How to get your Home back after Foreclosure
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If you are unlucky enough to lose your home because of foreclosure, remember it is not the end of the world. You can in many cases, get the home back, anyway! How do you do that?
Buy it back: There is usually a redemption period in most US states, where you can simply buy the house back. You pay the balance of what is owed and any outstanding arrears. This will require refinancing, but in some extraordinary cases the original Mortgage Company has reinstated the loan. This gives some indication of how much they dislike the process of foreclosure. After all what is a bank going to do with a string of repossessed houses that are eating up its reserves to provide finance to other prospective borrowers? A mortgage and loans company is in the business to lend money at interest, it is not a real estate agency. However, some have gone into the business in a roundabout way!
Sheriff sales: In other States there is a five day period between the sheriff’s sale and the confirmation of the sale by the court. In this amnesty period you can pay off the arrears and whatever else is owing, meaning the sale can be reversed.
Get a loan from a foreclosure lender: The purpose of the foreclosure lender is to help reverse foreclosure. You can borrow money to refinance the property from these people. It is necessary to put down a 35% down payment, but if you have held the home for some time and seen it appreciate in value; the difference between what is owed to the original mortgagor and the actual price of the house on the open market might in itself be sufficient to provide the down payment. Most owners will have seen this coming and probably used the increased equity to refinance, anyway!
Negotiate with the lender: Lenders can sometimes be persuaded to reinstate the original loan on different terms, or come up with an entirely new mortgage or design a lease back scheme, so the owner can continue living in the house. You need to negotiate with them to see what kind of deal can be had.
Get a private investor: Maybe you can get friends and family to come together and help organize a refinancing package that will make it possible for you to continue inhabiting the house. A good attorney specialized in the field of foreclosure law can sometimes help you find a private investor who comes forward immediately after the sheriff’s sale. He will buy the house from you and you can lease it with a buy back clause. Sometimes courts take a dim view of this process, particularly if the deal does not reflect the true market value of the property. However, a good lawyer will see the pitfalls and help you overcome them. In essence if you face losing your home through foreclosure, realize there is a lot you can do to swing the situation back into your favor. A proactive approach will more often than not mean you keep hold of your home!
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07 July 2008, 10:09 am
how can i get my home back after foreclosure. i have nobody representing me and i want my home back.
04 August 2008, 7:13 am
i’m in the same boat if u fine out what to do please let me know i don’t want to give my home up i’ll be prayering for you