About Foreclosure

Foreclosure is the forfeiture of the rights of a homeowner to a property due to non-payment of mortgage. If the homeowner is unable to pay the outstanding debt, the property will be sold through a foreclosure auction and failing that, the lending institution can claim it as its own.

Understanding Foreclosure


Foreclosure doesn’t happen overnight since it undergoes several stages, as follows:

1.  Missed payments – this is the first stage wherein the borrowers cannot pay the mortgage in a timely manner. Some of the reasons can be divorce, death, loss of income due to unemployment, an illness or simply reneging on their financial obligations.

2. Public notice – After several months of missed mortgage payments, the lender through the Country Recorder’s Office issues a Notice of Default to let the borrower know that he or she is facing foreclosure.

3. Pre-foreclosure – Once a Notice of Default is received by the borrower, he or she can arrange with the lender how to settle the outstanding default amount.

4. Auction – If the borrower fails to pay the outstanding amount owed, the lender can set in motion selling the house at a foreclosure auction.

5. Post-foreclosure – If the property is not sold through foreclosure auction, ownership is transferred to the lender and it becomes what is known as Real Estate Owned (REO).

Your Options When Facing Foreclosure:

Our goals here at Helpful Realty are to make sure you know your options and to find a win-win solution for you as a seller and us as the buyer. By providing you with the necessary information, you can make a smart decision which way to go.

Your first option is to apply for a loan modification program. You can talk to your mortgage company or lending institution and work out an arrangement for a new payment plan for the remaining balance on your loan.

Your second option is a Deed In Lieu of Foreclosure, wherein you transfer the title of your property to the lender.  Make sure after opting for a Deed In Lieu that the lender releases you from all mortgage obligations and liability.

Helpful Realty offers a third option. Sell it to us! A modified or restructured loan has very stringent rules and there’s a good chance that you as the borrower might not be able to make timely payments. Your lender might not give you a second loan modification.

We will work with your mortgage company and you will be free of any obligations to them. Remember, foreclosure will cost you more money than what you’ll lose in a short sale. Call us today and we’ll help you find a way out of this difficult situation so you can start over.

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