Struggling to Pay Your Mortgage?

If you’re a homeowner struggling to pay your mortgage and have received a notice of lis pendens (indicating the initiation of foreclosure proceedings), taking strategic and timely steps is crucial. Here’s a step-by-step guide on what you can do after receiving the notice and attempting to sell your property:

1. Understand the Situation and Timeline

• Lis Pendens Notice: The notice signifies that foreclosure has begun. It's a warning, not an immediate loss of your property.
• Timeline: Research your state’s foreclosure timeline. In many cases, you have several months before the process fully takes effect.

2. Contact Your Lender Immediately

• Open Communication: Contact your lender as soon as possible to discuss your options. They may offer alternatives, such as forbearance, loan modification, or repayment plans.
• Request Loss Mitigation Options: Ask about programs like forbearance, loan restructuring, or refinancing.

3. Hire the Kim and Dave Luxury Team

• Expert Guidance: Enlist the Kim and Dave Luxury Team to work with you through this process. They specialize in helping homeowners navigate difficult situations like this, providing you with the expertise and support needed during this critical time.
• Short Sale Negotiation: The team can negotiate a short sale with your lender, helping you avoid foreclosure and minimize damage to your credit.
• Retail Sale for Equity Recovery: If possible, they can also help you sell your property at retail value to regain as much equity as possible, giving you more financial flexibility when relocating.
• Relocation Assistance: In either scenario, Kim and Dave can assist with the logistics of relocating, ensuring a smoother transition to your next home.

4. Seek Legal and Financial Advice

• Hire a Real Estate Attorney: A lawyer specializing in foreclosure can help guide you through the legal implications and protect your rights.
• Consult a Financial Advisor: They can assess your situation and recommend the best financial steps to avoid further penalties.

5. Explore Foreclosure Prevention Programs

• Government Assistance: Look into federal programs like the Home Affordable Modification Program (HAMP) or local state programs that offer foreclosure assistance.
• Non-Profit Counseling Services: Agencies like HUD (Housing and Urban Development) offer free or low-cost counseling.

6. Consider a Loan Modification or Refinance

• Loan Modification: Renegotiate the terms of your mortgage for lower payments, potentially extending the loan term or adjusting the interest rate.
• Refinancing: If your credit is still solid enough, refinancing might be an option to secure more favorable terms.

7. Evaluate a Short Sale or Retail Sale with Kim and Dave

• Short Sale Process: If selling your home for less than the mortgage balance is your best option, the Kim and Dave Luxury Team will handle the short sale process, working directly with your lender.
• Retail Sale for Maximum Equity: If selling at full market value is possible, Kim and Dave will strategically market your property to attract qualified buyers quickly, helping you retain as much equity as possible.

8. Consider a Deed in Lieu of Foreclosure

• Voluntary Surrender: If selling isn’t possible, you may be able to voluntarily transfer ownership to the lender to avoid foreclosure.
• Negotiate Terms: The Kim and Dave Luxury Team, along with your attorney, can help negotiate terms with the lender to ensure they won’t pursue a deficiency judgment (which requires you to pay the difference if the home’s value is less than the debt).

9. Check for Other Options to Delay Foreclosure

• Bankruptcy Filing: Filing for bankruptcy (Chapter 7 or 13) can temporarily halt foreclosure and give you more time to work out a plan.
• Foreclosure Mediation: Some states offer foreclosure mediation programs where you and the lender meet with a neutral third party to negotiate an agreement.

10. Prepare for Relocation if Necessary

• Time the Move: If a sale isn’t feasible, start planning where you’ll live next and when to move out.
• Cash for Keys Programs: Some lenders offer relocation assistance to homeowners in exchange for vacating the property quickly and in good condition.

11. Keep Records and Stay Proactive

• Document Everything: Maintain thorough records of all communications, payments, and agreements.
• Stay Proactive: Missing deadlines, ignoring notices, or avoiding communication can lead to the loss of negotiation opportunities or legal protections.

By partnering with the Kim and Dave Luxury Team, you’ll have experienced professionals on your side to help you navigate your options, whether it’s negotiating a short sale or selling your property at full market value to recover equity. Their expertise and commitment to guiding you through this process will give you the best possible chance for a successful outcome, ensuring a smoother transition as you move forward.