Alternatives to Utah Foreclosure

Reinstatement

Paying the entire default amount plus interest, attorney fees, late fees, taxes, etc. The total reinstatement amount can be acquired by contacting the attorney handling the foreclosure.

Re-Finance

This option is usually only possible if the mortgage default problems are caught early and there is enough equity in the home to pay off the current loan and processing fees, while still keeping the new lender in a good equity position. If you have a good amount of equity in your home, there are lenders out there that will look past your credit damage and loan on the merits of the property itself. Expect to pay a higher interest rate, which means your payments will likely increase but this is still an option for some to avoid foreclosure.

Repayment Plan

Your lender does not want foreclosure. If you have the ability to make the scheduled monthly payment on your home, but you cannot catch up the back payments, we may be able to negotiate a repayment plan that would allow you to pay the back payments in smaller increments. This is another of the many ways to avoid a foreclosure of your Utah home.

Loan Modification

This is either a short-term or permanent change by your lender in one or more terms of your current loan agreement. This could include a reduction in the interest rate, an extension of the time available to repay the loan or a re-amortization of the existing loan balance. To qualify, you must prove to the lender that you have fixed the problem/hardship that caused the missed payments. Read more...

Special Forbearance

Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may be able to provide a temporary payment reduction or suspension of payments. You will be required to provide information to the lender to show that you are able to meet the new payment plan requirements.

Pre-Foreclosure Sale

If the property has equity (money left over after all loans and monetary encumbrances are paid), you could sell the home without lender approval if the sale could be completed prior to the completion of the Utah foreclosure timeline. You would be able to get cash from the sale provided there is enough equity in the property. On the other hand, if your lender is owed MORE than the fair market value of the home, a Short Sale may be possible.

Utah Short Sale

If you do not have the equity in your home, enough to payoff your current principal balance, past due payments plus interest, attorney fees, late fees, taxes, as well as any costs associated with the sale of your Utah home (agent commissions, closing costs, etc.) your lender may accept a Utah Short Sale. This means that your lender will accept less than the amount owed on your mortgage to release their lien against the home. Read more...

Deed-in-Lieu of Foreclosure

Willfully give the property back to the bank instead of the bank foreclosing. A deed in lieu may be complicated or not available if you have a home equity loan or other liens against your property.

Utah Bankruptcy

This option can liquidate debt and/or allow more time.

1. Chapter 7 (Liquidation) To completely settle personal debt. (exemptions apply)
2. Chapter 13 (Reorganization) Payments are made toward a plan to pay off debts in 3-5 years.
3. Chapter 11 (Business Reorganization) A business debt solution

Contact us

If you would like to discuss your personal situation with someone, please consider contacting us. We would love to be your advocate (NO COST, NO OBLIGATION) and assist you in obtaining the best possible outcome to your current situation.