If you are facing a pending foreclosure, the time to act is NOW before your property goes into foreclosure auction.

What options do you have?

Your attorney may advise you to file for bankruptcy. While this advice is well intentioned, this may stop the foreclosure process cold on its track... for some time only. But will this be the end of the problem?

While bankruptcy will buy you some time, the end result is that your house will get auctioned unless you bring your payments current. Which means:

• You will lose your home
• You will have a bankruptcy and a foreclosure on your credit report
• Obviously, you will want to avoid this at all costs!

The easiest solution to this is to SELL YOUR HOUSE AND SELL IT FAST! You will then avoid having a foreclosure and a bankruptcy on your credit report and be able to get on with your life and avoid having foreclosure haunt you for years to come!

Our answer revolves around creating a solution that will help you avoid such a situation. We may be able to buy your home quickly, and/or work with your lender to stop foreclosure . We may be able to help even if you have little or no equity.

Our goal is to help you take the load off your back so you can move on with your life with your good name and credit intact! We have a professional team dedicated to helping people in situations just like yours get their life back on track.

What is foreclosure?

According to Wikepedia, "foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court-ordered termination of a mortgagor's equitable right of redemption." To put it simply, foreclosure is a legal process in which a lender takes over ownership of a property when the borrower is in default of payment.

Foreclosures can end in several ways, including pre-foreclosures, auctions and Real Estate Owned (REO), all of which are explained in further detail in this section.

For prospective buyers, foreclosures can result in significant savings, since the lenders that take back the properties typically aren't in the business of being landlords and will do whatever they can to sell them.

What are the two types of foreclosure?

1. Non-judicial, which occurs in deed of trust states. In this type of foreclosure, a third party that is empowered to foreclose or take back the property when the mortgage is in default holds title. Since the lender does not need to file a lawsuit against the mortgage holder to foreclose or take back the property, these foreclosures can take as few as 60 to 120 days.

2. Judicial, which occurs in mortgage states. Since the mortgage holder holds title and has to go to court to rectify the matter when the mortgage goes into default, this type of foreclosure can take much longer than non-judicial.

FYI: Florida is a mortgage state with a judicial foreclosure process.

Four steps to foreclosures

Understanding the four steps to foreclosure can help prospective buyers to purchase properties at the best possible price.

1. Pre-foreclosure. This is the period during which a property owner starts missing payments but before formal legal action has been taken. During this time, a property owner may be more likely to consider any offer if it means saving their credit and avoiding full foreclosure.

2. Notice of Default (NOD). This is the first legal step taken in a formal process of foreclosure.

3. The foreclosure sale. Depending on whether it is a judicial or non-judicial process (each state varies), the foreclosure sale can take as long as a year. Judicial foreclosure sales are often held on courtroom steps as soon as a judgment is reached.

4. Redemption period. This is the time period some states (not Florida) allow for a property owner to get title back, provided they pay the full balance of the loan and various fees. Prospective buyers need to know if they are purchasing a foreclosed property that has a redemption period, since they won't want to make major improvements to the property until they know for sure it is theirs.

A pro -- and some cons -- to consider

Since no transaction is truly without risk, here are some downsides to foreclosures -- and one very good reason why purchasing a foreclosure may be right for you:

Pro
- A foreclosed property can often be purchased at a better price. In fact, the savings can be so significant it can outweigh all of the following cons:

Cons
- Foreclosures can be emotionally draining since they are the result of another person or family losing their American dream. - Very often, foreclosed properties have been left empty, neglected and vandalized, resulting in immediate expenses for the new owner. - The legalities of purchasing a foreclosed property can be much more complex and challenging than a traditional real estate sale. 

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