Foreclosure Bailout

Lis Pendens (Latin for “suit pending”) is a written notice that a lawsuit has been filed concerning real estate.  A property that has a lis pendens filed against it in county records is about to become a foreclosure.  If you are the mortgagor on such a property then take courage; it is not too late to redeem your house with the help of a “Foreclosure Bailout”.  

A Foreclosure Bailout is a mortgage loan based solely on the equity in your home.  The property must have a Loan-To-Value (LTV) of 70% or lower to qualify.  There are no credit or income underwriting criteria to be met.  Through a Foreclosure Bailout, the existing delinquent mortgage is paid off and you begin again with a new loan.  These loans, also referred to as “Hard Money” (or “Hard Equity”) loans, carry an interest rate of 10% to 15%, and can be made by institutional lenders or non-institutional lenders.  A non-institutional lender, also called a private lender, is an individual person and not a licensed entity.  The preferred source for a Foreclosure Bailout loan is an institutional lender that is licensed and regulated by the State in which the property resides.  In either case, make sure the monthly payments are paid on time each month with your personal check.  After twelve on-time payments (as evidenced with cancelled checks), you will most likely qualify for a refinance with another lender for a more favorable interest rate.

In this day and age there are many people that would like to buy your home at a discount and sell for a quick profit.  There are also many people unaware of the current value of their home.  You can put the property address in zillow.com to determine an approximate value of your home and then multiply it by 70% to estimate the maximum loan amount allowed on this program.  If the balance owed on your existing mortgage is less than the result then you may save your home through a Foreclosure Bailout.