Alternative to Foreclosure

Here’s a new twist for those who are in jeopardy of losing their homes to foreclosure.  There’s an investment group who is offering to buy the lien of homes that are in distress.

As of this writing, if you have a loan with any of the following lenders, you should go visit this site:  http://www.Cut-Your-Mortgage-Now.com.

Bank of America
Wells Fargo
Chase
Citibank
BB&T
Aurora
Suntrust Bank
IndyMac (OneWest)
Regions
GMAC
Fannie Mae
Freddie Mac

Once you get to this site, you can watch a brief introductory video, and then there’s two doors to choose from.  

The first door is for those who want to stay in their home, and the second door is for those who must sell.

You’ll have to submit your contact information when choosing a door, but then you’ll have access to more information about their program and will receive a call from a representative who will explain their program to you.

What it boils down to is, they compile a list of 30 or so loans of homes in jeopardy of foreclosure.  If the homeowner is agreeable, they will negotiate the purchase of the loan directly from the lender.

Depending on what has been discussed and agreed upon prior to their buying the loan, how far in arrears the loan is and the economic status of the homeowner will determine how the loan is handled thereafter.

But, because these are investors buying the debt, they have a better understanding of what is going on, and are better able to work with the homeowner.

The end result is the foreclosure doesn’t take place, and if the home is sold, there is no deficiency judgement against the borrower.

If you visit the site above, and submit your contact information, they do not sell your information to anybody, and they will remove you from their system if you request it.

Oh, and there’s no fee to speak with them.  The only time a fee may become relevant is if you want to stay in your home.  I think they require that fee to be paid up front, to cover the cost of the attorney’s review of your mortgage documents, adding the loan to the group and then negotiating the purchase of the loan.

But that is something you would want to clarify with them directly.

Hey, it seems pretty clear cut, and provides just another alternative to letting the lender foreclosure on you.