| If a borrower is unable to pay as agreed and they receive a
NOD, they have several options to rectify the situation. Please
be aware that when a NOD is filed it is a public record. For the
borrower who has received an NOD, their options are: (1) Bring
the loan current by paying as agreed.
(2) Attempt to renegotiate the terms of their existing loan
with the lender. If the lender is able to identify that the
problem in paying is a short term problem that has been or could
easily be resolved in a timely manner, then they may be willing
to alter the terms of the original loan to resolve the problem.
(3) Borrow money from another lender to cure the default. If
the property is currently worth more than the amount owed, the
owner has "equity" in the property. There are lenders who make
loans based on the equity in a property. Traditional lenders
like your neighborhood bank will generally not make these loans.
Equity lenders charge higher interest and fees than traditional
lenders, but they can be a short term solution. You can find a
list of
Equity
Lenders, also known as Hard Money Lenders, in
our real estate directories. Fill in the reply form at the
bottom of this page to receive a list of equity lenders in your
area.
(4) Sell the property. Selling a property for fair market
value is often a great way to make the most out of an unpleasant
situation. If you are in default, it is very important that you
hire a real estate agent in your area that is familiar with the
unique aspects of selling a property in default. Successful real
estate agents specialize in specific types of properties and
circumstances, hire one that is familiar with the specifics of
selling a property in default. Many agents who have listings for
REO Properties are skilled with this type of sale and may have a
relationship already with your lender.
(5) Utilize the services of a "Real Estate Investor".
Depending on the circumstances, using an investor may make
sense. Please beware that it is an unregulated industry and some
investors can be quite unscrupulous. The objective of the
investor is to purchase a property for less than its fair market
value, regardless of the strategy that they are using. There are
a number of publications and services that provide listings of
NOD filings. Many investors subscribe to these and it is likely
that an owner who receives an NOD will subsequently receive many
inquiries from investors. An NOD property, to the investor, is a
bargain opportunity. |