Indianapolis Area Real Estate Blog

Are You Facing Foreclosure?

A Homeowner’s Nightmare

With the economic crisis we are facing in the real estate sector of our economy, many homeowners are realizing their home may not be the investment they thought. The dream of home ownership has turned into a nightmare which haunts them daily. In Indianapolis, we have many homeowners whose payments reset or adjusted and combined with a higher tax payment made a significant impact on their ability to stay ahead of their payments.

Missed Payments

 It doesn't take much in these circumstances for a homeowner to get behind. The birth of a child, an extended illness, a job loss.....any of these can cause an intial missed payment. Unfortunately, if the homeowner hasn't been in the home for more than 5-6 years and did not put any money down, they find themselves unable to sell their home for enough money to satisfy the debt and pay the costs to close. By the time a homeowner has missed their third payment, they are considered to be in a pre-foreclosure situation.


Many times homeowners avoid contact with their lender, hoping somehow next month will bring relief. The first thing you should do is contact your lender. Many lenders are offering help to their clients who are behind through loan modifications, forebearance, repayment plan or refinancing. In recent articles I have written about help for homeowners. You need to contact your bank to find out if there is a program available for you.

Hope for Homeowner Program

Bank BailOut Programs

If you have extenuating circumstances which disqualify you for any type of assistance for a workout program with your bank, there are still a few options available to you:

Bankruptcy - This will temporarily stop the foreclosure process. However, there are many legal ramifications to bankruptcy. You should seek a competent attorney.

Deed in Lieu of Foreclosure - The homeowner gives up the deed to the bank and the bank does not foreclose. The bank must agree to the deed in lieu of foreclosure.

Short Sale - When a properties' value is less than what is currently owed, a short sale allows the homeowner to sell the home for less than is owed. The bank must approve a short sale.

Refinance - This is usually not an option once you have missed a few payments.

Personal Loan - If the situation which led to your delinquency has been resolved, you could borrow money from a family member.

Whatever you do, contact a competent professional who can asist you in determining the best options for your specific needs.

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