Creative Financing & Foreclosure Assistance Insights from My 25 Years of Experience
– By Dan Charron
- Be Aware of Who’s Really Helping You.
Is anyone protecting you? Are you getting the right advice? Just who is on your side anyway? One of the first lines of defense you can take as a homeowner is to take a hard look at who’s really helping you. Other than friends, relatives and acquaintances, you need some good sound advice, right? So, whom do you turn to? You’ll have to answer this question for yourself. - Understand Banks…!
It’s actually surprising how many homeowners just google and off they go on their search for a new loan! Before spending your valued time calling around in search of a new loan, I can show you a great way to find the best Private Lenders to assist you. I work with a pool of private lenders who value your time and are efficient in getting things done. If a loan isn’t feasible due to your specific situation, they’ll inform you promptly so you can work on plan B.
Keep in mind that big banks are in the business of loaning money, in order to make lots of money. Ironically, most banks lend money to people who really don’t need it. Banks are mainly in the risk-avoidance business. I advise you to work with mortgage specialists or brokers who tend to be very motivated and work hard to help you. But, you have to be careful. Not all mortgage companies are on the up and up. Some can waste your time. Some may call the loan due at the end of the term which is usually yearly . Many will increase the interest rate thereafter making your monthly payments higher. Make sure you carefully read all the paperwork before the closing! This is also where I can help! - Understand Financing…!
Decisions about interest rates, equity depletion, the length of the loan, and so on, need careful analysis BEFORE you consider refinancing your home. And, when it comes to making these choices, you need to first be aware of all the alternatives and options so you avoid making financial mistakes and falling even deeper into any hidden financial traps! - Be Aware of Questions You’ll Be Asked!
Why are you behind in your payments? What can you do differently in the future to assure us that you will not get into the same situation again? Your income? Number of years employed? Self-employed? Funds available for down payment? Other credit problems? How much do you want to spend per month? How much you can afford to spend each month? What are your means of repaying the new loan? Will you be financing for a private mortgage? If you do, good news, they don’t nor care about your credit history. However do you understand the pitfalls of such a loan?
The major banks present an even greater challenge. If private lenders are unwilling to approve your loan, securing financing from a big bank will be significantly more difficult. In my 25 years in this industry, I have never encountered a case where a private lender declined a mortgage while a major bank approved it. - Determine: What Will Be the Least Expensive Financing in the Short and Long Run?
That’s what you want, right? Don’t you want the loan to cost you the least? Sure…but it’s also important to know HOW to make the right choices and calculations so that you DO pay the least amount possible, for both your short and long term financial standing!
But, just like a doctor, each person’s options need to be thoroughly diagnosed before prescribing any medication. So don’t go into the refinancing arena without first examining your present financial situation, and the long-term affects that refinancing, verses perhaps, outright selling can have! You must evaluate where you will be in both the long term and the short term. The worst decision I see being made is where someone refinances, only to find there right back in the same situation within the year. At this point, they typically lose it all: home, credit and self-esteem. - Understand Creative Financing Options!
Sometimes, conventional/normal-refinancing channels (banks, credit unions, mortgage brokers, private lenders) just won’t work out for some reason or another. Now we’re going to quickly take you through some various “creative financing” options. Take note of the different alternatives to saving your home utilizing these strategies!
Equity Sharing
– partner(s) put up part of required cash to cure foreclosure
– partner(s) pay part of monthly payment
– partner(s) get some percentage of ownership
– partner(s) get their money out at refinancing or sale down the road
Private Mortgage Lenders
– rich people or pool of investors
– loan money to poor credit buyers, although at high rates
– they can be refinanced when your credit is re-established
– Mortgage renews every year, you must be prepared for a higher interest rate.
Find More Money For The Down Payment
– life insurance policies
– family members
– RRSP or retirement plan loans
– selling assets like collectibles
Owner Financing: You take on the role of the bank for the investor or new owner, holding the title while earning a steady income through monthly payments at a favorable interest rate. This strategy allows you to maximize your equity but is typically only viable when there is significant equity in the property.
Subject To
An investor covers the overdue payments and assumes ownership of the title and mortgage obligations.
Benefit #1…
Allowing you to save and rebuild your credit.
Benefit #2…
No need to list your property through a realtor.
Benefit #3...
Investor keeps property in good upkeep and pays for all repairs to keep property in good condition.
Benefit #4…
If the investor fails to make payments or damages the property in any way, the property can legally revert to your ownership, and any equity they have accumulated will be forfeited to you.
Benefit #5…
A third party (servicing company) handles all mortgage payments made to the bank and lets you know every month when payment are made. All payments made 3 days before mortgage date.
