Dear homeowner,

Through no fault of your own, you may be facing one of the greatest challenges of your life—how to prevent your property from being foreclosed upon.

Why let the bank take your most valued asset and leave you with nothing? Fortunately, alternatives exist. In fact, there are eight ways you can avoid foreclosure. They are:


 

• Refinance
• Bring your mortgage current
• Declare bankruptcy
• Create “shared equity”
• Transfer title
• Create a “workout” with the bank  
• Sell the property quickly
• LOAN MODIFICATION (Even if you are in Bankruptcy!)

Let’s discuss each option—what it is, and the pros and cons of using each one:

1. REFINANCE

In today’s marketplace, there are many different type of financial institutions that lend money. Although you may not be able to refinance with your local bank due to your current situation, there are many mortgage companies and lenders who specialize in creative financing solutions. That’s how they
can compete with the big banks. They are often able to review your situation and find a solution to your
needs.

It is true that the loan you get will probably have a higher interest rate than a regular loan. But if you
have a good amount of equity in your property, the ability to refinance may be a good option that’s
available to you.

We would be happy to recommend one or more quality mortgage brokers who may be able to help you
in your situation.

2. BRING YOUR MORTGAGE CURRENT

I know what you are thinking: “If I could bring my mortgage current, I wouldn’t be in this situation!” That
may be true, but have you investigated every possible way that you may be able to get the funds?

Can you borrow it from a friend, family member or co-worker? Can you sell something? Does your
employer have any hardship loan programs? Brainstorm with family members or close friends. The more
you think about it, the more likely it is that someone will come across a solution.

3. DECLARE BANKRUPTCY

Declaring bankruptcy is viable option to being foreclosed upon, but it should be used only as a last
resort. Also, use it only if you know that you will be able to keep up with the future loan payments.
Otherwise you’re just postponing the inevitable, and the longer you wait, the less money you will walk
away with from your property.

Bankruptcy will be reported in your credit report for seven years. The bankruptcy will also be
reported in the financial section of the newspaper—it’s a requirement from the bankruptcy court.
Declaring bankruptcy is also costly. When declaring bankruptcy, you will have the option to declare
either Chapter 7, 11 or 13 bankruptcy. These refer to different parts of the bankruptcy law and relate to
whether you are somewhat in debt and need to renegotiate with lenders, or whether you truly are going
to walk away from your debts. However, be warned that because you can only declare bankruptcy up to
every eight years, certain future debts might not be eligible for even bankruptcy protection.
The point is that bankruptcy should be your route of last resort. If you truly have no other alternative,
call us and we will give you the names of two or three reputable bankruptcy attorneys.

4. CREATE SHARED EQUITY

To create shared equity, you borrow the money from an investor, to make up your back
payments. In return for bringing your loan current, you give the investor a certain portion of the equity
on your property. You are giving up part ownership, in return for keeping part ownership: That beats
giving the whole thing over to your lender.

Of the seven methods to avoid foreclosure, this is the most difficult to accomplish, because there are
not many investors who are willing to risk money (the back payments) on an individual who has a history
of not paying and becoming at risk of foreclosure.

5. TRANSFER TITLE

This is a form of property sale. It’s called a “subject to” transaction. An investor offers to make up your
back payments and take over your property, subject to the existing mortgage.

The title of the property goes into the buyer’s name, though the mortgage stays in your name until the
loan is paid off. This could take as little as thirty days, or as long as three years.

You may ask, “How do I know the investor will make the payments?” The answer is quite simple: He has
just made up all of your back payments; he now has a financial stake in the property. It only makes
sense that he makes your payments to protect his investment.

This type of sale is becoming quite common. The benefits to you:
 

• You don’t have a foreclosure on your record. 
• You may get some cash immediately to start fresh. 
• You immediately solve your looming foreclosure.
• Your credit gets build back up through no effort of your own, because the investor makes up your back payments and begins making your monthly mortgage payments on time every month.

your back payments and begins making your monthly mortgage payments on time every month.
Before long, your credit score is once again in good standing.

You should look for an investor who’s experienced in this type of solution, and who is a member in good
standing with the Better Business Bureau.

We understand “subject to” transactions. Call us to discuss the possibility of doing one with you.

6. CREATE A “WORKOUT” WITH THE LENDER

The lender does not want to foreclose. That’s because lenders are in the business of having their
money at work in loans, and not sitting on a property they have taken back through foreclosure. Not
only is that a black mark on the lending institution, but it hurts their financial picture as well.

Therefore, in many instances lenders are willing to do “workouts”. What this means is that they are
willing to work out the back payments that are owed, until you become current again.

A typical workout would be the lender taking the full amount of your back payments and dividing that
number by 12 or 24. They would then add that amount to your current payments, until you are paid off.
When considering a workout, you’ve got to be able to make that extra payment each month or you will
be right back where you started—in the foreclosure process for the second time. At that point, the bank
will not look very favorably upon your situation.

It’s best to work with a workout specialist…someone who has done workouts before and knows the “ins
and outs” of the lending business.

7. SELL YOUR PROPERTY QUICKLY

Sometimes people just want to walk away from a bad situation and leave everything that reminds them
of that situation behind. In this case, you sell your property outright, collect any equity that you have in
the property and start over again.

One great thing about time is its ability to heal wounds. Yes, things may be bad now, but as Johnny Cash
always said, “This too shall pass”. It may be time to face what is happening, and act in your best interest
right now, for a better tomorrow.

A real estate agent can sometimes take three to six months to find you a buyer and close. If for some
reason that buyer cannot get financing or close on the property, you might be left in a real bind with a
looming foreclosure on your hands.

If you choose to sell your property quickly, we can help!
 

• No Cost To You
• Any Where
• Any Condition
• Money In Your Pocket
• We even help you move!
• Call us for a Fast, No Obligation quote 323-840-8565

8- LOAN MODIFICATION (Even if you are in Bankruptcy!)

US Legal Aid, a non-profit organization always has your best interests as a homeowner as our priority. 
Loan modification involves renegotiating the initial terms of a loan so that the borrower’s payments are more affordable. 
We know how hard you’ve worked and how much you’ve sacrificed to provide a safe and comfortable home for you and 
your family. We will work for you and with you to try and avoid foreclosure and keep you in your home. One of the ways we 
can help you avoid foreclosure is through loan modification. We handle everything from A to Z.
Call us 323-840-8565 for a FREE consultation.

JUST APPROVED!

CUT HOMEOWNER PAYMENTS DRAMATICALLY BY REDUCING INTEREST RATE, LONGER TERM &... HOMEOWNER IS VERY HAPPY!!!:
 

• 2% Interest Rate
• 40 Year term AND
• $549,000 PRINCIPAL REDUCTION!
• (Unheard of!!!)

Why wait? Call us now 323-840-8565. We handle everything from A to Z. We look forward to hearing from you!
Sincerely,

US Legal Aid Team- A Non-Profit organization
323-840-8565
support@legalaidofus.org 


50 States | Always Free Analysis

P.S. We’ve dealt with situations tougher than even the one facing you right now. Our business
is Loan Modification Solutions. You have nothing to lose—and everything to gain--by calling us
right now, to discuss your options.