Select Page

By Richard Woodfork
The author has permitted the reprinting and redistribution of this article.


Welcome back. I posted the first part of this article, Take Steps to Avoid Foreclosure (Part 1). I discussed my observations while driving through a neighborhood in Chicago. The things I saw are not unique to this area. Foreclosure is an epidemic that plagues neighborhoods across the country– rich and poor, urban and rural.


I was watching the news this morning and heard the continued reports about the collapse of Lehman Brothers, Freddie Mac, Fannie Mae, and Bear Stearns. And within the past few days, the Federal government has agreed to give $85 BILLION to AIG, the world’s largest insurer. If large companies like these feel the stresses of the economy, imagine what we are feeling.


I point out these news stories so that people will take action to resolve their situation. The previous article focused on your actions before the lender files a formal lawsuit. This article will give you some tips to help you if the lender has already filed.


After the lender has filed a formal lawsuit against you, your options become more limited. Additionally, time is of the essence. All parties of the lawsuit must adhere to a certain timetable. Because I am not an attorney and the laws differ from state to state and county to county, please refer your questions to an attorney. Perhaps I will have an attorney write an article for this blog in the future. Stay tuned to this blog by signing up in the upper right hand corner so that you won’t miss any information. We will post links to various resources. Here are your options after the lender has filed a notice of default


1. Reinstate the loan – You may pay the lender the back payments, interest, penalties, legal expenses, and all other expenses associated with the collection of the debt and reinstate the loan. This action will stop the foreclosure.

2. Sell your house – This is fairly straight-forward. There are three ways that you can sell your house– through a real estate agent, for sale by owner, or to an investor. There are pros and cons to the three ways. Sign up to receive updates to this blog. We will post an article about the pros and cons of each. To help you get started, read another article that was posted on this blog, Tips to Help You Sell Your House in Today’s Market.

3. Seek a short sale – If your house is worth less than what you owe, you may convince the lender to accept a short sale. A short sale is when the lender accepts less than what you owe as full payment of the loan. There are various laws and criteria involved. Additionally, there may be paperwork that must be completed before the lender even agrees to ponder a short sale. If you are interested in pursuing a short sale, submit information about your property to us. We have relationships with various firms that negotiate short sales.

4. Sign a deed-in-lieu of foreclosure – When you sign a deed-in-lieu of foreclosure, you are effectively giving title to the property to the bank. It helps to cut down on the added expenses of the foreclosure. Your credit will be affected. Contact a national credit restoration law firm today to help with your credit.

5. File bankruptcy – Bankruptcy should be a last resort. Please keep in mind that the bankruptcy will not stop the foreclosure. It will only postpone it. Contact a bankruptcy attorney for more information.


There you have it. The keys to surviving a foreclosure is maintain a cool head and rational thinking. If you would like a hassle-free offer on your home, contact us today. We have experience with dealing with people who are behind on their payments or in foreclosure.


Legal Disclaimer


Every effort has been made to comply with federal, state and local laws regarding the material presented. We make no representations or guarantees that the material will work for your particular needs, and we disclaim any warranties, express, implied or for any particular purpose you may need. You understand that all material is provided for example only and that it is strongly advise that you seek legal counsel for advice to make certain it is applicable to your situation. It is also advised that you review the potential financial and tax implications of any actions with a qualified professional before proceeding. is a network of private real estate investors. We buy property in any area and in any condition. We are able to close deals that may be hard to close or not attractive to close by most investors.


If you would like to take advantage of the market and learn how to invest in real estate and you are local to the Dallas Fort Worth area, I know a really great teacher and mentor here in Arlington Texas. Please take a look at his web site:, Dennis has a great Mentoring and training program, I know because I am one of his former students. I learned a lot from his one on one teaching technique. – Michael Harman 817-457-7572

× IMPACT Support Available from 09:00 to 21:00 Available on SundayMondayTuesdayWednesdayThursdayFridaySaturday