6 Tips to Consider When Faced With Foreclosure

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6 Tips to Consider When Faced With Foreclosure

By Alan L. Olsen, CPA, MBA (tax)
Managing Partner
Greenstein, Rogoff, Olsen & Co., LLP
Updated: 10/9/12

Many find themselves faced with foreclosure in the world today. Sometimes the circumstances leading to foreclosure isn’t your fault. If faced with foreclosure, most likely you want to know what to do, how to get help and if you can get out of it. Each situation is unique; to help those faced with foreclosure we’ve assembled a list of 6 helpful tips.

1) Talk With Your Lender Now

Talk with your lender now and be honest about your situation. The sooner you make this appointment, the more options you’ll have. Look at the possibilities of making interest-only payments for a while, or refinancing your loan. Lenders are willing to help because generally they lose profit on foreclosures and would prefer to work out an agreement instead of taking your house.

2) Scams

Within hours of being notified that your foreclosure is beginning you will be getting phone calls. Be wary of false consultants. Never sign the deed of your house over to someone else or allow them to speak with the bank on your behalf.

3) Chapter 13 Bankruptcy

You could file Bankruptcy chapter 13. Here you will be able to keep your home and other possessions under the supervision of the court. You will then be given a specific time period to pay the debt accumulated.

4) Sell the Property

This should only be resorted to if you are able to sell the property for more than you owe the lender. This needs to be done before the lender auctions your house.

5) Short Sale in Lieu of Foreclosure

Upon agreeing with the lender you can quickly sell your house for less than you owe. Be careful to clarify all details connected with this agreement because some banks will expect to be paid in full even in if you are making a short sale agreement.

6) Second Mortgage

Sometimes you will be given the option of taking out a second mortgage. Do not be lured into this trap. Interest rates are extremely high, sometimes up to 17%. More than likely you will just exhaust your resources with this option.

 

We hope you found this article about “6 Tips to Consider When Faced With Foreclosure” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or website www.GROCO.com.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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