Benefit #6…
Save on realtor fees and in many cases get full retail price on your property sale. This will occur when investor gets a new mortgage at the later agreed to set date.
As usual, make sure you get all the information you need to make the right decisions, before you take any action! I can show you a bunch of ways to generate the money you need to refinance a home or sell it and get top dollar! - Protect Yourself Legally From Every Angle! In Arizona for example, the foreclosure process primarily follows a non-judicial route, meaning it does not go through the court system unless a lender chooses to pursue a judicial foreclosure (which is rare).
Here’s an overview of the Arizona foreclosure process, it slightly varies from state to state…
Missed Payments & Notice of Default (NOD)
– Lenders typically allow a grace period after a missed mortgage payment. If payments remain unpaid for 90 days or more, the lender issues a Notice of Default (NOD) and records it with the county recorder’s office.
Notice of Trustee’s Sale
– After at least 120 days of delinquency, the lender files a Notice of Trustee’s Sale, officially starting the foreclosure process.
– This notice must be recorded at least 90 days before the auction and mailed to the homeowner.
Reinstatement Period (Before the Sale)
– Until 5:00 PM the day before the auction, homeowners can stop foreclosure by paying the full overdue amount (including late fees and legal costs).
– Some homeowners negotiate loan modifications, short sales, or file for bankruptcy to delay foreclosure.
Trustee’s Sale (Foreclosure Auction)
– The home is sold at public auction to the highest bidder.
– If no one bids, the property reverts to the lender (becoming Real Estate Owned, REO).
Post-Foreclosure & Eviction
– Arizona has no redemption period after a trustee’s sale, meaning the homeowner cannot reclaim the property after foreclosure.
– If the former homeowner does not vacate, the new owner may file for eviction.
Key Arizona Foreclosure Laws & Protections
Deficiency Judgments:
In some cases, lenders cannot pursue additional money if the home was a primary residence and meets specific conditions.
Right to Reinstate:
Homeowners can stop foreclosure anytime before the sale by paying the overdue balance.
Anti-Deficiency Protections:
If the property is a single-family home on 2.5 acres or less and used as a primary residence, the lender cannot sue for the remaining balance if the foreclosure sale doesn’t cover the loan.
Curing Foreclosure & Saving Credit Errors!
You should now understand that there are many, critical factors in determining the fate of your home ownership. There are also critical errors being made everyday, such as:
• Not understanding creative financing
• Not being aware of hidden costs
• Not asking the right questions
• Paying too much interest over the life of the loan
• Listening to the wrong people and misleading suggestions on what you should do
• Seeing only short term financial options…instead of long term too
• Not having proper professional help!
I hope you have realized all the different elements involved in refinancing your home during this time of crisis. Most of all, I hope you will now know how to avoid these costly mistakes, and save yourself thousands of dollars!
As much as I would have liked to tell you that curing a foreclosure is a simple experience and takes no skill or knowledge, I simply can’t do that to you! You must be observant, open to ideas, and plan the best moves to save your credit and your home from the inevitable!
A FREE REVIEW
For everyone who reads this Free Report, I also offer a FREE, no obligation review of your situation. I will ask you some questions about how you feel about your current situation, and where you’d like to go and see if there’s anything I can do to help you. Remember, refinancing your home is possible at an interest rate that will surprise you, even if you have bad credit. If you have decided that you don’t want to refinance and are ready to move on, I, or my investment group, may be interested in buying your home. With your property, I’ll probably be able to structure several options, and let you choose the one that best suits your needs.
I will NOT try to “sell” you anything! As you can probably tell from this report, that’s not my purpose. All I do is see if I can offer help and advice, and you decide where to go from there. If there is nothing I can do, I will tell you so, and that will be that. If I think you’re in fine shape, I’ll tell you that. If I think you’re heading into one of the biggest disasters I’ve ever seen and need immediate attention, I’ll tell you that as well.
You see, with all the people I assist, I only want to work with those people I can really help and that really want to be helped. I’m never interested in taking new clients if they aren’t exact right for me…and if I’m not exactly right for them.
It Will Only Take 30 Minutes….
All it takes is simply a half hour or so for us to meet, to listen to what you want to accomplish, and to weigh your options! Then, whenever you are ready, you’ll know that you have a set plan to follow. You will not fall into the “not planning to fail…failing to plan” syndrome after your situation has been diagnosed!
All I can do is take a hard look at your current situation, and help you in finding the best paths possible to getting what you want! I can’t help you if I don’t hear from you, so call or fill out your info below for your FREE review today! Thanks, and I look forward to talking with you!
Sincerely,
Dan Charron