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Alternatives to Foreclosure in Woodbridge Virginia 

7 Options when facing Foreclosure:

1. Do Nothing: If a homeowner does nothing, they most likely will lose their home at a foreclosure auction.
   
   
2. Loan Modification: Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. The banks have strict guidelines to qualify for a loan modification.
3. Payoff/Refinance: Completely paying off the entire loan amount plus any default amount and fees. Usually, this is accomplished through a refinance. In order to refinance your loan you generally need to have equity in the home and you have to qualify for the refinance by the lender.
4. Forbearance: Lender may be able to arrange a repayment plan based on the homeowners financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
5. Deed in Lieu of Foreclosure: Give the property back to the bank instead of the bank foreclosing. Banks generally  require the home to be well maintained, all mortgage payments and taxes must be current.
6. Bankruptcy: This option can liquidate debt and/or allow more time.
   – Chapter 7 (Liquidation) To completely settle personal debt
   – Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years.
   – Chapter 11 (Business Reorganization) A business debt solution 
7. Short Sale: A Short Sale (also known as a pre-foreclosure sale) can be negotiated with your lender by the Real Estate Professional if what is owed is more than the properties value.