So many people are behind on payments and could lose their home to foreclosure. Don't let the bank foreclose. Homeowners have many options when it comes to curing the default. Here are some options that should be considered to cure the default:

Do a loan modification with the bank
• This means that you are modifying the original terms of the loan. You can work with the bank yourself or hire a company to do it, but if you do hire someone, DO NOT give any money up front for this service. The company must perform the contracted activities first and get paid only when they get the modification for you.

Ask for a forbearance
• To avoid foreclosure, the lender and the borrower can make an agreement that if the borrower can catch up to his payment schedule in a certain time period, the bank won't foreclose.

Refinance
• When you refinance, you pay off your existing mortgage and create a new one. It's like getting a loan the first time. Some things to consider before refinancing are:
• Will your credit qualify?
• Will your income qualify?
• Will your house qualify? (is the value of the house greater than the loan balance?)
Lease the property out
• If you can no longer afford to make the payments, you may want to lease out your house for a year or two until you get back on your financial feet. Some people even just rent out a bedroom or two to help make ends meet.

Do a short sale
• A short sale is selling your house for less than what is owed on the mortgage. This is a viable option because it gets the owner off the loan. There may be some tax consequences when doing a short sale, so consult an accountant. Short sales are easier on credit than a foreclosure.

Filing for bankruptcy
• Filing for bankruptcy is usually a stalling tactic to keep the house from being sold at a trustee sale. This usually only buys about 30 days. Chapter 13 buys the most time to get your house sold or cured. Obviously, your credit will take a big hit and filing plus attorney fees can be very expensive.

Deed in Lieu of foreclosure
• The deed-in-lieu of foreclosure is when you give up ownership of your home and deed it back to the bank. This is a good option for the bank because they don't have to spent on attorney fees. But beware, the bank could issue a deficiency judgment if the house sells for less than owed and they may place a foreclosure on your credit. You need cooperation from the bank up front to take this option.

Selling Subject to
• This option is where the homeowner conveys the property to a real estate investor by quitclaim deed, grant deed or warranty deed depending on the state you live in. In exchange, the investor agrees to make up back payments and bring the mortgage current and make the monthly mortgage payments until the property is sold or refinanced. The homeowner's name will remain on the mortgage, and although the investor agrees to pay the mortgage on your behalf, you remain liable for the mortgage payments. This is usually the quickest method for immediate debt relief.

In my book, Home Remedy Real Estate Book, you will discover how much the real estate investor helps the homeowner in trouble. An investor can solve your housing problems. Instead of listing your home for sale and waiting for a buyer, the real estate investor is the buyer. But more than that, they solve the problems with the house and don't ask for a commission. Robyn Love