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!
Judicial vs. Non-Judicial Foreclosure: Know the Difference
Understanding the foreclosure process is crucial when dealing with distressed properties. The key difference lies in whether the process involves the court system:
Florida Judicial Process
Here’s an overview of the Florida foreclosure process, it slightly varies from state to state…
The foreclosure process in Florida is a legal procedure that allows a lender to repossess a property when the borrower defaults on mortgage payments. Since Florida is a judicial foreclosure state, the lender must go through the court system to foreclose on a property.
Below is an overview of the foreclosure process in Florida.
1. Missed Payments and Default
📌 The process typically begins after 90–120 days of missed mortgage payments.
📌 The lender sends a Notice of Default (NOD) or breach letter, informing the borrower of the default and offering a chance to cure it.
2. Acceleration Clause and Demand Letter
📌 If the default isn’t cured, the lender may invoke the acceleration clause, demanding full loan repayment.
📌 A demand letter is sent, giving the borrower 30 days to pay the full amount.
3. Filing the Foreclosure Lawsuit
📌 If the borrower doesn’t resolve the default, the lender files a foreclosure lawsuit in court.
📌 The borrower is served a summons and complaint and has 20 days to respond.
4. Borrower’s Response
📌 The borrower can file an answer, contesting the foreclosure or raising defenses.
📌 If no response is filed, the court may issue a default judgment in favor of the lender.
5. Court Proceedings
📌 If contested, the case moves through discovery and court hearings.
📌 The court may grant a summary judgment if the lender proves foreclosure is legally justified.
6. Final Judgment of Foreclosure
📌 If the lender wins, the court issues a Final Judgment of Foreclosure, setting a sale date.
📌 The borrower may still redeem the property by paying the full amount before the sale.
7. Foreclosure Sale
📌 The property is auctioned publicly after being advertised in a local newspaper for two weeks.
📌 The highest bidder wins the property. Lawyer and Realtor fees will be deducted from sale.
8. Post-Foreclosure Eviction
📌 If the borrower remains in the home, the new owner must file an eviction lawsuit.
📌 The borrower typically has 10 days to vacate after the eviction notice.
🔹 Key Points to Remember:
✔️ No Redemption Period – Florida does not allow redemption after the foreclosure sale.
✔️ Deficiency Judgments – Lenders may seek a deficiency judgment if the sale doesn’t cover the loan balance (except for homestead properties).
✔️ Timeline – The foreclosure process can take several months to over a year, depending on legal challenges and court schedules. Remember, Lawyer fees will always be adding up aggressively.
Avoid Costly Financial Mistakes
Many homeowners make critical errors, such as:
- Selling your property for less than fair market value due to situational pressures.
- Failing to explore creative financing options.
- Ignoring hidden loan costs.
- Not asking the right questions.
- Overpaying interest over the loan’s lifetime.
- Focusing only on short-term solutions.
- Lacking professional guidance.
- Slow decision making while the lawyer fees are adding up.
Understanding all available strategies can save you thousands of dollars and prevent financial hardship.
Get a FREE, No-Obligation Review of Your Situation
If you’re reading this, I want to offer you a completely free, no-obligation review of your current situation. Whether you’re struggling with your mortgage, considering refinancing, or thinking about selling your home, I’m here to help you explore all your options.
What Can You Expect?
✅ Personalized Guidance – I’ll ask a few questions about your situation and what you hope to achieve.
✅ Real Solutions – If refinancing is an option, you might be surprised at the interest rates available—even with bad credit.
✅ Selling Your Home? – My investment group and I may be interested in buying your home, offering multiple solutions tailored to your needs.
No Sales Pitch – Just Honest Advice
I’m not here to “sell” you anything. My goal is simple: to provide clarity and guidance so you can make informed decisions. If I can help, I’ll let you know. If I think you’re already in a good position, I’ll tell you that too. And if I see red flags that require urgent attention, I won’t sugarcoat it—I’ll give you the straightforward truth.
A Quick, No-Stress Conversation
In just 30 minutes, we can assess your situation, discuss potential strategies, and ensure you have a clear plan moving forward. No more uncertainty. No more feeling stuck. Just a clear path toward your best possible outcome.
🚀 Take the First Step Today!
I can’t help if I don’t hear from you! Call or fill out the form below for your FREE review today. Looking forward to speaking with you!
Sincerely,
Dan Charron
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