The Law Offices of Ryan E. Simpson P.C. works with individuals through out Utah to avoid foreclosure.  In today’s current market, many homeowners in Utah are behind on their mortgage, owe more on their home then it is worth, and/or are facing foreclosure.  Many people facing foreclosure in Utah may believe their situation is hopeless and that there is no way to save their home or stop the foreclosure.  If you live in Utah and you are facing foreclosure, you still options.

1. Do Nothing:  If a homeowner does nothing, they most likely will lose their home at a foreclosure auction.  Loan applications generally ask if the applicant has ever been foreclosed upon.  Credit reports also disclose this damaging information.
2. Payoff/Refinance:  Completely paying off the entire loan amount plus any default amount and fees.  Usually, this is accomplished through a refinance of the debt.  New debt is a normally higher interest rate and there may be a prepayment penalty because of the recent default.
3. Reinstatement:  Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. 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. To qualify, you must prove to the lender you have fixed the problems that caused the late payment.
5. 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.
6. 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.
7. Bankruptcy:  This option can liquidate debt and/or allow more time.
   1. Chapter 7 (Liquidation) To completely settle personal debt (exemptions apply)
   2. Chapter 13 (Reorganization) Payments are made toward a plan to pay off debts in 3-5 years.
   3. Chapter 11 (Business Reorganization) A business debt solution
8. Sale:  If the property has equity (money left over after all loans and monetary encumbrances are paid).  The homeowner may sell the home without lender approval through a conventional home sale.  In this case, the homeowner will get cash from the sale.  On the other hand, a Short Sale can be negotiated with your lender if what is owed is MORE than the fair market value.

If you are facing foreclosure, contact the Law Offices of Ryan E. Simpson P.C. to further explore your foreclosure alternatives in Utah.    Contact us to schedule your free consultation by phone at 801-432-8682 or email at info@bnkut.com.