Your attempts to stop the foreclosure have failed, or you don't have time or resources to deal with it.
The foreclosure is weeks away.
You don't have time for a regular sale.
Cash buyers are offering very little for your house.
Maybe you are underwater, even a regular sale will not pay off the entire mortgate.
If you let the foreclosure happen, you will ruin your credit for 7 years. You won't be able to get a loan for a house or a car. Finding a rental will be difficult.
You will lose your house. If you have equity in the house, you will lose all or most of it, because at the auctions houses sell for ~70% of the value.
Foreclosure might not solve all of your debt problems. The creditors might come after you for the remaining debt.
Rainy day friend...
At VALI Residential LLC, our mission is to help homeowners in distressed situations using creative solutions.
We provide relief to homeowners in pre-foreclosure stage, by buying their houses and catching up with their payments to stop the foreclosure. We save the homeowners credit by stopping the foreclosure and helping the homeowner walk away with cash in his\her pocket.
If the homeowner has equity in the house we pay some portion of it at the time of closing. We prepare a note for the remaining amount and pay it when we sell the house.
Here is the plan!
Step 1: You fill out the information form to provide the financial picture of the house. We look at the house to see the cost of repairs to put it at the market. Time: 15 min to 1 day.
Step 2: Based on the two inputs at step 1, we draft an offer. When we reach common ground, we sign a purchase and sales contract with approximate numbers on. You sign a borrower authorization form which gives us access to the bank. Time: 1 hour to 1 day
Step 3: At the closing, we buy the house subject to existing financing. You get part of your equity in the house at the closing. Time: 1 to 3 days
Step 4: We stop the foreclosure by paying the back payments and following monthly payments. Time: 15 min
Step 5: We repair and prepare the house and put it on the market. Time: 1 month
Step 6: We sell the house and you get the rest of your equity in the house. The loan on the house will be paid off. Time: 1 to 2 months
Note 1: If the equity in the house is less than the combined cost of repairs, closings and marketing, we might choose to lease-option (rent-to-own) the house instead of selling it in the traditional way. Time: 2 to 5 years
Note 2: If your house is severely underwater, then we will draft a short sale offer to the bank. If the bank accepts our offer, you will avoid foreclosure. A short sale is much better than a foreclosure on your credit score if the bank reports it at all. In addition, even after a foreclosure, the lender might pursue you for the remaining balance after the auction of the house, which is not the case for a short sale. Note that, the bank might reject our offer and foreclose on the house. The short sale attempt will not cost you anything. It is one last resort to get you out of foreclosure.
What is a "subject to sale" anyway?
The mortgage on a house and the house title are independent of each other. My wife's name is on the title of my house but not on the mortgage. She partly owns our house "subject to existing financing".
Person A can sell her house to Person B while keeping her mortgage in place. The Person A's mortgage is still tied on the house, which belongs Person B now. If for any reason, that mortgage is not paid, the lender will take the house from Person B.
Sale of a house subject to existing financing is legal and more common than expected.
"Due on sale" phrase in the mortgage documents is a right of the lender but not an obligation. Lenders exercise this right very rarely. They are in the lending business and prefer to get their payments in time rather than deal with a foreclosed house.
Ready to stop the foreclosure?
Please fill out the information form to receive a no-obligation offer from us within 36 hours.