Stop Your PA Foreclosure?

If you're familiar with this blog you know that it was created by Real Home Solutions, Inc. (RHS) to help Pennsylvania homeowners and buyers who need help with their real estate transaction. RHS provides tips, articles and insights that may help folks out. We get many folks who contact us because they need to sell their PA house fast for a variety of reasons: divorce, death in the family, job loss, excessive repairs needed and foreclosure.

Well lately there has been a HUGE rise in foreclosures in the area. Unless you live under a rock, you're well aware of what's going on in the financing industry and real estate market here in Pennsylvania. Now more than ever before RHS is contacted by homeowners who are headed into foreclosure and they are looking for our help to STOP their foreclosure. Something that a lot of homeowners get misled about is the ability to stop their foreclosure. RHS can NOT stop your foreclosure nor can anyone else for that matter except YOU. And YOU can stop it by paying the cash needed to bring your loan current.

Many folks resort to filing bankruptcy to stop their foreclosure. However, they are very misinformed by their bankruptcy attorney. Filing bankruptcy does NOT stop your foreclosure, it just stalls it. I promise you though, if you are in foreclosure and you stall it by filing bankruptcy, the bank WILL eventually get the OK from the bankruptcy court to proceed with the foreclosure. So don't be misinformed ever again when speaking with a bankruptcy attorney. Also, some need guidelines have been set by Fannie Mae in regards to foreclosures and filing bankruptcy, etc.

To sum it up: IF you file bankruptcy (except Chap. 13) to STALL your foreclosure you have just ruined your credit for 4 years! If you file Chap. 13 and your case gets discharged then your credit is only ruined for 2 years from the date of discharge. But if you file Chap. 13 and your case gets dismissed then your credit is ruined for 4 years and it starts from the date of dismissal.

And the key to remember with bankruptcy is that it WILL NOT STOP YOUR FORECLOSURE. It just stalls it and screws up your credit for the most part for 4 years!

Now, something that RHS can do to help folks heading into foreclosure is that we buy your house and negotiate with your lender to accept less than what you owe them. Why do we do this? Well alot of times folks headed into foreclosure owe more than what their house is worth so this is a necessary negotiation for us in order to get the deal done. Banks, beleive it or not, are very open to this type of negotiation because they do NOT want to foreclose on you (costs too much time and money.) They just want the house to be sold and the loan to be gone forever and if that means taking less than whats owed then they are al for it. Well with the new Fannie Mae guidelines if YOU, as a homeowner, agree to this type of negotiation and the sale goes through (instead of getting foreclosed on) then your credit is only messed up for 2 years! That's it! And there are no other stipulations involved with that.

But if you let your house go to foreclosure then not only is your credit ruined for between 5 to 7 years BUT there are other stipulations involved if you ever want to buy a house again. The biggest stipulation is that you have to have at least 10% to put down and a 680 credit score! Even if you just turn the deed over to the bank, which is called a deed in lieu (of foreclosure,) then your credit is ruined for to 7 years and you're going to need 10% down if you want to buy a house again!

What does all of this mean? It means working with a company like Real Home Solutions, Inc. to negotiate a shortsale with your mortgage company is SUPER beneficial to homeowners who are going into foreclosure.

Don't take our word for it though. Read it from Fannie Mae. The text below is taken from Fannie Mae's site and you can follow the link at the end to read the chart that will describe all of the actions you can take and what those actions will mean to you.


"Establishing a new policy for preforeclosure sales. A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to the increased incidence of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.

The following table outlines Fannie Mae’s current and new policies for manually underwritten loans related to the time period that must elapse before borrowers can demonstrate they have reestablished an acceptable credit history after the occurrence of
the bankruptcy or foreclosure."

Here's the link to everything just put out recently by Fannie Mae and a link to the chart that you can look at to see what your actions will mean for you.

If you'd like RHS to help you with your foreclosure situation then please call Carey at 610-999-6410 or visit our website to GET A CASH OFFER NOW!

Feel free to post any comments or questions on this blog and we'll be more than happy to help you out!