total Mortgage(s) / Insurance / Taxes

Water / Trash

HEALTH / MEDICINE (These Must Be NEGATIVE Numbers)

Dental Insurance / Co-Pays

Health Insurance / Co-Pays

Life / Disability Insurance

Pet Insurance / Medicine / Co-Pays

Prescriptions / Co-Pays

Vision Insurance / Co-Paus

PERSONAL EXPENSES (These Must Be NEGATIVE Numbers)

Child Care

Child Support

Clothing - Adults / Kids

Dry Cleaning

Groceries

Hair / Health / Beauty Products

Sports / Activities / Equipment

Tuition / Books

SPENDING (These Must Be NEGATIVE Numbers)

Kids/Adults/Birthdays / Holidays/Friends/School/Office Parties/Gifts/Etc.

Credit Card Minimum Payments

Dining Out / Fast Food

Pet Food / Snacks / Toys / Upkeep

Pocket Money

Smoking / Vaping

Travel / Vacations

Weddings / Funerals Includes Clothing/Grooming/Travel

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Pre-Foreclosure

• Starts at Day 1 of a missed mortgage payment

• Begins a legal process the Lender must follow in your jurisdiction

• You have more options to work with your Lender when at this stage

• Pre-Foreclosure is considered Day 31 until the day the law firm receives your case

• Once a Sheriff’s Sale date has been made, your option are reduced

• Once Lis pends (legal paperwork) has been filed, you are now in Foreclosure

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Sheriff’s Sale Notice

    If you received a Sheriff’s Sale date has been scheduled for you in approximately 3 weeks.  You should have received multiple letters from your lender and the law firm that represents THE MORTGAGE COMPANY – not you.

    You may have also received a notice taped to your door with a copy of the published legal notice.  The published legal notice is how I learned of your potential problem.

    Now that the date has been set, your options are now extremely limited to save your house.  Though your lender may still take your calls, it is the law firm that is now handling your scheduled sale. Do not give up on calling your lender unless they tell you otherwise because to stop the Sheriff’s Sale, your Lender MAY still accept:

• A structured repayment plan.

• Most plans generally require ½ of the back amount due up front

• Forbearance.  For a definition of Forbearance go to: https://rrepros.com/foreclosure-glossary/

• An accepted listing / accepted offer for the sale of the property.

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Sheriff’s Sale

• Home is sold at an In-Person or county auction

• You will NO LONGR own your home effective immediately

• STRONG SUGGESTION for some areas: Do NOT move out of the property

• Most jurisdictions have a Redemption Period

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For a FREE copy of our foreclosure eBook at: https://rrepros.com/foreclosure-ebook/

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Redemption

•  In some areas the time period immediately after Sheriff’s Sale

•  In some areas it could be to your advantage to NOT move out of the property!

•  You have legal rights to the property during this time period

•  If the property looks as if it is in disrepair the purchaser of the loan can reclaim the property

•  If the property looks abandoned the purchaser of the loan can reclaim the property

•  You may have options to reclaim the property

• You may have options to sell the property

•  You may (upon sale) be able to put money in your pocket

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For a FREE Redemption eBook go to: https://rrepros.com/foreclosure-consulting/redemption-period-ebook/

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Redemption Options May Include

• Reinstatement after all Past amounts due (deficiency)

• Loan shortages from the Sheriff’s Sale

• Back penalties and interest

• Legal and Misc. fees

• Buying the property back for cash

• Buying the property back with alternative financing

• Selling to a wholesale or cash investor (Sheriff’s Sale +)

• Selling Retail (Sheriff’s Sale+)

• The law firm that handled the Foreclosure will be able to provide the payoff amount

• Monies received over the payoff amount is yours less closing costs

• Cash for Keys (lender offers money for a CLEAN MOVE IN READY property)

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After Redemption

• You are trespassing

•  You could be removed by law enforcement

• Your possessions could be removed by law enforcement

    We can help answer ALL of these questions. Feel free to call (734) 362-9511

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To schedule an appointment:  https://rrepros.com/contact-form/

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