Alternative Outcomes If you have come to BailoutCapital.com, you’re likely late on a mortgage and looking for alternatives.  If you are more than 89 days late on that mortgage, one of the following outcomes will be the end result.   Time and indecision are your greatest enemies and the outcome you choose is critical to your financial health and your future credit image.  Some of these strategies BailoutCapital.com’s advisors can support you to execute, the remaining you can execute yourself. **So that all parties are safeguarded, BailoutCapital.com transactions are each processed through title/escrow companies or title attorneys.

 BailoutCapital.com Areas of Assistance **

einstate the Loan: This option requires that you pay the lender everything that is owed (curing the default) with one lump sum payment that must “catch-up” all missed payments, all late fees, foreclosure fees, and legal fees. You may cure the loan with your own funds or negotiate to sell to one of Bailout Capital's investors, who will cure the loan upon receiving title, thus stopping the foreclosure action and the damage to your credit.

hort Sale: If you owe more than the property can be sold for, Bailout Capital may make an arrangement with you and the lender to sell it for less than is actually owed. The lender(s) must approve and normally results in no cash to you. Why do it then? It is preferable to losing a property through foreclosure or a Deed in Lieu then that action showing on your credit report for the next 7 to 10 years.   Where as a short sale implies a late payment status with a credit clean up period of about 2 years.

ash Sale: You sell your property, pay off the loan, and get cash out from the sale if there is excess equity. However, it is often a challenge to be able to sell quickly enough to beat the foreclosure clock, and frequently demands a substantial discounting of the price. If there is too little time to list and sell, or refinance before the auction, one of Bailout Capital's investors may make an all cash offer with cash proceeds to you if there is adequate equity.

Owner’s Processes

efinance: You may be able to refinance into a new loan through an affiliated lender. The new loan will likely have higher payments than your old loan, but will allow you to remain in your property and refinance again later at better rates after your credit has improved.  Many defaulting homeowners refinance just to buy time.  They execute this strategy in order to sell in a no distress transaction, thus selling at fair market value rather than accepting a deeply discounted price.

egotiate a Repayment Plan (Forbearance): This agreement between you and the lender requires higher payments than the regular monthly mortgage amount for a period of time until the loan is brought current.  Forbearance Plans are very similar except the lender allows several months of no, or greatly reduced, payments followed by higher than normal payments until you are current.

oan Modification: Negotiating a change in one or more terms of your mortgage. Convincing the lender to reduce the interest rate of the mortgage, change the mortgage product (like an adjustable rate switched from a fixed rate), lengthen the term of the mortgage or add delinquent payments to the mortgage balance are all examples of this strategy.

ankruptcy: While it has become more difficult in recent years to file, some defaulting borrowers are able to file for protection, typically through Chapter 13, in order to stall the foreclosure action.  It is a tactic that works only if you have a strategy to rescue yourself and need a brief amount of additional time to accomplish the plan. Otherwise you simply add to your credit woes with the addition of a BK to your credit history.

eed-in-Lieu: You voluntarily deed your property back to the lender in exchange for a release from all obligations under the mortgage.  Lenders accept this strategy to lower their cost of foreclosing, but the damage to your credit is as severe as a foreclosure.

o Nothing: Your very worst choice. The lender forecloses and the home is sold.  Your credit will be ruined; you will still have to vacate the property or be evicted, and bad credit makes it difficult to rent.